****AIA  Success Stories! Client  Case Studies for AIA Life & Health Services One of the best ways  of finding how we can be a value added benefit to your firm, is  to review some of the things we have done for other companies. They  are just a sampling of what we have done in the last 20 years. Industry:  Musical Instrument Distributor Employees: 120 Issue : The company's group medical had been insured through  an Administrative Services Only (ASO) contract with a major insurance  carrier paying the claims. The Specific Retention was high and fixed  cost were soaring. Services:  Jay A. Huminsky at AIA Life & Health Services provided the following  services: · Preformed and claims analysis to determine nature  and trend of claims. · Modified benefit plan to reduce utilization  and risk exposure. · Changed administrators to an independent  Third Party Administrator. · Changed Stop Loss contracts to reduce  Specific retention level. Results:  Initial annual savings exceeded $20,000. Every year for the last  five (5) years the client has had a cost per capita less than  $2,200! The national norm for 1996 was $4,110. Industry: Residential Construction Employees: 120 Issue: As the company tripled the number of active employees  since 1991 the workers compensation costs doubled on a per capita  basis. Premiums for workers compensation alone posed a threat of  bankruptcy. Services: AIA and our property and casualty associates  at Roper Insurance Services were asked to come up with rate relief  alternatives. Jointly the two agencies: · Explored possibility  of leaving the Workers Compensation Act. · Designed a complete  rejection program · Changed the major medical and dental plan  to alternative funding and incorporated occupational and non-occupational  benefits into one ERISA document with claims paid by one TPA. Results:  The company saved over $400,000 in fixed cost insurance premiums  and eliminated the sub-contractor liability on workers compensation  claims. Industry: Wholesale Lumber Employees: 125 Issue: The company expanded to a California location who's  employees were not only used to better benefits, but were segregated  in benefits by a collective bargaining agreement. Services:  AIA Life & Health Services preformed the following: · Evaluation  and comparison of benefits between locations and employee segments.  · Surveyed employee to determine benefit needs. · Designed a Cafeteria  style benefits plan to improve choice and value to employees.  · Added a 24 hour Long Term Disability plan that was employee  paid with bonus back dollars making future benefits tax free. Results: The company saved $25,000 in premium and tax savings  while increasing the benefits to employees. The unions position  at the company was weakened by the benefit offering and the unification  of benefits between locations was complete and equitable. Industry: Home Health Care Agency Employees: 650 Issue: The company had 67 locations in both large and small  town settings. The managed care and utilization review was effective  at only 25% of the locations. They had 5 insurance carriers over  the last five years and were not able to find an insurance carrier  willing to offer them coverage. Services:  AIA Life & Health Services preformed the following: · Risk evaluation  and carrier rate history report to determine nature of increases  and reason for constant change. · Preformed Managed Care overlay  analysis to maximize utilization of managed care networks and  providers. · Streamlined eligibility requirements to minimize  the administrative cost of 20,000 W-2's per annum. Results: Drug charges alone were reduced $30,000 and the  PPO savings increased 40% over the years prior. The firms potential  variable cost savings for the year could be over $70,000. Industry: Medical Hospital Corporation Employees: 15,000 Issue : Life and Long Term Disability benefits were previously  acquired direct from a major insurance carrier without agent representation.  The retrospective contracts had exceeded retention thresholds and  included excessive terminal liability provisions. Services: AIA Life & Health Services Business Manager,  Jay A. Huminsky, RHU, REBC, provided the following services for  the client: · Preformed claims and risk analysis to determine  required reserves and terminal liability exposure. · Prepared  detailed Request for Proposal package and distributed it to leading  Life and LTD carriers. Analyzed responding quotes, negotiated  most competitive carriers to lowest cost and secured contracts  limiting risk and lowering premium cost. · Modified voluntary  life offering to reduce adverse selection. · Improved participation  with superior employee communication meetings nationwide. · Negotiated  reduction in both terminal liability and required reserves of  $700,000. Results: The client received un-bias services and quality  representation, lowered premiums by $240,000 per annum and limited  risk through a fully insured contracts instead of alternative  funding.