Navigation Links
NJHA Raises Questions Regarding Horizon's Proposal to Convert to For-Profit Health Insurer
Date:8/15/2008

PRINCETON, N.J., Aug. 15 /PRNewswire-USNewswire/ -- Following is a statement of Betsy Ryan, President and CEO, New Jersey Hospital Association:

Horizon Blue Cross Blue Shield today submitted an application to the state to convert from a non-profit insurer to a publicly traded for-profit company.

All New Jerseyans should be concerned about the prospect of such a conversion. With approximately 2.9 million members, Horizon is the largest provider of health benefits in the state. Horizon is currently a not-for-profit insurer, with deep roots as a provider of last resort for those unable to obtain health insurance from other insurers. Therefore, any attempt by the carrier to convert should be reviewed carefully and deliberately by the Department of Banking and Insurance and the Attorney General, the agencies charged by statute with considering the application.

While NJHA has not yet taken a position on the issue, key questions that need to be considered if Horizon proceeds with its application include:

-- Is the conversion in the public interest, as the statute requires?

-- Will a conversion of the state's largest non-profit insurer to a publicly traded company raise the rates New Jerseyans pay for health insurance - already the highest in the country - even further? Will it lead to lower payments to beneficiaries and providers?

-- Would Horizon's conversion to a for-profit company, combined with its market share, give it monopoly-like power in the New Jersey market? And if so, what can be done to prevent such an outcome?

-- Will a for-profit Horizon, responding to shareholder expectations, reduce or eliminate coverage for children and families enrolled in Medicaid, FamilyCare and small business plans and for other vulnerable populations such as the mentally ill, as has happened in other states where plans have converted to for-profit companies?

-- Concerns are already being raised about the inadequacy of Horizon's provider networks. Will these concerns be considered and addressed as part of the conversion review process?

-- Horizon's market share will make it a likely acquisition target for out-of-state insurance companies. What would the impact of such an acquisition be on competition, access to care and premium rates?

-- What can be done to insure that "insiders" to the conversion process don't reap windfall benefits from the new for-profit company?

-- What will come of the charitable asset generated by the conversion? Will it be devoted to ensuring expanded access to healthcare, as the statute requires, or will the state do an "end-run" and divert the funds to non-health purposes?

After similar review, regulators in Washington, Maryland, Alaska and Kansas all rejected conversions of their Blue Cross Blue Shield plans to for-profit companies. New Jersey regulators need to scrutinize the Horizon application with the same level of detail and openness in determining whether approving it would truly serve the public interest in New Jersey.

NJHA has started an intensive review of the Horizon application in an effort to ensure that its members are protected and that the public interest is not ignored.


'/>"/>
SOURCE New Jersey Hospital Association
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. BlueCare(R) Family Plan, a HUSKY Health Plan from Anthem Blue Cross and Blue Shield in Connecticut, Raises Awareness, Funds and Diapers for New Haven Diaper Bank
2. Nautica Malibu Triathlon Presented by Toyota Raises $718,000 for Childrens Hospital Los Angeles Pediatric Cancer Research
3. Fifth Annual Avon Walk for Breast Cancer Los Angeles Raises $4.3 Million
4. AHIP Praises Bipartisan Senate Vote on Mental Health Parity
5. Union President Praises Hillary Clintons Health Plan
6. Progression of SIV infection in monkeys raises
7. Computerized Jump Rope Raises Funds for Breast Cancer Research
8. AIDS Action Council Praises Release of Latest State of AIDS in Black America Report
9. The Fresh Market Raises Over $250,000 for Juvenile Diabetes Research Foundation
10. Crossfit Workout Challenge Raises Over $500,000 in Four Hours for Athletes for a Cure
11. Fifth Annual Avon Walk for Breast Cancer New York Raises $10.2 Million
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... ... June 26, 2016 , ... PawPaws brand pet supplements ... that was developed to enhance the health of felines. The formula is all-natural and ... main herbs in the PawPaws Cat Kidney Support Supplement Soft Chews are ...
(Date:6/25/2016)... ... , ... Austin residents seeking Mohs surgery services, can now turn to Dr. ... Russell Peckham for medical and surgical dermatology. , Dr. Dorsey brings specialization to include ... in Mohs Micrographic Surgery completed by Dr. Dorsey was under the direction of Glenn ...
(Date:6/25/2016)... CA (PRWEB) , ... June 25, 2016 , ... As ... with Magna Cum Laude and his M.D from the David Geffen School of Medicine ... and returned to Los Angeles to complete his fellowship in hematology/oncology at the UCLA-Olive ...
(Date:6/24/2016)... ... June 24, 2016 , ... A recent article published June 14 ... The article goes on to state that individuals are now more comfortable seeking to ... operations such as calf and cheek reduction. The Los Angeles area medical group, Beverly ...
(Date:6/24/2016)... ... June 24, 2016 , ... The Pulmonary Hypertension Association (PHA) ... will receive two significant new grants to support its work to advance research ... anniversary by recognizing patients, medical professionals and scientists for their work in fighting ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... , June 24, 2016  Collagen Matrix, ... design, development and manufacturing of collagen and mineral ... announced today that Bill Messer has ... Marketing to further leverage the growing portfolio of ... devices. Bill joins the Collagen Matrix ...
(Date:6/24/2016)... -- The Academy of Managed Care Pharmacy (AMCP) today ... allow biopharmaceutical companies to more easily share health care ... coverage decisions, a move that addresses the growing need ... The recommendations address restrictions in the sharing of product ... a prohibition that hinders decision makers from accessing HCEI ...
(Date:6/24/2016)... 2016   Pulmatrix, Inc ., (NASDAQ: ... drugs, announced today that it was added to the ... its comprehensive set of U.S. and global equity indexes ... important milestone for Pulmatrix," said Chief Executive Officer ... our progress in developing drugs for crucial unmet medical ...
Breaking Medicine Technology: