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MemberHealth Partners With SHPS for ``Consumer-Directed Retiree Health Plans''

Posted on: Thursday, 15 December 2005, 12:00 CST

SHPS, a leading provider of Integrated Health Management, and MemberHealth, a national Medicare Part D Plan sponsor announced today a partnership that will expand SHPS' new "consumer-directed retiree health plans"(TM) (CDRHPs) to include access to MemberHealth's nationally networked Medicare Part D prescription drug plans.

With many employers struggling with the high costs of healthcare for both active workers and retirees, CDRHPs are a revolutionary way to bend the trend of employers' staggering legacy benefit costs while maintaining or increasing the benefits provided to retirees.

Just as countless companies moved from offering traditional pensions to 401(k)s, CDRHPs transition employers from a defined-benefit to a defined-contribution approach to retiree benefits. In CDRHP's simplest form, an employer would credit a certain amount of money to a tax-advantaged retiree health reimbursement arrangement (HRA), which may accrue during the employee's active service, retirement or both.

With the new CDRHP, retirees can use the employer contributions to enroll in a variety of MemberHealth Medicare Part D plans, creating significant savings for both employers and retirees. The new agreement between SHPS and MemberHealth, also enables employers to provide MemberHealth's prescription plans as part of their overall retiree health coverage.

"In MemberHealth, SHPS has found an innovative, national prescription plan that shares our vision of delivering quality healthcare at affordable costs," said Rishabh Mehrotra, SHPS' president, human resource services. "Adding MemberHealth to SHPS' CDRHP product greatly increases our ability to manage employer healthcare costs while preserving crucial retiree benefits."

"The partnership between MemberHealth and SHPS provides employers with a very exciting opportunity to introduce innovation into retiree health administration," said Charles Hallberg, CEO of MemberHealth. "With rising healthcare costs, increased life expectancy, and a rapidly growing number of retirees, addressing the retiree healthcare crisis is of urgent importance for employers and future retirees. MemberHealth is pleased to partner with SHPS to offer a unique solution to the employer market."

About SHPS

SHPS provides consumers and corporations a single source of health management decision guidance through its Integrated Health Management approach. Its innovative CareWise(R) brand offers comprehensive care, plan, spending, productivity and strategic management services that help guide employees to be healthier and more productive. SHPS serves employers, health plans, hospitals and governments, and has more than 85 Fortune 500 clients. The company employs more than 2,200 nurses and health professionals, employee benefit specialists and IT experts in facilities across the United States. Visit www.shps.com.

About MemberHealth

MemberHealth is a privately owned Ohio corporation that operates a national prescription benefit administration organization, administering insured, self-insured and discount prescription programs. MemberHealth is CMS-approved as one of ten national Part D Prescription Drug Plans (PDP) for individual Medicare beneficiaries, and with additional authority as a PDP for employers and union groups. For more information, visit www.mhrx.com.

Source: Business Wire

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