To protect the policyholder and prevent another Blue Cross/Elevance type of transaction from happening again, Senator Jeremy Stine is taking action. He has proposed legislation to ensure “the interests of Louisiana and its residents are at the forefront of any future healthcare proposals,” he said. “By implementing these safeguards, we aim to prevent any undue influence, personal gain, or hasty decision-making that may compromise the health and well-being of our community.”

Stine’s Senate Bill 289 will set restrictions to prohibit board members from profiting from a sale, prohibit voting by telephone in which there is no written record and safeguard financial interests of mutual members. The bill would apply both prospectively and retroactively, according to an email from Mike Hasten, Legislative Communications office to the American Press.

“The proposed Blue Cross Blue Shield sale to Elevance Health has raised concerns about the potential for consequences for Louisiana’s healthcare landscape,” Sen. Stine said.

The proposed acquisition of Blue Cross Blue Shield of Louisiana by Elevance was first announced in January 2023. Almost half of Louisiana’s population is covered by Blue Cross. and a portion of those policy holders would have had to approve the sale. In a joint report, the Senate Committee on Health and Welfare and the Senate Committee on Insurance were critical of the mutual, not-for-profit company, owned by its policyholders, to Elevance, a for-profit company. The committee’s report included 30 “concerning” findings about the regulatory process, vote steering, the troubled history of Elevance health and the redirection of $3.1 billion from the policyholders to a new foundation. The Commissioner of Insurance made ready for its hearing on the matter. Blue Cross canceled it and paused the deal.

“We hear different rumors around Baton Rouge that BCBS might try to propose a new deal after two failed attempts,” Stine said.

Although prompted by the Blue Cross Blue Shield proposed sale, the bill applies to all Louisiana licensed insurance companies. It will be considered in the Regular Legislative Session that begins March 11.