GetInsured’s platform tapped to serve New Jersey insurance exchange
New Jersey, like several other states, is one step closer to shedding its reliance on Healthcare.gov, the federal health insurance exchange platform, and setting up its own state-based health insurance exchange.
The New Jersey Department of Banking & Insurance last week awarded health insurance marketplace platform provider GetInsured a five-year, $39.8 million contract to develop and operate the technology needed to transition the state to a state-based health insurance exchange by open enrollment next year.
The selection of GetInsured to operate the technology platform for New Jersey's exchange is a “key step” in New Jersey's goal to improve health coverage access for its residents by 2021, say state officials.
New Jersey also awarded MAXIMUS a three-year, $17.8 million contract to operate a consumer assistance center for the state’s exchange. Maintenance and operations costs for the center are anticipated to be $7.1 million for 2021. After the first year of setup, the GetInsured contract calls for maintenance and operations costs of approximately $7.6 million for 2021.
The technology platform and consumer assistance center will be funded by an assessment on premiums paid by carriers in accordance with state law, say state officials. Under the law, funding from the assessment will also be used to support outreach, enrollment, and other means of supporting the exchange, including efforts that can increase market stabilization and that may result in a net benefit to policyholders.
New Jersey is launching a state-based exchange to gain control over the open enrollment period and access to data that can be used to better regulate the market, state officials add. It will also enable the state to dedicate funding toward outreach and enrollment efforts, which they say have been “significantly reduced” at the federal level.
"We made it a priority in New Jersey to ensure families have access to the health coverage and care they deserve by creating a state-based exchange that is tailored and efficient for our residents,” says Marlene Caride, the Department of Banking and Insurance Commissioner. “We took a first step this year by moving to a state-based exchange on the federal platform, which allowed us to increase our investment in outreach to New Jersey residents at a time when the federal government was cutting costs.”
Chini Krishnan, CEO and co-founder of GetInsured, says technology is the key that enables states to advance their exchanges and take better control of their health insurance markets. “There is great momentum in the market right now, with Idaho, Nevada, Pennsylvania and now New Jersey moving off of the federal platform,” Krishnan says. “We expect to see even more states evolve with technology as we move into the new decade."
GetInsured currently operates the technology for five state health exchanges, including Nevada, Idaho, Minnesota, California, and Washington, with plans to launch an exchange in Pennsylvania for this fall.