Blue Cross and Blue Shield of North Carolina has a problem. The company’s CEO, Patrick Conway, was arrested for drunken driving in June. There had been an accident because Conway allegedly swerved out of his lane on I85 and hit the rear corner of a truck. Neither Conway nor his daughters were hurt. Conway has been charged with driving while impaired and misdemeanor child abuse. Mr. Conway went to 30-day inpatient substance abuse treatment program.
BCBS did not notify State Insurance Commissioner, Mike Causey, because its policies provide for the chief operating officer to take over when the CEO is on temporary extended leave. BCBS also told Commissioner Causey that the company was protecting Conway’s right to privacy and due process. Mr. Conway has a court appearance on October 8 related to the charges.
Commissioner Causey said that he was “disappointed” that there was no notification, and that he “expected better from our state’s largest insurer.” Mr. Causey is right — BCBS relied on compliance with technical rules instead of asking themselves, “Should be let the regulator know?” Very much an ethical issue. Now BCBS has two problems — the ongoing DUI case and the loss of trust with its regulators.