Horizon BCBSNJ is reorganizing our corporate structure to a not-for-profit mutual holding company. This is a technical change to how we are legally that will better enable us to deliver on our member-focused mission and drive health care forward in all New Jersey communities. This change will require an update to the laws that apply to our structure.
The change has already been adopted by many others. Blue Cross Blue Shield plans in 18 other states are organized as a mutual company. Evolving to a not-for-profit mutual enables us to work harder for New Jersey, while driving health care affordability, simplicity and quality.
For more than two years, Horizon has worked closely with State lawmakers, the Governor and our partners to pass a law that restructures Horizon in a way that retains its mission and protects its historic commitment to customers, members and New Jersey communities. Now, our application to adopt that new form is before the Commissioner of the New Jersey State Department of Banking and Insurance (DOBI) for approval.
A more modern structure as a not-for-profit mutual will:
Importantly, this new status also:
No. In fact, this gives us the flexibility to make strategic investments that can begin to cover some of our members’ health care costs, which are currently covered solely by member premiums.
We must be ready for anything at any time. Almost overnight, the COVID-19 pandemic reminded us how quickly things can change and that by adapting quickly we can be there when members need us most. Having the operational flexibility to be agile beyond crisis situations will allow us to continue working hard for them and give us more opportunities to drive health care affordability, simplicity and quality.
However, our former corporate structure was built for a different time. Restrictive rules that were unique to Horizon BCBSNJ controlled how much the company could invest in our members’ health – including in ways that would allow us to keep health care costs under control and bring better health outcomes to New Jersey residents. Those restrictions included:
Reorganizing enables Horizon BCBSNJ to shed these restrictions and invest more on behalf of our members to drive the future of health care forward in New Jersey.
Reorganizing Horizon BCBSNJ better positions us to make sure we’re always here for our members and their health. We will be able to accelerate investments in technologies and innovations that improve health care quality, cost and convenience.
We are exploring investments in multiple areas:
As an anchor institution in New Jersey, we care about improving the health of New Jersey residents and the economy as well. We are proud to employ more than 5,000 people. Through this reorganization, we will be able to further expand our contributions to the State, while also serving members and contributing to building a healthier economy, generating more opportunities and revenue for the entire State.
In fact, similar changes in other states like Florida and Michigan resulted in expanded member services and economic growth, while the rates of uninsured residents in these states decreased faster than the national average.
As we’ve learned during the COVID-19 crisis, things can change in an instant, and our members rely on us to be there when they need us. During the crisis, we delivered on that expectation by eliminating out-of-pocket costs for COVID-related testing and care, expanding telemedicine benefits and providing free counseling for people feeling stressed, anxious, or depressed. We also helped employers preserve health coverage for their employees.
We need to continue delivering on our members’ expectations beyond the current crisis. With new strategic and operational flexibility, Horizon BCBSNJ can:
As New Jersey’s not-for-profit health insurer, we have already made critical investments to meet our members’ needs but reorganizing enables us to do more to keep pace and deliver on our members’ expectations. It will give us the flexibility to provide more opportunities to drive health care affordability, simplicity and quality.
For additional information, please contact us at firstname.lastname@example.org.