Coalition America, Inc.

With healthcare costs expected to hit double-digit levels in 2002, corporations are bracing for a new round of premium increases in spite of a weakening economy. Global financial services firm UBS Warburg predicts health insurance costs will go up by 18.2 percent next year, which may drive companies to reevaluate further their healthcare delivery programs, says Sean Smith, chief executive officer for Coalition America, Inc. (CAI)

In a just published report, UBS Warburg healthcare analyst William McKeever cites recent surveys by international consulting firm Hewitt Associates that health insurers are predicting significant premium increases for the year.

"With the economy weakening, this is hardly welcome news in most corporate board rooms," says Smith, who heads one of the leading healthcare cost containment companies in the United States. "To help alleviate the financial pressures corporations are looking at new approaches to control cost of healthcare benefits including innovative ways to reduce their out-of-network claim cost."

Short of dropping health coverage totally, many corporations are turning to cost containment companies like Coalition America, Inc. to get control of their healthcare costs. "Cost containment involves a wide range of technology tools to reduce the cost associated with the healthcare plan no matter if the plan is offering a traditional indemnity programs or an HMO, PPO etcetera." said Smith.

"We are also seeing our cost-containment applications utilized to assist in controlling the increase of healthcare cost associated with workers’ compensation claims. Since we only charge if we are successful there is absolutely no risk."

For instance, cost containment company Coalition America negotiates agreements with national and local provider groups for deep discounts in return for access to their client base which includes self-funded groups, and all types of healthcare payors.

"Using the Internet, companies can tap into these networks and discount their existing claims to capitalize on the lower costs afforded by these agreements," Smith said.

Coalition America’s business is growing rapidly because companies in all industries are more closely evaluating their health benefit programs to find opportunities to increase savings through cost containment. "Combining technology with innovative cost containment is crucial at a time when costs are going up and revenues are declining," Smith said.

Coalition America supplements the healthcare plan already in place without causing disruption. By enhancing an existing program and reducing the cost of claims that are out of network CAI offers deep discounts without replacing any existing programs.

About Coalition America

Coalition America, Inc. (CAI) is a leader in healthcare cost-containment and administration emphasizing transactional excellence for claims repricing for customized preferred provider organization (PPO) networks. The Atlanta-based healthcare technology company offers one source for PPO network access and administration, while assisting companies in controlling their medical healthcare expenses. The range of services offered by CAI includes network integration and management, electronic data interchange (EDI), Internet repricing and data-entry options and non-network bill negotiations on all claims. For more information on Coalition America, please visit www.coalitionamerica.com.

###