Elevance Health Will Acquire BCBSLA, Improve Care Access in LA

Elevance Health has announced plans to acquire Blue Cross and Blue Shield of Louisiana (BCBSLA), with the payers aiming to improve care access, quality, and affordability for Louisiana members.

Following the proposed acquisition, BCBSLA will join Elevance Health’s affiliated Anthem Blue Cross Blue Shield brand.

“Elevance Health and Blue Cross and Blue Shield of Louisiana will combine strengths to provide services unique to the needs of Louisiana to better serve members through a whole health personalized approach,” Gail Boudreaux, president and chief executive officer of Elevance Health, said in the press release.

“As organizations aligned in our missions, we are excited at the opportunity to bring our leading, innovative whole-health solutions to BCBSLA’s members as we work together to become a lifetime, trusted health partner.”

The definitive agreement builds on an existing partnership between the two payers consisting of joint ownership of Healthy Blue, which serves Medicaid and dual eligible beneficiaries.

The proposed deal will help further BCBSLA’s goal of improving access, affordability, and the quality of care delivered to its more than 1.9 million members, according to the press release. The payer will gain access to Elevance Health’s healthcare services organization that offers behavioral healthcare, complex and chronic care programs, and digital care models.

“Blue Cross and Blue Shield of Louisiana is a strong and vibrant company with a history of serving Louisianians for almost 90 years. However, to remain strong in today’s environment with an ability to provide leading innovations, products, and capabilities, we concluded that we needed a partner that could help us deliver these faster and better than we could alone,” I. Steven Udvarhelyi, MD, president and chief executive officer of BCBSLA, said.

“Aligning 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 Louisianians.”

Once the acquisition is finalized, the BCBSLA headquarters will remain in Baton Rouge, where the payer’s 3,000 employees will continue to serve local members.

The deal will also create the Accelerate Louisiana Initiative, a multibillion-dollar foundation that aims to address the complex care needs of Louisiana residents. The foundation plans to improve the health and lives of people across the state by reducing health inequities and supporting local communities, the press release stated.

The acquisition is set to close later this year, pending customary closing conditions and receipt of certain required approvals. Following the finalization, Elevance Health’s affiliated Anthem Blue Cross Blue Shield plans will operate in 15 states.

This is not the first acquisition Elevance Health has pursued since the health plan rebranded. In November 2022, the payer announced plans to acquire a comprehensive specialty pharmacy for patients with complex and chronic diseases.

The pharmacy, BioPlus, serves patients with conditions like cancer, autoimmune diseases, and hepatitis C. The transaction, which is expected to close in the first half of 2023, will help Elevance Health facilitate end-to-end pharmacy services.