Blue Cross and Blue Shield of North Carolina has established a nonprofit holding company to house its insurance subsidiary and other businesses, making it the latest Blues carrier to seek stronger footing against for-profit insurers.
A new holding company, CuraCor Solutions, will be able to invest in new programs for members and technologies for employers, Blue Cross and Blue Shield of North Carolina said in a news release Thursday. The insurer's acquisition of 55 FastMed retail clinics last year is an example of the moves CuraCor will make, the company said.
Related: Déjà Blue: Blue Cross plans restructuring amid changing landscape
Then-North Carolina Governor Roy Cooper (D) approved Blue Cross and Blue Shield of North Carolina's bid to create a holding company in 2023. At the time, the insurer said restructuring was necessary to compete with national for-profit rivals.
Blue Cross and Blue Shield of North Carolina did not immediately respond to an interview request.
In January, Blue Shield of California reorganized to create a separate holding company. Blue Cross of Idaho restructured last year, while Horizon Blue Cross Blue Shield of New Jersey established an umbrella company in 2023.
Unlike Blue Cross and Blue Shield insurance companies, these nonprofit parent companies are not subject to state laws governing reserves, investments and corporate status. Establishing a nonprofit entity allows the companies to invest in outside ventures while continuing to enjoy a tax break specific to nonprofit Blue Cross and Blue Shield carriers, which the Treasury Department estimates is worth $5.6 billion over the next 10 years.
