“The New Jersey Business & Industry Association opposes Governor Christie’s efforts to take control of Horizon BCBSNJ’s capital reserve funds in order to balance the state budget. The $300 million in question is supposed to be used to pay the future healthcare bills of Horizon’s 3.8 million policyholders, and any attempt to divert this money to pay for other state programs is inappropriate.
“Horizon’s capital reserves are the monies New Jersey businesses and their employees have paid in premiums. These funds serve as a safeguard against unexpected increases in future healthcare claims and help maintain price stability for policyholders. Requiring Horizon to redirect hundreds of millions of dollars for other state purposes is imprudent, especially given the uncertainty in the health insurance market amid the ongoing discussions in Washington, D.C. about repealing the Affordable Care Act.
“NJBIA urges the Governor and Legislature not to take actions in the final days of the state budget process that would put Horizon policyholders at risk of higher premiums and jeopardize the insurer’s ability to pay future claims.”