Fund Overview

  • Paul Laracy, Executive Director

    Public Entity Risk Management Administration (PERMA)

  • DAVID VOZZA, PROGRAM MANAGER

    MRHIF and the North Jersey Municipal Employee Benefits Fund

About the NJMEBF

The North Jersey Municipal Employee Benefits Fund (NJMEBF) was formed under NJSA 40A:10-36 et seq, which allows two or more units of government to form a joint insurance fund. Joint insurance funds were created for the purpose of group purchase/self-insurance against claims for various property and casualty coverages. Amendments were made to the statute and enacted November 30, 1990 to expand the risk to include contributory and non-contributory group health insurance. The rules governing the operation of a joint insurance fund for local governmental units, providing group health and term life benefits, were effective July 19, 1993 under the NJAC 11:15-3 et seq. https://www.state.nj.us/dobi/proposed/prn06_397.pdf 

How The NJMEBF Benefits Employers

Health Insurance Funds do not include costs that you would typically pay an insurance company. We help you retain the dollars you would otherwise pay  for routine benefits,we eliminate profit margins and overhead expenses and applicable taxes that group insurance premiums include. These savings help defray the expenses for routine claims and to pay the administrative costs for your program. Health Insurance is a costly budget item, let us help save your Municipality valuable dollars. 

Benefits of a Health Insurance Fund (HIF)....

  • In a HIF, members have the ability to "control their own destiny":
    • Each member entity appoints a Commissioner
    • Services are "unbundled" and contracted for: most effective Third Party Administrator (TPA)
      • best network in the region
      • flexibility of plan designs
      • support provided by Fund professionals
  • Fund membership allows variations in coverages as needed:
    • Introduction of more cost effective plan designs
      • the Fund's various Choice Plus Plans
      • customized Aetna US Healthcare QPOS Plan
  • Operating costs are reduced as a result of:
    • The group purchasing power of the Fund
    • Elimination of insurance company profit margins
    • Elimination of premium taxes
    • Reduction in overhead expenses
  • Cash flow is improved by:
    • Paying only fixed plan expenses and only those claims that actually occur
    • Earning interest on deposits until utilized
    • Capping overall risk exposure at a manageable level
  • As a paricipating employer in the Fund, you can:
    • Contain your health benefits cost
      Save money by reducing the expenses included in the premiums that would otherwise go to an insurance company
      Improve your cash flow by paying only fixed plan expenses and only those claims that actually occur
      Earn interest on deposits until utilized
      Save additional money when claims are lower than projected in a plan year
      Cap your overall risk exposure at a manageable level
      Provide long-term stability in your health benefits program costs



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