Months after Blue Cross and Blue Shield of Louisiana tabled a plan to sell itself to Indiana-based Elevance Health is moving ahead.
The non-profit Blue Cross, which insures 1.9M Louisianians, filed a new application Dec. 14 with the Louisiana Department of Insurance to reorganize into a for-profit company that could then be purchased by Elevance Health.
The initial $2.5B deal came under fire with some doctors and hospitals arguing it could limit patient access to providers and policyholders questioning the amount of the proposed payout.
That deal also ran into trouble at the State Capitol, where state legislators questioned Elevance's track record.
BC&BS has argued the sale to the publicly traded insurance giant would bring the latest technologies to better service and potentially lower health care costs to customers.
Many of the major elements of the proposed acquisition are largely unchanged (sale price and the percentage of the sale's proceeds go to 92,000 policyholders).
The new deal includes changes to the non-profit foundation that will be formed in the transaction and set to receive 91% of the sale's proceeds.
The Accelerate Louisiana Initiative will now have an expanded board of directors that includes an appointee of Gov.-elect Jeff Landry. It will also include a non-voting "observer" appointed by newly elected Insurance Commissioner Tim Temple. (NOLA.com 12/14/23) Louisiana insurer Blue Cross to sell to Elevance Health | Business News | nola.com
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