Elevance’s Deal for Louisiana Blue Plan to Cost $2.5 Billion (1)

Elevance Health Inc. agreed to pay $2.5 billion for its previously announced purchase of Blue Cross and Blue Shield of Louisiana, documents reviewed by Bloomberg show, and additional conditions might raise the value of the transaction by $1 billion.

Most of the money will go to a foundation set up in Louisiana after the company is converted from a mutual insurance company to a for-profit subsidiary of Elevance. Blue Cross and Blue Shield of Louisiana will also contribute surplus capital to the foundation when the deal closes, bringing the value of the transaction to about $3.5 billion, according to an ...