Horizon Blue Cross in New Jersey decides to stay non-profit due to PPACA

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Horizon Blue Cross Blue Shield of New Jersey officially called off its plan to become a for-profit company yesterday.

A Horizon spokesman said the insurer had a new priority: preparing for a far-reaching overhaul to federal health-care laws that will take effect in 2014.

"There have been significant changes in the economy and the health care industry since filing our conversion application nearly three years ago," said Thomas Rubino today, the company spokesman, adding that the insurer "does not see a need to convert to a for-profit company in the foreseeable future."

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"We believe Horizon can better serve the health care needs of New Jersey residents by remaining a not-for-profit entity," said Michael Kornett, head of the Medical Society of New Jersey. "We commend Horizon’s new executive leadership for making this decision."

http://www.nj.com/business/index.ssf/2011/05/horizon_blue_cross_scraps_plan.html

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Awesome.

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Awesome.

Yup! The move of Horizons nationwide to a for profit model was very worrying.

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Yup! The move of Horizons nationwide to a for profit model was very worrying.

If I remember correctly, there is a provision in the health care act that puts a cap (or minimums) on the amount spend out of every dollar. Do you think this is what discouraged Horizon to stay a nonprofit?

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If I remember correctly, there is a provision in the health care act that puts a cap (or minimums) on the amount spend out of every dollar. Do you think this is what discouraged Horizon to stay a nonprofit?

I doubt it. HHS is handing out waivers for that particular provision like candy so it's got no teeth at all.