What Is a HIF?
A Health Insurance Fund (HIF) is a governmental entity regulated by the NJ Department of Banking and Insurance that creates the infrastructure for public entities to “share services” for the procurement and delivery of health benefits.
What does shared services mean?
The shared services model is when entities band together for economies of scale, creating an organization of participating employers to enjoy more cost-effective health benefits management.
Who can join the Southern Coastal Regional Employee Benefits Fund HIF?
Public entities including school boards and municipalities in Atlantic, Cape May, Cumberland and Salem counties that have strong claims histories and strong loss records.
How does a HIF Work?
A HIF offers cost savings while allowing entities to maintain self-control. Each entity pays a rate based on its entry claim costs. The monthly rate includes all aspects of program costs, simplifying the process and ensuring a consistent product. Also, a representative from each entity serves as a Commissioner of the Fund and assists in running the HIF. The Fund model is unlike the usual “quick fix” solutions like the NJ State Plan or other options that lack long-term sustainability and solvency.
Allen Associates is responsible for:
Selecting insurance carriers and networks
Vendor management and negotiations
Consulting and brokerage services
Data analysis and financial reporting
Employee education and service
The Fund’s financial performance
Centralized and consolidated billing
Direct enrollment, billing and COBRA administration
State and regulatory filings
How do public entities save money with a HIF?
Members of the HIF reduce the margin, overhead expenses and applicable taxes that group insurance premiums include. These savings become available to help defray the expenses for claims and to pay the administrative costs for your program.
How does Allen Associates protect the integrity and stability of the Fund?
The rates and financial elements are independently set by a certified actuary
The Fund operates with total transparency
The financials are reported monthly to the Fund Commissioners and State Regulators
- Each entity pays a typical rate each month that includes all aspects of the program’s cost. Thereafter, each entity receives the same pooled rate change
The Fund is self-insured with re-insurance protection to address large claims
The Fund Commissioners meet regularly to discuss best practices and performance results, etc.
What if my entity requires a specific combination of benefits?
- Each entity maintains their own, separate level of benefit
- Coverage is “equal to or better than”
- The Commissioners participate in running the equivalent of an “insurance company” and have vested “skin in the game” with greater control over benefit costs
- The Fund offers a “long-term” value proposition for managing health insurance costs