Louisiana Medical Society Opposes Proposed Sale of Blue Cross of LA

The Louisiana State Medical Society has announced its opposition to the proposed sale of Blue Cross to a for-profit, out-of-state company.

In a letter to Louisiana Commissioner of Insurance Jim Donelon, Dr. Richard J. Paddock, president of the society, wrote as follows:

“On behalf of Louisiana physicians and the patients we care for, I would like to express our collective apprehension related to the pending acquisition of Blue Cross Blue Shield of Louisiana (BCBSLA) by Elevance Health.”

“We have all been told that ‘nothing will change’ or ‘it’s business as usual’ after the sale is completed… We have multiple concerns related to increased premiums, reduced benefits, and limited access to care for our patients.”

“Additionally, we are acutely aware of what has transpired in other states where multiple lawsuits have been filed with specific allegations of underpayment and inappropriate denials. These concerns are even more critical when you consider BCBSLA will transfer over 60 percent of the private health insurance market in our state from a home-grown, not-for-profit company to a publicly-traded one, where profits and shareholder value are cherished above all else.”

“As the state that ranks last in every significant health care metric, it would be detrimental to put our patients’ health at risk to achieve exorbitant profits for a corporation.”

“While we applaud your decision to delay any possible decision on the final approval of the proposed acquisition, we still believe this is happening too fast and should be delayed even further.” 

“We welcome the involvement and scrutiny of Attorney General Jeff Landry’s office, as well as, the United States Department of Justice, as the final decision of this sale will impact every single resident of Louisiana and the maximum amount of due diligence, and caution, should be exercised.”

“At this time, the Louisiana State Medical Society, as one of the approximately 90,000 policy holders, who owned an in-force BCBSLA policy issued on January 23, 2023, and is considered a ‘voting member’ on the proposed plan of reorganization regarding the conversion from a mutual insurance company to a stock insurance company, will be voting No.”

“Sincerely,

“Dr. Richard J. Paddock, President, La. State Medical Society”