Blue Cross backs off plan for $2.5 billion sale to Elevance Health...for now

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Blue Cross backs off plan for $2.5 billion sale to Elevance Health

The health insurance giants say they plan to try again to close deal in 2024.


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Blue Cross and Blue Shield of Louisiana, the nonprofit that provides health insurance to more than 40% of the state's residents, is scrapping — for now — its plan to sell to Elevance Health, according to documents filed with regulators.

The Baton Rouge-based insurer notified the Louisiana Department of Insurance Monday it is withdrawing its application to reorganize into a for-profit company that would then be purchased by Elevance for $2.5 billion.

In a joint statement, the companies said they “remain committed to refiling the plan of reorganization and acquisition application.” No date was specified, and a Blue Cross spokesperson said the new filing likely won’t come until next year, which means after a new governor and new Insurance Commissioner have taken office.

The withdrawal of the applications comes in the wake of a meeting last week between Blue Cross officials and Louisiana Attorney General Jeff Landry, the Republican front-runner in the race to succeed Gov. John Bel Edwards.

Landry, who previously raised questions about the deal and has opened an investigation into it, made clear in the meeting he did not want the sale to go forward until more questions have been answered and a new governor and insurance commissioner have taken office.

In their prepared statement, Blue Cross and Elevance acknowledged the concerns that have been aired in recent weeks, and said their decision to pull back is intended to give everyone more time to learn about the advantages of the deal.

“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,” the statement said.

Two-thirds of Blue Cross’ 92,000 policyholders and the Commissioner of Insurance must approve the deal.

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