Press Release

Manasquan, N.J., USA, January 10, 2006 –As consumer-directed healthcare and cost concerns continue to drive the industry, providers and employers are striving to help consumers make informed decisions. Many health plans are adopting tiered networks that divide providers by quality and efficiency. By making data transparent, these plans supply consumers the information to select the plan that best suits their needs.

Providing members the education and ability to make their own healthcare decisions enforces the consumer-driven model, promoting the awareness to help reduce costs. “Tiered Networks in Healthcare: The Impact on Quality Improvement, Cost Reduction and Customer Satisfaction,” a November 9, 2005 audio conference on CD-ROM sponsored by the Healthcare Intelligence Network (HIN), explores the experiences of health plans that have tapped into tiered networks to steer consumers to higher quality and cost-efficient care. During this 90-minute audio conference on CD-ROM, expert panelists explain how tiered network products can impact price, quality and consumer satisfaction and generate positive returns. For more information, please visit the HIN bookstore.

“Employers want to engage their employees in healthcare spending, and they're looking to health plans to provide that leadership and to provide those solutions,” said Julie Bunde, product development manager, HealthPartners, who spoke at the conference. “They’re trying to cut costs at the same time, recognizing that consumers like choice, but they don't have enough information to choose the best option.”

Tiering has its challenges, but employers want real solutions to cost problems. Tiered networks promote quality and efficient care as providers compete for placement. Outcome measures, performance transparency and financial incentives keep physicians working toward improvement. And when consumers pay for their choices, they start to pay attention.

“As consumers start to pay more, they're engaging more and they're going to be demanding information to help them make good decisions,” said Bunde. “Information alone doesn't have as much impact on behavior as it does when combined with economic engagement.”

Joining Bunde at the conference were Bill Banks, vice president of provider contracting and network operations, Humana, and Pat Dunks, principal and consulting actuary with Milliman Inc. These expert speakers illuminate the possibilities and challenges within tiered networks, providing details on:

• Overcoming provider and consumer resistance;
• Achieving cost savings from tiered products;
• Structuring quality improvement initiatives under tiered products;
• Determining price tiers;
• Negotiating with providers on tier placement; and
• Developing the next generation of tiered network products.

“We can drive better care by rewarding providers for providing quality, cost-efficient care,” said Bunde. “And we can drive lower costs by building that awareness among consumers about providers who provide more effective and affordable care.”

This 90-minute audio conference on CD-ROM benefits health plan CEOs, medical directors, strategic planners, network managers, product development and marketing executives and financial managers, directors of managed care contracting for providers and employer benefit executives.

Also included are detailed outlines of the panelists’ presentations, a printed transcript and a live question-and-answer session on the CD-ROM in which panelists open the floor for discussion. For more details on related products and upcoming audio conferences, visit the HIN bookstore.

About the Healthcare Intelligence Network -- HIN is the premier advisory service for executives seeking high-quality strategic information on the business of healthcare. For more information, contact the Healthcare Intelligence Network, PO Box 1442, Wall Township, NJ, USA, 07719-1442, (888) 446-3530, fax (732) 292-3073, e-mail info@hin.com, or visit http://www.hin.com.

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