Oct 5 2010
Administaff, Inc. (NYSE:ASF), a leading provider of human resources services for small and medium-sized businesses, today announced that it has extended its arrangement for medical and dental coverage with UnitedHealthcare, a UnitedHealth Group company (NYSE:UNH). This new, three-year arrangement reflects the company's success in moderating the rate of health care cost increases on behalf of its covered worksite employees, as well as a further strengthening of its business relationship with UnitedHealthcare.
“We are very pleased with the terms of our new agreement with UnitedHealthcare”
Under the terms of the new agreement, effective Jan. 1, 2011, there is a projected three-year savings of approximately $7.7 million to Administaff. Projected savings are based on increasing participation in UnitedHealthcare's coverage options under the Administaff Group Health Plan. The dental plan will see a modest premium increase for 2011, and a cap will apply to any potential increases for 2012 and 2013.
"We are very pleased with the terms of our new agreement with UnitedHealthcare," said Richard G. Rawson, Administaff's president. "We believe this new arrangement demonstrates the long-term success of our relationship, and we appreciate UnitedHealthcare's ongoing commitment to helping us provide premium health care benefits for worksite employees at America's best small and medium-sized businesses. The structure of the new agreement aligns both organizations' incentive to increase participation."
Administaff selected UnitedHealthcare as its leading health insurance carrier in Jan. 2002. The majority of Administaff's corporate and worksite employees have health coverage with UnitedHealthcare.
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