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In an expected move, health care insurer Horizon Blue Cross Blue Shield of New Jersey said today it has filed an application with the state to convert from a not-for-profit corporation to a for-profit company. Trenton could reap at least $1 billion from the transaction.
The Medical Society of New Jersey, a physician trade group based in Lawrenceville, in June came out against the conversion, arguing it would benefit the state and Horizon while reducing health care quality for patients.
Newark-based Horizon said the move is a response to the nation's rapidly changing health care system. The application process will be used to gauge whether such a conversion is practical and can satisfy the company and its 3.6 million members. If the insurer is allowed to operate as a for-profit entity, the state's health care system would improve without taxes being raised, said Horizon.
A conversion would trigger the creation of a charitable foundation that would get 100 percent of Horizon's value at the time of the transaction, estimated to be at least $1 billion, the insurer said. By law, the money would be used to expand access to quality and affordable health care.
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