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Louisiana BCBS sale cancelled again. Does Elevance try for a third time?
Posted on 2/14/24 at 10:39 am
Posted on 2/14/24 at 10:39 am
quote:
On the eve of its scheduled public hearing, Blue Cross and 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, though comments sent to Daily Report this morning hint that the companies do not intend to abandon the deal altogether. The companies previously took a step back in September for more time to address policyholders’ concerns and then resubmitted their plans in late December.
In a statement shared with Daily Report this morning, Blue Cross officials defended the deal, saying it was initiated “for the right reasons” and that the organization still needs a “strong partner” to position the company for the future.
“It is clear that our stakeholders need more time and information to understand the benefits of the changes we have proposed,” reads Wednesday’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. The statement went on to say that “more time is needed to make this bold step.”
Representatives of Elevance Health also hinted they plan to continue pursuing the acquisition.
“We are supportive of BCBSLA’s decision to withdraw their plan of reorganization,” reads a statement from Elevance representatives. “We will continue to meaningfully engage community members who are truly interested in better health outcomes and more affordable healthcare. We remain committed to this partnership and will work with BCBSLA on next steps in bringing that to reality.”
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Posted on 2/14/24 at 10:41 am to goofball
The new governor has been a vocal opponent, so doubtful... unless money somehow finds its way into his pocket.
Posted on 2/14/24 at 10:41 am to goofball
Not that what I want matters, but can someone give me the CliffsNotes on whether I do or don’t want this merger to happen, or whether I shouldn’t care?
Posted on 2/14/24 at 10:45 am to Joshjrn
quote:
whether I do or don’t want this merger to happen
It would definitely come at the expense of Louisiana jobs.
Posted on 2/14/24 at 10:47 am to goofball
They are going to keep trying until they grease the right palms.
Posted on 2/14/24 at 10:50 am to goofball
yeah they will go for a third. jeff landry wants this sold so he can dictate how the money is spent
Posted on 2/14/24 at 10:51 am to jdd48
Don't take my question as being dismissive to the effect it will have on the thousands of LA residents whose jobs will be at risk; but is this quote an indication that Elevance believes this merger could have a beneficial impact on premiums?
quote:
“We will continue to meaningfully engage community members who are truly interested in better health outcomes and more affordable healthcare.
Posted on 2/14/24 at 10:52 am to Joshjrn
It was a bad deal for Louisiana with a bunch of holes in it. Elevance is a shitty national company who constantly makes news for not paying claims, laying off employees, shady practices and cooking the books.
Posted on 2/14/24 at 10:54 am to Joshjrn
quote:
Not that what I want matters, but can someone give me the CliffsNotes on whether I do or don’t want this merger to happen, or whether I shouldn’t care?
You don't want this. At all. BCBS was attempting to merge with Elevance (formerly Anthem Blue Cross, formerly BCBS of California). Once merged, it is likely existing policies would have been honored until renewal, at which time they are free to change terms and jack up your rates. Elevance is notorious for denying everything and delaying payments as long as possible, one of the reasons the Louisiana State Medical Society and Louisiana Hospital Association were so against it.
Also, they were attempting to buy out the 90K voting policyholders for $3K/share, when fair value on a $2.5B transaction would have been $30K. They planned to enter into a 'public-private partnership' with the state, starting a $800M foundation with the proceeds to "better the health of Louisiana citizens", code word for typical Louisiana boondoggle where hundreds of millions of dollars disappear.
To do this, BCBS of LA had to reorganize from a not for profit into a for profit company, requiring voting policyholders to approve a change to the operating agreement. Policyholders were educated about all of this, and encouraged to vote 'no'. It sounds like the shareholder vote was not going to go their way, so they pulled the deal.
Posted on 2/14/24 at 10:56 am to fofuh4
What is the selling point to Louisiana for this? Or for Baton Rouge where thousands of BCBS jobs exist?
I know that Landry was against it before he was governor, but now there is some support. I assume because the governor will be able to set up the new organization with the proceeds - probably under the Pennington umbrella.
If it doesn't result in better insurance coverage and it throws away thousands of jobs in the Baton Rouge area, I don't see the point. Both of those would have to be clearly addressed.
I know that Landry was against it before he was governor, but now there is some support. I assume because the governor will be able to set up the new organization with the proceeds - probably under the Pennington umbrella.
If it doesn't result in better insurance coverage and it throws away thousands of jobs in the Baton Rouge area, I don't see the point. Both of those would have to be clearly addressed.
This post was edited on 2/14/24 at 10:59 am
Posted on 2/14/24 at 10:57 am to goofball
Ironically the deal was cancelled once it was revealed that Landry’s Chief of Staff used to work as a lobbyist for Pennington Biomedical, who was set to receive millions from this deal.
Posted on 2/14/24 at 11:00 am to whoa
quote:
Ironically the deal was cancelled once it was revealed that Landry’s Chief of Staff used to work as a lobbyist for Pennington Biomedical, who was set to receive millions from this deal.
Pennington getting $800 million to improve health outcomes and conduct research wouldn't be a bad thing.
But how will Elevance provide better coverage? Will they keep the BCBS jobs in Baton Rouge?
Posted on 2/14/24 at 11:03 am to BeerMoney
quote:
Elevance is a shitty national company who constantly makes news for not paying claims, laying off employees, shady practices and cooking the books.
Yeah this is a problem.
Creating a huge organization to help with healthcare at Pennington could potentially be helpful if the guardrails are set up properly.
Louisiana has enough insurance issues to contend with, and we have enough empty corporate headquarters buildings in the state already.
Posted on 2/14/24 at 11:04 am to Weekend Warrior79
they just exceeded their q4 profit margins, specifically by raising premiums per their q4 earnings call.
Posted on 2/14/24 at 11:09 am to whoa
the LDI said for the commissioner to make a ruling on this, that BCBS needed the shareholder vote to have the necessary numbers to pass BEFORE they would rule.
I would hazard a guess, that with the BCBS language about “engaging shareholders about why this is good” that they didn't have anything close to the Number of votes required in order for commissioner to make a decision.
I would hazard a guess, that with the BCBS language about “engaging shareholders about why this is good” that they didn't have anything close to the Number of votes required in order for commissioner to make a decision.
Posted on 2/14/24 at 11:12 am to dewster
pennington is strictly research and now the bariatric center. that being said, go look at their on going study's/ projects. not a whole lot of work coming out of there that isn't token publishing. they already half arse enough stuff for the population here in louisiana.
Posted on 2/14/24 at 11:20 am to goofball
quote:
But how will Elevance provide better coverage?
They more than likely won't.
quote:
Will they keep the BCBS jobs in Baton Rouge?
Probably not.
These kind of mergers are so boardroom fricksticks can make more money. Not so they can actually help people get better healthcare.
Posted on 2/14/24 at 11:21 am to fofuh4
quote:
they just exceeded their q4 profit margins, specifically by raising premiums per their q4 earnings call.
So the statement was more corporate BS to try to sway the citizens into thinking they want this deal by making assumptions off of false hope. Gotcha
Posted on 2/14/24 at 11:24 am to Flavius Belisarius
quote:
Once merged, it is likely existing policies would have been honored until renewal, at which time they are free to change terms and jack up your rates. Elevance is notorious for denying everything and delaying payments as long as possible
Isn't this basically what Coventry & United Health were having problems with several years ago and why so many of the larger networks were not accepting them, or at least not accepting them across the board like they do with BCBS?
Been with BCBS for almost a decade now, so hadn't paid attention. But I recall hearing Coventry was bought out, and United has gotten better but not quite on BCBS level yet.
Posted on 2/14/24 at 11:29 am to Flavius Belisarius
quote:
Elevance is notorious for denying everything and delaying payments as long as possible
So basically BCBS at a national level
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