i/m/o Freelancers Consumer Operated and Oriented Program of New Jersey
D/B/A Health Republic Insurance of New Jersey in Rehabilitation
570 Broad Street, Suite 1100, Newark, New Jersey 07102
October 24, 2016
Health Republic Insurance of New Jersey will not offer health insurance in New Jersey in 2017.
Here is what’s happening and what it means for your clients.
Important: All Health Republic group health plans will terminate on December 31, 2016, without regard to the anniversary dates. You must assist your clients to act as soon as possible to secure a replacement group plan effective on January 1, 2017, to avoid any gaps in coverage.
Health Republic Insurance of New Jersey (Health Republic) is in hazardous financial condition and the Superior Court of New Jersey (Court) has declared the company insolvent. The Court issued an Order of Rehabilitation which allows the New Jersey Department of Banking and Insurance (Department) to take control of the company.
Regardless of the anniversary dates of Health Republic group plans, all Health Republic group plans will terminate on December 31, 2016. This means the last day of coverage for your Health Republic clients’ employees and their dependents that are covered under Health Republic group plans will be December 31, 2016.
What should you do?
Work with your clients to apply to get a January 1 effective date
To ensure continuous coverage for your clients’ employees and their dependents that are currently covered under Health Republic plans your clients need to apply for a new small employer group plan that will be effective January 1, 2017. We have recommended that employers contact their brokers as soon as possible. But don’t wait for them to call you – reach out to your clients now!
The small employer website has been updated with 2017 information. Be sure you review the 2017 Buyer’s Guide so you are familiar with the definitions of small employer and employee that are operative on January 1, 2017. http://www.state.nj.us/dobi/division_insurance/ihcseh/shop_seh.htm It is possible some of your clients will not qualify as small employers in 2017.
If any of your clients bought their Health Republic plans through the SHOP, please visit www.healthcare.gov.
What happens if you have clients that do not qualify as small employers in 2017 or choose not to apply for a replacement group plan with a January 1 effective date?
Everyone currently covered under Health Republic group plans will be losing coverage on December 31, 2016. The involuntary loss of coverage is a triggering event which means they qualify for a special enrollment period during which they can enroll for individual coverage. Information on shopping for individual coverage is posted on http://www.state.nj.us/dobi/division_insurance/ihcseh/shop_ihc.htm and information regarding the Marketplace is available on www.healthcare.gov.
Please encourage your clients that will NOT be offering a replacement group plan to be effective January 1, 2017 to notify their employees immediately so they can enroll for coverage in the individual market.
If you have not read the FAQs concerning the rehabilitation we encourage you to visit http://www.state.nj.us/dobi/division_insurance/ihcseh/hrinjfaqs_brokers.pdf
For your reference we have included links to template versions of the documents mailed to members and groups. By following the links below you will be able to see non-personalized versions of:
On-Exchange Individual Discontinuation Notice
Off-Exchange Individual Discontinuation Notice
Small Group Administrator Discontinuation Notice
Small Group Employee Discontinuation Notice
Small Group Endorsement Letter continuing existing 2015 plans until 12/31/16
FAQ Document (mailed to all members and administrators)
Thomas Daniels, Director of Broker Relations