Public hearings on the proposed sale of the nonprofit health insurer Blue Cross and Blue Shield of Louisiana to for-profit Elevance Health have been sidelined for now, though the parties hope to refile the proposal sometime in the future.
The controversial acquisition, which state Attorney General Jeff Landry has raised questions about, requires the approval of the Department of Insurance, but BCBSLA said last week it would delay a regulatory hearing on the $2.5 billion sale.
“We received withdrawal notices from both organizations and will review any submissions that come through the department in the future,” Department of Insurance spokesman John Ford told the Louisiana Record in an email.
Both Elevance and BCBSLA officials said in January the proposed acquisition would benefit Louisianans through improved services, including behavioral health and chronic care. Under the plan the Louisiana health plan headquarters would continue to be located in Baton Rouge, and a multibillion-dollar foundation would be created to better serve local communities, according to BCBSLA.
A joint statement from BCBSLA and Elevance emphasized that the two parties agreed to move forward with the acquisition to improve health outcomes for state residents and to provide more high-quality services for stakeholders.
“... One theme continues to emerge, and that is our key stakeholders would like more time for questions to be addressed about the plan of reorganization,” the statement emailed to the Record says. “Since we are committed to making sure these questions are answered, BCBSLA and Elevance Health do not believe it is the right time to hold public hearings and a policyholder vote.”
The decision comes in the wake of a meeting between BCBSLA officials, Gov. John Bel Edwards and Landry.
“We have chosen to withdraw BCBSLA’s plan of reorganization and Elevance Health’s acquisition application from the Louisiana Department of Insurance to provide more time for key stakeholders to understand the benefits this transaction will provide to Louisianans and how the quality service our stakeholders know, and value, will continue,” the statement says.
The parties also stressed that they see the transaction as the right step to develop capabilities BCBSLA could not develop on its own.