Questions to Answer On Proposed Sale Of Blue Cross to For-Profit Company

By Woody Jenkins, Editor, Central City News – Baton Rouge

Insurance executive Derek Babcock testified last week before the Joint Legislative Committee on Insurance on the proposed sale of Blue Cross to a for-profit corporation. 

Babcock did not state a position on the sale but said policyholders should be asking questions like these:

•Why is the sale proceeding so rapidly?

•Is the $3,000 payment to policyholders equitable?

•Is the payment being used as a distraction from the merits?

•How would the sale affect coverage and rates?

•Would payments be timely?

•How will provider networks be affected?

•How will change from non-profit to for-profit affect rates?

•What will be the effect on the Louisiana economy if the new owner lays off Louisiana workers?

•Will the new company work with agents?

•How would the foundation be managed?