In 2009, Horizon BCBSNJ’s administrative costs are only 15.6%, of which 1.2% represents premium taxes.  This is significantly lower than the 40% claimed by Congressman Rothman.

Additionally, a Heritage Foundation study demonstrates that on a per-person basis Medicare’s administrative costs are higher than private health insurers.  The Heritage Foundation study indicates that from 2000 to 2005, Medicare administrative costs were between 5 to 48% higher depending on the year. (See footnote below)

“There is a coordinated effort to blame health insurers for all the ills of the current health care system,” said Thomas Rubino, Director of Public Affairs for Horizon BCBSNJ.  “The American people want facts, not political rhetoric, and they instinctively know that government does not operate more efficiently than private industry.  This is definitely true in health care.”

About Horizon Blue Cross Blue Shield of New Jersey
Horizon Blue Cross Blue Shield of New Jersey is the oldest and largest health insurer in the state serving over 3.6 million members. Horizon BCBSNJ is New Jersey's only not-for-profit, health services corporation and is headquartered in Newark with offices in Wall, Mt. Laurel, and West Trenton.

Horizon BCBSNJ provides a broad array of health and dental insurance products and services for individuals and small and large companies, including national companies headquartered in New Jersey.  Horizon BCBSNJ is committed to improving the health care experience for all the communities we serve as well as helping our members become and stay healthy.

Horizon BCBSNJ’s Web site is located at www.HorizonBlue.com. Horizon BCBSNJ is independent licensee of the Blue Cross Blue Shield Association

1 Robert A. Book, Ph.D., Medicare Administrative Costs Are Higher, Not Lower, Than for Private Insurance, June 25, 2009, http://www.heritage.org/Research/HealthCare/wm2505.cfm.