December 1, 2008
AM News recently reported on the rationale of Horizon's conversion to a for-profit organization during these troubling economic times.
Read the story
November 24, 2008
NJ State Senator Jeff Van Drew (D - Cape May) held a press conference last week at the State House asking Horizon to negotiate in good faith with CHOP and expressing concerns about Horizon's attempt to become a for-profit corporation. MSNJ members Dr. Bruce Monaghan and Dr. Scott Schaffer also shared their experiences. WZBN, New Jersey's Capital News Station covered the event.
Watch Here
November 20, 2008
Dr. Steven Altschuler, president & chief executive officer of Children's Hospital of Philadelphia penned an op-ed in today's
Star Ledger discussing CHOP, Horizon and Horizon's conversion attempt.
Read more
November 18, 2008
The National Committee for Quality Assurance has released a report indicating that most top-quality health insurance places are nonprofit.
Read more
November 6, 2008
More concern about a conversion. This time Dr. Rocco Giliberti of Point Pleasant Beach writes in the
Asbury Park Press.
November 3, 2008
A recent story in entitled "Guarding Their Treasure" in
American Medical News addresses the surpluses retained by Blues Plans across the country.
Read more
October 23, 2008
WellPoint and Horizon are being mentioned in an Associated Press article together this morning. An analyst even identified Horizon as a potential target to be purchased and even WellPoint's CEO Angela Braly comments on their moves over the course of time. She states:
"...what WellPoint has done over time is brought together what was 14 separate Blue Cross and Blue Shield plans across the country, and we think it's a great formula for success."
Hmmm, wonder if WellPoint's thinking of Jersey blue.
Read more
October 21, 2008
HORIZON: State Finds Conversion Application Incomplete
Earlier this week, the Department of Banking & Insurance (DOBI) and the Office of the Attorney General (OAG) separately found Horizon Blue Cross Blue Shield’s application for conversion from a non-profit organization to a for-profit corporation to be incomplete. In a letter to Horizon’s Senior Vice President, John W. Campell, DOBI’s Director of Insurance, Donald Bryan, asks that Horizon further address 28 points that either did not show up in Horizon’s application or were unclear to DOBI. At the same time, the OAG sent a letter to Mr. Campbell asking Horizon to further explain 55 additional points including a request to “describe in detail the estimated market value of Horizon…” Horizon has previously stated that the value of Horizon could be more than $1 billion. The Medical Society of New Jersey contends that t he value of Horizon well exceeds $1 billion and estimates that its actual value is closer to $7.5 billion on the low-end. The OAG also requests Horizon to provide information “relating to pursuing any proposed conversion, merger, affiliation consolidation or strategic relationship…” Currently, Horizon enjoys a 46% market-share and has 3.6 million members.
MSNJ’s CEO, Michael T. Kornett, issued the following statement after learning of this significant development by DOBI and the AG:
"MSNJ is encouraged to see that both the Department of Banking & Insurance and the Attorney General are demanding a more thorough explanation of what this proposed conversion means to the people of New Jersey. Frankly, there are a lot of questions on any number of issues from patient, consumer, and taxpayer protection to market consolidation, and certainly the question of Horizon's fair value needs to be answered before we can even begin to weigh the risks and benefits of this fundamental change to New Jersey’s healthcare delivery system."
October 15, 2008
The Health Care Before Profits website has an interesting fact sheet on the difference between
for-profit and non profit. It's worth a look for a better understanding of the differences.
October 14, 2008
NJHA looking for transparency during conversion.
read more
October 9, 2008
Michael T. Kornett, MSNJ's chief executive officer penned an op-ed piece that was published in
The (Bergen) Record today.
October 2, 2008
A new website has popped up providing information relevant to a Horizon conversion. Check out
Health Care Before Profits. It provides detailed information, news reports, and articles on conversion.
September 30, 2008
Steven M. Altschuler, M.D., president and CEO of the Children's Hospital of Philadelphia pens an op-ed letter to the
Times of Trenton with concerns about Horizon.
September 22, 2008
The satirical and fictitious news source The Onion has a great feature story today entitled:
While the article itself may be fictitious, the consequences that people may sometimes have to face are very much real.
September 12, 2008
Others Expressing Concern
It looks like MSNJ isn't the only statewide organization that is
expressing concerns over Horizon's disclosure. Take a look at this
press release that the New Jersey Hospital Association released yesterday.
September 10, 2008
The Department of Banking and Insurance Issued the following statement:
DOBI Makes Horizon Blue Cross Blue Shield of New Jersey Conversion Application Available Online
All Public Records of Horizon BCBSNJ Conversion Application Now Electronic
TRENTON – Department of Banking and Insurance (DOBI) Commissioner Steven M. Goldman today announced that the public portion of the Horizon Blue Cross Blue Shield of New Jersey’s conversion application, filed with the Department on August 15, 2008, is available at
www.state.nj.us/dobi/horizon/.
The not-for-profit conversion application to convert to a for-profit health insurer is still in the completion review process. The Department will provide additional public portions of the application as it receives them and will make them available online.
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September 9, 2008
We're not the only ones
Glad to see there are others that are concerned with Horizon's conversion attempt. Take a look at this
Toms River podiatrist's article in Today's
Asbury Park Press. He finds an op-ed piece penned by Horizon last month "laughable and erroneous."
September 8, 2008
A recent cartoon editorial The Record's Jimmy Margulies
September 3, 2008
Don’t be fooled: Stock versus Stock Options
You may see Horizon Blue Cross print or make statements that
say:
“State law prohibits Horizon BCBSNJ
management and the company’s Board of Directors from obtaining any stock in the
company for 12 months after the conversion”
They are absolutely correct. And in Horizon’s noble effort to remain transparent during the
conversion process they are truthful in stating that the execs and the Board
won’t be seeing stock for 12 months post-conversion. But…What they aren’t telling you is that
Horizon management and the company’s Board of Directors will most likely
receive handsome amounts of stock options.
Stock Options! Stock Options! Stock Options!
Stock options offer someone the right to buy a specific
number of shares of a company's stock during a specific time and price. In Horizon’s case, stock options will most
likely be awarded to the executives shortly after the conversion is
completed. The price the company sets on
the stock (also known as strike price) is discounted and is
usually the market price of the stock at the time the employee is given the
options. For example, this means that if
Horizon execs want to exercise their stock options in 2012, they can still
obtain them at the 2009 price. That’s a
pretty sweet deal, especially if they undervalue the company when they go
public!
Since those options cannot be exercised for some time, the
hope is that the price of the shares will go up so that selling them later at a
higher market price will yield a profit. Those stock options promise potential
cash or stock in addition to salary.
Ask questions. No,
Horizon bigwigs won’t be getting stock, but we can be sure that they’ll be
getting stock options. The questions
remain, “How many stock options and to whom will they be so generously dolled
out to?” Let’s get the right answers for the people of New Jersey.
August 29, 2008
Did You Know?Did you know that according to a 2007 article written in The Toms River Times there are only 10 blimps (or airships as they are also known as) operating in the US and a mere 20 worldwide?
Hmm, wonder how many of the 10 in the United States are owned or operated by non-profit companies. Here’s just a few of the companies that have blimps: Goodyear, MetLife, Outback Steakhouse, Fujifilm, Horizon Blue Cross Blue Shield of New Jersey.
Guess which one is the non-profit organization? We’ll give you hint. It’s the same one that the taxpayers of New Jersey own.
August 28, 2008
NJ's Skeptics Already Responding
Hey New Jersey, check out Mr. Marino's op-ed in today's
Asbury Park Press. More importantly, read the comments at the end of the article. The skeptics are out already. Remember to keep asking questions.
August 27, 2008
Remain Skeptical, Ask Questions
In an August 16 article in the Press of Atlantic City, Horizon chief executive officer William J. Marino was quoted as saying:
"The change in premium rates for covered individuals, or groups that we cover, will be no different as a for-profit than it was as a nonprofit." (http://www.pressofatlanticcity.com/179/story/230808.html)
In an op-ed written by Mr. Marino and sent to the Times of Trenton and the (Bergen) Record, he asks and answers his own question:
"Will Horizon's conversion mean higher premiums and reduced benefits for our members?
Health insurance premiums are a reflection of the underlying costs of health care (i.e., hospital costs, physician costs, utilization, new medical technology and prescription drug costs). As these underlying costs rise, so will health insurance premiums." (http://www.northjersey.com/opinion/moreviews/27517084.html)
Well, which one is it? Horizon said “no” in one article, but then passed the buck in another saying the “underlying costs of health care” will determine premiums. Will these “underlying costs of health care” determine premiums after Horizon receives their for-profit status?
Lots of questions to ask.
But then think about it, the profits are going to have to increase through either an increase in premiums or a cutback on the amount of healthcare Horizon pays. Remember, with their non-profit status they aren’t paying all of the taxes that they will have to when they become for-profit. It’s hard to believe that Horizon will keep rates the same just so they could lose money paying taxes if they become for-profit. That money’s going to have to come from somewhere…
Don’t be fooled when you see statements from Horizon in the media that say “reform proposals” or “our nation’s healthcare system faces many challenges”. Ask questions and demand thorough answers. And don’t be duped into thinking that when Horizon is asking the questions and giving the answers that they aren’t think about what’s in their best interest.
Be a skeptic!