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N.J. Blue Cuts 2 Hospitals From Network

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A New Jersey health insurer announced it is terminating its network contracts with Children’s Hospital of Philadelphia and the University of Pennsylvania Health System.

Horizon Blue Cross Blue Shield of New Jersey, a division of Horizon Healthcare Services Inc., Newark, N.J., has issued notices of termination of its contracts with both hospital groups. University of Pennsylvania Health System includes Pennsylvania Hospital, Penn Presbyterian Medical Center and the Hospital of the University of Pennsylvania.

Under the terms of Horizon BCBSNJ’s contracts with both hospitals, the agreements are extended for 4 months after the termination effective dates, which is March 10 for the Children’s Hospital and April 10 for the University of Pennsylvania hospitals:

Horizon BCBSNJ says it is ending the contracts because the reimbursement rates at both hospitals are “simply too high and unsustainable.”

“If either CHOP or the UPHS were to reconsider their rate expectations, Horizon BCBSNJ would gladly reconsider our decision to terminate them from our network of hospitals,” the insurer said in its announcement.


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