Cambia, Arkansas Blue Cross Affiliation Set to Close in October

The arrangement will bring the two insurers’ operations under Cambia while allowing Arkansas Blue Cross to retain its local identity and leadership.

Cambia Health Solutions’ affiliation with Arkansas Blue Cross and Blue Shield has received regulatory approval in Arkansas, clearing the way for the partnership to take effect Oct. 1. The arrangement will bring the two insurers’ operations under Cambia while allowing Arkansas Blue Cross to retain its local identity and leadership.

No assets will change hands as part of the affiliation, a Cambia spokesperson said. Both organizations will maintain their local plan names and leadership, while their operations will be unified under Cambia’s control.

Arkansas Blue Cross will retain its nonprofit status, board of directors, philanthropic foundation and reserve funds. Curtis Barnett, president and CEO of Arkansas Blue Cross, will continue to lead the plan following the affiliation.

The partnership will also provide Arkansas Blue Cross access to Cambia’s technology and combine investments and administrative functions. According to the companies, the arrangement is expected to support the development of technology and care management services while improving operational efficiencies.

Arkansas Blue Cross is the largest health insurer in Arkansas and has served members in the state for nearly 80 years. The affiliation comes as regional health insurers face higher medical costs, regulatory pressures and increasing competition from national carriers.

For Cambia, the Arkansas agreement will be its sixth affiliation with a Blue Cross Blue Shield plan. The nonprofit healthcare and technology company operates Regence Blue plans in Idaho, Oregon, Utah and Washington, as well as Blue Cross Blue Shield of North Dakota.

Cambia’s membership is expected to increase from about 4 million to nearly 6 million following the completion of the affiliation, according to the spokesperson.

Cambia was formed through the rebranding of the parent company of Regence Blue Cross Blue Shield in the early 2010s. It has since expanded its portfolio to include ownership or investments in more than 20 companies, including Asuris Northwest Health and BridgeSpan Health.

The company previously planned an affiliation with Blue Cross Blue Shield of North Carolina in 2019 but withdrew from the agreement after the insurer’s CEO was charged with driving under the influence.

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