The Asbury Park Press printed an editorial on August 20, 2008, about Horizon BCBSNJ's potential conversion. Below are responses to some of the statements and inaccuracies in that editorial. 
 
Asbury Park Press Editorial: "And if experiences in other states in which the Blues have converted are any indication, Horizon's 3.3 million insured could well face rising premiums and reduced coverage." 
 
Response: Independent experts who have studied conversions in other states have concluded that there has not been a negative impact on premiums or coverage. 

Dave Knowlton, former Deputy Commissioner of the New Jersey Department of Health, had this to say:
 
"'Across the U.S., there has not been a displacement of customers or an increase in rates as many had feared,' said Dave Knowlton, president and CEO of the New Jersey Health Care Quality Institute." (8/16/08, Press of Atlantic City, Horizon Blue Cross applies to become for-profit insurer)
 
In Virginia, the Blue plan converted to a for-profit. Here is what a professor of insurance had to say about it:
 
"[Etti Baranoff, associate professor of insurance and finance at Virginia Commonwealth University] said by making the company public, there would be more incentives for Horizon to be a more modern and sophisticated company. For Virginia, it hasn't impacted rates, Baranoff said, but if the co-pays for specialists and emergency room visits go up, people should begin asking questions. 'In my mind, there shouldn't be any fear of rate increases,' said Baranoff, referring to monthly payments." (8/16/08, Press of Atlantic City, Horizon Blue Cross applies to become for-profit insurer) 

 
Asbury Park Press Editorial: "The $1 billion figure cited by Horizon is said to be the value of the company if it made a stock offering today. A state foundation would be created to manage the funds. When Horizon considered converting to a for-profit company just three years ago, the state estimated a stock sale would generate $3 billion to $5 billion."
 
"'Nobody knows where those numbers are coming from,' said Michael T. Kornett, chief executive officer of the Medical Society of New Jersey. In fact, an economist hired by that organization said the figure should be $8 billion." 
 
Response: The market, not Horizon BCBSNJ, will determine the value of the company. Horizon BCBSNJ specifically has said its conversion could generate MORE THAN $1 billion.
 
Under the conversion law, 100% of the stock of Horizon BCBSNJ will be placed with the independent foundation upon conversion. Whatever the market determines to be the value of Horizon BCBSNJ at that time will go to the independent foundation. This value will be dedicated to improving New Jersey’s health care system. 

 
Asbury Park Press Editorial: "There also is reason to be skeptical about whether the money actually would be used for the stated purpose." 
 
Response: The conversion law states that all proceeds of Horizon BCBSNJ’s conversion must go to an independent foundation – not state government – and must be used for the "purposes of expanding access to affordable, quality health care for underserved individuals and promoting fundamental improvements in the health status of all New Jerseyans." The Trustees of the independent foundation will have the authority over how to spend the proceeds of conversion to meet this statutory requirement. 

Asbury Park Press Editorial: "William J. Marino, chief executive officer for Horizon, said there was no reason for Horizon policy holders to be concerned about possible premium hikes. ‘If our prices were not competitive, we would lose members,’ he said. But even if the rates held, the pressure to please shareholders and goose the bottom line could mean reduced coverage and other policy changes that could hurt consumers." 
 
Response: As noted above, independent experts have concluded, based on experience in other states, that converting has not negatively affected premiums or coverage. In order for Horizon BCBSNJ to maintain its current customer base and grow, it must offer quality products and services at competitive prices. If Horizon BCBSNJ fails to do so, our customers will move their business elsewhere. 

If Horizon BCBSNJ converts to a for-profit company, it will have access to the capital markets allowing it to invest in and acquire new capabilities to provide more efficient and effective products and services. This will benefit all of Horizon BCBSNJ’s 3.6 million members.
 
Moreover, Horizon BCBSNJ will have to continue to balance the needs of its network hospitals and physicians for fair reimbursement for their quality services with its members’ needs for access to affordable health insurance products and services. This obligation will not change after conversion.