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The Alliance moves health care forward by controlling costs, improving quality, and engaging individuals in their health. We value the partnership we have in working with agents and consultants. Learn more about the benefits of working with The Alliance. 
Alliance e-Resource
Working Together to Serve Your Clients
July 2012
Who to Contact
at The Alliance
Questions Related to Current Alliance Members:
Jesse Oberloh
800.223.4139 x 6645
[email protected]


Questions Related to Prospective Members in Wisconsin and Iowa:
Calvin J. Rigsby II
800.223.4139 x 6643
[email protected]


Questions Related to Prospective Members in Illinois:
Kelly Davit
815.299.5945
[email protected]


Questions Related to Trotter Wellness, Quantum, or QualityCounts :
Bobbi Jones
800.223.4139 x 6638
[email protected]

Resources:

Tools to help you serve your clients.

New Self-Funding Guide

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Greetings!

Welcome to your Alliance e-Resource. This quarterly e-mail keeps you up-to-date on Alliance products and services to help you serve your clients.

Alliance Board Reduces Retainage for Equity Members

As a member-owned cooperative, The Alliance exists to increase the value of health care benefits provided to our members' employees and their families. We are not only owned, but also directed by our members in the form of a member-led board of directors. The Alliance Board of Directors provides oversight and management to ensure the future strength of the cooperative.

Recently, The Alliance Board of Directors approved a price change for our Alliance Standard Equity members for FY 2013, which began on June 1, 2012.

Retainage Rate Reduced
Retainage is the share of claims savings that is "retained" by The Alliance to be used for operating expenses. Beginning this fiscal year, retainage rates dropped for members:
  • From 4.3 to 3.9 percent for those members that have been with the cooperative for less than four years as of June 1, 2012.
  • From 3.3 to 3.1 percent for those who have been with the cooperative for more than four years.

Annual Retainage Cap
The Alliance caps the amount of retainage members pay in a year. This is designed to put a limit on the amount of retainage owed should the member have inordinately high claims costs. Once a member hits the cap, they do not owe any additional retainage.

The Alliance Board of Directors approved an increase on the retainage cap for all standard equity members from $12.75 to $13.90 per employee per month. In the case that a member would meet this cap, they would have no further retainage applied until the new fiscal year begins.

If you have a mutual client with The Alliance you received information about this price change and the employers affected in June. If you have any questions, please contact me, 800.223.4139 x 6645.

Comparison between FY 2013 and FY 2012

FY 2013 Example:

FY 2012 Example:

Retainage

$100 claim - 33.9% average discount

$33.90 savings - 3.9% retainage

$1.32 in retainage paid to The Alliance

$32.58 net savings (savings minus retainage)

>> an effective discount of 32.58%

Annual Retainage Cap
For an employer with 100 employees, the annual cap would be $16,680.

100 x $13.90 x 12 months = $16,680

If the employer has paid in $16,680 at 8 months into The Alliance fiscal year, no further retainage would be applied.

Retainage:

$100 claim - 32.2% average discount

$32.20 savings - 4.3% retainage

$1.38 in retainage paid to The Alliance

$30.82 net savings (savings minus retainage)

>> an effective discount of 30.82%

Annual Retainage Cap
For an employer with 100 employees, the annual cap would be $15,300.

100 x $12.75 x 12 months = $15,300

If the employer has paid in $15,300 at 8 months into The Alliance fiscal year, no further retainage would be applied.

New Self-Funding Guide

Self-funding can be a beneficial solution to funding health benefits for many employers. It offers more control, lower operating costs, more flexibility, among other benefits.

The Alliance has been helping self-funded employers for more than 20 years. If you have questions about self-funding and if it may be right for a client, check out our new self-funding guide or contact us (see contact information at top left).