Horizon on hospital contract termination: Hold on a second!

An announcement from Horizon Blue Cross Blue Shield of New Jersey:

CarePoint Health
Terminated Bayonne Hospital and Hoboken University Medical Center Contracts
With Horizon

(Newark, NJ, April 26, 2016) – Two
hospitals owned by
the for-profit CarePoint Health company, Bayonne Hospital
and Hoboken University Medical Center, will end their longstanding relationship
with Horizon Blue Cross Blue Shield New Jersey (Horizon BCBSNJ) in the next 45
days. CarePoint Health terminated, without cause, both contracts and
refused reimbursement increases offered by Horizon BCBSNJ, the state’s largest
health insurer.

CarePoint Health withdrew Christ Hospital
in Jersey City from Horizon BCBSNJ’s network on June 1, 2015. CarePoint is
terminating Bayonne’s in-network status effective May 1, 2016 and Hoboken
University Medical Center effective June 1, 2016.  As of that date, all of
CarePoint Health’s facilities and providers will be out-of-network.

In accordance with New Jersey state
regulations, Horizon BCBSNJ has sent notices to members in the Hudson County
area advising that the facilities will no longer be in Horizon BCBSNJ’s
hospital network.  Horizon BCBSNJ members will be subject to higher out-of
pocket costs when using the CarePoint facilities as a result. 

“There has been some confusion about who is
responsible for the termination, but the facts are clear: CarePoint Health
notified us last year that they were exercising their right to terminate the
contract without cause,” said Kevin McArdle, Public Affairs Manager for Horizon
BCBSNJ. “We have put forward a number of reasonable offers to CarePoint and
continue to hope that they will return to the negotiating table,” McArdle

Horizon BCNSNJ is committed to lowering
healthcare costs for New Jersey residents and remains open to discuss an
acceptable rate structure with CarePoint.

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 Horizon BCBSNJ is an
independent licensee of the Blue Cross and Blue Shield Association serving more
than 3.8 million members.

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