ACCOMPLISHMENTS SINCE LEAVING AON
6/01/06 TO PRESENT | |
| |
Company | Dollars Saved | Method Saved | |
428 employees | $231,965 | Total | |
| | 2012 Projects | |
| $18,232 | Reviewed Stop Loss Contract, recommended cancelling aggregate stop loss for 2013. | |
| $213,733 | Negotiated a zero day reserve with Highmark. 2011 reserve will be returned when 2012
Settlement is issued, $188,900. Avoided a reserve call $24,833. | |
| | | |
200
employees | $7,456 | Total | |
| | 2008 Disability RFP 1 year savings, Placed with Reliance Standard | |
| | | |
1,028 employees | $558,543 | Total | |
| | 2006 Projects | |
| $26,095 | Highmark
2006 Medical Renewal. Negotiated reduction in retention. | |
| $27,213 | Replaced Highmark
Casualty stop loss with Sun Life | |
| | 2007 Projects | |
| $96,203
| RFP issued for stop Loss. SunLife, the incumbent, offered a 29%
2008 renewal | |
increase. Symetra offered a lower rate than their 2007 rate, a savings of $96,203. | |
| | 2008
Projects | |
| $5,288 | Placed stop loss out for a market study.
Incumbent Symetra; study included | |
SunLife, and HM Insurance. Moved to HM
Insurance. | |
| | 2009 Projects | |
| $165,269
| Issued RFP for Life and AD&D, resulting in SunLife matching Aetna's
2 year rates. | |
A savings of $165,269.28. | |
| | Issued
Dental RFP. Market study determined that MetDental's renewal increase was | |
market
priced. | |
| | 2011 Projects | |
| $31,065 | Issued Dental RFP. 2012 renewal increase reduced by 5.43%, $31,065 annually. | |
| | 2014 Projects | |
| $207,410 | Issued RFP for Life & Disability. MetLife won bid, replace Sun. Bundled Dental and Life & Disability
together. Dental is a 2 year guarantee. Life & Disability is a 3 year guarantee. | |
| | | |
18,000
employees | $12,967,445 | Total | |
| | Retrospective Refunds for Contract Period Ending: | |
| $3,044,870 | 7/1/2008 | |
| $2,599,227 | 7/1/2009 | |
| $1,473,464 | 7/1/2010 | |
| $2,722,500 | Over 65 Retention
proposal for 2007, 3 year savings: (Part of a larger negotiation, | |
which may fall
apart) | |
| $2,527,384 | LTD RFP issued, 5/17/2010. Prudential replaces Standard with lower rates guaranteed for 5 years, effective 01/01/2011. | |
| $600,000 | Caught error in 2011 stop loss policy annual amendment. Participant lasered incorrectly. | |
| | | |
603 employees | $2,411,053 | Total | |
| | 2005
Project | |
| | Issued Medical Life & Disability RFPs. | |
| | 2006
Placement | |
| $826,893 | Replaced Loomis TPA with
Highmark, ASO. Annualized Network savings, reduced | |
by increase
in administrative fee, $818,893. Issued Dental RFP. Replaced Loomis | |
TPA with UCCI. Annualized Network savings, reduced by increase in administrative | |
fee, $8,000 | |
| $68,325
| Replaced UCCI-Dental with MetLife Dental. 2 year insured rate guarantee. | |
| | 2007 Projects | |
| $164,232 | Issued Life & Disability RFP. A 3 year Life rate guarantee from SunLife, with | |
portability, for a savings of $17,928; A 2 year guarantee on the STD, for a savings of | |
$42,768; A 3 year guarantee on the LTD for a savings of $103,536. | |
| $38,894 | Issued Drug RFP. Estimated savings $38,894.16. | |
| | 2008 Projects | |
| | Placed stop loss out for a market study. Incumbent HM insurance; study included | |
SunLife, Symetra and AIG Commercial. Stayed with HM. | |
| | 2009 Projects | |
| | Issued
Stop Loss RFP. Result: Stop Loss market priced. | |
| $25,144 | Issued Dental RFP. Result:
MetLife held rates instead of a 6.1% increase. Savings: $25,144 | |
| | 2010 Projects | |
| $164,077 | Issued
Life, STD & LTD RFP. Hartford replaces Sun with 3 year guarantee on Life & LTD | |
| | and a 2 year guarantee on the STD. | |
| | | |
3,848 employees | $1,476,411 | Total | |
| | 2007 Projects | |
| $1,367,584 | Life & LTD & Stop Loss. A 5 year life and disability rate from MetLife, with | |
Portability for a savings of $1,367,584. | |
| | 2008 Projects | |
| $45,714
| Placed stop loss out for a market study. Incumbent HM insurance; study
included | |
SunLife, Symetra and AIG Commercial. Stayed with HM. | |
| | 2009
Projects | |
| | Issued Dental RFP resulting in changing from ASO to insured rates. Premium | |
Equivalent rates below projected cost. Insured rates prevents University from | |
absorbing cost above the premium equivalent rates. | |
| $63,113 | Issued Vision RFP, resulting in changing from ASO to insured rates. Premium | |
Equivalent rates below projected cost. Insured rates prevents University from | |
absorbing cost above the premium equivalent rates. Issued Stop Loss RFP. HM Insurance lowered their 2010 rates.
Savings, $63,113 | |
Total | $17,652,873 | | |
| | | |
ACCOMPLISHMENTS WHILE AT AON 3/1/94 TO 6/1/06 | |
| | | |
900 employees | $395,328 | 1995 Health
RFP POS versus indemnity coverage. Reduced insured quotation to below projected cost
for the upcoming fiscal year, $395,328. This account had been self insured for over
12 years. 3 year rate guarantee. Claims exceeded rates by 1 million dollars | |
| | | |
200 employees | $1,074,992 | | |
| $75,000 | Retention reduced from 10.59% to 8% of paid claims. This was done by de-nationalizing
the account. The original arrangement was with a single contractor, BCWPA, and
with a sub-contractor BC of Cincinnati. Highmark once again became the single Contractor. | |
| | 1999
Projects: | |
| $270,000 | Overpaid Stop Loss Block Premium | |
| $240,000 | Life 3 year Guarantee* | |
| $104,000 | Remove >65
Retirees from Stop Loss | |
| $117,000 | Retention Savings Highmark vs. NABN | |
| $94,000 | Missing Portion
of Shock Claim | |
| $825,000 | Total Annualized Savings | |
| | *$80,000 per year,
assuming a rate hold by Medical Life for 3 years. | |
| $174,992 | 2004 Projects | |
| | RFP
Life 2 year savings: | |
| | | |
400 employees | $376,473 | This
client was self insured with full reserves through BCWPA. | |
The reserves were
reduced, and $341,700 in reserves plus $34,773 | |
in retention were returned to the
account, 1995. | |
| | | |
150 employees | $48,538 | This
client began a process of negotiation for a POS program between AETNA and | |
BCWPA. A Geo-Access
was requested (network mapping using employee zip codes) | |
AETNA quoted rates.
AETNA's rates were $48,538 less than BCWPA. This | |
corresponded to
a 50% reduction | |
| | | |
864 employees | $1,448,896 | | |
| | 1996 Projects: | |
| $219,876 | This
group changed from traditional benefits to POS benefits through Blue Cross for | |
their
salaried and non-union hourly employees. The Michigan and New Jersey | |
employees were
awarded to AETNA's POS program. | |
| | 1999 Projects | |
| $624,618 | Carbone changed to ASO rating, a savings from 1999 settlement $4,426,297 | |
representing
Medical, drug claims and retention plus full reserve liabilities $4,426,297 | |
vs. 1999 proposed
insured rates $5,050,915 | |
| $223,465 | Highmark 1999 Draft Settlement of $991,085 vs. final settlement of $767,620 | |
| $28,300 | Life/LTD
RFP. Changed from TransGeneral to Hartford. Two year guarantee. | |
| | 2000 Projects | |
| $17,554 | Highmark
2000 Draft Settlement of $221,737 vs. final settlement of $204,183 | |
| | 2004 Projects | |
| $36,966 | Dental RFP. Leveraged marketplace to reduce UCCI’s 2004 renewal rates with
a | |
2 year guarantee | |
| | 2005 Projects | |
| $45,474 | Carved
out drug from AdvancePCS to Envision. Estimated savings | |
| $96,583 | Moved
VA employees from Aetna PPO to Anthem PPO | |
| $156,060 | Life/LTD
RFP. Changed from Aetna to SunLife. Three year guarantee | |
| | | |
1,600 employees | $1,957,477 | | |
| | 1995 Projects | |
| | Health | |
| $33,308 | Reduced
retention. | |
| $128,504 | Reduced reserves. | |
| | Life | |
| | Issued RFP for Life and AD&D 4/1/95 resulted in enhanced benefits to their VTL product. | |
| | 1996 Projects: | |
| | Drug carrier changed from Insurex to
Medco via Blue Cross of Western Pennsylvania. | |
Formulary discounts
guaranteed. Converted the HMO from insured to self insured in | |
1996 | |
| | 1997
Projects | |
| $569,000 | Implemented POS. Estimated savings over projected 1997 indemnity costs. | |
| $24,000 | Negotiated
a reduced 1997 BC retention. | |
| $50,000 | Negotiated an early return of BC reserve
on terminated groups. | |
| | 1998 Projects | |
| $75,000 | 4/1/98
changed Life to Retrospective rates. This was done to return surpluses to | |
the client, 2 year
contract period. Settlement due by 6/00. | |
| | 1999 Projects | |
| $505,530 | ASO Market study Highmark vs. Anthem. 11th hour Highmark capitulated
to our | |
terms. Estimated savings: | |
| | 2000 Projects | |
| $161,300 | Review of 1998 BC Settlement, issued originally 7/99, changed amount due from | |
$948,316
to $787,016. Part of 11th hour savings, Settlement was missing agreement | |
details. | |
| | 2001
Projects | |
| $27,000 | 2000 BC settlement had errors. Changed from ($39,143) to ($12,143) Savings: | |
| | 2002
Projects | |
| $96,924 | 2001 BC settlement had errors. Changed from ($122,587.87) to ($25,663.87) Savings: | |
| | | |
| | 2003 Projects-Health | |
| $80,515 | RFP
to carve out Drugs-Proposals submitted, meeting with A&B management | |
scheduled
9/24/03. Estimated savings: | |
| $206,396 | RFP
to TPA to carve out 359 over 65 retirees, meeting with A&B management | |
scheduled
9/24/03. (Average retiree Highmark retention 62.91 vs. NABN retention | |
of $15.) Estimated
savings: | |
| | 2003 Projects-Life | |
| | RFP on Life issued to enhance the existing Retrospectively rated contract. | |
The
following savings and enhancements were offered by Standard Life and | |
accepted by A&B
effective 9/1/03. | |
| | o One-year retro settlements (vs. two years
with current carrier) | |
| | o Potential for larger refunds via reduced
retention | |
| | o Reduced maximum liability through lower
maximum rates | |
| | o Improved cash flow via lower billed rates | |
| | o Waiver of premium, ages 55 – 60 (vs. No waiver with current carrier) | |
| | o Standard’s most favorable accelerated benefit provision | |
| | o Portability to age 70 plus conversion | |
| | | |
18,000 employees | $18,922,837 | | |
| $3,028,936
| Return of excess premium on a non-participating contract. | |
Returned
premium on 3 years of fully insured rates: | |
| | Effective 7/1/96, ABC
Company changed to retrospective rating. | |
| | Retrospective Refunds
for Contract Period Ending: | |
| $1,391,518
| 7/1/1997 | |
| $834,377 | 7/1/1998 | |
| $1,163,378 | 7/1/1999 | |
| $1,202,223 | 7/1/2000 | |
| $1,095,680 | 7/1/2001 | |
| $1,129,028 | 7/1/2002 | |
| $1,504,627 | 7/1/2003 | |
| $1,530,354 | 7/1/2004 | |
| $117,686 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $1,664,094 | 7/1/2005 | |
| | 7/1/2006 $490,581, barred from ABC because of separation agreement. | |
| | 7/1/2007 $1,950,161,
barred from ABC because of separation agreement. | |
| $17,706,771 | Total | |
| | 1/1/99
Dental Market Study | |
| $3,108,034 | Resulted in moving dental from ASO with
Prudential to fully insured rates with UCCI | |
(Highmark). Based on ABC’s
historical dental trend, the estimated 3 year | |
savings: | |
| | Medical RFP issued 7/1/03. ASO fees guaranteed for implementation
either | |
01/01/04 or 01/01/05. | |
| $1,152,902 | LTD RFP issued in 2005. The study produced a savings of $846,845 over 2 years, | |
accomplished through a change in their rating system from Retrospective with a | |
deficit
carry forward, to prospective rates, with a forgiveness of a $306,057 deficit, | |
plus a return
of $42,410 from the Premium Deposit Account. | |
| | | |
900 employees | $3,034,609
| | |
| $167,000 | Retention
reduced from 11.64% to 7.5% of paid claims, resulting in $167,000 in | |
savings. This was
done by de-nationalizing the account. | |
| $312,000 | (Reserves
were reduced to 30 days in 1994, resulting in a return of $312,000.) | |
| $136,000 | Billing
error caught resulting in $136,000 in savings. | |
| $360,000 | Community
pooled HMO rates offered to active and under 65 retirees resulting in | |
$360,000 in savings. | |
| $1,200,000 | Medicare Risk offered to American Welding retirees, closed plant. Savings over | |
5
years on an APBO basis, 1.2 million per year. FAS savings estimated at 18 million. | |
| $125,341 | First year reserve and settlement methodology with Capital BC altered through a | |
series
of negotiations, altered issued settlement from ($35,337) to $90,004. | |
| $265,938 | Corrected
1996 Highmark Settlement, a savings of $265,938 | |
| $21,190 | The
1998 settlement was issued as a debit of $152,703. Subsequently, it was revised | |
to
a debit of $131,513. A savings of $21,190. | |
| $264,901 | 1998
market study for Life, Hartford’s 2 year guarantee vs. Trans-General’s 2 year | |
guarantee,
a savings of $264,901 | |
| $10,295 | 1999 market study for LTD, incumbent
reduced rates from $.59 to $.45/100, savings | |
of $10,295. | |
| $171,944 | The 1999 and 2000 settlements were combined and settled as a debit of $222,791. | |
It
was renegotiated as a debit of $50,847, a savings of $171,944. | |
| | | |
150
employees | $58,425 | Insured Retrospective rates re-negotiated with Capital BC. A savings of $48 per |
contract. |
450
Employees | $368,080 | Converted the POS and indemnity programs from insured to self insured in June, |
1997. Savings not valued yet. Reduced reserve requested by $223,833.
Moved over |
| | 65 retirees
from Highmark to TPA. Estimated savings $78,879. Negotiated 2004 |
ASO retention from $84.43 to 70.00. Estimated savings $65,368. |
| | |
4,200 employees | $7,587,376
| |
| $3,088,461
| 7/1/97 Projects |
| | RFP for Medical |
| | RFP for Salaried LTD |
| | Cancelled CIGNA Active Hourly and Active Salaried PPO plans. Staged
over 3 years. |
Replaced
with Anthem BC/BS; BC/BS of Central NY; Highmark BC/BS. Reason: |
Medical discounts; passive drug discounts. Estimated total savings: $3,088,461 |
| | 1/1/98 Projects |
| $156,150
| Cancel CIGNA LTD. Replaced with Reliance Standard. 3 year
rate guarantee. |
Estimated
savings: $156,150 |
| | 1/1/99
Projects |
| | RFP for Life
and AD&D |
| | 1/1/00
Projects |
| $2,385,321 | Cancel
CIGNA Life and AD&D. Replaced with Hartford. 3 year rate guarantee. |
Estimated savings: |
| | RFP for Retiree Medical |
| | 1/1/01 Projects |
| $415,531 | Cancel CIGNA Retiree Health programs. Replaced with Anthem BS/BS; BC/BS of |
Central NY; Highmark BC/BS. Estimated savings: $228,631
in retention; $186,900 in |
discount savings: |
| $500,000 | Cancelled 9 HMOs. Replaced with Anthem PPO. Estimated savings: |
| | 1/1/02 Projects |
| | Cancelled CIGNA Vision program. Replaced with Clarity Vision, subsidiary
of |
Highmark BC/BS.
Administrative savings realized; |
| | Switched Anchor from local processing to national platform, increased discounts. |
Re-Negotiated retention. Details below: |
| | Anthem BC/BS agrees to implement
the revised retention rates, effective 3/1/02. |
Anchor Glass remains a January to January contract; |
| | Effective 3/1/02, the retention
will be split into two components: 1) $25 per |
contract per month, plus 2) 18% of the incurred provider differential capped at |
$11.75 per contract per month for the quarter. |
| | Market Life in order to avoid renewal increase. |
| | RFP for Hourly Voluntary LTD |
| | RFP Over 65 Retiree Medical |
| | 1/1/03 Projects |
| $1,041,913 | Re-market Life to get a 3 year rate guarantee at 2003 rates. Estimated savings |
$656,913 over Hartford’s 01/01/04 rates. |
| | Moved over 65 Retirees to TPA, NABN. Estimated savings $260,000 |
| | Cancelled 7 HMOs. Replaced with Anthem PPO. Estimated Savings $125,000 |
| | |
5043 employees | $1,605,473
| |
| | 2004 Projects |
| $406,630 | Changed rating system from insured rates to ASO. Estimated savings $406,630 |
| $303,658 | Carved out drugs to AdvancePCS initiative. Estimated savings $303,659 |
| | 2005 Projects |
| $293,688 | RFP Life: $293,688 annual savings over incumbent carrier |
| $601,497 | Retention negotiation, sole carrier,
1/1/06. Initial offer $52.38. Final offer $42.63. |
Savings $601,497 |
| | |
700 employees | $490,178 | |
| | 11/1/96 through 8/31/98
Projects |
| $103,459 | During
this time period the original 12 month settlement was extended to a combined |
22 month settlement. Settlement error due to missing premium was $72,843.31
plus a |
change in reserve
from full reserves to 30 days on the first 12 months and actual IBNR |
instead of a completed reserve on the subsequent 10 month period. Estimated Savings: |
| | 9/1/99-8/31/00 Projects |
| $76,013 | As a result of consolidating the Ohio and Lehigh operations with Highmark, effective |
1/1/02, Highmark agreed to lower the reserve and resettle this contract
period. |
Original
settlement at $164,636.15. Final Settlement $88,623.29 |
| | 1/1/00 Projects |
| $136,857 | Change Lehigh Centec Health from Retrospective with a deficit carry forward to Cost |
Plus. Capital BC as vendor. Estimated Savings: |
| | 1/1/02 Projects |
| $54,204 | Consolidation study, combining Ohio with Pennsylvania using Highmark produced a |
retention and stop loss savings: |
| | 1/1/05 Projects |
| $119,645 | Highmark
Medical & Drug 2006 retention negotiation |
Total
Savings | | |
While at Aon | $37,368,682 | |
Grand Total | $55,021,555 |
|