Fund Overview

  • Executive Director - Paul Laracy

    Perma Risk Management Services Inc.

  • Program Manager- David Vozza

    The Vozza Agency Inc.

HIF Statistics

  • $470+ million annual benefits budget
  • 56,000 member lives
  • State-Wide Re-Insurance Fund for employee benefits
  • Solid financial performance and claim reserves, conservative underwriting and actuarial management
  • Below market annual rates of increase

Health Insurance JIFs N.J.S.A. 40A:10 - 36, 40A: 10-52

A Health Insurance JIF 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 .

  • State law created Municipal Health JIFs in 1991
  • School Districts were allowed to establish Health Insurance JIFs in 1995
  • Allows entities to band together for economies of scale
  • To start a new Health Insurance JIF, there must be at least 2 entities and a minimum of 1,000 employees covered

  • School Districts, Municipalities, Authorities, Counties and other public entities can be in the same Health Insurance JIF furthering the ability to create larger purchasing strength

A Health Insurance JIF and a Property & Casualty Insurance JIF are identical except one procures health insurance and the other procures property/casualty insurance

School Districts, Municipalities, Authorities, Counties and other public entities can be in the same Health Insurance JIF furthering the ability to create larger purchasing strength

  • 1 ) Northern Jersey Municipal Employee Benefits Fund
  • 2) Gateway BMED Fund
  • 3 ) Central Jersey Health Insurance Fund
  • 4 ) Southern New Jersey Regional Employee Benefits Fund
  • 5) School Alliance Insurance Fund (SAIF)

  • 6) Coastal Regional Health Insurance Fund

Why Health JIFs Work

By retaining the dollars you would otherwise pay an insurance company for routine benefits, you eliminate insurance company profit, reduce 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. The fund is owned and operated by its members and any surplus is returned to members in the form of dividends.

Benefits include:

  • Saving money by reducing the expenses and profits included in insurance premiums
  • Being able to maintain or change your benefits
  • Enjoying reduced administrative costs by leveraging the total size of the Fund
  • Capping your overall risk exposure at a manageable level
  • Providing long - term stability in your health benefits program costs
  • Containing your health benefits cost

The existing HIFs have a documented track record of stability and strong financial performance. This is because:

  • There is interest and participation by the participating entities
  • There are established “ground rules” to safeguard the integrity of the plan
  • Risk Management Plans and By-Laws provide the framework for effective management and governance
  • Long term solution for managing and delivering employee benefits
  • Effective cost management has yielded favorable costs to participating employers
    • Pooled rate increases
    • Financial predictability
    • Ease of forecasting and budgeting
    • Dividend eligible

Statewide Health JIF Financial Results Graph

Solid Financial Results Chart

Statewide Health JIF Financial Results Graph

MRHIF Reinsurance Program

Provides three levels of coverage
  • Specific coverage
    Reimburses the MRHIF member (local HIF) for claims from any one person per contract year that exceeds its self insured retention “SIR”
  • Aggregate coverage
    Reimburses the MRHIF member (local HIF) for eligible claims for the entire group that exceed a predetermined amount, typically 120% of expected claims.
  • Aggregating Specific coverage
    This coverage caps the MRHIF’s exposure for the portion risk it shares reinsuring its members for specific claims. The MRHIF typically budgets at or close to where the reinsurer caps the claims.
Dave Vozza is ready to work with you and help you navigate the program.
  • ©2018 Municipal Reinsurance Health Insurance Fund

Aronson Hecht Agency