The City of Jersey City is launching an audit of health insurance claims paid by Horizon Blue Cross Blue Shield, the city’s prior third-party health insurance administrator.
By John Heinis/Hudson County View
“The previous administration underbudgeted and delayed $52 million in healthcare bills and never once asked where all that money was going,” Mayor James Solomon said in a statement.
“We believe there is significant money owed to Jersey City taxpayers. We intend to get it back. The previous administration paid whatever Horizon billed, year after year, with no scrutiny and no audit. That era of financial indifference is over.”
The audit is being conducted by “an independent outside firm” as part of Finance Director Bill Viqueira’s work to professionalize and install stricter financial oversight over the city’s budget.
City spokesman Nathaniel Styer did not return an email seeking additional information on who the outside firm is.
Under the terms of its contract with the city, Horizon is legally required to cooperate fully with the audit and to repay any amounts identified as improperly paid.
The city has already made the transition from Horizon to Aetna as its health insurance administrator, effective this year, which the mayor’s office projects will save $30 million annually while maintaining or improving benefits for municipal employees.
The claims audit covers payments made under the prior Horizon contract and is expected to be completed within approximately two months.
The Solomon Administration also vowed on Tuesday to release the audit’s findings and recovery amounts when they are available.
