The sale of Blue Cross and Blue Shield of Louisiana to Elevance Health faces further delays as officials seek to postpone a regulatory hearing. Louisiana Attorney General Jeff Landry has voiced concerns and requested that the sale be delayed until more questions are answered and a new governor and insurance commissioner are in office. The $2.5 billion deal, announced in January, requires approval from the state insurance commissioner and two-thirds of BCBS policyholders. Public hearings, originally set for August, are now scheduled for October 5 and 6.
According to a report by nola.com on September 21, officials from Blue Cross and Blue Shield of Louisiana have expressed their intention to once again request a postponement of a regulatory hearing regarding the proposed sale to Elevance Health.
The specific duration of the delay being sought from the state’s insurance department was not disclosed by BCBS Louisiana officials. Their request comes following a meeting with Louisiana Attorney General Jeff Landry.
During the meeting, Mr. Landry conveyed his stance that he prefers to halt the sale until more inquiries concerning the transaction are addressed, and a new governor and insurance commissioner take office. It’s worth noting that Mr. Landry is currently running for governor, but he clarified that his meeting with BCBS was in his capacity as attorney general, not as a gubernatorial candidate.
BCBS has stated that they and Elevance are collaborating with the Louisiana Department of Insurance to determine the best approach to extend the timeline, allowing the attorney general and other stakeholders to fully comprehend the benefits of the deal.
In January, Elevance initially announced its intention to acquire BCBS Louisiana, with the condition that it would become a for-profit subsidiary of Elevance pending approval. To proceed, this proposed $2.5 billion deal requires the green light from the state insurance commissioner and the consent of two-thirds of BCBS policyholders.
The public hearings, initially slated for August 21 and 22, but postponed due to concerns raised by state officials, are now scheduled for October 5 and 6.
