NJ ASS'N OF HEALTH PLANS v. FARMER


777 A.2d 385 (2001)

342 N.J. Super. 536

NEW JERSEY ASSOCIATION OF HEALTH PLANS, Plaintiff, v. John J. FARMER, Jr., in his official capacity as Attorney General of the State of New Jersey, Karen L. Suter, in her official capacity as Commissioner of the Department of Banking and Insurance of the State of New Jersey, and the New Jersey Insolvent Health Maintenance Organization Assistance Association, Defendants.

Superior Court of New Jersey, Chancery Division, Mercer County.

Decided November 14, 2000.


Attorney(s) appearing for the Case

Orloff, Lowenbach, Stifelman & Siegel, for plaintiff (Eileen A. Lindsay appearing and Laurence B. Orloff, on the brief, Roseland) and Phillip E. Stano of the Alabama and Washington, D.C. bars, admitted pro hac vice, and Jason H. Gould of the New York and Washington, D.C. bars, admitted pro hac vice, appearing (Jorden, Burt, Boros, Cicchetti, Berenson & Johnson, Washington, DC).

John J. Farmer, Jr., Attorney General, for defendants (Emerald Erickson Kuepper, Deputy Attorney General appearing; Ms. Kuepper and Julie D. Barnes, Deputy Attorneys General, on the brief).

Jamieson, Moore, Peskin & Spicer, Morristown, for amicus curiae New Jersey Hospital Association (Ross A. Lewin appearing and Michael J. Canavan, on the brief).

Joseph D. Glazer, Princeton, for amici curiae Hospital Alliance of New Jersey and University Health System of New Jersey.

Kern, Augustine, Conroy & Schoppmann, Bridgewateer, for amici curiae the Medical Society of New Jersey and the HIP-NJ Creditors' Advisory Committee to the Liquidator (Robert J. Conroy appearing).


PARRILLO, P.J.Ch.

At issue is the constitutionality of the Insolvent Health Maintenance Organization Assistance Fund Act of 2000, N.J.S.A. 17B:32B-1 et seq. (the "Act"), that levies $50,000,000 in aggregate assessments against all HMOs writing non-Medicaid business in New Jersey to help pay the pre-insolvency claims of medical providers against two insolvent HMOs—HIP Health Plan of New Jersey, Inc. (...

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