ACCOMPLISHMENTS SINCE LEAVING AON 6/01/06 TO PRESENT

Company

Dollars Saved

Method Saved

200 employees

$7,456

Total

2008 Disability RFP 1 year savings, Placed with Reliance Standard

864 employees

$320,068

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.

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

$2,722,500

Over 65 Retention proposal for 2007, 3 year savings: (Part of a larger negotiation, 

which may fall apart)

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

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.

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

$17,182,433

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.  11^th 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 11^th 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,

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

$54,551,115