Does Horizon BCBSNJ pay state and federal taxes?
Yes. In 2007, Horizon BCBSNJ paid a total $156.8 million in federal and state taxes and assessments. Horizon BCBSNJ, as a health service corporation, is precluded from benefiting from the tax savings provision in the New Jersey Premium Tax law that is available to all other insurers. This benefit was eliminated through legislation passed during the State’s 2006 budget process. As a result, Horizon BCBSNJ paid $40.9 million more in premium taxes in 2007 than all other insurers with similar levels of premium revenue (health or other insurers) authorized to transact business in New Jersey. As a health service corporation, Horizon BCBSNJ is exempt from state sales taxes and Newark payroll taxes.
