Highmark Inc. and Independence Blue Cross today announced their boards have approved a merger agreement that would combine the two organizations and maintain dual headquarters in Pittsburgh and Philadelphia.

The companies said the agreement would allow the combined operations to hold administrative fees flat for two years, resulting in direct savings to customers of $300 million; better manage prescription drug costs, which are expected to result in $280 million in drug cost savings for customers; and provide more than $650 million to help expand access to health insurance for Pennsylvania's uninsured population.