Protecting our Members’ Reserves
In his State Budget address on February 28, 2017, the Governor asked Horizon Blue Cross Blue Shield of New Jersey to consider contributing money from its reserves to help fund state programs. If we do not agree to that invitation, we expect the State will become more aggressive in trying to take the reserves. This proposal is troubling as the health insurance industry is in the midst of one of the most volatile times for health care in American history. Given the current national political environment, in particular the proposed repeal and replace of the Affordable Care Act, it is dangerous to propose a measure that will weaken the safety net that protects our more than 3.6 million members.
Characterizing our members’ reserves as “excess surplus monies” is inaccurate; they are reserves protecting our members against risk, and ensuring we can pay claims when the unforeseen happens. Horizon BCBSNJ is required by state law and Blue Cross and Blue Shield Association rules to maintain reserves. Additionally, Horizon BCBSNJ has maintained an “A” credit rating from Standard & Poor’s, due in large part to its current level of reserves.
Horizon BCBSNJ will fight any such actions that weaken the security and peace of mind we provide to our members and customers.