Blue Cross and Blue Shield of Arkansas Explores Partnership with Cambia Health Solutions
Blue Cross and Blue Shield of Arkansas, the largest health insurer in the state, is currently in talks for a “strategic partnership agreement” with Cambia Health Solutions, a nonprofit insurer based in Oregon. This was announced on Thursday.
Kelly Nettles, a spokeswoman for Blue Cross of Arkansas, emphasized that this is not a merger or acquisition. She mentioned that the partnership aims to foster faster innovation and share resources, all while keeping local governance intact.
Reports about the potential partnership first emerged in January, according to Arkansas Business. Nettles noted that the agreement hasn’t been finalized and will still require regulatory approval.
Nettles described Cambia as a “long-standing collaborative partner,” although she refrained from sharing specifics about the arrangement, including any leadership roles, until it’s officially signed. She ensured that Blue Cross members will still be able to keep their current insurance plans and use their existing insurance card along with their provider network.
Cambia, founded in 1996, has a history of forming strategic partnerships; it currently oversees health plans associated with four Blue Cross entities in the Western United States.
In June, Cambia had already announced a similar partnership with Blue Cross Blue Shield of North Dakota. Under that agreement, expected to finalize next year, Blue Cross of North Dakota will be managed by Cambia while keeping its local brand and board.
Cambia boasts approximately 3.6 million members and employs around 4,600 people, based on information from their fact sheet.
These discussions come as Blue Cross Blue Shield companies nationwide are looking to compete more effectively against for-profit health care providers. Blue Cross of Arkansas reported a loss exceeding $100 million due to decreased revenue through September 30 of the previous year, although it posted a net income of $94.7 million during the first three quarters of 2023, as detailed in a financial update to the Arkansas Department of Insurance.
Many Blue Cross and Blue Shield companies faced challenges last year due to increasing costs associated with Medicaid and Medicare, according to a Modern Healthcare report.
This year, Blue Cross proposed a significant rate increase to the Arkansas Department of Insurance, suggesting a 25.5% hike in premiums for individual health insurance plans. Governor Sarah Sanders criticized the proposal as “insane” in an August statement.
In response, Blue Cross argued that their proposed rate increases align with requests from other insurance firms.
