The proposed sale of Blue Cross Blue Shield of Louisiana to Elevance Health is off. Louisiana Insurance Commissioner Tim Temple says his office received word last night from Blue Cross that it decided to withdraw its plan to merge with Elevance.
“The withdrawal of the application forecloses further consideration of this matter,” said Temple.
Temple’s office scheduled a two-day public hearing on the proposed sale, but it was canceled before it started Wednesday morning.
“There are serious questions that require answers to provide protections and safeguards for Louisiana ratepayers and providers,” said Temple.
Temple’s approval was needed for the sale to go through. The commissioner says he received a lot of public input on the proposed transaction/
“The Louisiana Department of Insurance received numerous public comments on this proposed transaction from members of the public, and I want them to know I read, considered and appreciated what they had to say,” said Temple. “I have and always will stand on the side of Louisiana ratepayers and am honored to always have their backs.”
UNO Department of Economic and Finances Chair Walter Lane says there was a lot of resistance to the proposed sale because Blue Cross failed to explain why as a non-profit it’s necessary to merge with a for profit company.
“It’s clear they go a lot of negative response and I think part of it they haven’t been able to successfully explained why it is advantageous the policyholders and the citizens of Louisiana,” said Lane.
This is the second time Blue Cross has decided not to move forward with a merger with Elevance. Blue Cross CEO Steve Udvarheyli told lawmakers he’s concerned about the future of Blue Cross, because health care costs are rising faster than the premiums it charges.
Lane says it’s a legitimate concern and it’s why they need a partner.
“They don’t have the economies of scale and they don’t have the technology in the long term to compete with the other guys in a changing marketplace,” said Lane.
Here is audio of Tim Temple’s full statement.
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