AIAG Guideline Aims to Slash up to 30 Percent in Administrative Health Care Costs
August 21 2007 - 11:00AM
PR Newswire (US)
DETROIT, Aug. 21 /PRNewswire/ -- The largest savings - up to 30
percent - for companies' administrative health care expenses are
found in managing outsourcing of claims administration, according
to the Automotive Industry Action Group (AIAG). AIAG has created a
guideline in collaboration with Thomas Group, a professional
services firm specializing in operational improvements, to help
companies better manage their claims administration process through
third-party administrators (TPA). (Logo:
http://www.newscom.com/cgi-bin/prnh/20040719/DEM007LOGO ) Many
self-insured companies outsource their administrative services to
TPAs and may pay excessive cost premiums for the convenience. TPA
terms and arrangements can impact a company's ability to properly
analyze data and result in reporting errors and misrepresentations
of claim data. Further, higher state assessments, program costs and
service fees may arise. "Our strategy is to attack administrative
rework, error and waste and by doing so, reduce the impact of
projected annual health care cost increases," said J. Scot
Sharland, AIAG executive director. "Given the complexity in
managing TPAs, the use of this guideline can help any self-insured
company more effectively manage their claims processes and lower
their costs." In order to provide a clearer and accurate picture of
programs, claims histories and administration, the guideline
provides companies with the right program structure and terms to
seek when soliciting TPA services in both occupational and
non-occupational health management. Topics include bill review,
nurse case management, avoiding claim status escalation, litigation
management, old claims management, value-based incentives and
predictive modeling. Eric Labe, senior vice president of Thomas
Group's health care practice said, "We are excited to participate
in this effort with AIAG to help employers begin to manage their
health care costs as they do other expense line items." The
guideline was developed by AIAG's Health Focus Group, whose mission
is to improve the health status of automotive industry employees,
beneficiaries and retirees by identifying and attacking the root
causes that drive health care costs upward. Instead of cost
shifting, the group is focusing on cost- reducing initiatives to
reduce errors and improve quality. AIAG and Thomas Group's focus on
process in addressing issues in quality and cost makes for a
natural alignment in working collaboratively on this project.
AIAG's Third Party Administrator Guideline is available in print
and electronic document formats at a list price of $149 by visiting
http://www.aiag.org/ or calling customer service at (248) 358-3003.
AIAG's AutoMed conference will feature the guideline from Nov.
15-16, 2007, at the Troy Marriott hotel in Troy, Mich. About AIAG
Founded in 1982, AIAG is a globally recognized organization where
OEMs and suppliers unite to address and resolve issues affecting
the worldwide automotive supply chain. AIAG's goals are to reduce
cost and complexity through collaboration; improve product quality,
health, safety and the environment; and optimize speed to market
throughout the supply chain. Headquartered in the metro Detroit
area, its member companies include North American, European and
Asia-Pacific OEMs and suppliers to the automotive industry.
Additional information is available on the Internet at
http://www.aiag.org/. About Thomas Group Thomas Group, Inc.
(NasdaqGM: TGIS) is an international, publicly traded professional
services firm specializing in operational improvements. Thomas
Group's unique brand of process improvement and performance
management services enable businesses to enhance operations,
improve productivity and quality, reduce costs, generate cash and
drive higher profitability. Known for Breakthrough Process
Performance, Thomas Group creates and implements customized
improvement strategies for sustained performance improvements in
all facets of the business enterprise. Thomas Group has offices in
Dallas, Detroit, and Hong Kong. For more information please visit
http://www.thomasgroup.com/
http://www.newscom.com/cgi-bin/prnh/20040719/DEM007LOGO DATASOURCE:
Automotive Industry Action Group CONTACT: Leslie Santos of
Automotive Industry Action Group, +1-734-658-9866 Web site:
http://www.aiag.org/ http://www.thomasgroup.com/
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