Do the people of the State of New Jersey benefit from conversion of a non-profit health service corporation to a for-profit health insurer?
Yes. Conversion unlocks the value of the health service corporation for the purposes of improving the state’s health care system. The conversion law requires the creation of an independent foundation that is to receive 100% of the stock (its fair market value) of the health service corporation upon conversion. It is estimated that sale of Horizon BCBSNJ’s (or its parent company that will be created at the time of conversion) capital stock in the public markets by the independent foundation after conversion could raise more than $1 billion. This money is required by the conversion law to be used for “purposes of expanding access to affordable, quality health care for underserved individuals and promoting fundamental improvements in the health status of all New Jerseyans.” Horizon BCBSNJ’s conversion will potentially generate more than $1 billion to improve New Jersey’s health care system without the need to raise state taxes.
Related Questions
- Do the people of the State of New Jersey benefit from conversion of a non-profit health service corporation to a for-profit health insurer?
- Does the foundation have to use the proceeds of a health service corporation’s conversion to improve New Jersey’s health care system?
- Who decides whether a non-profit health service corporation can convert to a for-profit health insurer?
