For Consumers

Regence parent company pays $10,000 fine to Washington state

Blue Cross Blue Shield of North Carolina failed to report arrest of CEO

Contact Public Affairs: 360-725-7055

January 14, 2021

OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler issued a fine against Cambia Health Solutions, Inc., parent company of Regence BlueShield, Asuris Northwest Health and Commencement Bay Risk Management Insurance Co., for failure to notify his office about the arrest of the incoming CEO of the company that it sought an affiliation with.    

Blue Cross and Blue Shield of North Carolina filed its intention to affiliate with the Cambia companies in April 2019. Its CEO, Dr. Patrick Conway, was to be named the head of Cambia. In June 2019, police arrested Dr. Conway in North Carolina and charged him with driving while impaired, misdemeanor child abuse, failure to maintain lane control and reckless driving. 

As part of the application, Blue Cross Blue Shield of North Carolina should have notified Kreidler’s office and other state insurance regulators of the charges against Conway within two business days. Instead, Cambia continued its application, knowing the required notification had not been filed.  Kreidler received word only a few days before Dr. Conway resigned his post in late September 2019. The proposed affiliation was canceled shortly thereafter. 

The three Cambia companies are all domiciled in Washington state, while Cambia is domiciled in Oregon. The three companies’ combined share of the Washington state health insurance market is 8%. 

Kreidler’s office oversees Washington’s insurance industry to ensure that companies, agents and brokers follow state laws. Since 2001, Kreidler has assessed more than $33 million in fines, which are deposited in the state's general fund to pay for state services. 

The Office of the Insurance Commissioner publishes disciplinary orders against companies, agents and brokers. You can search by name or the year they took effect.

For an insurance question or complaint, contact Kreidler’s consumer advocates online or by phone at 800-562-6900.