TRENTON, N.J., May 25 – Two veteran state Republican Senators warned Democrats not to raid the surplus of Horizon Blue Cross/Blue Shield, as proposed recently by three Democrat State Senators.

The opposition to any reduction of the $1.1 billion surplus now maintained by Blue Cross is significant because the Democrats control the Senate 22-18, and two defections would not give them the votes to control the surplus.

Senators Robert Littell (R-Sussex County) and Gerald Cardinale (R-Bergen County), both with more than 20 years as legislators, said the surplus must be left untouched by any government plan because it is a reserve against future claims and represents two months worth of claims payments.

Democrat Senators Loretta Weinberg (Bergen County); Ellen Karcher (Monmouth County), and Barbara Buono (Middlesex County) said the surplus is too large and asked for an investigation. Weinberg said any excess surplus found should be handed over to the state to fund existing health programs.

Republicans Fire Back

Littell said the Blue Cross surplus is not a political slush fund for more wasteful government spending. He said if there is an excess surplus it should be returned to policyholders by a rate decrease.

Cardinale said, Any attempt by the Democrats in charge of the Legislature to grab the surplus is just another budget one-shot, and thievery as well. Cardinale noted that 20 years ago, Blue Cross was nearly insolvent and the Legislature passed laws requiring the company to build up its surplus to ensure its continued existence.

He said a surplus is determined as a ratio of premium. Ideally, it should be a ratio of two-to-one or three-to-one premium volume to surplus. He said Blue Cross has a premium volume of $5 billion, and accordingly, even its current billion dollar surplus might not be enough to meet an emergency like a flu endemic or a terrorist attack.

Despite the Republican claims, the Senate Democrats feel the size of the surplus should be investigated and monitored.

Weinberg said she senses theres up to $500 million available in Horizons vaults that could be freed to help people get access to health care.