Now we know one of the main reasons why Gov. Jeff Landry made some strong comments in favor of the sale of Blue Cross and Blue Shield of Louisiana  to Elevance Health of Indianapolis. When he spoke to some 200 hospital executives it was obvious he is more interested in a foundation that would benefit from the sale and not necessarily for health reasons.

The Advocate in a Feb. 4 report said, “Landry’s strongest comments in favor of the Blue Cross sale centered on the nonprofit foundation, Accelerate Louisiana Initiative, that will be funded with the bulk of sale proceeds and surplus Blue Cross reserves, for a total of more than $3 billion.”

The newspaper in a Feb. 7 report said Landry confirmed that he sought a revised plan for that foundation that bars research money from going to the state’s colleges and universities. Those funds would only go to the LSU-affiliated Pennington Biomedical Research Center in Baton Rouge.

Finally, The Advocate published a Monday story titled, “Landry aide has ties to research center: Pennington would benefit from Blue Cross sale.”

The newspaper said Kyle Ruckert, chief of staff for Landry who also served as a campaign strategist for Landry’s gubernatorial bid last year, held the Pennington lobbying contract until late last year, when his wife Lynnel took it over exclusively.

Federal filings show the lobbying contract, which is for representation in Washington, pays $40,000 per year. The newspaper said the Ruckerts have represented Pennington since 2020.

The Advocate added, “ … Landry’s ties to Kyle Ruckert, the couple’s work for Pennington, and the governor’s decision to tap Pennington exclusively have prompted criticism from people closely watching the sale. They point out that Landry’s decision means that Tulane, LSU, and other higher education entities in the state cannot receive what could be a substantial amount of research dollars that aim to make Louisiana healthier.”

Kate Kelly, the governor’s communications director, said in a text, “Lynnel Ruckert’s federal contract with Pennington has absolutely nothing to do with this potential new funding for the center. Frankly, both parties were surprised to learn of each other’s involvement.”

The Advocate said Landry confirmed last Tuesday that he insisted that Pennington alone should receive the research money because he wanted it used in Louisiana’s workforce and not have it “sucked up” by higher education.

Tim Barfield, who chairs the foundation, said, “This was a big deal to him (Landry), we’ve done a lot of research and kind of know what to do about these chronic health problems.”

Saying he met with Landry to discuss the foundation both before and after Landry’s election last fall, Barfield added, “He wanted to make sure the money would be used in the best way for Louisiana.”

The newspaper said no one questions whether Pennington should receive a sizable share of the funding given its sterling reputation for research, particularly for advances in combating diabetes and obesity, two big problems in Louisiana.

However, The Advocate added that the question ricocheting around the healthcare industry now is why Landry didn’t include the other higher education institutions given the fact they have credible research capabilities.

Tulane has launched a program that plans to put more than 200 students  each year on an accelerated path to become nurses. LSU’s medical schools have cancer research centers. The New Orleans medical school has a big federal grant to research how to combat alcohol and drug addiction.

Tulane and LSU declined to comment, and that is understandable. They are in no position to get involved since their funding and other support heavily depend on the governor and the Legislature.

Although they have no role in the Blue Cross sale, state legislators, the Louisiana Hospital Association, and state Treasurer John Fleming, a practicing physician, have vigorously opposed the Blue Cross sale.

Fleming said nothing after the possible sale of Blue Cross would change for the first two years, but problems would start developing — jobs would be absorbed or moved, doctors would begin noticing lower insurance reimbursements, premium rates would increase, and patients would complain that their care is too often delayed or denied altogether.

What The Advocate is saying Gov. Landry is apparently doing for Kyle Ruckert, whom the newspaper called “perhaps the preeminent Republican political operative in Louisiana,” comes as no surprise to most citizens in Louisiana. They have seen these payback deals in state government over and over again over many years.

Unfortunately, those citizens who depend on competent health care could be the losers while those who are promoting the Blue Cross sale would be the big winners.

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