SOUTH JERSEY (KYW Newsradio) — Some state employee health funds are signing unlawful contracts and refusing to comply with a corrective action plan issued a couple of months ago, according to New Jersey’s acting comptroller.
As state employee health insurance costs continue to rise, New Jersey Acting Comptroller Kevin Walsh said several issues contribute to higher costs, including conflicts of interest with insurance companies.
“Which is a real direct hit for accountability and affordability for New Jersey taxpayers,” he said.
One of them is Conner Strong & Buckelew, a firm founded by George Norcross. It’s an administrator for several health funds representing more than 100,000 people.
“We asked them to send us a plan to clean it all up, and they’ve refused to do so. They’ve refused to fix now unlawful contracts and really rampant conflicts of interest,” Walsh said. “It’s really, really important we get the ethics right, avoid conflicts of interest, and that we do everything we can so that taxpayers know that their funds are protected.”
Walsh is asking the state Legislature to ensure the laws are being enforced.
Conner Strong & Buckelew has said all laws are being followed and that this report is politically motivated. The company alleges it’s not oversight but abuse and a violation of public trust coming from the comptroller.
The timing of this adds a layer of complexity because a new administration is coming in, and with the comptroller being appointed by the governor, Walsh could be swiftly replaced — a possibility he didn’t want to talk about at this time.