The New Jersey Department of Banking and Insurance announced it selected health insurance marketplace provider GetInsured to develop and operate the technology platform for the State-Based Health Insurance Exchange (HIX), and Maximus Inc. to operate the consumer assistance center.

The decision, announced Jan. 6, is a key step in the transition to a state-based exchange for plan year 2021, according to the department, which will improve health coverage access for New Jersey residents and allow the state greater control over its health insurance market.

“We made it a priority in New Jersey to ensure families have access to the health coverage and care they deserve by creating a State-Based Exchange that is tailored and efficient for our residents,” said Department of Banking and Insurance Commissioner Marlene Caride. “We took a first step this year by moving to a State-Based Exchange on the Federal Platform, which allowed us to increase our investment in outreach to New Jersey residents at a time when the federal government was cutting costs. We now begin the work of establishing the technology platform and consumer assistance center for New Jersey’s State-Based Exchange that will allow us to best serve the health coverage needs of our residents into the future.”

GetInsured and Maximus were selected through a competitive bidding process. The base term of the contract for GetInsured is for a period of five years, with a total cost of $39.8 million. After the first year of setup, the contract calls for maintenance and operations costs of approximately $7.6 million for the year in 2021.

The base term for the Maximus contract is three years, with a total cost of $17.8 million. Under the contract, the maintenance and operations costs will be approximately $7.1 million for 2021.

Gov. Phil Murphy signed legislation in June 2019 to establish a state-based exchange in New Jersey operated by DOBI and to be funded by an assessment on premiums. The assessment was previously paid to the federal government to utilize the Federally Facilitated Exchange (FFE).

As part of its transition, New Jersey began operating a state-based exchange on the federal platform in September 2019, which allowed the state to increase investment in outreach and enrollment efforts – which were significantly reduced at the federal level – focused on reaching uninsured and underinsured residents, and to improve access to coverage for New Jersey residents.

New Jersey will operate a state-based exchange for the open enrollment period in November of 2020. Until that time, consumers will continue to shop for and enroll in Marketplace coverage on HealthCare.gov.

The technology platform and consumer assistance center will be funded by the assessment on premiums paid by carriers in accordance with state law. Under the law, funding from the assessment will also be used to support outreach, enrollment and other means of support, including efforts that can increase market stabilization that may result in a net benefit to policyholders.

The state previously sent more than$50 million a year to the federal government to utilize the FFE.

The operation of a state-based exchange will give the New Jersey control over the open enrollment period – which was cut by the federal government from three months to six weeks – and access to data that can be used to better regulate the market, conduct targeted outreach and inform policy decisions.