The Health Care Payers Coalition of New Jersey has formed a new company Health Care Options in order to deal with supplemental retiree health care coverage of its members. The newly formed company, which is a broker business, will use the services of Extend Health Inc., a private Medicare exchange.

The non-profit alliance included nearly 40 member’s organizations, which will further include the plans of the union health care and municipal employee groups in Pequannock and Irvington. They will provide the healthcare coverage to almost 750,000 people.

The coalition's Executive Director, Ed Geisler, said that many of the plans were reduced due to the rising health care cost. Mr. Geisler said that the new company will help the members and their retirees to save out-of-pocket costs and even the company will be benefitted as they will get the brokerage commission on sales.

Under an agreement with Extend Health, the company has right to get the brokerage commission on sales. The purchasing power of Extend Health will also help in reducing the healthcare prices.

Mr. Gesiler added, “Through the new brokerage, their members will have help choosing Medicare supplemental coverage that meets their individual needs”.