How much does Horizon BCBSNJ hold in capital reserves?
At the end of 2007, Horizon BCBSNJ had $1.6 billion in capital reserves. Reserves, mandated by state law, are a safety net to protect policyholders and ensure claims can be paid despite unexpected future events, including epidemics, natural disasters, or even terrorist attacks. Having enough reserves is critical in maintaining the company’s financial stability and ensuring Horizon BCBSNJ will be able to keep its promises to its members when they need health care. As the state’s largest health insurer, the financial condition of Horizon BCBSNJ affects the overall financial stability of the state’s entire health care system. Horizon BCBSNJ consults independent benchmarks and experts to determine a prudent level of reserves based upon its risk. Two independent actuarial firms have reviewed Horizon BCBSNJ’s reserve levels and both have determined that its reserve level is within an appropriate range for its risk.
