Horizon can restructure: 4 things to know

Listen

New Jersey's governor signed legislation Dec. 23 that allows Horizon Blue Cross Blue Shield of New Jersey to reorganize its business structure, according to the Asbury Park Press.

Four things to know: 

1. With Gov. Phil Murphy's signature, Horizon can convert from a nonprofit health services corporation to a nonprofit mutual holding company. 

2. The change will allow Horizon to acquire other providers and pharmacy benefit managers, according to the report. The legislation says that Horizon cannot become a for-profit company, but it can create for-profit subsidiaries.

3. Opponents of the legislation have been wary about how the change would affect members, arguing it would allow Horizon to become a for-profit enterprise that focuses more on shareholders than members, according to the Asbury Park Press.

4. Under the restructure, Horizon agreed to pay New Jersey $1.25 billion over 18 years, including $600 million in 2021, according to the report. 

Read more here.

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Whitepapers

Featured Webinars