Gov. Phil Murphy signed legislation in 2020 legalizing the company’s conversion from a nonprofit health services corporation to a nonprofit mutual holding company, which will allow it to create for-profit subsidiaries through the acquisition of providers or pharmacy benefit managers.
The payer’s application for reorganization is complete and three public hearings are scheduled for October, according to a Sept. 22 news release shared with Becker’s.
Within a month of the last hearing, the state’s insurance commissioner will formally approve or deny the plan, which has been criticized for reportedly shifting the payer’s focus to shareholders and away from members.
Under the restructure, Horizon also agreed to pay New Jersey $1.25 billion over 25 years.
“What our members need and demand from health care today is rapidly changing and becoming a not-for-profit mutual will better position Horizon to continue meeting their needs,” a BCBS spokesperson told Becker’s. “We appreciate the very thorough and complete effort that the Department has invested in evaluating the application. We remain committed to continue working with the Department to achieve a successful completion of this process and to providing the benefits that the reorganization will deliver to our members.”
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