Horizon: NJ Legislature ready to rebuild health insurer; critics fear consumer cost
Asbury Park PressDec 16, 2020
"This bill is a blueprint for change that will allow
Mutual holding companies usually are owned by their members who would share in their profits. In this case, though, there are no profits.
The company's current status, it says, comes with strict rules that make it tough to compete with other insurers and deliver its services to more residents.
Both the Assembly and the
Committee approvals: Horizon moves one step closer to changing NJ's biggest insurer forever
The bill specifies that Horizon couldn't become a for-profit company. It would increase the state's presence on the board of directors from 35% to 40%. It would lower the tax rate on Horizon's premiums to match its competitors. And it would require Horizon to pay
The bill has drawn plenty of opposition. Consumer groups have said they worry that Horizon will find a way to turn into a for-profit company anyway that will need to answer to shareholders.
And Republican Senators said Tuesday they wanted to ensure the windfall from Horizon would be used for health care instead of the general fund.
"We know what will happen with that money," state Sen.
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