HORIZON BLUE CROSS BLUE SHIELD
OF NEW JERSEY VS. THE
STATE OF NEW JERSEY, ET AL.
A-2232-09T3
In this appeal, we conclude
that the Premium Tax Cap
Statute, N.J.S.A. 54:18A-6, as
amended by Assembly Bill A4401
(A4401), L. 2005, c. 128, is not
unconstitutional as a denial of
due process or equal
protection, a bill of attainder, or special
legislation. By its terms, A4401 eliminated the tax
cap on
premiums received by health
service corporations (HSCs) when at
all relevant times, plaintiff
Horizon Blue Cross Blue Shield of
New Jersey was the only HSC in
New Jersey. Among its other
claims, plaintiff charged that
it was singled out for
retaliation after it refused to
convert to for-profit status.
We determine that A4401 was rationally related to the
legislative goals of raising
revenue to reduce a budget deficit
as well as to eliminate a
loophole in the tax law whereby HSCs
had a lower effective tax rate
than other health insurance
carriers. We further conclude that plaintiff's
claim of
retaliation is likewise without
merit.
The Tax Court opinion is reported at 25 N.J. Tax 290 (Tax
Ct. 2009). 03-07-12
