Good Grief!

Last week, I wrote about the one-time healthcare refund of 55 million dollars (about 1.1 percent of last year’s operating revenue) that Horizon Blue Cross Blue Shield of New Jersey is offering to some of its subscribers. The reaction of most people around here (”here” being one of the hospitals involved in a contract dispute with Horizon BCBSNJ) is that, regardless of reports to the contrary, Horizon is preparing to convert from its not-for-profit status, and the refund is essentially a well-timed bribe to enhance public relations.

However, last Friday’s Courier Post reported that Horizon later attached strings to the refund for individual policyholders:

During a press conference announcing the dividend, Horizon said individual policyholders must wait to receive their portion until the state legislature passes “meaningful” insurance reform.

Note that this condition doesn’t apply to small business and Medigap subscribers, who will see refund checks beginning in March. The response from William Marino, Horizon’s president and CEO is as follows:

Although I find it unfortunate that we are being attacked for committing $55 million to improve the state of health care in New Jersey, we take pride in the fact that many New Jersey residents will benefit from the affordability dividend.

I think our very own Navigator says it best when he suggests that lowering premiums or adjusting its negotiating posture with important regional providers might be the best way for Horizon to improve the state of health care in New Jersey.