What to Know About the Members Health Plan NJ Wind-Down
If you are currently insured with Members Health Plan New Jersey (MHPNJ) you have probably already heard the news—MHPNJ is winding down operations. For groups currently covered by MHPNJ, this means it’s time to get out of Dodge and get new coverage!
It’s certainly not every day we hear of this happening to an insurance company. So why did this happen to Members Health Plan NJ? Simply put—COVID. MHPNJ could not withstand the volume and cost of COVID-19 related claims for testing and treatment of its member base, which consists of a large share of healthcare workers and other frontline retail and small businesses whose employees were working during the pandemic. All of these members were located in New Jersey, one of the hardest hit states early in the COVID pandemic.
While technically, Members Health Plan NJ will remain operational until the end of the year, their message has been very clear. They want groups to seek alternate coverage ASAP. MHPNJ has even waived their 60-day termination period so groups can terminate quickly and secure new coverage. Additionally, remaining on MHPNJ is costly for groups. Effective August 1, 2021, any groups remaining on the Plan received a rate increase of 26% and groups will not be provided with renewal quotes or increases at the time of their renewal. For example, if your renewal is currently scheduled for January, you received the 26% rate increase on August 1st and your group will be continued at that increased rate until you terminate with MHPNJ or December 31, 2021, whichever is earliest.
Your Next Steps
In order to get out from under that 26% increase, groups need to move quickly and benefEx can help. We’ve already assisted many MHPNJ groups to find alternate coverage that meets their particular needs.
benefEx will first work with you to set objectives for your company’s overall benefits, which will serve as the guiding principle in formulating your benefits strategy. We’ll look to answer questions like:
- Is there a way to modify the existing offerings to create cost savings?
- Is there any risk to the company if certain underutilized benefits are removed?
- Will it be necessary to increase employee contributions and if so, how is that done with minimal impact on employee morale?
benefEx will then help to formulate a program to meet the specific needs of the group. This may involve changing only the medical plan, but depending on the particular group, may also involve tweaking ancillary lines like dental as well.
Let Us Help You Find Alternate Coverage Today
The team here at benefEx is here to assist you—no matter what. Contact benefEx today to discuss revising your benefits strategy in response to the Members Health Plan NJ wind-down. We wish you safety and wellness during this challenging time and are ready to help you get out of Dodge whenever you need us.