New Jersey Office of the State Comptroller

Thank you @newjerseyoag.bsky.social for making this win possible. A strong outcome for the taxpayers of Hudson County.

New Jersey Office of the State Comptroller Advancing transparency and accountability as New Jersey's watchdog

Do you have info about insurance brokers and conflicts of interest? Send us a tip.

www.nj.gov/comptroller/...

5/5

OSC has found this waste repeatedly:
nj.gov/comptroller/...

4/5

Text from the report: The broker was paid by the district at a flat rate for the services provided; however, the district later discovered the broker was also receiving commissions from the health and prescription providers as a percentage of the premiums billed, which was not disclosed in the contract as required by N.J.A.C. 11:17B-3.1. While not uncommon in the insurance industry, the commission-based arrangement gives the broker no incentive to recommend less costly alternatives because it earns more when the district pays more for benefits.

Perth Amboy's broker got paid undisclosed commissions from the insurance company. The state plan doesn't offer commissions. 3/5

Chart comparing premiums paid and showing savings

The State Auditor just released an audit finding that Perth Amboy Public Schools could have saved $49.1 million, and employees $2.2 million, in health benefits' costs if it had participated in the NJ School Employees' Health Benefits Program. 2/5

Sincere question: What will it take for public schools and local governments to recognize insurance brokers' conflicts of interest?

For the Legislature to take steps to stop the hemorrhaging of public funds wasted because of conflicts of interest?

pub.njleg.state.nj.us/publications...

1/5

We also notified Governor Murphy and legislative leadership in 2024 of Hudson County’s ongoing violations and failure to cooperate with OSC. 5/5

www.nj.gov/comptroller/...

Here’s the letter we sent to Hudson County in 2024, outlining the legal violations and our directives: 4/5

www.nj.gov/comptroller/...

Read our 2024 press release detailing what we found. 3/5
www.nj.gov/comptroller/...

On Monday, the Appellate Division affirmed our findings. 2/5
www.nj.gov/comptroller/...

In March 2024, we found Hudson County violated state law by contracting with a preferred vendor to provide healthcare.

The county violated transparency and public bidding requirements when it invited a few hand-picked firms to apply and privately negotiated with the vendor. 1/5

🔹 This is a bill that no New Jersey residents asked for, except the people who are upset by the powerful being held accountable.

🔹When you can’t give a bill an honest, open dialogue, it suggests you have something to cover up.

bit.ly/44LVyvT

Two of my takeaways from Monday’s disgraceful NJ Senate hearing on Bill S4924:

Democrats in New Jersey Ram Through Bill to Defang a Corruption Watchdog (Gift Article) A State Senate committee moved to weaken an office that investigates police misconduct and government waste. Senator Andy Kim spoke in opposition but was cut off after three minutes.

When watchdogs lose subpoena power, taxpayers lose transparency and accountability.

A bill to strip OSC's investigatory powers isn’t “streamlining”—it’s an attack on oversight in a state with a long history of political waste and backroom deals.

🎁 🔗
https://nyti.ms/4it4mwk

Document from the New Jersey Office of the State Comptroller regarding a Medicaid Provider Application status.

NJ Office of the State Comptroller has denied #Medicaid participation to the group seeking to buy South Jersey Extended Care, citing an “unacceptably high risk of #fraud, waste, and abuse” and undisclosed ties to a previously suspended operator.

https://bit.ly/4ikJMyo

Document from the New Jersey Office of the State Comptroller regarding a Medicaid Provider Application status.

NJ Office of the State Comptroller has denied #Medicaid participation to the group seeking to buy South Jersey Extended Care, citing an “unacceptably high risk of #fraud, waste, and abuse” and undisclosed ties to a previously suspended operator.

https://bit.ly/4ikJMyo

A message from Acting State Comptroller Kevin Walsh on efforts to reduce independent oversight in New Jersey.

Thank you Veterans Day Honoring All Who Served logo of the New Jersey Office of the State Comptroller

Today, we honor those who served and recognize their sacrifice.
Thank you, New Jersey veterans.

Letter Regarding Pleasantville's Wasteful Sick Leave Payment and Severance Policy <p>The Office of the State Comptroller finds Pleasantville overpaid departing official more than $165,000. </p>

NEW: OSC found Pleasantville paid $165,724 to a departing official — including an unlawful sick-leave payout and a severance bonus that is not required by NJ law.

Pleasantville didn't dispute the findings and has agreed to take corrective action.

https://bit.ly/4hW3joI

Protect public dollars. Report what you know. Submit a confidential tip 1-855-OSC-TIPS comptrollertips@osc.nj.gov bit.ly/OSCTips url and logo of the New Jersey Office of the State Comptroller

In fiscal year 2025, OSC fielded 2,383 tips. They came in via:
📞 1-855-OSC-TIPS
📧 ComptrollerTips@osc.nj.gov
💻 https://bit.ly/OSCTips

If you suspect fraud, waste, or abuse, submit a confidential tip.

Early voting starts today! [Graphic of a ballot box] Logo of the New Jersey Office of the State Comptroller

Early voting begins today in New Jersey.

Cast your ballot in the election.

Make your voice heard.

The National Consumer Voice reports 3 NJ nursing home chains used third-party transactions to hide gross profiteering at the expense of residents' care.

OSC has made similar findings. It's time for the State to strengthen reporting requirements and oversight.

http://bit.ly/47g5MXn

Legislature. Due to the risks of unauthorized consolidation of control of the core public function of managing and operating health insurance funds by a private entity and improper use of government resources, which can lead to corruption, reduced accountability, and diminished public services, in addition to the referrals detailed above, OSC recommends that the Legislature adopt legislation that requires greater oversight and tighter regulation of insurance funds to prevent the risky blurring between public and private functions and resources that has been identified in this Report.

8/ Something must be done to stop this waste and ensure taxpayer funds are spent without conflicts of interest.

In a report I issued last month, I urged the Legislature to act.

7/ OSC’s audits have also found that insurance brokers misrepresent the actual costs of insurance that they sell, which results in waste of taxpayer funds.

🔗 nj.gov/comptroller/...

6/ OSC has also found waste and undisclosed conflicts of interest among HIF vendors that serve hundreds of local governments and school boards.

🔗 www.nj.gov/comptroller/...

5/ This is money provided by local and state taxpayers that could have been spent on educating New Jersey’s schoolchildren and instead was spent on unnecessarily expensive health insurance.

A partner organization of the broker, with common management and office location, serves as Program Manager for the HIF in which the district participates, earning average annual compensation of $2.7 million in 2022 and 2023 according to the HIF’s audited financial statements. The broker may lack independence to perform the cost comparison because it benefits financially if the district continues with its current coverage.

4/ The State Auditor questioned the broker’s independence and urged the school district in the future to avoid conflicts of interest when purchasing health insurance.

Using actual plan enrollment data from the district’s human resources system for calendar years 2022 through 2024, we calculated medical and prescription drug benefits premiums under the district’s plan and under comparable plans offered by the SEHBP. We determined that the district would have saved approximately $7.5 million (12.6 percent) had it participated in the SEHBP. This includes average annual savings of $1.7 million (10.2 percent) for health benefits and $827,000 (23.7 percent) for prescription drug benefits. Approximately 15.7 percent of these savings would have been passed on to district employees through reduced employee contributions. We saw no evidence that the broker recommended or that the district participated in the more cost-effective plan.

3/ The report found that the broker underestimated costs by an average of $3.55M per year based on a misleading and erroneous comparison between HIF and SEHBP costs.

For a three-year period, the district and employees missed the chance to save $7.5M.

2/ According to the audit, the BOE and public employees missed the chance to save millions in health insurance costs because their broker gave them inaccurate and misleading information.

1/ Yesterday, another government watchdog — the Office of the State Auditor, which is part of the Legislature — issued a report on the Bridgeton BOE.
🔗https://pub.njleg.state.nj.us/publications/auditor/2025/34001124.pdf