New Jersey Health Insurance Fund (“hi” fund) Celebrates 30th Anniversary

$1.1 Billion in Savings for NJ Public Entities

PARSIPPANY, N.J.--(BUSINESS WIRE)--
The New Jersey Health Insurance Fund (“hi” fund) is proud to celebrate 30 years of commitment and service to public entities across New Jersey.

The “hi” fund, which started with four individual funds in 1992, has grown to include nine regional health insurance funds (HIFs) that serve 267 public entities, including municipalities, municipal utility authorities, school districts and fire districts.

HIFs were created in response to the insurance crisis of the late 1980s and early 1990s to help public entities deal with skyrocketing health insurance rates by allowing them to pool resources to leverage greater buying power.

“From 1992 to the present day, the HIF model has provided a stable and predictable solution to help public entities manage health benefit costs – their second largest budget expense,” said Diane Peterson, a Partner and HIF Business Leader at PERMA Risk Management Services which functions as the executive director of the “hi” fund. “This model is now one of the most successful insurance pooled arrangements for government entities in the United States.”

The “hi” family of Funds has saved public entities (and taxpayers) $1.1 billion since inception when compared to the private market and has distributed $303 million in dividends to members. Today, the Fund manages a collective budget of $843 million and maintains a $200 million surplus.

With a tightening insurance market and rising health care costs, the ability to keep costs in line with restricted budgets and still meet the needs of employees and their families has never been more important.

“Over the past five years, our average enrollment growth was 30%, and average rate increases held to a low 1.66%,” said Peterson. “While others are looking at double digit rate increases in 2023, careful management and administration has our average statewide renewal rate for 2023 at only 3.11%.”

The regional and hyper-local focus on the needs of their members is key to the success of the funds, which are self-governed and give members a say on fund decisions and operations. Another success factor is the flexibility to customize plan options – not one-size-fits-all – and provide greater access to high-quality services.

“Saving money is important, but the prudent management of these funds has established a 30-year history of long-term stability and reliability that goes well beyond a short-term price break,” said Peterson.

About Us:

The New Jersey Health Insurance Fund ("hi" fund) provides complete benefit services and products to public entities in New Jersey. This includes health, pharmacy, vision, dental, COBRA and retiree benefit administration, wellness, personalized health coaching, telemedicine, population health services and benefits automation. The "hi" fund is the largest non-state operated benefits pool in America.

Visit http://www.hifundnj.com or email info@hifundnj.com for details and a free consultation.

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Media: Stacey Ehling, stacey@princetonsc.com, 609-408-2461

Source: The New Jersey Health Insurance Fund