Blue Cross and Blue Shield of Louisiana delays sale to Elevance Health

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Blue Cross and Blue Shield of Louisiana has chosen to withdraw its plan of reorganization and Elevance Health's acquisition application from the Louisiana Department of Insurance, according to the nonprofit health insurer.

Elevance Health, formerly known as Anthem, is the largest for-profit managed healthcare company in the Blue Cross Blue Shield Association.

The action, which BCBSLA has characterized as a delay, is to provide more time for stakeholders to understand the transaction's benefits and how the quality service that stakeholders know and value would continue.

There is no new timeline for refiling the plan of reorganization. 

"The connection between BCBSLA and Elevance Health remains the right partnership at the right time for the best health outcomes that Louisianians need and deserve," according to a joint statement from BCBSLA and Elevance Health. "We are determined to meet these goals. However, 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. 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."

WHY THIS MATTERS

The merger would give BCBSLA access to Elevance Health's pharmacy benefits manager, Carelon, and its cost-saving prescription drug program, EnsureRx.

It would preserve BCBSLA as a vibrant, local company into the future, Blue Cross said.

"Blue Cross and Blue Shield of Louisiana and Elevance Health entered into this agreement with a mutual goal to improve the health outcomes and lives of all Louisianans by offering new programs alongside the highest quality services that BCBSLA stakeholders have relied on for decades," the companies said. "We believe that our partnership can best preserve BCBSLA as a vibrant, local company long into the future."

THE LARGER TREND

The $2.5 billion merger was first announced in January. 

The delay followed political pressure by attorney general and gubernatorial candidate Jeff Landry, according to Unfiltered With Kiran. Landry told the two companies that the deal shouldn't be finalized until after a new governor and insurance commissioner were elected, according to the report.

Also, political and healthcare leaders raised concerns about potential premium increases and how proceeds from the sale would be divided between policyholders and a foundation Blue Cross said it would create and control, the report said. 

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org