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Lawmakers meet Monday over Blue Cross and Blue Shield acquisition
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BATON ROUGE - State legislators will meet Monday morning to discuss the sale of Blue Cross and Blue Shield of Louisiana to Indiana-based insurance giant Elevance Health. Monday's meeting has no voting power ahead of the deal's official hearing on Feb. 14.
Lawmakers held the hearing so voters would know more about the deal. Lawmakers cannot do anything at all. Decision relies solely with the 95,000 policyholders with voting rights and state Insurance Commissioner Tim Temple. Ballots are already sent out via mail.
"Don't throw it away i've had several people tell me they threw theirs away. Don't throw it away, vote no, send it back, tell the board, you want your healthcare to remain local, it shouldn't be a business deal, it should be about the health care of our citizens," State Senator, Stewart Cathey Jr. (R.- Monroe) said.
Yesterday's meeting comes a year after the initial proposal of the deal by Blue Cross and Blue Shield of Louisiana. BCBSLA had a total revenue of $3.3 billion in 2023, compared to Elevance Health's $171 billion last year. Blue Cross pushed for acquisition with Elevance Health to receive steadier financial footing for the Baton Rouge-based insurance company, which serves approximately 40 percent of Louisiana residents. In September 2023, Blue Cross withdrew from the $2.5 million deal to give key stakeholders more time to understand the deal and its reorganization structure.
In December 2023, Blue Cross resubmitted the deal with a $3 billion endowment attached. The endowment, known as the Accelerate Louisiana Initiative, would focus on mitigating and ending Louisiana poverty, improving the health and lives of Louisianians, and strengthening local communities. On the Initiative's board sits governor-elect Jeff Landry.
Those who oppose the deal, like the Louisiana State Medical Society and some state lawmakers, believe that the greater profit of an insurance giant is not worth jeopardizing Blue Cross consumers' health and that the acquisition would yield increased insurance premiums and the potential loss of jobs and service cuts to the Baton Rouge-based insurance company.
Cathey, also opposed to the idea.
"Information from their past, is not good, it's not positive, I just don't think it's good for policy holders in Louisiana">
Monday's hearing is an attempt by lawmakers to push the state into approval or rejection of the deal. Elevance Health and Blue Cross will try to finalize the deal on Feb. 14 as the two insurance companies need approval from two-thirds of Blue Cross and Blue Shield of Louisiana members. For the deal to close, the state must also give its approval.
WBRZ found that In 2003, the Maryland insurance commissioner rejected Blue Cross' conversion from a not-for-profit company to a for-profit one. It said the firm, known as CareFirst, violated its articles of incorporation by failing to note that its primary purpose was to "provide coverage at minimum cost and expense."
In the run-up to the proposed sale, CareFirst's board never once considered coverage costs for its customers. Maryland also was troubled by the payouts to executives. The Louisiana deal includes payouts to the 95.000 policy holders with voting rights.
WBRZ also found, in 2010, Reuters reported that Elevance, then known as WellPoint, used software to identify women recently diagnosed with breast cancer, then scanned their medical records to seek a reason to drop coverage. The company said the practice was aimed at targeting fraud.
"Commissioner Temple is looking forward to seeing the information presented at next week’s hearing. I encourage Blue Cross policyholders and other individuals who are interested in sharing their thoughts with us to submit a public comment on our website at LDI.LA.GOV. Blue Cross policyholders who are eligible to vote and would like more information can find all documents related to the proposed transaction on our website’s hearing page." John ford, Deputy Commissioner, Division of Public Affairs for Louisiana Department of Insurance said.
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