NEWS RELEASE

Health Care Payers Coalition of New Jersey Contracts with
Group Health Incorporated of New York

    (Note: Access to the GHI network is made on a plan specific basis.  Employees and union members should check with their plan administrator to determine if their plan accesses GHI in NY.) 

    Edison, NJ, July 21, 2004… The Health Care Payers Coalition of New Jersey (HCPC) today announced the creation of a Preferred Provider Organization (PPO) relationship with Group Health Incorporated of New York (GHI). 

 The arrangement allows both organizations to access each other’s networks for a nominal access fee. New Jersey-based HCPC and New York City-based GHI, under its Network Access product, contract with numerous self-administered healthcare clients who administer their own claims or provide healthcare services through a third party administrator. These HCPC clients will now be able to access providers in New York using GHI’s Network Access network. In turn, GHI’s clients who are self-administered or utilize a Third Party Administrator (TPA) will also be able to access providers in New Jersey using HCPC’s network.

 HCPC and GHI, both non-profit organizations, bring their clients a high level of expertise in negotiating with networks of health care providers for lower hospitalization and medical fees.  

The most important reason for the establishment of the PPO network relationship, according to HCPC Executive Director Edward Geisler is “the cross-Hudson factor.

 “Tens of thousands of men and women work in New York and live here in New Jersey,” he said.  “Naturally, there are equal numbers of people who work in the Garden State and commute back to New York. People take advantage of the freedom to choose hospitals in both states, and both HCPC and GHI want to provide a leased network solution for hospital and medical provider access in one package.           

 “The combination of these two powerful managed care organizations provides business and labor with new opportunities to control health care costs,” Mr. Geisler continued. “This relationship comes at a time when health care costs are severely hurting New York and New Jersey businesses. The savings that HCPC and GHI are developing will provide health care brokers and consultants with positive alternatives when restructuring client health care programs.”

 David Henderson, Chief Marketing Officer for GHI said, “The strength of HCPC in New Jersey, combined with that of GHI in New York, offers an administratively simple and financially attractive solution for employers, who are self-administered or using a TPA, on both sides of the Hudson. We are not only sharing our networks, but are also sharing our systems. Our intent is to make the process seamless for the claim administrator.”

 Both Mr. Geisler and Mr. Henderson agree that third party claim administrators and self-administered plan sponsors “will especially appreciate the convenience this unified approach offers.” 

 The method of obtaining fee quotations and related information will remain unchanged for both organizations. Additional information can be found on HCPC’s website.

 The Health Care Payers Coalition of New Jersey is a health care purchasing cooperative for self-insured health plans that cover more than 150,000 New Jerseyans.  Founded in 1992, HCPC promotes health care quality and emphasizes the empowerment of health care consumers by providing them with important information and education.

###