Health Insurance Plan of New Jersey

Health Insurance Plan of New Jersey or HIP of New Jersey was a Health Maintenance Organization in New Jersey that went bankrupt in 1999.

History

In 1999 the company was put into bankruptcy when the $120 million they were owed by Pinnacle Health Enterprises was never paid.^[1][2]

References

Notes

1. Smothers, Ronald (March 6, 1999). "Spurning Rescue Bid, Judge Orders an H.M.O. to Close". New York Times. Retrieved 2009-03-12. If the ruling stands, it would end a nearly five-month-long drama that plunged HIP's 165,000 patients into confusion and health providers into a frenzy to recoup the nearly $120 million they are owed by the plan and Pinnacle Health Enterprises, a Virginia company that went bankrupt after entering into a medical management contract with HIP promising to make it more competitive.
2. Smothers, Ronald (February 10, 1999). "Failed H.M.O. Is to Be Shut In New Jersey". New York Times. Retrieved 2009-03-12. In interviews two months ago, state regulators said that the heart of the company's problem was a year-old contract it had with a private company, Pinnacle Health Enterprises, which was supposed to infuse the insurer with new capital and management expertise. In the end, Pinnacle was found to have neither the capital nor the expertise necessary to keep H.I.P. of New Jersey afloat, so the state moved to take it over.