University of Rochester

University Selects Third Party Administrator for Self-Insurance

April 1, 2002

The University of Rochester has selected Aetna to administer the University's employee health insurance program on a self-insured basis, effective July 1, 2002.

Aetna is one of the nation's leading providers of health care and related group benefits, serving 15.6 million health care members. The company's national account customer segment, which services employers with 3,000 or more employees, has 10.2 million members and 8.1 million of those are self-insured. "Aetna is delighted to be a business partner with the University of Rochester, and we look forward to working closely with them to design health benefits products and services that best meet their needs. We believe that our experience in servicing large self-insured customers will be a long-term benefit to the University and its employees," said Aetna Chairman and CEO John W. Rowe, M.D.

Aetna was chosen through a request-for-proposal process including local and out-of-town companies. "Ultimately, we decided that Aetna would be the partner best suited to meet our needs," said Ronald J. Paprocki, senior vice president for administration and finance. "The company has a national perspective on how to help us design and administer the best programs we can offer to our employees."

"Self-insurance" means that an institution like the University contracts with a third party administrator, in this case Aetna, which processes claims and provides additional services for the customer. The medical claims are funded by the University, and not by Aetna acting as an insurer. As before, the University contributes toward the medical plan for each employee; and, as before, most employees also pay a contribution toward that medical plan. The self-insured plans of the University are modeled after the existing plans and will function as those plans do.

As noted in Paprocki's recent letter to University faculty and staff, self-insurance allows the University to provide employee medical plans more efficiently, contain rising health insurance costs over time, and develop initiatives to help employees live healthier lives.

Aetna is a leader in integrating vast amounts of health data from multiple sources and developing customized programs to increase health care quality, lower medical costs, and improve employee satisfaction and productivity. The programs include preventive care, disease management, and reminder programs.

Aetna uses technology to improve members' understanding and access to health care. Aetna Navigator‘ is Aetna's member self-service Web site that provides a single source for online health and health-related information. Members can view their benefits and claims status online, get information about pharmacy co-pays, and obtain a personalized preventive health care schedule, 24 hours a day, 7 days a week. Members can also link to InteliHealth“, Aetna's award-winning consumer Web site with content provided by Harvard University Medical School and the University of Pennsylvania School of Dental Medicine.

The University will offer four health plans, including a traditional indemnity plan, for active faculty and staff (and retirees under age 65). Two plans will be offered to retirees 65 and over. The plans will not contain major benefit changes from the plans currently offered. Employees and retirees will receive detailed information and an enrollment form at their homes in early May.