New Jersey’s largest health insurance provide made a pair of moves this week which will affect both workers and patients statewide.

Horizon Blue Cross Blue Shield of New Jersey announced plans to cut 242 jobs by late April, laying off nearly 5% of its U.S. workforce. All impacted Horizon employees were notified this week, including workers at both the Newark and Hopewell headquarters. The cuts follow a recent $100 million settlement with the state over alleged over-billing — a situation in which Horizon denied any wrongdoing.

Horizon spokesperson Thomas Wilson said rising medical costs and higher usage across the company’s plans, saying the company has already cut $275 million of expenses but still needs to restructure.

“Our current cost structure is simply not sustainable in this environment and we have a responsibility to our customers and members to ensure the long-term financial strength of the Company,” Wilson said in a statement. ” We do not take workforce reductions lightly. Employees whose positions were eliminated were treated with fairness and respect and will receive a generous separation package.”

Meanwhile, a contract dispute has lead to the severing of ties between Horizon NJ Health plans and CVS pharmacy. Beginning April 30, CVS pharmacies will be out-of-network for more than 800,000 publicly insured kids and adults in the Medicaid and NJ Family Care programs across the Garden State. That changes will force affected people to find new in-network pharmacies before the deadline, unless they’re willing to pay full price.

Both Horizon and CVS blame each other for failing to reach a deal on pricing.

Editor’s note: Horizon Blue-Cross Blue Shield of New Jersey is an underwriter of NJ Spotlight News.