Two more hospitals drop challenge to Horizon plan
Capital Health System and JFK Medical Center have exited a lawsuit in New Jersey state court alleging state regulators shouldn’t have allowed Horizon Blue Cross and Blue Shield to place them in a lower-tier provider network.
JFK Medical Center, Edison, confirmed last week that it had dismissed its claims against the state’s top health insurer without prejudice. Trentonbased Capital Health made a similar move this month, according to court filings. Seventeen hospitals initially sued Horizon, arguing the New Jersey Department of Banking and Insurance ignored its own regulations when it approved Horizon and Blue Shield of New Jersey’s Omnia Health Alliance and Health Plan.
The insurer’s plan divided hospitals into two tiers, and the hospitals in the suit were those in the more expensive second tier. The hospitals claimed the tiered system could destabilize New Jersey’s health system by jeopardizing the financial health of hospitals in the more expensive tier.
Last month, a New Jersey appeals court upheld the state regulator’s decision to approve the Omnia plan.