Philadelphia-based Jefferson Health and Horizon Blue Cross Blue Shield have reached a stalemate in contract negotiations that could leave three of the system’s southern New Jersey hospitals in Cherry Hill, Stratford and Washington Township out of Horizon’s network March 1, 2027.
In a statement to Becker’s, Jefferson said Horizon ended negotiations with the system. “Jefferson was in active negotiations with Horizon when they decided to abruptly cancel all discussions,” the system said. “They’re putting patients’ well-being at risk by refusing to continue conversations with us. We stand ready to meet with Horizon any time, any day, any location on behalf of our patients.”
Horizon said Jefferson informed the insurer that the system will leave its network unless Horizon agrees to pay higher prices.
“Healthcare is already out of reach for too many South Jersey families and employers. Jefferson Health’s New Jersey operations earned a nearly 10% profit margin in 2025, yet it wants Horizon members to pay $185 million more over three years to make up for losses in Pennsylvania,” a Horizon spokesperson said in a statement to Becker’s.
“It is particularly disappointing that Jefferson cancelled the agreement we had reached for members who rely on Medicaid for their health coverage and is now using them as leverage. That is beyond unfair and unreasonable. Horizon has offered an increase that reflects inflation, and we’re ready to negotiate an agreement that helps make care more affordable for the people we serve,” the spokesperson added.
Jefferson said it is seeking fair payment that would narrow the gap between what Horizon pays its hospitals and what the insurer pays other New Jersey hospitals for inpatient and emergency care.
According to Horizon’s website, Jefferson ended the contract Nov. 1. If Jefferson and Horizon cannot reach an agreement, patients with Horizon can still receive in-network care at the three South Jersey hospitals until Feb. 28, 2027.
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