Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Health Insurance

N.J. Blues File Conversion App

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

The parent of Horizon Blue Cross Blue Shield of New Jersey, a nonprofit health service corporation, is asking the state of New Jersey for permission to become a for-profit company.

Horizon Healthcare Services Inc., Newark, N.J., which providers or administers health coverage for 3.6 million people, says a state law enacted in 2001 requires that the proceeds from any conversion go to an independent charitable foundation that would work to expand access to quality, affordable health care.

Horizon Blue is hoping that a conversion could lead to a conversion charitable contribution of at least $1 billion, according to Horizon Blue President William Marino.

Marino contends that a conversion also would give Horizon Blue more flexibility to invest in improving and expanding its services.

“Through the application process, we will be able to determine whether conversion is practical and whether it can be accomplished on satisfactory terms for our members and our company,” Marino says in a statement.

Many companies, such as banks, have had difficulty raising capital on Wall Street in recent months due to the turmoil in the investment markets, and some have seen share prices drop to less than $10. Stock prices of most health carriers have fallen less sharply.

Shares of WellPoint Inc., Indianapolis, a major for-profit Blues plan consolidator, are selling for about $57 per share, down from a range of $70 to $80 per share that prevailed from most of July 2005 until earlier this year.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.