Three weeks after a halted merger between BCBS Louisiana and Elevance Health, two Louisiana state lawmakers have filed bills that would make it more difficult for nonprofit insurers, (such as BCBS Louisiana) to reorganize into a for-profit organization that could then be sold, nola.com reported March 5.
In February, BCBS Louisiana put plans to be acquired by Elevance Health on pause for a second time after the proposed sale faced heavy scrutiny from physicians, hospitals and state officials. The groups halted the original proposed sale in September in response to concerns from the state's attorney general and lawmakers.
The newly proposed bills do not name BCBS specifically, but they aim to address concerns raised about the sale by the legislature and the state's healthcare community. If passed, the legislation would require additional financial transparency and analysis of potential sales, a ban on insurance board directors receiving proceeds from a sale, a ban on obtaining proxy votes from members via phone, and state approval of how a potential sale is advertised, according to the report.
"This is really to create safeguards for the future, so we don't have the same issues with access to information and vote steering that were so disturbing about this deal," State Sen. Patrick McMath told nola.com.
A spokesperson for BCBS told nola.com that the payer "will review and engage on all proposed legislation to ensure that the effect of any legislation is to improve the Louisiana health insurance market for our 1.9 million customers and our thousands of agent and provider partners."