New Jersey’s Disputed $34 Million Insurance Program Failed to Stem Rising Health Costs
- Spiking benefit costs show expected savings never materialized
- Governor’s office halted state effort to recover $34 million
New Jersey Governor Phil Murphy
Photographer: Eva Marie Uzcategui/BloombergThis article is for subscribers only.
Last year, New Jersey officials in charge of the state employee health plan sought a major refund from their insurer for failing to deliver on a money-saving program, but their complaint stalled. Now outside consultants confirm the program yielded no apparent savings, one reason New Jersey’s health-care expenses are rising.
The finding adds new evidence to a contract dispute in which the state tried to reclaim $34 million from insurer Horizon Blue Cross Blue Shield, which manages billions of dollars of medical spending for the state plan.