September 24, 2019
OLYMPIA, Wash. – Washington state Insurance Commissioner Mike Kreidler today admonished Cambia Health Solutions (PDF, 1.4MB) for failure to promptly inform him of an incident involving a top executive at a time when the company is seeking approval of a merger with Blue Cross Blue Shield of North Carolina.
In a letter to the board of directors of Cambia Health Solutions in Portland, Kreidler noted the law that requires notification (www.leg.wa.gov) to him within two business days of the charges filed in June against Patrick Conway, the chief executive officer for Blue Cross Blue Shield of North Carolina.
North Carolina police charged Conway with driving while impaired and misdemeanor child abuse following a traffic accident in that state. Kreidler did not learn of the charges until Sept. 19 when Cambia’s CEO contacted him by cell phone.
Cambia is the parent company of Regence Blue Shield and is seeking approval in Washington state of a merger with Blue Cross Blue Shield of North Carolina.
“I am deeply troubled by your failure to communicate responsibly and transparently,” Kreidler wrote. “Secrets are not permissible. Part of my responsibility in conducting reviews of mergers is to ensure that companies merit the fiduciary trust placed in them by Washington consumers.
“Your (Cambia’s) behavior in this matter must, and will, be taken into account as my office considers Cambia/Regence’s request for a merger.”