New Jersey Banking and Insurance Commissioner Proposes New HMO Rules

OPEN MINDS, The Behavioral Health & Social Service Industry Analyst

Industry News

As a result of the recent financial failure of two health maintenance organizations (HMOs) in New Jersey, the state banking and insurance commission has proposed new rules which would require HMOs to submit financial reports on a quarterly, rather than an annual basis. The new rules would also require that HMOs double amount of cash reserves they maintain to cover expenses.

The state is also considering increasing the state oversight of HMO subcontractors not directly licensed in . . .