The Department of Banking and Insurance is providing more information on the liquidation of New Jersey’s only co-op insurance plan.

The Superior Court of New Jersey, Chancery Division, Mercer County entered an Order of Liquidation last week for Freelancers Consumer Operated and Oriented Program of New Jersey, d/b/a Health Republic Insurance of New Jersey (HRINJ). Part of the liquidation process is the activation of the New Jersey Life and Health Insurance Guaranty Association (LHIGA) Fund, which continues coverage for a period of time when an insurer become insolvent.

DOBI has now updated the provider frequently asked questions which explain that LHIGA will pay provider claims for covered services subject to a 20 percent reduction, which is required by law. QualCare, HRINJ’s third party administrator, will continue to process provider claims. Any claims that have not yet been submitted should be sent to QualCare. Claims that have been submitted to QualCare but have not yet been paid do not need to be resubmitted.

The FAQ reminds providers that they cannot bill patients for the 20 percent reduction or for any other amounts unpaid by Health Republic for covered services. The FAQ also provides detailed examples of how the 20 percent reduction will be calculated. Separately, DOBI has indicated the reduction will apply to all claims that are in process.

In the future, providers will be able to submit a Proof of Loss form. The FAQs include details on the process and deadlines for doing so, most notably that all forms must be postmarked no later than Aug. 2.

DOBI also posted a new FAQ for consumers which explains that consumers are not responsible for the 20 percent reduction and provides information regarding how individuals will be paid if they are owed money by HRINJ.