
The state government has obtained an $859,250 judgment against Parsippany-based National Benefits Inc. in connection with the company’s unlawful operation as a third-party health claims administrator, Attorney General Jeffrey S. Chiesa announced Monday.
Third-party administrators are responsible for administering health insurance claims that are filed by their clients’ employees. Among other things, third-party administrators receive and process health insurance claims, determine claim eligibility and disburse funds.
National Benefits’ license to act as a third-party health claims administrator was revoked by the state in 2008. However, the company continued to operate, entering into more than 40 third-party-administrator agreements with businesses and municipal government entities during a two-year span. During that time, National Benefits also failed to answer repeated inquiries by DOBI concerning its unlawful activities.
“This is an important win for New Jersey citizens,” Chiesa said. “Because of the conduct of National Benefits and its corporate officers, thousands of people in New Jersey were left at the mercy of unscrupulous individuals who were not following the state’s insurance laws. This is an important enforcement case for consumers and their employers, who may now have to bear the financial burden of paying for legitimate claims not processed by this unlicensed third-party administrator.”








