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My clients are extremely happy with Array Health’s service. From its easy-to-use web-based tools to its superior customer service, Array does a terrific job. Array’s defined contribution model has simplified my client interface and made it a far more efficient process; freeing up my time to enhance service models, deepen client relationships, and increase overall client satisfaction. Deborah Levy Sr. Benefits Consultant AH&T Insurance

Array Bulletin: Service & Market Updates for February 2009

Array Health had a great fourth quarter as we significantly increased our client base. We're very excited about 2009 and for the opportunity to work more with you.

Below are recent Array news and updates, as well as description of a study recently published by PricewaterhouseCoopers.

New Sales Collateral

We recently released a two-page sales sheet that explains the benefits of Array's service and how it works. Please feel free to distribute this new collateral to your clients and prospects. You can download it here.

Array Service Supports Large Companies with Multiple Locations

In December, Array sold its service to a large company with approximately 40 locations. Each location manages its own benefit plan administration and payroll.

Array implemented several new features to meet the business requirements of this client and future clients with similar needs, including:

Separate administrative portals for each location
Location-based payroll reimbursement reporting
Restricted access for local administrators
Master administrative portal to view location and enterprise data

What is the Break Down of Carrier Administrative Costs?

In December, PricewaterhouseCoopers released a study entitled The Factors Fueling Rising Health Care Costs 2008. The study indicated administrative expenses comprised 13% of total health insurance premiums. Administrative costs are often seen as fat in a bloated system, but as the study shows, these costs are largely unavoidable. Here is the break down of administrative costs:

Consumer Services, Provider Support, & Marketing: 4%
Government Payments & Compliance: 2%
Claims Processing: 3%
Other Administrative Costs: 1%
Risk & Profit: 3%

Most health insurance administrative costs are absolutely necessary and are largely the same in both the public and private systems. We need to decrease healthcare spending, but significant cost reductions will not be found in administration.

As always, please contact us directly if you have any questions or comments regarding this newsletter, of if you have a client or prospect you would like to discuss. We look forward to our work with you in 2009.

Sincerely,

Christopher Moneta

Director of Sales

1-800-640-7086