Horizon moves one step closer to changing NJ's biggest insurer forever
On the
Supporters throughout a day of hearings said the change would give Horizon the flexibility it needs to invest in innovative programs that can lower the cost of health care.
"Doing nothing isn’t an option," said Assemblywoman
More: NJ insurer Horizon built on 1932 rules; here's what a change would mean to you
The company, however, says it is constrained by a corporate structure set up by the state that spells out how much of its reserves it can invest in other businesses, leaving it at a disadvantage in how it serves the community and competes with for-profit insurers.
Horizon's solution: Create a not-for-profit mutual holding company similar to
Mutual holding companies usually are owned by its members, who would share in their profits. In this case, though, there are no profits.
Horizon would be governed by a 22-member board of directors. Its members would vote for 13 directors. The governor, state
The bill lowers a tax on Horizon's premiums to be in line with other insurance companies. And Horizon would be assessed a total of
More: NJ health care giants team up to create Medicare Advantage plan
Horizon, however, long has been considered a charitable organization with an altruistic mission. And its attempt to change course has created no shortage of objections.
Consumer groups said they were worried Horizon's move would be a step toward becoming a for-profit company or a takeover target.
"If Horizon wishes to change its corporate structure it can and should do so without taking away the assets and protections that current law secures for the people of
Assemblyman
Lawmakers who supported the bill could only wonder if they were missing something.
"The biggest hesitancy I have is, what don't I know?" Assemblyman
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