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Horizon BCBSNJ Conversion :
Transcript of President Marino's Statement
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Transcript of President Marino's Statement
As you may know, Horizon Blue Cross Blue Shield of New Jersey is exploring the possibility of converting to a for-profit, public company. For the first time, we have filed an application for conversion with the State of New Jersey as part of our exploration process.
I'd like to explain why we are exploring conversion once again after ending our consideration of it three years ago.
Our nation's health care system is facing many challenges. Most Americans believe our health care system is in need of substantial reform. Consequently, many reform proposals at the state and federal level are calling for significant changes in health care in coming years. Simply put, our nation’s health care system is undergoing a rapid transformation.
As the state's oldest and largest health insurer, we have an obligation to our more than 3.6 million members to be prepared to meet their needs as our health care system changes. For these reasons, we felt it was appropriate to reconsider conversion at this time.
As the process moves forward, New Jersey residents have a unique opportunity to improve our state's health care system. Under the law governing conversion, an independent, charitable foundation must be created and would receive 100% of the value of Horizon upon conversion, which could be more than a billion dollars. This independent foundation is required by law to use this money "solely for the purposes of expanding access to quality, affordable health care."
That's a billion dollars for our health care system without raising state taxes. As I said, it's a unique opportunity.
We also believe our members and New Jersey health care providers can benefit from our conversion. As a public company with access to the capital markets, we will have greater flexibility to invest in and acquire new capabilities and technologies to better serve the changing needs of our members and network physicians and hospitals.
For more than 75 years, millions of New Jersey residents have trusted Horizon Blue Cross Blue Shield of New Jersey to be there when they needed us most. We feel a special obligation to maintain that trust and to continue to be there when we’re needed. To do so, our corporate structure needs to be as effective and efficient as possible in order to stay competitive in the rapidly changing health care industry.
Some people may have concerns about what our conversion will mean for the health care system. We understand that. That’s why state law requires a rigorous public process to evaluate our conversion. We anticipate that the public deliberations will focus on an objective consideration of what is best for our members and the people of New Jersey.
Our health care system is changing. During the conversion process, we have a unique opportunity to prepare for the future. Together, let’s take advantage of this opportunity. Thank you.
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