Elevance Health's $2.5 billion acquisition of Blue Cross and Blue Shield of Louisiana may be back on.
Blue Cross and Blue Shield of Louisiana filed a new application with state regulators to convert from a nonprofit to a for-profit company Thursday. Elevance Health announced its intention to acquire the smaller insurer in January, but the parties suspended the deal in September amid concerns from policyholders and regulators about how the conversion would impact Louisiana's' healthcare market.
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The health insurance companies intend to close the deal during the first quarter of 2024, the new application says. Two-thirds of Blue Cross and Blue Shield of Louisiana policyholders and the state insurance department must approve the transaction.
“Together, we have taken the time to listen to our stakeholders to bring a transparent, seamless transaction before the Louisiana Department of Insurance and our policyholders," Elevance Health and Blue Cross and Blue Shield of Louisiana said in a joint statement.
Most of the revised application details changes to the structure of the multibillion-dollar foundation called the Accelerate Louisiana Initiative, which would receive 91% of the deal's proceeds and launch once the acquisition is final.
Blue Cross and Blue Shield of Louisiana has 1.9 million commercial, Medicaid and Medicare members and was the dominant carrier in the state with a 66% commercial share market in 2022, according to a report the American Medical Association released Tuesday.
