Conversion of Horizon BCBS of New Jersey
What Will the Conversion Mean For You?
Legislation (S 375) requiring that Horizon BC/BS conduct multiple public hearings concerning its conversion application and requiring the NJ Department of Banking and Insurance conduct a Health Impact Analysis as part of its evaluation of a conversion application passed the NJ State Senate with overwhelming bi-partisan support on May 20, 2010. The vote was 38-2. See how your senator voted.
This is a major victory for consumers everywhere! Your testimony, calls, letters and emails to the legislature worked! Thank you to everyone!
AND BIG NEWS: The Star-Ledger reports that Horizon will not pursue the conversion application during the Christie Administration! Between last year's election, national health care reform, our call for a health impact study and the scrutiny they are now under for giving themselves and their executives whopping pay increases, it appears they've decided to back off the application all together.
But their self-serving pay increases have caused more than the proverbial eyebrow to be raised, as reported in the Asbury Park Press. Now, Senate President Steve Sweeney is calling for a formal investigation of their compensation practices and how such whopping pay increases can happen as their customers are being hit with 30%, 40% and higher rate increases. Stay tuned...!
News Coverage:
- "Horizon Blue Cross Plans To Go Public Are On Hold Amid Scrutiny Of CEO Pay" (Star-Ledger — May 21, 2010)
- "Senate Advances Weinberg-Gordon Bill Creating Greater Transparency, Oversight For Potential Horizon Conversion" (PolitickerNJ — May 20, 2010)
- "Sweeney Blasts $9M Payday For Blue Cross Chief" (New Jersey Senate Democrats — May 19, 2010)
- "Hearings Ordered On Horizon Executives' Pay" (Asbury Park Press — May 19, 2010)
- "Blue Cross Boss Took Home $8.7 Million Salary As Premiums Rose In '09" (Asbury Park Press — May 17, 2010)
NJ Horizon Watch Coalition
JOIN! NJ Horizon Watch Coalition (click here) — and see our Statement of Principles.
The NJ Horizon Watch Coalition is a broad-based alliance of over 20 health care, consumer, labor, senior, faith-based, student, disability, civil rights and social justice organizations working to ensure that the proposed conversion of Horizon Blue Cross Blue Shield, from a non-profit to for-profit insurer, takes place in accordance with both the spirit and full letter of the law. See a list of Current Horizon Watch Coa d dlition Members.
The NJ Horizon Watch Coalition is also working to ensure that the public's interest is adequately represented, promoted and served, especially for low and moderate income individuals and families who are likley to have difficulty finding affordable health insurance.
Status of Horizon's Application
On October 14, 2008, the Commissioner of Banking and Insurance and the New Jersey Attorney General deemed Horizon's application incomplete and posed questions to Horizon about its application for conversion and plan for the creation of an independent foundation required by the conversion statute.
Horizon has responded to these questions:
The New Jersey Hospital Association, QualCare, the Medical Society of New Jersey, the Catholic HealthCare Partnership of New Jersey, and the Alliance for Advancing Nonprofit Health Care have sent a written response to DOBI and OAG detailing why and how Horizon's response is inadequate.
Additional Resources
- Most Top Member-Satisfying Health Plans Are Nonprofit, Latest Rankngs By J.D. Power And Associates Show Once Again.
- Horizon Blue Cross Blue Shield of NJ Resource Page.
- HealthCareBeforeProfits.com — information on Horizon Blue Cross Blue Shield’s application to convert to a for-profit insurance company.
- NJ Department of Banking and Insurance response to Horizon's conversion application.
- NJ Attorney General's letter response to Horizon's conversion application.
- Looking at the Full Picture: Analyzing the Community Health Impact of Hospital and Insurer Transactions, By Community Catalyst.
- Conversion and Preservation of Charitable Assets of Blue Cross and Blue Shield Plans: How States Have Protected or Failed to Protect the Public Interest, By Community Catalyst.
