A Louisiana judge rejected a proposed class-action lawsuit seeking to block the current terms of the proposed sale of Blue Cross Blue Shield of Louisiana to Elevance Health, nola.com reported Feb. 1.
The suit was filed in December by BCBS policyholder Tut Kinney, who argued the company's policyholders deserved a bigger share of the sale's proceeds.
BCBS Louisiana proposed that around 90% of the proceeds of the sale go to the Accelerate Louisiana Initiative, a foundation to advance health equity in the state. The remaining 10% will be paid out to BCBS Louisiana policyholders. The acquisition must be approved by two-thirds of BCBS Louisiana's policy holders.
A Baton Rouge judge ruled the case did not belong in civil court, as insurance is an administrative manner regulated by the state, nola.com reported.
Elevance Health first announced plans to acquire BCBS Louisiana in January 2023. The deal has faced a series of roadblocks, including opposition from state officials and physicians. A hearing on the proposed acquisition is set for Feb. 14.