TRENTON, N.J., August 23 – Twenty hospitals in New Jersey have sued Horizon Blue Cross/Blue Shield of New Jersey alleging breach of contract and seeking $50 million compensation.

The hospitals allege that Horizon failed to administer, process, and pay claims under an existing rate which had been changed by Horizon.

Thomas Rubino, Horizon company spokesman, said the lawsuit is without merit and merely an attempt by the hospitals to increase revenues at the expense of hardworking union families. Rubino said Horizon denies the allegations and will aggressively defend itself in this lawsuit.

The lawsuit was filed in Bergen County and centers on the discounted rates of the network hospital agreements.

The hospitals in the civil action are located in Newark, Paterson, Freeholder, Jersey City, Browns Mills, East Orange, Teaneck, Edison, Hoboken, New Brunswick, Elmer, Princeton, and Phillipsburg.