Acting New Jersey State Comptroller Kevin Walsh has released a report detailing alleged violations in the operation of several public joint insurance funds. The findings point to potential conflicts of interest, procurement irregularities, and concerns over undisclosed relationships between key vendors.
Key Findings from the Report
As reported by the New Jersey Monitor, Walsh’s investigation focused on three joint insurance funds — the Southern New Jersey Regional Employee Benefits Fund, the Schools Health Insurance Fund, and the Municipal Reinsurance Health Insurance Fund. These funds provide insurance services to local governments, pooling resources to lower costs for municipalities, counties, and school boards.
According to the report, the insurance firm Conner Strong & Buckelew and a related company operating under the name PERMA function as a single entity but did not disclose their connection. Walsh said the companies share leadership and employees and in some cases created procurement rules that allowed them to win contracts they helped design.
The report describes this as “an unauthorized covert takeover of a core public function by a private entity,” citing risks to public trust and taxpayer funds. Walsh blocked procurement proposals by two of the joint insurance funds as a result.
Contracting and Oversight Issues
The comptroller’s office found instances where procurement solicitations were narrowly drawn to favor existing vendors. For example, requests for third-party administrators required bidders to match roughly 100 specific health plan designs but did not provide the data necessary to meet those requirements. Walsh said such specifications effectively excluded other competitors.
The investigation also found that a PERMA executive director acted simultaneously as an administrator and a program manager — a dual role prohibited under state regulations. In one case, the executive director, who was also a Conner Strong employee, allegedly allowed Conner Strong to review a proposal for a contract on which it later bid.
The Municipal Reinsurance Health Insurance Fund’s legal status was questioned as well, with concerns that its structure may not comply with state law.
Hi Fund Branding Concerns
The report also examined Hi Fund, a marketing brand linked to Conner Strong and PERMA. Walsh said Hi Fund presented itself as a health insurance pool and used officials’ likenesses without their consent. After the comptroller’s inquiry, Hi Fund added a disclaimer stating it is only a brand name and not a company.
Responses and Next Steps
Dan Fee, a spokesperson for George Norcross — who founded Conner Strong but left the firm in 2024 — disputed the comptroller’s findings, calling the report “rife with factual inaccuracies.” He compared it to an earlier, dismissed indictment of Norcross, and said prior regulatory reviews had found no violations.
The comptroller’s office has referred its findings to the Departments of Banking and Insurance and Community Affairs, the School Ethics Commission, and the Division of Consumer Affairs. It also directed the joint insurance funds to create corrective plans to eliminate conflicts of interest and comply with procurement laws. Walsh suggested lawmakers consider strengthening oversight of these funds.
Walsh is serving in an acting capacity and is expected to leave the post when a new governor takes office in January.
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