Veteran Attorney Predicts Sale Will Be Rejected after Hearing

 Attorney Henry “Tut” Kinney, who has practiced law more than 50 years, predicts the proposed sale of Blue Cross will be rejected. “Honestly, the legal barriers are just too great for this sale to go through,” he said.

Kinney said, “Under Louisiana law, specifically La.R.S. 22:232.1, Blue Cross has to show the benefits and risks of this proposed reorganization and sale. The statute requires they show the immediate and long-term benefits to policy holders.  They can’t do that because there aren’t any. Similarly, the law provides that when the Commissioner of Insurance holds a hearing on a matter such as this he has to make a determination that the sale is in the immediate and long-term interests of policy holders.”

“The company is profitable.  The president of the company just made the statement there is no need to sell the company now. Their reserves are $1.8 billion, more than twice what is needed.”

“As far as the foundation is concerned, how can giving it the proceeds of the sale be in the interests of policy holders?  The whole thing simply doesn’t make sense. Even if members voted for this, it won’t hold up because you can’t take away people’s property interests.”