Horizon Blue Cross Blue Shield of New Jersey, the state’s largest health insurer, has applied to become a for-profit corporation according to New Jersey’s Star Ledger (8/17, McNichol). After establishing itself as a for-profit corporation, Blue Cross hopes to “generate at least $1 billion for the state to support insurance subsidies and public healthcare improvements” and to compete with other insurers by raising funds through stock sales. Â After the application is approved, “Blue Cross proceeds from the first sale of stock must be deposited in a public foundation set up to bankroll insurance affordability initiatives and public health programs.”
Blue Cross predicts that “investment during the next five years will exceed its annual $35 million budget by an estimated $20 million to $30 million per year,” according to Modern Healthcare (8/16, Evans). Today, the insurer “holds 46 percent of New Jersey’s market.”
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