Gov. Christie Announces Critical Healthcare Reform to Protect Taxpayers, Consumers from Horizon Abuses

TRENTON — Governor Chris Christie on April 27, 2017 submitted draft legislation that will provide more protections and transparency for taxpayers and consumers who are being fleeced and underserved by health service corporations, including Horizon Healthcare of New Jersey, a nonprofit organization whose most-profitable line of business is the Medicaid program.
The Governor submitted a draft bill to the Senate President, Assembly Speaker and minority leaders of both chambers that will impose commonsense accountability and transparency measures, addressing abuses and misuses of taxpayer money outside of Horizon’s core healthcare mission. The proposed legislation authorizes the state Department of Banking and Insurance to conduct an inquiry, audit, investigation and public hearing to determine whether any health service corporation’s condition or operation do not breach its legal obligations to the public, its subscribers or potential subscribers. It would also provide a means for New Jersey’s next governor and legislature to consider using health service corporations’ surplus to expand access to affordable, quality healthcare for underserved people, including cancer patients, military veterans and people with substance use disorders.
“Horizon is a taxpayer supported charity with a responsibility to prioritize and facilitate access to quality healthcare for New Jerseyans. But it has lost its sense of mission and instead become a Medicaid profiteer, shortchanging the poor, as evidenced by its annual financial filings, which resemble those of multi-national corporations,” Governor Christie said. “I am confident leaders of this legislature will stand with me to protect and serve the people of New Jersey, no matter how many internal and external Horizon lobbyists are deployed to Trenton and no matter how much millionaire Horizon executives plead for us to let them continue skate under the radar.”
In 2016, Horizon’s top executives collected millions of dollars in base salaries, plus millions and millions of dollars more in combined bonuses and “other” compensation.
“What could possibly justify such exorbitant compensation for charitable employees? How does one such an enormous salary plus millions of dollars in annual bonuses when there are so many New Jerseyans hurt by the cost of healthcare?” Governor Christie said.
Under the Governor’s proposed legislation, health service corporations would be required to publish online comprehensive employee salary information. Additionally, to ensure more complete representation of the people, it would allow the legislature to choose four additional members to serve on Horizon’s 15-member board.