Blue Cross Blue Shield withdraws its plan of sale, again

On the eve of its scheduled public hearing, Blue Cross Blue Shield of Louisiana informed Louisiana officials it was withdrawing its plan of reorganization and sale—again.

This is the second time that Blue Cross and Indiana-based Elevance Health have shelved their acquisition plans. The companies previously took a step back in September for more time to address policyholders’ concerns and resubmitted their plans in late December.

The two companies were expected to take part beginning this morning in what was projected to be 20 hours of public hearings over two days at the Louisiana Department of Insurance. Public feedback regarding the proposed sale has been largely critical of the deal.

“Late yesterday evening, Blue Cross notified the LDI that it has chosen to withdraw its Plan of Reorganization,” says John Ford, deputy commissioner of public affairs for LDI. “The hearing scheduled for today and tomorrow is therefore canceled, and I currently have no information regarding Blue Cross’ intentions moving forward. Any questions about why Blue Cross is withdrawing should be referred to BCBSLA.”

In a statement shared with Business Report this morning, Blue Cross officials hinted that they would resubmit the proposal for reorganization and sale in the future.

“It is clear that our stakeholders need more time and information to understand the benefits of the changes we have proposed,” reads this morning’s statement from Blue Cross. “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 canceling the policyholder proxy and vote process, including the special policyholder meeting that was scheduled for Feb. 21.”

This story originally appeared in a Feb. 12 issue of Daily Report. It has been updated since publication with a statement from Blue Cross Blue Shield of Louisiana. To keep up with Baton Rouge business and politics, subscribe to the free Daily Report e-newsletter here.