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Group seeks to block Horizon BCBS reorganization


A nonprofit and a nurses union lodged a complaint Monday to block the reorganization of Horizon Blue Cross Blue Shield as a mutual holding company, saying state regulators failed to properly apply a series of tests meant to ensure the reorganization would benefit the insurer’s policyholders, reports New Jersey Monitor. As part of Horizon’s reorganization, the insurer will pay the state $600 million in June plus another $625 million over the next 17 years to make up for a $50 million reduction in its annual tax burden. The plaintiffs claim those payments plus $300 million in spending to create for-profit subsidiaries will push premiums upward.


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