Senator Jeremy Stine, from District 27, is offering legislation that would prevent contracts, including the one proposed for the sale of Blue Cross Blue Shield, from taking effect without meeting certain consumer protection standards that protect the best interest of those insured.

Stine’s Senate Bill 289 seeks to set restrictions to prohibit board members from profiting from a sale,
prohibit voting by telephone in which there is no written record, and safeguard financial interests of mutual members. The bill would apply both prospectively and retroactively.

The proposed legislation “is a proactive step toward ensuring that the interests of Louisiana and its
residents are at the forefront of any future healthcare proposals,” said Stine, a Lake Charles businessman. “By implementing these safeguards, we aim to prevent any undue influence, personal gain, or hasty decision-making that may compromise the health and well-being of our community.

“The proposed Blue Cross Blue Shield sale to Elevance Health has raised concerns about the potential
consequences for Louisiana’s healthcare landscape,” Sen. Stine said.

His legislation focuses on four key measures to prevent future proposals similar to the Blue Cross offering.

The first section of the bill prohibits board members from profiting from a sale.

“The measure is essential to ensure that decisions made by the board are solely in the interest of the people of Louisiana and not influenced by personal gain,” the senator said. In the proposed sale that Blue Cross withdrew, board members would have served on an Elevance leadership advisory board, where they would have been paid $105,000 a year for the next 10 years.

The bill also would ban counting votes taken by phone until confirmed in writing, either by mail or by
email. Stine said that would eliminate “the potential for rushed or less transparent decision-making processes, fostering a more thorough and thoughtful evaluation of proposals.”

Another portion states the Legislature’s intent to safeguard the voting rights and financial interests of
mutual members.

Under the Louisiana Civil Code, stating legislative intent and the importance of past concerns about
contracts makes the provisions of the legislation not only apply to future insurance company sales contracts, but existing contracts.

Although prompted by the Blue Cross Blue Shield proposed sale, the bill applies to all Louisiana licensed
insurance companies. It will be considered in the Regular Legislative Session than begins March 11.