Don’t let Horizon Take our Money and Run

New Jersey’s largest non-profit health insurer, Horizon Blue Cross Blue Shield, has amassed an estimated $7 billion (over three times the size of the NJ Department of Health’s whole budget for 2020) in a reserve fund that belongs to the public. Under state law, the purpose of the funds is to invest in improving New Jerseyans access to quality, affordable health care. For the past ten decades Horizon Blue Cross Blue Shield could have invested this funding into making health coverage more affordable and accessible to New Jerseyans, but they didn’t.

Now, for the 4th time, Horizon is proposing a corporate reorganization that would eliminate their non-profit mission and allow them to create for-profit subsidiaries. When making such a conversion, Horizon is legally obligated to turn over their public reserves (estimated $7 billion) to a trust fund designed to improve the health status of NJ residents or provide a similar community benefit.

Yet, their conversion proposal only provides a one-time payment of $600 million and a possible $650 million over 17 years by Horizon. This payment agreement is not specifically designated to improve the health of NJ residents and does not match the $7 billion value of Horizon. This would allow Horizon to take nearly $6 billion of public funds and invest it in Wall Street to the benefit of stockholders.

We need the NJ Legislature and the Governor to say no to any Horizon restructuring if it involves running away with billions that belongs to us. New Jersey can have a bright health care future if the Legislature and Governor ensure we hold onto what is already ours.