Horizon Blue Cross Blue Shield will pay New Jersey $1.25 billion over 18 years from its conversion to a nonprofit mutual holding company— but where these funds should go has sparked debate, NJ Spotlight News reported May 19.
In 2022, Horizon BCBS reorganized as a nonprofit mutual holding company, allowing the insurer to create for-profit subsidiaries. As part of the reorganization, Horizon agreed to pay the state $1.25 billion.
Horizon BCBS has paid the state $725 million so far, according to NJ Spotlight News. The funding has freed up $625 million in state funds, which Gov. Phil Murphy plans to shift to the state’s general fund.
The plan has sparked criticism from some lawmakers and advocates, who say the Horizon funds should be used to bolster healthcare access in the state over a number of years, according to NJ Spotlight News.
A spokesperson for Gov. Murphy told the outlet shifting Horizon’s payments to the general fund will allow the state to bolster Medicaid access, as lawmakers eye funding cuts at the federal level.
Read the full report here.
