A group of not-for-profit health insurers and providers have their back up over Horizon Blue Cross and Blue Shield's application to convert its corporate structure to for-profit status. The group, the Alliance for Advancing Nonprofit Healthcare, contends that Horizon hasn't given a good enough reason to justify the conversion.
In its filing with the state, Horizon has said that switching from not-for-profit to for-profit operations will help it obtain greater access to capital, which it plans to invest in information technology, pay-for-performance initiatives and business operations. These investments would exceed the plan's annual $35 million by a projected $20 million to $30 million per year during the next five years.
However, the Alliance, whose members include Henry Ford Health System, Minnesota Blue Cross Blue Shield, Provena Health and the Washington State Hospital Association, isn't buying Horizon's pitch. Its leaders have sent letters to both the New Jersey attorney general and commission of the Insurance and Banking Department, urging them both to closely study Horizon's application. The Alliance's leaders say the officials should question why Horizon can't get the capital it wants while staying a not-for-profit entity.
To learn more about the challenge:
- read this Modern Healthcare article
Related Articles:
N.J. Blue plan files to go for-profit
DC sues area Blue plan, demands it donate millions to community
Horizon BCBS settles with MDs
NJ Blue plan invests $500K in med history tech for hospitals