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:12/2/2016)... ... ... years, Doctors on Liens has published a directory of the top doctors working ... When the company started in 1997, the directory was a single page focusing on chiropractors ... directory features a vast array of medical specialists stretching from Sacramento to San ...
(Date:12/2/2016)... ... , ... Center for Autism and Related Disorders (CARD) Portland today announced plans ... (ASD) and other developmental disabilities. The group, which is being launched with the help ... opportunity to share stories and advice, seek help, and continue their education on how ...
(Date:12/2/2016)... , ... December 02, 2016 , ... ... interview of two ostomy patients, standing as living proof that attitude and determination ... digestive diseases and issues that spike around the holidays. This campaign will offer ...
(Date:12/2/2016)... ... December 02, 2016 , ... ... version of its SaaS LIMS, CloudLIMS Lite. CloudLIMS Lite helps biobanks, clinical, research ... labeling, storing, shipping and disposal. The new version is a faster and a ...
(Date:12/2/2016)... ... 2016 , ... Rijuven Corp launches rejiva ( http://www.rejiva.com ), a unique wearable ... wearable health technology on the market can deliver all that rejiva can. , “Rejiva ... about their health than the usual heart rate and steps taken”, adds Evens Augustin, ...
Breaking Medicine News(10 mins):
(Date:12/2/2016)... On Thursday, December 1st 2016, ... research, development and innovation in the biopharmaceutical industry at ... in the presence of Sergey Tsyb, Vice Minister of ... , Natalia Sanina, First Vice Chairman of the ... of Roszdravnadzor, National Service of Control in Healthcare, Sergey ...
(Date:12/2/2016)... , December 2, 2016 bioLytical Laboratories, ein ... HIV-Selbsttest, bei den Mitgliedern des Apothekenbundes von Kenia eingeführt. ... ... INSTI HIV Self Test! (PRNewsFoto/bioLytical Laboratories) ...      (Photo: http://photos.prnewswire.com/prnh/20161201/444905 ) ...
(Date:12/2/2016)... 2016 Lianluo Smart Limited (Nasdaq: ... which develops, markets and sells medical devices and ... and international markets, recently attended the ... New Progress Forum, co-hosted by the Institute of ... , Guangdong Provincial People,s Hospital and Cardiology Department ...
Breaking Medicine Technology: