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Hours before regulatory hearings in Baton Rouge were set to begin Wednesday over the proposed sale of Blue Cross and Blue Shield of Louisiana to Elevance Health, the companies announced they are shelving their plans for the controversial $2.5 billion deal.
In a statement early Wednesday, the Louisiana Department of Insurance said, “Late yesterday evening, Blue Cross notified the LDI that it has chosen to withdraw its Plan of Reorganization. The hearing scheduled for today and tomorrow is therefore canceled.”
It’s the second time in less than a year that Blue Cross has tabled its plan to sell the Baton Rouge-based nonprofit company to the for-profit Elevance, one of the nation’s largest insurers, amid steep opposition from doctors and hospitals, some policyholders, and state lawmakers.
In a prepared statement provided, Blue Cross said since announcing the deal in early 2023, “It is clear that our stakeholders need more time and information to understand the benefits of the changes we have proposed. This is why we have decided to again pause the process in our proposed transaction with Elevance Health. This means that we are withdrawing our filing with the Louisiana Department of Insurance. We are also cancelling the policyholder proxy and vote process, including the special policyholder meeting that was scheduled for Feb. 21.”
It is unclear whether the company will try for a third time to reorganize itself from a nonprofit to a for-profit so it can then be purchased by Elevance.
This is a developing story. Check back later for more details.
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