Lawmakers question sale of Blue Cross Blue Shield Louisiana to Elevance

Lawmakers question sale of Blue Cross Blue Shield Louisiana

BATON ROUGE, La (BRPROUD) -- Lawmakers questioned insurance regulators about the possible sale of Blue Cross Blue Shield Louisiana to Elevance. The controversial move has drawn heavy support and criticism. 

The sale of the nonprofit insurer Blue Cross and Blue Shield Louisiana to for-profit Elevance from out of state is raising concerns with policyholders.

“We just don’t have the resources to make those types of investments that our competitors make in Louisiana,” said BCBS CEO Steven Udvarhelyi.

Udvarhelyi stated Blue Cross and Blue Shield Louisiana is not making revenue as much as its competitors are in the state. The profits of the sale would partially go into a trust and some of the policyholders, but what it can be used for has not been clearly laid out. The agreement also includes language to keep on the staff locally for at least two years.

“There's no guarantee that Blue Cross admin stays in the state for the long run,” State Sen. Patrick McMath, R-Covington, said.

Lawmakers said they have taken calls from constituents saying switching to a for-profit company will increase their premiums. BCBS claims that would not be the case. While the commissioner can set some requirements in the deal, he can’t cap premiums or rates. 

“You have to understand where we take some pause when we hear that premiums won't go up. They've risen everywhere else,” McMath said.

Insurance Commissioner Tim Temple was not at the public meeting at the suggestion of his attorney. The attorney said he did not want Temple to make any comments that would have suggested what his decision would be in approving or denying the deal. Legislators were not happy with that and want to hear from him at a future date.

Blue Cross and Blue Shield Louisiana currently cover 1.9 million Louisianans. If approved by policyholders, Temple will have a month to determine if he will approve the deal.

Legislators do not have any vote in the matter, but wanted to gather more information on the deal as they are fielding a lot of calls from the people they represent.

The public hearing will take place on Feb. 14-15. 

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