New Jersey assemblyman wants Horizon payments to go toward lowering insurance premiums

(The Center Square) – The state should use the $1.25 billion in payments that Horizon Blue Cross Blue Shield of New Jersey will make to the state over the next 18 years to reduce insurance premiums for policyholders, a state lawmaker is arguing.

Assemblyman Ron Dancer, R-Ocean, has introduced a constitutional amendment, ACR207, which would send the matter to voters to decide.

The measure has been referred to the Assembly Financial Institutions and Insurance Committee. If the Legislature signs off on the amendment, voters would need to approve it during the next election.

“Unless the annual assessments are constitutionally dedicated, they could be raided through the budget process to pay for unrelated things because the annual appropriations bill can override any statutory dedication of funds,” Dancer said in a statement.

“We have to learn a lesson from diversions such as the use of energy bill taxes to pay for New Jersey Transit rather than true clean energy initiatives as intended,” Dancer added. “We must put the money in a constitutional lock box so that it can’t be used to balance the budget or for pet projects.”

Gov. Phil Murphy recently signed legislation allowing Horizon, New Jersey’s largest health insurer, to switch from a nonprofit business entity to a nonprofit mutual holding company. Horizon must pay $1.25 billion over 18 years to the state under the agreement, including $600 million this year.

Horizon executives previously said the restructuring would allow the company to invest in new technologies and improve health care offerings.

“Nearly half of the money happens to arrive in an election year,” Dancer said. “The $600 million can certainly make for a more electorate-pleasing budget, especially when there is less revenue due to Covid and business restrictions. The public will only be made more cynical about government priorities if we blow this windfall on new spending instead of dedicating it to help the 3.6 million Horizon members who paid it in the first place.”

“Neither this year’s payment nor the 17 following assessments are dedicated to any specific use whatsoever,” Dancer added. “We should be lowering the costs of health insurance for Horizon’s policyholders, not letting the state cash a check worth $1.25 billion dollars that it can spend at a whim.”

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