Blue Cross and Blue Shield of Louisiana and Elevance Health have submitted a new proposal to the Louisiana Department of Insurance to allow the nonprofit insurer to be bought by Elevance, nola.com reported Dec. 15.
The two companies halted the proposed $2.5 billion sale in September, after Louisiana's attorney general and other lawmakers expressed concerns about the deal.
Nine percent of the sale's proceeds will be distributed to BCBS Louisiana policyholders, and the remaining 91% will establish the Accelerate Louisiana Initiative, a nonprofit to improve health equity in the state.
The new proposal from Elevance and BCBS Louisiana would give the state more oversight of the foundation, allowing the governor to appoint one of the foundation's board members and adding an observer role appointed by the state's insurance commissioner, nola.com reported.
"The concerns we heard were that the board was going to be a self-perpetuating board with no involvement from state government," BCBS Louisiana CEO Steve Udvarhelyi, MD, told nola.com. "This will provide the measure of public oversight that some had asked about."
Following a public hearing early next year, the deal must be approved by two-thirds of BCBS Louisiana policyholders and the insurance commissioner.
The two companies expect the deal to close in early 2024, according to the report.
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