Legislation enabling New Jersey’s largest health insurer to take advantage of innovations and medical advances for its members while still retaining its charitable mission along with stabilizing premiums was signed into law Wednesday.

“Right now, the company is limited in the ways it can stay competitive to benefit its 3.6 million members. We must allow this organization to adapt its infrastructure so that it can make the investments it needs to in order to offer stable rates, promote innovative health care services and meet the evolving needs of its members – all while maintaining its charitable mission,” said Assemblyman John McKeon (D-Essex, Morris).

If reorganized, Horizon BCBS would continue to be under the supervision of the Department of Banking and Insurance, with expansive oversight by the state Attorney General.

Upon establishment of the not-for-profit mutual holding company, Horizon BCBS would be required to pay a one-time, initial assessment of $600 million to the State Treasury and pay an additional $625 million to the state over seventeen years after its reorganization.

The act authorizing Horizon BCBS to submit an application for reorganization to the Commissioner of Banking and Insurance takes effect immediately.