BCBS of Louisiana again puts Elevance Health deal on hold
The insurer says it believes it needs a strong partner to help position the company for a "vibrant future" and to make healthcare more affordable.
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Blue Cross and Blue Shield of Louisiana has again delayed its merger with Elevance Health.
Blue Cross said Wednesday it is withdrawing its filing with the Louisiana Department of Insurance. It is also canceling the policyholder proxy and vote process, including the special policyholder meeting that was scheduled for February 21.
Last year, Blue Cross had announced its intent to be acquired by Elevance Health.
Since then, the insurer said, "... 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."
WHY THIS MATTERS
Blue Cross and Blue Shield of Louisiana said it believes it needs a strong partner to help position the company 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."
Now is not the right time to make this bold step, the nonprofit health insurer said.
The transaction was reportedly valued at $2.5 billion.
THE LARGER TREND
In September 2023, Blue Cross and Blue Shield of Louisiana announced that it would withdraw its plan of reorganization and Elevance Health's acquisition application from the Louisiana Department of Insurance.
Elevance Health, formerly known as Anthem, is the largest for-profit managed healthcare company in the Blue Cross Blue Shield Association.
The action was characterized by BCBSLA as a delay to provide more time for stakeholders to understand the transaction's benefits and how the quality service that stakeholders know and value would continue.
Email the writer: SMorse@himss.org
