Good Grief!

In all of this “are they or aren’t they” Horizon Blue Cross Blue Shield blogging, I didn’t realize that New Jersey has a stake in the insurer’s possible for-profit conversion:

State officials have quietly reopened talks with Horizon Blue Cross Blue Shield of New Jersey officials on a plan to convert the Newark-based health insurer into a for-profit company — a complex deal that could provide a big windfall for the state budget.

Under state law, a switch from its current nonprofit status would require Horizon to set up a public health foundation, which could take over some health-care costs now paid by the state.

Horizon BCBSNJ says it is not seeking to change its status. In fact, Governor McGreevey’s spokesman said that the financial windfall resulting from a Horizon conversion deal would just be a secondary benefit: “we’re looking to protect consumers…” Is it too cynical to wonder if Horizon is deliberately playing hard to get while New Jersey lawmakers investigate the insurer’s contract disputes with large state providers?

PS Again, a full disclosure: I work for one of the state providers feuding with Horizon BCBSNJ.