Current through Register Vol. 56, No. 24, December 18, 2024
(a) Any
person, organization, or corporation desiring to establish and/or operate an
HMO shall apply to the Commissioner for a certificate of authority, pursuant to
N.J.S.A. 26:2J-1 et seq. Applications for a certificate of authority may be
obtained from:
New Jersey Department of Banking and Insurance
Valuations Bureau
Office of Solvency Regulation 20 West State Street
PO Box 325
Trenton, NJ 08625-0325
http://www.state.nj.us/dobi/division
insurance/managedcare/mcapps.htm#hmo
1. Two copies of the entire application shall
be submitted to the Department at the above address; and
2. If the applicant proposes to be a Medicaid
program participant, one copy of the application shall be submitted to:
New Jersey Department of Human Services
Office of Managed Health Care
Division of Medical Assistance and Health Services
PO Box 712
Trenton, NJ 08625-0712
(b) The applicant shall submit to the
Department a nonrefundable fee of $ 100.00, or as specified in
N.J.S.A. 26:2J-23, as may be amended,
payable to the New Jersey Department of Banking and Insurance for the filing of
an application for a certificate of authority as an HMO, or for any renewal or
amendments thereto.
(c) The
application for a certificate of authority shall be deemed complete only when
filed on forms prescribed by the Department and when accompanied by the
following:
1. A copy of the basic
organizational documents of the applicant such as the articles of
incorporation, articles of association, partnership agreement, trust agreement
or other applicable documents and all amendments thereto;
2. A copy of the bylaws, rules and policies
or similar documents regulating the conduct of the internal affairs of the
applicant;
3. A list of persons who
are to be responsible for the conduct of the affairs of the HMO including
names, addresses, official positions and a biographical affidavit for each
person, including all officers and directors;
4. A specimen copy of the contract between
the HMO and each participating provider, and an attestation by the HMO's CEO as
to the execution of contracts by participating providers consistent with the
information submitted by the HMO to demonstrate network adequacy and made in
accordance with N.J.A.C. 11:24-15, including a description of any compensation
program involving incentive or disincentive payment arrangements permitted
under the laws of this State. As required by
N.J.S.A. 26:2J-26, any copies of any
contract made between the HMO and any provider, insurer, hospital or medical
service corporation shall be considered confidential;
i. Executed signature pages shall be made
available to the Department upon request, but such documents shall otherwise
remain confidential;
5.
A copy of any merger or acquisition documents of the applicant or the
applicant's parent if the merger or acquisition is with respect to the parent,
management agreements for administrative services, and asset sale
agreements.
6. A copy of the form
of evidence of coverage to be issued to the subscriber;
7. A copy of the form of the individual and
group contract, if any, which is to be issued to subscribers and contract
holders;
8. The most recent audited
financial statements (or other documentation as specified by N.J.A.C.
11:24-11for newly-formed applicants) showing the applicant's assets,
liabilities, sources of financial support, a statement as to the sources of
funding and all other financial requirements as delineated in N.J.A.C.
11:24-11;
9. A description of the
proposed method of marketing and financing;
10. A power of attorney duly executed by such
applicant, if not domiciled in this State, appointing the Commissioner and his
or her successors in office, and duly authorized designees, as the true and
lawful attorney of such applicant in and for this State upon whom all lawful
process in any legal action or proceeding against the HMO on a cause of action
arising in this State may be served;
11. A description and map of the geographic
area to be served, identified by county. If sub-areas of counties are to be
proposed as boundaries of the service area, the map should also include zip
codes;
12. Enrollment projections
presented on a quarterly basis for the first three years of operation for each
county or sub-area proposed as the service area. The enrollment projections
should be accompanied by a description of the demographic characteristics of
the population, including at least sex and age;
13. A description of the methods used by the
HMO to facilitate access to services for culturally and linguistically diverse
members;
14. A description of the
complaint and appeal procedures delineated in
N.J.A.C. 11:24-3.6;
15. A description of the continuous quality
improvement program delineated in N.J.A.C. 11:24-7;
16. A description of the utilization
management program, including the process for appealing utilization management
determinations delineated in N.J.A.C. 11:24-8;
17. A list of all participating providers by
county, municipality and zip code, accompanied by maps of the service area
identifying the location of these providers. This list shall include all PCPs,
specialists, hospitals and ancillary providers. The list of PCPs and
specialists shall include the individual's name, address and, if applicable,
hospital affiliation;
18. The
criteria regarding geographic accessibility and availability of its health care
provider network and why the applicant believes these criteria meet or exceed
the rules in this chapter. This shall be related to the applicant's enrollment
projections, the access guidelines contained in this chapter, and the
applicant's experience;
19. The
criteria to be used to maintain the appropriate numbers and types of providers
as enrollment increases in accordance with N.J.A.C. 11:24-6;
20. The criteria used to ensure access to
specialized services identified in N.J.A.C. 11:24-6;
21. A description of the method of informing
affected members and providers of changes in the health care delivery network,
as delineated in
N.J.A.C. 11:24-3.5;
22. A description of the mechanism by which
members and providers will be afforded an opportunity to participate in matters
of policy and operation through establishment of advisory panels, by the use of
advisory referendum on major policy decisions, or through the use of other
mechanisms;
23. A statement from
the applicant attesting that it or any affiliated entity operating as an HMO or
regulated health insurance business has been in substantial compliance with all
applicable state and Federal regulations for the last 12 months in any state in
which approval to operate has been granted by the official state licensing
and/or certification agency. A description and explanation of any enforcement
action or settlement thereof affecting the HMO or its affiliate must be
submitted including and not limited to fines, suspension of marketing, or
revocation of a license or certificate to do business. The Commissioner may
request further information from the applicant or from the official state or
Federal agency to determine compliance; and
24. Such other information as the
Commissioner may require on a case by case basis from a specific applicant, to
make the determination required by
N.J.S.A. 26:2J-4.