[{"_1":2,"_124":-5,"_125":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100,112],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6252388,"mediaKeyId","3188849-02b25f0f75c9542499ea7043796dd9f4","parentId",3188849,"title","Senators press regulator on $600 million Horizon conversion payment and guaranty coverage for school claims","audioSeconds",1697,"startMs",1192035,"endMs",2890000,"viewUrl","/Search/View?dp=1&key=3188849-02b25f0f75c9542499ea7043796dd9f4&start=1192&end=2890","thumbnailUrl","https://assets.pipeline.soar.com/3188849-02b25f0f75c9542499ea7043796dd9f4/thumbnail_1192035.jpg","articleUrl","/articles/6252388/New-Jersey/Senators-press-regulator-on-600-million-Horizon-conversion-payment-and-guaranty-coverage-for-school-claims","mediaUrl","https://secure.pipeline.soar.com/6252388-ca9739fc5c2fcd3951b2b07bf01e12c6/orig.mp4?Expires=1771175309&Signature=gkXWtDaEjBZ-Bg5PB6gCb28KVbx9gaIViG1TQKhJa4V79ImiWH2d6U9IVUYYRW639Ec6w95zRT3rsumFCETLB3CszgAFPqqx8MaLKpA5CoFh6-JgkEs0CZ62cnPA50XLQSQB6cKcnrdRUlfbo9g4O558z4x4omMIyfKV~tZmR8QhpY3hsReO440K4aOHK~TFAw~7GK2bKCj4L8tu8yIPpe2gjI3dgBHbLtRZSgxcWoIueHUsTXmbWKOv8IBU9q98GQ-LhWUrB2KZWRczE7H409Xtzxl~O8hYvP5zzuVEg16J5tpzmPxRimfS2-RTJPl0kmFnd8KkmAoJ-DdofzyWkg__&Key-Pair-Id=KUT5TJCACFTXG","author","New Jersey Legislature","date","2025-05-01T00:00:00Z","article","Senators questioned Commissioner Justin Zimmerman on May 1 about two related oversight concerns: the roughly $600 million one-time payment tied to Horizon Blue Cross Blue Shield’s change in corporate form and how state guaranty associations may assist public schools facing legacy liability claims where the insurer no longer exists.

On the Horizon payment, Zimmerman said the department conducted an extensive review under chapter law 145 and issued an order that included 11 conditions when it approved Horizon’s conversion to a mutual holding company structure. He said the Department of Treasury, not his agency, is responsible for collecting the funds and that the Department of Banking and Insurance does not have specific plans for how the collected funds are being spent. “To be honest, senator, I'm not sure the status of those funds,” Zimmerman said in response to committee questions; he encouraged senators to consult Treasury for the current status.

On legacy claims involving insolvent insurers and public-school liability after recent statute-of-limitations changes for childhood abuse claims, Zimmerman said the department does not operate the Property-Liability Insurance Guaranty Association (PLIGA) but would assist school districts and legislators in locating records and connecting to the guaranty association when appropriate. He told senators the department will help districts identify paperwork and engage PLIGA when an insurer is insolvent and potentially covered by the guaranty association’s process.

Senators pressed for transparency about the Horizon conversion funds, citing outside analyses that suggested the money had been routed into other uses and concerned that programmatic money has been repurposed in past examples. Zimmerman reiterated the department’s limited role post-order and offered to help coordinate information with Treasury and other agencies.

The committee discussion focused on gaps in visible oversight and the need for more detailed accounting of large, one-time conversion payments and for clarity about which agencies administer or collect those funds and how public institutions can pursue remedies when insurers are insolvent.","mediaType","Video","parentTitle","Senate Budget and Appropriations (Budget Hearings Only) Committee Thursday, May 1, 2025 11:00 AM","oneSentenceSummary","Lawmakers asked the Department of Banking and Insurance about oversight of a roughly $600 million payment tied to Horizon Blue Cross Blue Shield’s conversion and whether guaranty associations can help school districts facing legacy claims after insurers went out of business.","taxTitle","2025 Legislative Sessions, New Jersey","taxId",77696,"location","New Jersey","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6252394,"Senators raise alarms about manufactured-home owners in shore counties who cannot find property coverage",175,2136740,2312000,"/Search/View?dp=1&key=3188849-02b25f0f75c9542499ea7043796dd9f4&start=2136&end=2312","https://assets.pipeline.soar.com/3188849-02b25f0f75c9542499ea7043796dd9f4/thumbnail_2136740.jpg","/articles/6252394/New-Jersey/Senators-raise-alarms-about-manufactured-home-owners-in-shore-counties-who-cannot-find-property-coverage","https://secure.pipeline.soar.com/6252394-bbe494f1c69fc107d925438a1cdd96f2/orig.mp4?Expires=1771175309&Signature=I4iw4rYrkGZlN2Fqhq91Vlvh3sKIaFFLtQE95gYC5zJ9-YoVRKQ~2XNb-GB-mYUKUmUKz35ALrz9D4G6Yf1gjwvV-S6Aka1eQKqLL10tQ2q1iblh-ShyhNzg9JxPjO71agKWJZOXRiUg2ZCztzngdkUb7zMbOpJddWaSlllVI4dzjqfaHJH4Fkg48QGkPO3vFYHMYr6oTJ3Pk8kn0DQQ63~tRrlgEBPFBzt89JaZXNh-QCKWWdCU6Q37Enu0XsBqY-SfxXnDagJIu8NVMLnjMQPnj5qARE8bOEBW0LB31XfjrcAo14rx8c4WW-173CAv9J53cJboXymc4E-nyn-GYw__&Key-Pair-Id=KUT5TJCACFTXG","Several senators told the committee on May 1 that constituents who own manufactured or mobile homes in Cape May County and other shore communities are having policies nonrenewed and cannot find new coverage.

A senator described calls from multiple constituents who were told carriers “are simply no longer issuing policies in your area,” and said the New Jersey Realtors Association has confirmed the problem is growing. Commissioner Justin Zimmerman said manufactured-home coverage is a specialty market with relatively few carriers and about 23,000 policies in force statewide. He recommended that consumers explore surplus lines markets and the New Jersey Fair Plan as residual-market options and said the department is willing to work with affected homeowners to connect them to potential coverage pathways.

Zimmerman also noted that flood risk and coastal exposures are part of the insurance calculus and pointed to the state’s 22 private flood carriers as part of the broader coastal-insurance landscape. He offered to follow up directly on cases the senators provided to the department.

The exchange highlighted constituent frustration and a growing market hardening for certain coastal and manufactured-home risks, and senators asked the department to investigate carrier decisions and to brief the committee with specific findings and options for affected residents.","Committee members and the commissioner discussed reports that owners of mobile and manufactured homes, particularly in Cape May County and along the Jersey Shore, face difficulty obtaining homeowners or property insurance; the department pointed to a small, specialty market and suggested surplus lines or the New Jersey Fair Plan as options.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6252399,"Regulator says department blocks excessive auto and homeowners rate hikes, uses actuarial review",137,1010230,1148000,"/Search/View?dp=1&key=3188849-02b25f0f75c9542499ea7043796dd9f4&start=1010&end=1148","https://assets.pipeline.soar.com/3188849-02b25f0f75c9542499ea7043796dd9f4/thumbnail_1010230.jpg","/articles/6252399/New-Jersey/Regulator-says-department-blocks-excessive-auto-and-homeowners-rate-hikes-uses-actuarial-review","https://secure.pipeline.soar.com/6252399-18eb53150d9309374e7e6685cf6aeba8/orig.mp4?Expires=1771175309&Signature=IvclmGtRRKrOWOMkLksQjeKQ0ChsVdCi4zCRlRrnHvHpIkZR6VhtbIWyx8MPS4AjoaJnUABkpkd9KBuq2RdDkQ2EhsBisH2xKRnj6vQD6a6FRg6V6AS1PnYT02F7Oy~AoN14RuSAuRgG5vRMg2XjGPeRA2B2fVBZvOHRuZ71paRGPz6T8GQu8XlxLGBRt1eIE7u9fqDNY6DcqSmVjN-e9UacwVwRBttoBxA17P46wEoY-XuaGhObeHDAeTKQYwNAE1Vr3SYfCziAy9pxKN5R4Mmqng64k5P1qwtdXMOSBp8QMzaoYt81OKx3CtpZ-zS4Tvfmr77RwwXHLLIcYd6URQ__&Key-Pair-Id=KUT5TJCACFTXG","Senator Paul Sarlo and several committee members asked the Department of Banking and Insurance on May 1 how the agency monitors rising auto insurance costs and whether it can prevent insurers from raising rates in anticipation of higher vehicle and repair costs.

Commissioner Justin Zimmerman said the department treats rate review as a consumer-protection function and requires carriers to justify requested increases with actuarial support. “The department, as I mentioned, really views this to ensure that we are not that consumers are not paying more than is necessary in order to pay claims,” Zimmerman said. He added that the department has blocked “over a billion dollars” in proposed auto and homeowners rate increases over the last several years.

Zimmerman outlined factors carriers cite when requesting increases—inflationary trends, reinsurance costs, supply-chain pressures, higher new and used car prices, repair costs, and increases in severe crashes—and said regulators must balance consumer protection with the solvency of insurers.

Senators asked whether the department has done everything it can to keep rates down. Zimmerman reiterated the department’s rate-review process and said the agency often challenges insurer requests and reduces requested increases. He also told the committee that national trends influence state markets and that New Jersey is not insulated from those pressures.

The exchange between senators and Zimmerman underscores ongoing legislative interest in auto rates and insurer conduct; lawmakers pressed for continued oversight and department transparency on rate review outcomes.","Commissioner Justin Zimmerman told senators the department has rejected over $1 billion in requested rate increases in recent years and uses a robust actuarial review process to protect consumers while balancing insurer solvency.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6252404,"Senators press regulator on several state insurance funds, transfers and a growing exchange surplus",304,1556000,1860000,"/Search/View?dp=1&key=3188849-02b25f0f75c9542499ea7043796dd9f4&start=1556&end=1860","https://assets.pipeline.soar.com/3188849-02b25f0f75c9542499ea7043796dd9f4/thumbnail_1556000.jpg","/articles/6252404/New-Jersey/Senators-press-regulator-on-several-state-insurance-funds-transfers-and-a-growing-exchange-surplus","https://secure.pipeline.soar.com/6252404-0bf2fbf2cebeb545f769d5a42b97d7a0/orig.mp4?Expires=1771175309&Signature=dpV7xLqOtQuXA~r6Qj1SPn1sIrlXaggh3~brYn8Fxxxclh5g6DZ9QuX1O6YixvPgIi3W9Cl6JnRHkbrN02ePaAbS~ENtDtrxm~iBFvQf3kRYoJ6cn84jF474BcX4~zheqscZS1rjLLM6hEnRA8QFiBxOXZtDmwp1hJO8xOWlOQ8nN3m9wzsGDwWqqAVDxsQGGWDsXWRm4cMo45hi-qEeA0G6gVq7E~wv7KBvURDfAflL9LGp3O6ByiZDmWzgH5JChdBZcK636kcF704vMTfTErFAU9V6D77I-0USz3-bbes9OKB94rtiQE1aXXItQKCyxI4ZYrkS0G1v1bXFXPSGnA__&Key-Pair-Id=KUT5TJCACFTXG","Senators on the Budget and Appropriations Committee pressed Commissioner Justin Zimmerman on May 1 about multiple state insurance-related funds, why money is being transferred among them, and whether legislative approval is required to change tax or fee rates that fund the state marketplace.

Zimmerman explained that the health insurance affordability fund (sometimes shortened in testimony to the “HIYA” or affordability fund) helps finance the state reinsurance program and state subsidies so those programs do not rely on the general fund. He described the transfers as written into the statutes and budget design: federally sourced pass-through funding covers the bulk of reinsurance costs in fiscal year 2026, and the affordability fund fills remaining gaps so the general fund is not tapped.

Senators asked why the health insurance exchange trust fund is projected to hold a large surplus even while the state continues to collect a 3.5% user fee that formerly went to the federal exchange. Zimmerman said the fee is statutorily dedicated to exchange operations and that higher enrollment and increased call-center and navigator expenses justify keeping the operational reserve: “It allows us to operate the exchange, independently of the general fund, and allows us to ensure that we're able to meet the needs of our residents, very quickly.”

Committee members repeatedly asked whether the commissioner had authority to increase the fee from 3.5% and whether funds could be shifted to the general fund. Zimmerman responded that any increase would require statutory authority and that he would follow the statute directing dedication of funds to the exchange. When a senator cited historical examples of dedicated-fee funds being repurposed for other uses, Zimmerman pledged to “ensure and try to protect that that fund stays where it is” while he remains in office.

The department also told the committee it expects federal pass-through funding to cover about 75% of reinsurance costs in FY26, with the affordability fund covering roughly 25% of the remainder. Senators requested more detail on balances and transfers; Zimmerman offered to provide additional budget detail to the committee through the chair.

The exchange trust fund and related transfers are central to New Jersey’s effort to keep premiums lower through reinsurance and state subsidies; committee members framed their questions around long-term sustainability and whether transfers that smooth year-to-year budgets may reduce reserve levels needed for future contingencies.","Committee members questioned the Department of Banking and Insurance about the health insurance affordability fund, reinsurance/premium security fund, and the exchange trust fund surplus and the authority to change fees or transfer balances.",{"_33":113,"_35":36,"_37":38,"_39":114,"_41":115,"_43":116,"_45":117,"_47":118,"_49":119,"_51":120,"_53":121,"_55":56,"_57":58,"_59":122,"_61":62,"_63":64,"_65":123,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6252409,"State regulator warns federal rule, expiring tax credits could shrink Get Covered New Jersey enrollment",609,50835,660000,"/Search/View?dp=1&key=3188849-02b25f0f75c9542499ea7043796dd9f4&start=50&end=660","https://assets.pipeline.soar.com/3188849-02b25f0f75c9542499ea7043796dd9f4/thumbnail_50835.jpg","/articles/6252409/New-Jersey/State-regulator-warns-federal-rule-expiring-tax-credits-could-shrink-Get-Covered-New-Jersey-enrollment","https://secure.pipeline.soar.com/6252409-db6c08cc2616eaad5774f6b894184c02/orig.mp4?Expires=1771175309&Signature=KK9-cmO1z9LsZ4ZZryvYoyUn9V4xpWBHqQVWWZ5dISTzrPK6JvGr1Nm2fdHh3g2ggQvV1~GDFUq~8QRWSOpxAqIWVSD5VKQzCZxUqvWhLcMKiGYdIhltt7R0uGgrxMQ0ijGWjXAhcuq8SjJ1oAPXDNKMDXIs66uBa2-yxG5bkeGZExbhffkCRtSnQ6H6ptixlepvs9ujm4C4bTSUrMiMOr3oENX~3ZsgPlab6dh2oRc4EfChoaymd6m5nNafdlbD~0jpgr01VHqTLLwGLTdyTRVMYFiP-5ZelSDtmS2kJzeEW1wdnSP78Rt1JZ05hUdPPGoQU9IZNj6d9dRLKV0x6g__&Key-Pair-Id=KUT5TJCACFTXG","Commissioner Justin Zimmerman, head of the New Jersey Department of Banking and Insurance, told the Senate Budget and Appropriations Committee on May 1 that federal policy changes could sharply reduce enrollment and affordability on the state’s health insurance exchange, Get Covered New Jersey.

Zimmerman said the department’s operational budget for fiscal year 2026 is $65,300,000 and stressed the marketplace’s recent growth: “Get Covered New Jersey's enrollment has grown exponentially since it launched in November of 2020. During the most recent open enrollment period, over half a million New Jerseyans signed up for health coverage, marking another record breaking year of historic enrollment.”

The nut of Zimmerman’s testimony was a twofold risk to that progress. First, he warned that enhanced premium tax credits made permanent by federal action in recent years will expire at the end of 2025 unless Congress extends them, which his department projects would cost New Jersey consumers roughly $500,000,000 in lost federal assistance and make coverage significantly more expensive for about 455,000 residents. “If Congress does not act, consumers on average will pay double what they are paying now for health insurance,” Zimmerman said.

Second, Zimmerman said a recent Centers for Medicare and Medicaid Services (CMS) rule proposal would force state-based exchanges to shorten their open enrollment period from New Jersey’s current three months to six weeks and could curtail special enrollment policies that have allowed certain low-income residents to enroll year-round. He said the department submitted formal comments to CMS outlining how the proposed changes would harm Get Covered New Jersey.

The department also highlighted other affordability tools that support stability in the individual market: a Section 1332 state innovation waiver extending a reinsurance program through 2028 that Zimmerman said lowers premiums by about 15%, and state subsidies called New Jersey Health Plan Savings that extend help up to 600% of the federal poverty level for 2025 plan year eligibility. Zimmerman told senators the federal pass-through funding supporting the waiver for the year was estimated at more than $555,000,000.

Zimmerman credited outreach and navigator expansion for boosting enrollment: the department invested $5,000,000 in navigators during the most recent open enrollment period and now funds 26 navigator organizations offering assistance in more than 10 languages, up from one navigator in 2019. He added that the state’s call center is staffed by New Jersey residents.

Discussion on the committee focused on whether the department and the legislature should plan for the potential loss of federal assistance and on the administrative flexibility that state-based exchanges use to extend enrollment and special enrollment periods. Zimmerman said the department and administration will continue advocacy and monitoring in Washington and promised to work with the legislature to protect coverage access.

Looking ahead, Zimmerman urged continued state and federal action to preserve the marketplace’s gains and the protections the state has layered on top of federal law. He closed by repeating that the department will keep pressuring federal policymakers and preparing for contingencies that could reduce access in the individual market.","Commissioner Justin Zimmerman told the Senate Budget and Appropriations Committee that a proposed Centers for Medicare and Medicaid Services rule and the possible end of enhanced federal premium tax credits threaten New Jersey’s state-based health insurance marketplace, Get Covered New Jersey, and its recent enrollment gains.","actionData","errors"]

Article not found

Senators press regulator on $600 million Horizon conversion payment and guaranty coverage for school claims

Senators raise alarms about manufactured-home owners in shore counties who cannot find property coverage

Regulator says department blocks excessive auto and homeowners rate hikes, uses actuarial review

Senators press regulator on several state insurance funds, transfers and a growing exchange surplus

State regulator warns federal rule, expiring tax credits could shrink Get Covered New Jersey enrollment