Jefferson Hospitals to Leave Horizon Network March 1

Three South Jersey Jefferson Health hospitals face losing in-network status with Horizon Blue Cross Blue Shield of New Jersey if no new contract is reached.

Updated on Nov. 3, 2026 in Healthcare

Jefferson Hospitals to Leave Horizon Network March 1

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Jefferson Health's three South Jersey hospitals will leave Horizon Blue Cross Blue Shield of New Jersey's network on March 1 without a new contract. Jefferson terminated its contract with Horizon effective Sunday, after the two sides reached an impasse in negotiations.

Why it matters

The dispute could disrupt where New Jersey residents receive hospital care and how much they pay out of pocket once in-network protections end. Both sides cite cost concerns, with Jefferson pointing to significant operating losses and Horizon arguing New Jersey members should not bear Jefferson's losses in Pennsylvania.

Each side's patient-facing materials present competing payment comparisons, with Horizon projecting more than $185 million in added member costs over three years if Jefferson's demands are met and Jefferson citing Horizon paying other New Jersey hospitals 146% more on average for inpatient care. Neither set of figures has been independently verified, and the outcome of the negotiation remains unknown.

The players

Jefferson Health

A large Philadelphia-based health system that operates hospitals across Pennsylvania and South Jersey and has taken a tough approach with insurers amid significant operating losses.

Horizon Blue Cross Blue Shield of New Jersey

The largest health insurer in New Jersey, headquartered in Newark, which argues its members should not pay for Jefferson's losses in Pennsylvania.

Highmark

A Pennsylvania-based health insurer with which Jefferson Health has issued notice that it could also go out of network on Jan. 1.

The details

Jefferson said Horizon abruptly canceled all negotiation discussions, while Horizon posted notice online that the contract was terminated effective Sunday. Under New Jersey law, cancer and psychiatric patients could continue receiving in-network care from Jefferson for a year without a new contract, according to Horizon, and other patients can keep in-network care at Cherry Hill, Stratford and Washington Township hospitals through Feb. 28.

Sunday: Jefferson terminated its Horizon contract, effective that day.
Jan. 1: Jefferson issued notice it could also go out of network with Highmark.
Feb. 28: Last day patients can continue in-network care at the three South Jersey hospitals.
March 1: Jefferson's three South Jersey hospitals leave Horizon's network if no new agreement is reached.

Big Picture

The dispute continues a pattern Jefferson set with UnitedHealthcare, where Lehigh Valley Health Network went out of network in two phases last year and this year. Jefferson's willingness to leave insurer networks in staged steps now extends that approach to New Jersey.

Patients at Jefferson's Cherry Hill, Stratford and Washington Township hospitals who hold Horizon coverage may lose in-network access after Feb. 28, which could raise out-of-pocket costs for care. Cancer and psychiatric patients may keep in-network care for a year under New Jersey law, according to Horizon.

The takeaway

Patients with Horizon coverage at the affected South Jersey hospitals should confirm their status before Feb. 28 and review alternatives if no agreement is reached. Checking which protections apply under New Jersey law can help avoid unexpected bills.

What happens next

Jefferson's three South Jersey hospitals are scheduled to leave Horizon's network on March 1 unless a new agreement is reached, and in-network care for most patients ends Feb. 28. Jefferson's potential out-of-network move with Highmark is set for Jan. 1.