PHOENIX, Dec. 14 /PRNewswire/ -- As the topic of health insurance continues to create heated debates, Phoenix-based Star HRG, the nation’s premier provider of medical plans for non-benefited hourly employees, gears up to launch their unique new product, Starbridge Choices. Star HRG believes that affordable limited-benefit plans like Starbridge Choices may be part of the much sought-after solution for 44 million uninsured Americans.
Starbridge Choices is a consumer-driven limited-benefit medical plan that offers illness coverage; wellness and maternity care; accidental injury coverage; prescriptions, and an employee assistance program for part-time and hourly employees who would not otherwise qualify for medical coverage.
Star HRG President Tim Cook explains, “Starbridge Choices marries the best components of consumer-driven health care with Star HRG’s limited-benefit medical plans. This plan empowers employees by providing them with the tools and resources they need to intelligently manage their health care benefit funds.”
Cook adds, “We are thrilled to be one of the first to offer consumer- driven medical coverage that entry-level, part-time and hourly workers can afford for themselves and their families.”
Starbridge Choices launches nationwide this winter as the country begins to embrace consumer-driven health care plans and their ability to place control over costs and care directly in the hands of the policyholders.
Star HRG’s innovative new product addresses the unique needs of these types of employees; Starbridge Choices is a voluntary program with three levels of coverage, designed to cost the employee about as little as one or two hours of pay per week.
The tools and options available on the new Starbridge Choices Web site, http://www.starbridgechoices.com/, are those that you would normally expect only with major medical coverage. The site allows policyholders to find a physician based on location, specialty and price; research medical conditions and treatments, as well as access their plan and claims information. In addition, a toll-free NurseLine provides 24-hour medical advice and assistance for all Starbridge Choices customers.
Star HRG Senior Vice President of Sales, Ben Rozum says, “The resources we are offering with Starbridge Choices help employees stretch their health care benefit funds to the maximum. The NurseLine, for instance, can help a single mother determine whether her sick child needs emergency room care or whether there is a simpler and more cost-effective treatment. As a result, she will have more benefit funds available when she needs them most.”
Star HRG’s innovative insurance solutions already provide coverage for more than 350,000 American workers, and have helped over 700 companies -- including more than two dozen Fortune 500 companies -- retain employees, improve recruiting, and maintain a productive work environment.
Starbridge Choices is offered at absolutely no cost to the employer. Premiums can be entirely paid for by the employee; however, employers often elect to make a contribution as well.
Star HRG
Star HRG, the nation’s premier provider of limited-benefit medical plans for non-benefited hourly employees, has offered health insurance plans for over 15 years. Star HRG addresses the unique benefit needs of entry-level, part-time hourly and high-turnover employees by providing voluntary insurance programs at a price employees can afford. Star HRG’s innovative insurance solutions have helped companies reduce turnover, improve recruiting, and stabilize benefit expenses within the hourly paid workforce. Star HRG is the leader in innovative and affordable plan designs, cutting-edge customer service and claims administration, and creative approaches to enrollment options.
Star HRG is a division of The MEGA Life and Health Insurance Company, which is a wholly owned subsidiary of UICI .
For more information on Star HRG, visit http://www.starhrg.com/ or call (602) 462-2265.
UICI
UICI (headquartered in North Richland Hills, Texas) through its subsidiaries offers insurance (primarily health and life) to niche consumer and institutional markets. Through its Self-Employed Agency Division, UICI provides to the self-employed market health insurance and related insurance products, which are distributed primarily through the Company’s dedicated agency field forces, UGA-Association Field Services and Cornerstone America. Through its Group Insurance Division, UICI provides tailored health insurance programs for students enrolled in universities, colleges and kindergarten through grade twelve and markets, administers and underwrites limited benefit insurance plans for entry level, high turnover, hourly employees. Through its Life Insurance Division, UICI offers life insurance products to selected markets. Through its ZON Re USA unit, the Company underwrites, administers and issues accidental death, accidental death and dismemberment (AD&D), accident medical and accident disability insurance policies, both on a primary and on a reinsurance basis. For more information, visit http://www.uici.net/.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
Certain statements set forth herein or incorporated by reference herein from the UICI’s filings that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from those included in the forward- looking statements. These forward-looking statements involve risks and uncertainties including, but not limited to, UICI’s ability to maintain adequate liquidity to satisfy its obligations; changes in general economic conditions, including the performance of financial markets, and interest rates; competitive, regulatory or tax changes that affect the cost of or demand for the Company’s products; health care reform; the ability to predict and effectively manage claims related to health care costs; and reliance on key management and adequacy of claim liabilities.
The Company’s future results will depend in large part on accurately predicting health care costs incurred on existing business and upon the Company’s ability to control future health care costs through product and benefit design, underwriting criteria, utilization management and negotiation of favorable provider contracts. Changes in mandated benefits, utilization rates, demographic characteristics, health care practices, provider consolidation, inflation, new pharmaceuticals/technologies, clusters of high-cost cases, the regulatory environment and numerous other factors are beyond the control of any health plan provider and may adversely affect the Company’s ability to predict and control health care costs and claims, as well as the Company’s financial condition, results of operations or cash flows. Periodic renegotiations of hospital and other provider contracts coupled with continued consolidation of physician, hospital and other provider groups may result in increased health care costs and limit the Company’s ability to negotiate favorable rates. In addition, the Company faces competitive and regulatory pressure to contain premium prices. Fiscal concerns regarding the continued viability of government-sponsored programs such as Medicare and Medicaid may cause decreasing reimbursement rates for these programs. Any limitation on the Company’s ability to increase or maintain its premium levels, design products, implement underwriting criteria or negotiate competitive provider contracts may adversely affect the Company’s financial condition or results of operations.
The Company’s insurance subsidiaries are subject to extensive regulation in their states of domicile and the other states in which they do business under statutes that typically delegate broad regulatory, supervisory and administrative powers to state insurance departments and agencies. State insurance departments have also periodically conducted and continue to conduct financial and market conduct examinations and other inquiries of UICI’s insurance subsidiaries. State insurance regulatory agencies have authority to levy monetary fines and penalties resulting from findings made during the course of such examinations and inquiries. Historically, the Company’s insurance subsidiaries have from time to time been subject to such regulatory fines and penalties. While none of such fines or penalties individually or in the aggregate have to date had a material adverse effect on the results of operations or financial condition of the Company, the Company could be adversely affected by increases in regulatory fines or penalties and/or changes in the scope, nature and/or intensity of regulatory scrutiny and review.
The Company provides health insurance products to consumers in the self-employed market in 44 states. A substantial portion of such products is issued to members of various independent membership associations that act as the master policyholder for such products. The two principal membership associations in the self-employed market for which the Company underwrites insurance are the National Association for the Self-Employed (“NASE”) and the Alliance for Affordable Services (“AAS”). The associations provide their membership with a number of benefits and products, including health insurance underwritten by the Company. Subject to applicable state law, individuals generally may not obtain insurance under an association’s master policy unless they are also members of the associations. UGA agents and Cornerstone agents also act as field service representatives on behalf of the associations, in which capacity the agents act as enrollers of new members for the associations and provide field support services, for which the agents receive compensation. Specialized Association Services, Inc. (a company controlled by the adult children of the Chairman of the Company) provides administrative and benefit procurement services to the associations. A subsidiary of the Company generates new membership sales prospect leads for both UGA and Cornerstone for use by the enrollers (agents) and provides video and print services to the associations and to Specialized Association Services, Inc. In addition to health insurance premiums derived from the sale of health insurance, the Company receives fee income from the associations, including fees associated with the enrollment of new members, fees for association membership marketing and administrative services and fees for certain association member benefits. The agreements with these associations requiring the associations to continue as the master policyholder and to make the Company’s insurance products available to their respective members are terminable by the Company and the associations upon not less than one year’s advance notice to the other party.
Articles in the press have been critical of association group coverage. The Company is also a defendant in several lawsuits challenging the nature of the relationship between the Company’s insurance companies and the associations that make available to their members the insurance companies’ health insurance products. While the Company believes it is providing association group coverage in full compliance with applicable law, changes in the relationship between the Company and the membership associations and/or changes in the laws and regulations governing so-called “association group” insurance (particularly changes that would subject the issuance of policies to prior premium rate approval and/or require the issuance of policies on a “guaranteed issue” basis) could have a material adverse impact on the financial condition, results of operations and/or business of the Company.
UICI press releases and other company information are available at UICI’s website located at http://www.uici.net/.
Star HRG
CONTACT: Jessica Jewell of Riester~Robb, +1-602-462-2265, or cell,+1-602-721-8911, for Star HRG