Ethical Factor RX, LLC v. Horizon Healthcare of New Jersey and Horizon Blue Cross Blue Shield of New Jersey

CourtDistrict Court, D. New Jersey
DecidedJuly 6, 2026
Docket2:25-cv-08834
StatusUnknown

This text of Ethical Factor RX, LLC v. Horizon Healthcare of New Jersey and Horizon Blue Cross Blue Shield of New Jersey (Ethical Factor RX, LLC v. Horizon Healthcare of New Jersey and Horizon Blue Cross Blue Shield of New Jersey) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ethical Factor RX, LLC v. Horizon Healthcare of New Jersey and Horizon Blue Cross Blue Shield of New Jersey, (D.N.J. 2026).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

: ETHICAL FACTOR RX, LLC, : Civil Action No. 25-08834 (SRC) Plaintiff, : v. OPINION : HORIZON HEALTHCARE OF NEW JERSEY and HORIZON BLUE CROSS : BLUE SHIELD OF NEW JERSEY, : Defendants.

CHESLER, District Judge

This matter comes before the Court on Defendants Horizon Healthcare of New Jersey, Inc. and Horizon Blue Cross Blue Shield of New Jersey’s (“Defendants” or “Horizon”) motion for summary judgment, pursuant to Federal Rule of Civil Procedure 56. (Dkt. No. 36, “Motion”). Plaintiff Ethical Factor Rx, LLC (“Plaintiff” or “Ethical Factor”) filed a brief in opposition to the Motion. (Dkt. No. 40, “Opp.”). Defendants then filed a brief in reply. (Dkt. No. 44, “Reply”). The Court has reviewed the papers submitted and proceeds to rule without oral argument, pursuant to Federal Rule of Civil Procedure 78. For the reasons that follow, Defendants’ Motion is GRANTED. I. FACTUAL AND PROCEDURAL BACKGROUND The instant dispute arises out of Horizon’s denial of Plaintiff’s application to be admitted into Horizon’s list of providers for hemophilia patients on Medicaid (“Hemophilia Network”) and thereby become an in-network provider for Horizon-insured individuals with hemophilia.

Plaintiff is a Pennsylvania-based specialty pharmacy that services patients with chronic illnesses, including hemophilia. (Dkt. No. 8, Amended Complaint (“AC”) ¶¶ 14-15). Horizon sells insurance policies that provide coverage benefits, and allows its subscribers to receive medically necessary services, including medications, from health-care providers and pharmacies which are either classified as in-network or out of network. In-network providers have contracts with Horizon to provide services to insured subscribers at specified rates of reimbursement. (Id. ¶¶ 17-20). Horizon also maintains its Hemophilia Network, which is a specific network of providers for hemophilia patients on Medicaid. (Id. ¶ 25). Plaintiff has been an in-network provider for Horizon’s general New Jersey Medicaid network since 2015, but it is not, and never has been, part of its Hemophilia Network. (Id. ¶ 29). In its verified Amended Complaint,1 Plaintiff told a story which began in 2023, and

described, in detail, a sequence of events which formed the basis of its legal claims against Horizon. In its own words: In 2023, Ethical Factor was approached by certain potential customers who were Horizon insureds and beneficiaries of the New Jersey Medicaid program that Horizon administers. Those insureds requested that Ethical Factor provide the hemophilia medications

1 The Amended Complaint was verified by Plaintiff’s CEO, Lisa Tomcykoski, who signed a verification affidavit stating that, “I verify, pursuant to 28 U.S.C. § 1746, under penalty of perjury under the laws of the United States of America that the factual averments in the foregoing Amended Complaint concerning are, to the best of my knowledge as of the date of this Verification, true and correct.” (AC at 28). A verified complaint, sworn to its accuracy under penalty of perjury, typically has evidentiary value at the summary judgment stage. See McKay v. Krimmel, 2023 WL 4231714, at *2 n.4 (3d Cir. June 28, 2023) (“A verified complaint may be treated as an affidavit with evidentiary value at the summary-judgment stage.”). they require and they sought all of the additional services Ethical Factor provides. Upon receipt of these requests, Ethical Factor contacted Horizon . . . [and] requested full admission into Horizon’s Hemophilia Network.

Horizon’s representatives repeatedly and consistently advised Ethical Factor representatives that, in order for Ethical Factor to participate as an “in-network” provider within its Hemophilia Network, Ethical Factor first needed to . . . obtain a “Hemophilia Home Care Provider” designation from DOBI (the “DOBI Designation”).

Horizon representatives, such as Mr. Portalin [sic], promised Ethical Factor that if it secured the DOBI Designation it would be admitted into Horizon’s Hemophilia Medicaid Network, as Ethical Factor already satisfied all other requirements for “in-network” pharmaceutical providers within the same.

Upon information and belief, Horizon representative Erin Keaveney (“Ms. Keaveney”), also repeatedly made similar promises to those of Mr. Portalin’s [sic]—advising Ethical Factor that the only thing preventing Ethical Factor from admission into Horizon’s Hemophilia Medicaid Network was its lack of a DOBI Designation. Upon information and belief, Ms. Keaveney represented that, with that Designation, Ethical Factor would experience no barriers to entry into Horizon’s Hemophilia Medicaid Network and would be able to service both the insureds who had specifically requested Ethical Factor’s services in 2023 as well as the other insureds within that network.

. . .

Over the course of approximately one year, Ethical Factor expended substantial time, resources and expenses to obtain from DOBI the designation as a Designated Hemophilia Home Care Provider, specifically so that it could gain admission into Horizon’s Hemophilia Medicaid Network.

[O]n October 24, 2023, Ethical Factor obtained the DOBI Designation.

(Id. ¶¶ 34-39, 41, 43). In short, Plaintiff’s verified Amended Complaint avers that beginning in 2023, it received outreach from Horizon-insureds who wanted to use Plaintiff’s services. It was this outreach that then triggered the alleged promises of admission to the Hemophilia Network. And it was these promises that then triggered Plaintiff to expend approximately one year of “substantial time, resources, and expense” to obtain DOBI designation in October 2023. (Id.). Horizon ultimately rejected Plaintiff’s request for admission into its Hemophilia Network.

Horizon informed Plaintiff by email dated March 19, 2025, that it would not be admitted into the Hemophilia Network because, “Horizon’s Network of Hemophilia providers is robust and sufficient for the current needs of Horizon’s Medicaid enrollees. There is no need to add additional providers at this time, particularly a provider located 60 miles from the border of New Jersey.” (Defendant’s Statement of Undisputed Material Facts, “DSUMF,” ¶ 22). Plaintiff brought this action asserting claims for, among other things, promissory estoppel and tortious interference with prospective economic advantage. (AC at 21-23). Defendant moved to dismiss the Amended Complaint, and this Court heard oral argument. The Court dismissed all others claims but allowed the parties to engage in limited discovery on those two claims. Discovery has ended, and Horizon now brings this Motion.

First, it has become clear through discovery that despite the allegations in Plaintiff’s verified Amended Complaint that Portalatin promised admission into the Hemophilia Network in 2023, Portalatin retired from Horizon in April 2020, and passed away in August of 2022. (DSUMF ¶¶ 1-2). After Portalatin retired in 2020, Erin Keaveney took over Portalatin’s role managing the Hemophilia Network. (DSUMF ¶ 3). In that role Keaveney apparently did not make any explicit promises to Plaintiff regarding admission to the Hemophilia Network. (DSUMF ¶ 4; Ex. D to Jay Cert., 26:4–7, 193:3–4 (“Erin Keaveney never made the direct promise that we would become in the network,” “My promise was from Peter, Erin never said specifically a promise.”)). During discovery, Plaintiff’s CEO, Lisa Tomcykoski (“Tomcykoski”), who had sworn to the truth of the allegations in the Amended Complaint, moved the timeline on the allegations back a decade.

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Ethical Factor RX, LLC v. Horizon Healthcare of New Jersey and Horizon Blue Cross Blue Shield of New Jersey, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ethical-factor-rx-llc-v-horizon-healthcare-of-new-jersey-and-horizon-blue-njd-2026.