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

izon'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.


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SOURCE New Jersey Hospital Association
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