NJ's Largest Hospital System To Drop Major Insurer

NEW JERSEY — Millions of New Jerseyans could be scrambling to find in-network coverage for hospital visits this spring, if Horizon Blue Cross Blue Shield and Hackensack Meridian Health do not come to a contract agreement.

Horizon announced that HMH has "decided to terminate its hospitals" from their health care network, citing a disagreement on prices for services and care. All 13 of Hackensack Meridian's hospitals will go out-of-network as of June 1 "unless we agree to significant price increases for services and care at their facilities," Horizon said in a statement.

The Newark-based health insurer — the state's largest — serves more than 3.8 million members across the state.

Hackensack Meridian Health, which is also the state's largest hospital system, said Horizon's proposal includes "inadequate reimbursement rates" and significant changes to terms that were already agreed upon.

A spokesperson said the hospital system "remain(s) committed to reaching an agreement but must receive fair care reimbursements from Horizon to continue to invest in the care, medical technology, and locations that the local communities we serve rely on and expect."

This contract does not apply to Hackensack Meridian's primary care and specialty physician practices, or customers covered through Medicaid, D-SNP, or Braven Health plans.

Both Horizon and Hackensack Meridian Health indicated there was a possibility they would come to an agreement.

In a social media post, the New Jersey State Policemen's Benevolent Association told its members that this "is simply a negotiation tactic," and that they would keep their members up to date.

"Nothing will happen in any event until July," the state PBA said. "We are monitoring the situation and will keep you up to date, but please know that this is just another way that hospitals and insurers get more of our member’s hard earned dollars."