New Jersey GOP sounds alarm on rate hike for Horizon BCBS state employee plan, calls for investigation

New Jersey's employee health insurance program, administered by Horizon Blue Cross Blue Shield, could see rates increase by up to 24 percent, prompting calls from state Republicans to investigate the program that has seen previous controversy, according to the New Jersey Globe.

"Governor Murphy has completely failed to control health care premiums paid by the state, local governments, and active and retired public employees," Senate Minority Leader Steven Oroho said in a public statement. "We must investigate the failures that led to these catastrophic premium increases to develop an effective plan going forward."

A spokesperson for the state Treasury Department, which oversees the plan, told the Globe that the pandemic and inflation are part of the reason for the increase and that it is likely to be a one-time occurence.

The plan has provided coverage to state employees since 1996 and is worth about $136 million annually. Last year, the office said the state should fight to get back $34 million from Horizon regarding a new navigation program that was intended to help enrollees find better care for lower costs. At the time, the health plan was overseen by former treasury department employee Christin Deacon, who later resigned.

Ms. Deacon said she and others tested the new service after its debut and found Horizon was not delivering. An audit of the new health guide showed it was similar to the payer's standard customer service.

After asking Horizon to fix the problem for months, Ms. Deacon said she filed an internal complaint about the issue and asked the company to refund its investment.

Just before a response was due, Ms. Deacon said Gov. Phil Murphy's office wanted the complaint withdrawn. A meeting with Horizon executives and state officials was scheduled for June 29, 2021, and since that meeting, no actions were taken.




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