East meets west as two heath insurance companies join forces to form a $16 billion affiliation which will cover more than six million people. Cambia Health Solutions, based in Portland, OR which is the parent company of Regency Blue Cross Blue Shield also of Oregon will combine with Durham, North Carolin’s Blue Cross and Blue Shield.
This affiliation is strategic in that both not-for-profit entities are entering into a long-term management services contract in order to share management, administrative, operational and other corporate services. This new entity will come under the name of Cambia Health Solutions and will have headquarters in both Durham, NC and Portland, OR.
Separate tax paying, not-for-profit corporate structures will be maintained by both Blue Cross North Caroline and Cambia Oregon as well as separate health plans in five states in North Carolina, Oregon, Washington, Idaho and Utah. The
Cambia Health Solutions will be locally led and regulated under familiar names.
Cambia Health Solutions’ CEO will be Dr. Patrick Conway who has been the president and CEO of Blue Cross. The executive chair of Cambia’s board of directors will be held by Mark Ganz formerly Cambia’s CEO.
Cambia Health Solutions’ newly formed board of directors will be comprised of 10 members from Blue Cross and 9 members from Cambia.
“We have to do something different to make health care better, simpler, and more affordable for the people we serve,” Conway states. “By sharing resources, innovations, and best-in-class services we can fundamentally transform the way individuals and families experience the health care system.”
Fiscal records reported for the two non-profits last year were $6 billion in revenue for Cambia covering 2.6 million people and for Blue cross North
Carolina it was $9.9 billion for the coverage of 3.7 million people.
With the new combined entities, more than 6 million people will be covered generating revenue of over $16 billion. Health care services will be offered according to state regulations and requirements in each individual state where it will be operating which will also include rate reviews.
The two nonprofits were previous aligned on the investment side of things when in 2016 Echo Health Ventures, and investment company, was created by Cambia in combination with Mosaic Health Solutions, LLC, a subsidiary of Blue Cross of North Carolina.
The final formation of the new Cambia Health Solutions is contingent on regulatory approval in the states of North Carolin, Oregon, Washington, Idaho and Utah.