If Horizon BCBSNJ is currently financially strong and the largest health insurer in the state, why is conversion necessary?
Any corporate Board of Directors that is not looking to the future of their industry and the changes likely to occur and preparing for those changes risks losing its competitive edge or worse. For example, one need only look to the newspaper industry to see how technological changes can remake an entire industry within a short period of time. Our nation’s health care system is in a time of rapid transformation. Health insurers must be prepared to meet industry changes being driven by reform efforts, technology, and stakeholder demands. Horizon BCBSNJ’s current nonprofit corporate form dates back to the 1930’s. That’s why Horizon BCBSNJ’s Board of Directors has decided to explore conversion. By converting, the company will gain access to capital through the public markets giving it more flexibility to make investments and acquisitions to add capabilities and respond to future changes in the health care system.
