Henry “Tut” Kinney, a New Orleans-based attorney, Blue Cross and Blue Shield of Louisiana to Elevance Health.
The first lawsuit, filed in state court and currently undergoing preliminary motions, is not against BCBS but against the Accelerate Louisiana Initiative, a $3.1 billion public health foundation that will be created with the proceeds of the sale. BCBS’s approximately 95,000 policyholders will receive only a small portion of the proceeds (about $3,000 per eligible policy), while his BCBS members who are not policyholders will receive nothing. Kinney’s lawsuit argues that policyholders, not the foundation, are entitled to the proceeds.
“Decision [to sell] It was created by a very compromised board,” Kinney said. “Everyone on the board who voted for this sale will benefit tremendously. If I am a member of the board, I will fulfill my fiduciary duty to the members not to act out of self-interest. I will bear it.”
This isn’t the only time the Accelerate Louisiana Initiative has come under fire. especially, louisiana state budget project criticized the foundation’s status as a 501(c)(4), a status that allows it to operate under significantly different rules than a 501(c)(3) public charity.
“Accelerate Louisiana serves as a powerful lobbying arm for the for-profit health insurance industry, supporting and promoting political candidates who support industry positions that may not reflect the public interest. There will be little to stop it.” The Louisiana Budget Project wrote in August:.
The second lawsuit filed in federal court centers on the appeals process. Judge Brian Jackson of the United States District Court for the Middle District of Louisiana is expected to rule on the case within the next week.
“As currently legally mandated, this little guy has virtually no right to appeal because Blue Cross can demand a multi-billion dollar bond that none of us can make.” Kinney says. “We have attacked its constitutionality.”
Kinney said several other lawsuits are currently under consideration related to alleged breaches of fiduciary duty by BCBS board members.
“I want to make it clear that I have no clients and no financial interest in this matter,” Kinney said. “I’m doing this because [the sale] That’s wrong on so many fronts. ”
BCBS’ vice president of public affairs declined to comment on Mr. Kinney’s lawsuit, saying BCBS “does not comment on ongoing litigation.”
of Louisiana State Medical Association continues to express concerns about increased premiums, limited access to treatment options, and potential reductions in benefits under the current acquisition proposal. Earlier this month, BCBS and Elevance executives met with: Business report Staff argue about deals. Click here for information about the conference.
On Monday, two Louisiana Senate committees are scheduled to: Hold a public hearing regarding the acquisitionwhich will also be the subject of a public hearing hosted by the Louisiana Department of Insurance on February 14th.
