27
April
2016
|
04:09 PM
America/New_York

Horizon Blue Cross Blue Shield of New Jersey “A” credit rating affirmed by Standard and Poor's

Horizon Blue Cross Blue Shield of New Jersey (BCBSNJ) announced today that Standard & Poor’s has affirmed the company’s credit rating of “A” and its outlook as “stable.” The ratings agency cited Horizon BCBSNJ’s “track record of achieving financial and operational goals” and “exercising prudent control of operations” as key factors in its ratings. Horizon BCBSNJ is also “at the forefront of various innovating payment models...(that)…have been successful in improving health and lowering health care costs,” according to S&P.“Horizon continues to meet the complex challenges of the rapidly-changing health insurance environment, and Standard & Poor’s continues to recognize the company’s commitment to maintaining a strong economic foundation for the 3.8 million members we serve,” said Robert A. Marino, chairman and CEO, Horizon BCBSNJ. “We’re especially gratified that S&P cited Horizon’s efforts to move from an unsustainable fee-for-service reimbursement model to one that rewards doctors and hospitals for improving care quality while reducing costs and enhancing the patient experience.”In its ratings report, Standard & Poor’s rated Horizon BCBSNJ’s Business Risk profile as “strong,” attributing it to the company’s “leading market position” and “well established provider network.” In noting the company’s performance in the individual market as a “bright spot,” the ratings agency credited Horizon BCBSNJ’s success to “prudent pricing” and “network benefit design.” More than 188,000 members in this market purchased an OMNIA Health Plan during the 2016 open enrollment period.S&P rated Horizon BCBSNJ’s Financial Risk Profile as strong, noting that the company’s risk position “reflects moderate risks arising from a high-credit-quality and relatively conservative investment portfolio,” while terming the company’s liquidity as “exceptional.” The agency further characterized the company’s profitability as “somewhat constrained” but ”steady year-over-year despite market headwinds including new ACA taxes/fees.” In 2015, Horizon BCBSNJ paid an estimated $523 million in federal, New Jersey state and local taxes, fees and assessments.Standard & Poor's Ratings Services is the world's leading provider of independent credit risk research and benchmarks. The agency publishes more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities.About Horizon Blue Cross Blue Shield of New Jersey:Horizon Blue Cross Blue Shield of New Jersey, the state’s oldest and largest health insurer is a tax-paying, not-for-profit health service corporation, providing a wide array of medical, dental, and prescription insurance products and services. Horizon BCBSNJ is leading the transformation of health care in New Jersey by working with doctors and hospitals to deliver innovative, patient-centered programs that reward the quality, not quantity, of care patients receive. Learn more at www.HorizonBlue.com. Horizon BCBSNJ is an independent licensee of the Blue Cross Blue Shield Association serving more than 3.8 million members.