A two-day public hearing on the proposed sale of Blue Cross Blue Shield of Louisiana to Elevance Health of Indiana has been canceled as the Louisiana Department of Insurance has been informed the acquisition is off. Several state lawmakers have been concerned about this proposed sale and what it would mean deal for Blue Cross’s one-point-nine million policyholders.
Senate Health and Welfare Chairman Patrick McMath says Elevance Health has a troubled history
“Elevance has a terrible track record across the country. With regards to premium, increasing quality of care dropping and their profit soaring.”
But Elevance Health says Louisiana ranks dead last in almost every public measure in healthcare. They say the acquisition would lead to more affordable care, a better overall experience and improved health outcomes. Elevance Health says its resources can also bring better technology. But Shreveport Senator Thomas Pressly remained skeptical.
“A lot of their fines, the one billion dollar fines they have over the last 24 years, have been related to their technology issue.”
Prior to Wednesday morning’s news that the sale is off, McMath said the proposed sale needed to be stopped.
“Clearly its going to be good for some of the folks that sit on the Blue Cross board. It’s going to be good for Elevance out of Indiana. But it very little in way of substance to the benefits for the folks of Louisiana.”
Here is the statement from the Louisiana Department of Insurance.
Late yesterday evening, Blue Cross notified the LDI that it has chosen to withdraw its Plan of Reorganization. The hearing scheduled for today and tomorrow is therefore canceled, and I currently have no information regarding Blue Cross’ intentions moving forward. Any questions about why Blue Cross is withdrawing should be referred to BCBSLA.
Here is a statement from Blue Cross Blue Shield of Louisiana
Since we announced our intent to be acquired by Elevance Health last year, it has become abundantly clear that the work we do each day is not only appreciated by our members, providers, group leaders and broker partners, it is highly valued.
We continue to hear from our stakeholders that they want Blue Cross and Blue Shield of Louisiana to remain their trusted partner in their healthcare journey, and we pursued this transaction to help us do exactly that – by changing for the better. However, it is clear that our stakeholders need more time and information to understand the benefits of the changes we have proposed. This is why we have decided to again pause the process in our proposed transaction with Elevance Health. This means that we are withdrawing our filing with the Louisiana Department of Insurance. We are also cancelling the policyholder proxy and vote process, including the special policyholder meeting that was scheduled for Feb. 21.
We know that change is hard, even when change is made for the right reasons. We continue to believe we need a strong partner to help position us for a vibrant future, and to help us make healthcare more affordable and to help us do more to improve the health of members and policyholders. However, now is not the right time to make this bold step.
BCBSLA remains focused on serving our customers and remaining the healthcare partner of choice in Louisiana for the next 90 years and beyond.
Comments