At HealthNow New York, we continue to seek and drive sustainable growth initiatives while exploring options to position this organization for its long-term future
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Buffalo, NY (Vocus) March 2, 2010
HealthNow New York, Inc., one of the Northeast’s leading health insurance and employee benefits companies, has announced a national expansion through a newly-formed subsidiary, HealthNow Administrative Services (HNAS).
The subsidiary is an administrative and outsourcing services company specializing in self-funded benefit plans targeting mid to large employer groups (100 to 1,000-plus employees), brokers, and agents. Additionally, HNAS’ will partner with smaller third party administrators, providing the man power, claims operations and technology infrastructure they need to remain competitive in today’s marketplace.
The focus of HNAS responds to the struggling economy and the strong trend of employers searching for options beyond traditional insurance. Employer groups want the flexibility to tailor benefit plans to directly meet their needs and their employees’ needs, while having more control of the costs. These organizations are willing to self-insure and underwriting the risk while outsourcing the back office operations of managing claims processing, provider networks, utilization review or membership functions. Self-insured enrollments grew, across the insurance industry, from 44 percent in 1999 to 57 percent in 2009. As of December 2008, self-insured membership was a significant portion of membership in nine of the top 10 health plans.
“At HealthNow New York, we continue to seek and drive sustainable growth initiatives while exploring options to position this organization for its long-term future,” said Alphonso O’Neil-White, president & CEO of HealthNow New York Inc. “Many internal and external forces are changing the shape of this industry. Those organizations who not only adapt but continually look to ways to reinvent themselves will survive. HNAS is one element to our continued evolution.”
While HNAS will continue to foster current broker and client relations across the Northeastern U.S., specifically in the New England and Mid-Atlantic regions, HNAS has begun marketing employee benefit products and services across the country.
While its home base will be King of Prussia, Pa., a sales and client administration office has been established in Dallas, Texas targeting the southwest. HNAS sales forces are now located in Phoenix, Ariz., and Boston, Mass., to assist in nationwide service.
HNAS complements HealthNow’s existing brokerage strength secured through its 2006 acquisition of Brokerage Concepts Inc. (BCI). BCI will continue to serve as a leading group benefit and individual brokerage firm, operating regionally and headquartered in King of Prussia, Pa., with offices located in the northeast corridor.
“HealthNow has made a substantial commitment to HNAS with clear goals for both its short and long-term future,” said Lawrence Thompson, HealthNow senior vice president of Large/ Administrative Services Only Accounts. “We are investing in people, infrastructure and technology to enable the organization to compete head-to-head on a national level. We anticipate that the majority of HealthNow’s new membership growth in 2010 will be attributed to the success and leverage of HNAS.”
According to Thompson, indicators show the self-insured segment will continue its significant growth in 2010 as health care costs keep on rising, taxes continue to increase, revenue and investments decrease and employers are forced to lower their costs. Employee benefits costs run second to compensation expense.
“As a subsidiary of HealthNow New York, HNAS has access to resources and the capacity to provide superior administrative and outsourcing services that deliver integrated and creative benefit solutions,” Thompson said. “HNAS combines strength, knowledge and expertise with plan flexibility to provide brokers and clients across the U.S. with a seamless, comprehensive resource for planning and implementing group benefit products and administrative services.”
About HealthNow New York Inc.
HealthNow New York is one of New York State’s leading health care companies serving members across upstate New York. Headquartered in Buffalo, NY, HealthNow does business as BlueCross BlueShield of Western New York, BlueShield of Northeastern New York, HealthNow New York, Brokerage Concepts Inc. and HealthNow Administrative Services. In 2008, company revenues grew to more than $2.27 billion.
As a subsidiary of HealthNow New York, Inc., HealthNow Administrative Services provides administrative and outsourcing services, while delivering innovative strategies to meet any group benefit plan objective.
Karen Merkel-Liberatore (HNNY)
Colleen Rees (HNAS)
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