Against a backdrop of rising unemployment and businesses trying to cut healthcare costs, health plans in Pennsylvania are increasing their offerings of individual products and fielding group plans with higher deductibles well into the thousands of dollars. At the same time, Gov. Ed Rendell's administration has scaled back its grand plan for healthcare reform this year to a simple expansion of the existing adultBasic program for the uninsured. Meanwhile, now that Pennsylvania's two largest health plans have backed away from a merger, the insurers will likely pursue informal partnerships, such as having Independence Blue Cross' pharmacy benefit manager take on Highmark's customers. Also, Pennsylvania remains a strong state for Medicare Advantage, but the enrollment trend appears headed away from the HMO and to the PPO.