Elevance Health to acquire BCBS Louisiana
The combination builds on a collaboration through joint ownership of Healthy Blue, which serves Medicaid and Medicare Dual Eligible members.
Photo: Mikolette/Getty Images
Elevance Health, formerly Anthem, is poised to acquire Blue Cross Blue Shield of Louisiana, having entered into a definitive agreement this week to snag the insurer, with BCBSLA joining Elevance Health's affiliated Anthem Blue Cross Blue Shield family of brands.
The two organizations said they're "aligned in a mission" to improve access, quality and affordability for Louisianans.
The combination builds on the existing collaboration in Louisiana through joint ownership of Healthy Blue, which serves Medicaid and Medicare Dual Eligible members.
BCBSLA will serve more than 1.9 million members with capabilities developed by Elevance Health and its healthcare services organization, Carelon. With more than $4 billion invested over the past several years, Carelon delivers behavioral health, complex and chronic care programs, as well as digital models, the companies said.
WHAT'S THE IMPACT
The Louisiana plan headquarters will remain in Baton Rouge, and will continue to serve its customers locally through its workforce of about 3,000 employees.
An additional benefit of the transaction, the companies said, will be the creation of a multibillion-dollar foundation, the Accelerate Louisiana Initiative. The foundation is being created, said Elevance, to "address the unique and complex needs" of the people of Louisiana by addressing health inequities and strengthening local communities.
The acquisition is expected to close later this year and is subject to customary closing conditions and receipt of certain required approvals.
Upon closing, Elevance Health's affiliated Anthem Blue Cross Blue Shield plans will now operate within 15 states across the country.
"Elevance Health and Blue Cross and Blue Shield of Louisiana will combine strengths to provide services unique to the needs of Louisiana to better serve members through a whole health personalized approach," said Elevance Health President and CEO Gail Boudreaux.
THE LARGER TREND
Elevance Health announced the launch of healthcare services brand Carelon in June 2022; over the next two years, it will consolidate its existing broad portfolio of capabilities and services businesses. Carelon services range from research to integrated whole-person care delivery, pharmacy, behavioral health to digitally enabled solutions.
The previous acquisition that had been announced by Elevance was that of BioPlus, a comprehensive specialty pharmacy, in November. BioPlus provides a range of specialty pharmacy services for patients living with complex and chronic conditions, such as cancer, multiple sclerosis, hepatitis C, autoimmune diseases and rheumatology.
Elevance took in $1.6 billion in profit in the third quarter of this year, marking a 7.2% gain from the same period in 2021. Revenues reached $39.9 billion, up 11.5% from the $35.8 billion in revenue posted a year ago.
ON THE RECORD
"Blue Cross and Blue Shield of Louisiana is a strong and vibrant company with a history of serving Louisianians for almost 90 years," said Dr. I. Steven Udvarhelyi, president and CEO of Blue Cross and Blue Shield of Louisiana. "However, to remain strong in today's environment with an ability to provide leading innovations, products and capabilities, we concluded that we needed a partner that could help us deliver these faster and better than we could alone. Aligning with Elevance Health – a national healthcare organization that has been our trusted partner since 2017 – will allow us to accelerate our mission of improving the health and lives of Louisianians."
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
