News Release

New Jersey Department of
Banking and Insurance

Commissioner Richard J. Badolato

For Immediate Release:
February 3, 2017

For Further Information:
Marshall McKnight (609) 292-5064

This liquidation order is in response to HRINJ’s deteriorating financial condition, arising in part from a liability of $46.3 million under the Affordable Care Act’s Risk Adjustment program.
 
The Department and the carrier worked with individual consumers and small employers with HRINJ policies on securing new coverage for 2017. The transition to new coverage has gone smoothly for individual consumers and for small employers.

 “We have assisted individual consumers and small employers as they transitioned to a new plan. We will continue to work with all affected parties as we proceed through liquidation," said Commissioner Badolato.

The Department has worked diligently with the company over an extended period to protect policyholders and medical providers as HRINJ conducted its operations.

Impact to policyholders:

Individual Health Care policyholders (26,000 members)

• All individual plan members were fully covered through the end of the 2016 plan year which ended December 31.
• Open enrollment for the 2017 plan year ended on January 31 and went smoothly for former HRINJ individual plan members who chose a plan from a different carrier because HRINJ plans were no longer offered.

Small Employer Health policyholders (9,000 members)

• All existing HRINJ small employer policies were terminated effective December 31, 2016 regardless of the termination date in their policies;
• As open enrollment restrictions do not apply to small employers, small employers are able to select a replacement small employer policy from a new carrier at any time;

To expedite claims processing, providers are encouraged to submit bills per the normal claims payment processes and no later than 60 days after the date of service.

The not-for-profit HRINJ began offering health insurance policies in New Jersey in 2014. In the first quarter of 2016, HRINJ held a 7.34 percent share in the state’s Individual Health Coverage (IHC) market and a 2.1 percent market share in the Small Employer Health (SEH) sector.

For additional information regarding HRINJ’s insolvency proceedings, consumers and other interested parties may go online at www.state.nj.us/dobi/division_insurance/finesolv.htm to view the Order of Liquidation and related documents. Frequently asked questions for individual consumers previously covered by Health Republic and providers with patients previously covered by Health Republic are also available. Consumers and interested parties may also call the Department at 1-800-446-7467 or 609-292-7272.

To make an inquiry or file a written complaint with the Department, consumers may go online at www.state.nj.us/dobi/consumer.htm or call the Department for additional information on the complaint process.