Elevance Health acquires BCBS Louisiana
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Elevance Health, formerly Anthem, is poised to acquire Louisiana-based Blue Cross Blue Shield after reaching a definitive agreement this week to snap up the insurer, with BCBSLA joining Elevance Health-affiliated Anthem Blue Cross Blue Shield family of brands.
The two organizations said they are “aligned on a mission” to improve access, quality and affordability for Louisians.
The alliance builds on the existing collaboration in Louisiana through co-ownership of Healthy Blue, which serves for Medicaid and Medicare Dual eligible members.
BCBSLA will serve more than 1.9 million members with skills developed by Elevance Health and its healthcare services organization, Carelon. With more than $4 billion invested in recent years, Carelon offers behavioral health programs, complex and chronic care programs, and digital models, according to the companies.
WHAT IS THE IMPACT
The Louisiana plan’s headquarters will remain in Baton Rouge and will continue to serve its customers locally through its workforce of approximately 3,000 employees.
An additional benefit of the transaction, the companies say, will be the creation of a multibillion-dollar foundation, the Accelerate Louisiana Initiative. The foundation, according to Elevance, is being established to “meet the unique and complex needs of the people of Louisiana” by addressing health inequalities and empowering local communities.
The acquisition is expected to close later this year and is subject to customary closing conditions and receipt of certain required approvals.
Upon completion, the Elevance Health-affiliated Anthem Blue Cross Blue Shield plans will now operate in 15 states across the country.
“Elevance Health and Blue Cross and Blue Shield of Louisiana will combine their strengths to offer services uniquely tailored to the needs of Louisiana to better serve members through a holistic healthcare personalized approach,” said Gail Boudreaux, President and CEO of Elevance Health.
THE BIGGER TREND
Elevance Health Announced Launch of Carelon Healthcare Services Brand in June 2022; Over the next two years, it will consolidate its existing broad portfolio of skills and service businesses. Carelon’s services range from research to integrated whole-person care, pharmacy, behavioral health and digitally supported solutions.
The acquisition previously announced by Elevance was that of BioPlus, a comprehensive specialty pharmacy, in November. BioPlus offers a range of specialized pharmaceutical services for patients with complex and chronic diseases such as cancer, multiple sclerosis, hepatitis C, autoimmune diseases and rheumatology.
Elevance posted a profit of $1.6 billion in the third quarter of this year, up 7.2% from the same period in 2021. Revenue reached $39.9 billion, up 11.5% from the $35.8 billion achieved a year ago.
ON THE RECORD
“Blue Cross and Blue Shield of Louisiana are a strong and dynamic company that has served the people of Louisiana for nearly 90 years,” said Dr. I. Steven Udvarhelyi, President and CEO of Blue Cross and Blue Shield of Louisiana. “However, to remain strong in today’s environment and to provide leading-edge innovation, products and capabilities, we determined that we needed a partner who can help us deliver them faster and better than we could on our own. Alignment with Elevance Health – a national healthcare organization that has been our trusted partner since 2017 – will allow us to accelerate our mission of improving the health and lives of people in Louisiana.”
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