New Specialty Pharmacy Program for Summit Re Clients

Summit Reinsurance Services, Inc. today announced a strategic collaboration with RxResults, a pharmacy risk manager. Through this collaboration, Summit Re clients will have access to proprietary informatics, clinical expertise, and business processes to help formulate actionable insights and implement evidence-based strategic initiatives in order to manage pharmacy and specialty pharmacy spend.

RxResults’ evidence-based pharmacy risk management directly meets the challenge of ensuring access to medications proven safe and effective while providing cost control. Unlike a pharmacy benefit manager (PBM), RxResults is a pharmacy risk manager and does not hold a financial interest in any specialty pharmacy and thus does not benefit from the approval of related drugs. Instead, RxResults operates within a collaborative relationship with the nationally recognized University of Arkansas for Medical Sciences’ College of Pharmacy and the Evidence-Based Prescription Drug Program (EBRx).

“We are looking forward to working with RxResults as we continue to develop solutions for our clients as they tackle the challenges of escalating pharmacy expenses,” says Debbie Hoffer, Vice President, Managed Care at Summit Re. “There are thousands of new drugs and therapies currently in clinical trials. We feel it is critical to align with a company like RxResults that has the clinical expertise to apply evidence-based strategies in reviewing these drugs and therapies.”

“Controlling specialty drug spend continues to be one of the biggest concerns for health plans and carriers,” adds L.G. Hanzel, RxResults’ Principal and Vice President of Business Development. “RxResults removes the inherent conflict of interest in the current industry model by providing an independent and ubiased clinical review of specialty drug prior authorizations. We are excited to be working with Summit Re and their clients.”

 About Summit Re

Summit Reinsurance Services is a managing general underwriter and reinsurance advisor, working with health insurers, managed care plans, and self-funded employers throughout the US. Summit Re helps its clients analyze, manage, and transfer risk to protect their financial stability. As a consultant and advisor, the company works with clients to formulate and implement new products and strategies. Further information is available at www.summit-re.com.

 About RxResults:

RxResults, the proven industry leader for evidence-based pharmacy risk management is changing the benefits landscape by directly meeting the challenge of ensuring access to medications proven safe and effective while providing cost control. RxResults features a strategic relationship with the University of Arkansas for Medical Sciences and leverages proprietary informatics, clinical expertise and business processes to manage pharmacy and specialty pharmacy risk. For additional information on RxResults, please contact L.G. Hanzel at 817.296.8147 or lghanzel@rxresults.com or visit www.rxresults.com.

Summit Re Announces Collaboration with Deerwalk, Inc.

Summit Reinsurance Services, Inc. today announced a strategic collaboration with Deerwalk, Inc., an innovative population health management, data management, and healthcare analytics software company. Through this collaboration, Summit Re clients will have access to the most complete population health management suite in the industry. Efficient and accurate data collection, intake, enrichment, and reporting, will allow participating clients to obtain a full picture of their risk portfolio in order to make more effective management decisions.

Deerwalk’s customizable, subscription-based software packages helps health plans, TPAs, brokers, and others visualize current scenarios and drill down into cost drivers so they can predict future risks and associated costs. They can accurately compare trends and populations, as well as track the performance of care coordination efforts.

“We are very excited to work with Deerwalk. Our companies share a passion for working with clients on an individual level to help each one be as effective as possible,” says Brian Fehlhaber, Vice President of Sales for Summit Re. “As the healthcare industry continues to shift focus toward quality and value-based measures, the tools Deerwalk brings to Summit Re clients can help them improve their processes to optimize the delivery of care—with the ultimate goal of improving patient outcomes.”

Tim Huke, Chief Growth Officer for Deerwalk, adds, "Deerwalk’s analytics platform delivers tremendous enterprise-wide value to all the business stakeholders involved in managing plan assets, including Summit Re, their TPAs, employer groups, brokers, health plans, provider groups, and ACO clients. We are thrilled to be able to introduce Deerwalk's Plan Analytics clinical and financial reporting platform to Summit Re's clients, as this partnership aligns perfectly with Deerwalk's strategy in these same market segments."

About Summit Re

Summit Reinsurance Services is a managing general underwriter and reinsurance advisor, working with health insurers, managed care plans, provider groups, and self-funded employers throughout the US. Summit Re helps its clients analyze, manage, and transfer risk to protect their financial stability. As a consultant and advisor, the company works with clients to formulate and implement new products and strategies. Further information is available at www.summit-re.com.

About Deerwalk, Inc.

Founded in 2010, Deerwalk provides population health management and analytics software and data management solutions to over 14,000 employer groups, representing over 7 million members, through a diverse client base that includes Third Party Administrators, Broker & Consultants, Health Plans, Accountable Care and Provider Organizations, Care Management & Wellness Firms, Onsite Clinics and Stop Loss Reinsurance Organizations. Deerwalk’s mission is to empower our clients, their members and their providers, to make smarter, more informed decisions about their health benefit plans by providing actionable insights on cost, quality and risk, through a modern, scalable, interoperable and highly accurate population health analytics platform. To learn more, visit www.deerwalk.com.

Eligibility – Best Practices for Health Insurers

Healthcare reform will continue to require more responsibility from employers – especially small employers – which will, in turn, require more oversight by insurers. If employer groups are not properly enrolling, verifying eligibility, and reporting members, the health plan could find itself at risk with its reinsurer. The best way to avoid potential conflicts is to make sure your master contract is clear – and then to enforce it. In the midst of this constantly evolving marketplace, observing best practices becomes more important than ever. Health plans can encourage compliance by following these simple strategies:

  • Know the employer’s eligibility requirements in regard to initial eligibility waiting period, eligible classes of employees, and the point at which an employee or dependent would no longer be eligible for coverage. Evaluate whether the Summary Plan Description clearly represents the employer’s eligibility rules and practices.
  • Establish processes to verify the eligibility status of new enrollees with the employer group.
  • Understand the processes in place at the employer group to identify any potential issues with obtaining current and updated eligibility data.
  • Create strong plan language with regard to maintaining eligibility.
  • Know what circumstance would cause an employee’s job-based coverage to end and COBRA to be an option to continue coverage with that employer group. Monitor those situations. If an employee elects to continue the group coverage via COBRA, establish a process for surveying COBRA continuees on a regular basis to ensure they continue to meet the COBRA rules for coverage. (Once an employee is no longer eligible for their job-based coverage, s/he has the option of signing up for COBRA or to enroll in other coverage, such as a marketplace plan.)
  • Perform a yearly review to ensure covered dependents are still eligible and/or that there isn’t other coverage that could be primary. (Yearly audits are imperative due to a clause in the Affordable Care Act that states plans cannot retroactively terminate ineligible enrollees unless an intentional act of fraud occurred. An audit of dependents would present opportunity to clearly define what is considered an act of fraud as well as the eligibility requirements.)
  • Identify triggers in claim activity and obtain leave of absence documentation from the Employer group. If the employee is on unpaid leave, typically s/he would not be eligible for continued coverage until they return to an active at work status. (An exception to this would be the Family Medical Leave Act. This is a federal law in which the employee has 12 weeks of protected unpaid leave. If the employer is covered by this law, the employee’s health benefits would not be affected and they would be protected from job loss during this period. Therefore, obtain this information from the employer and document when the FMLA period begins and ends.)

It is important to regularly review current processes and enforce consistent eligibility practices for the plan of benefits. A health plan could be impacted by eligibility exceptions and/or failure to monitor. Because this would indicate that the same rules would not be applied to all plan participants, either condition could be viewed as discrimination, thus affecting the plan’s ability to enforce the eligibility rules across all members.

Written by Claims Manager Kira Sturgis.

Summit Moves Forward with Zurich Strategic Alliance

This special edition of Summit Perspectives provides an in-depth explanation of the new Summit Re partnership with Zurich American Insurance Company for catastrophic medical excess of loss business across all product lines.

Summit Re is pleased to announce that we have been appointed as a reinsurance intermediary manager (RIM) for Zurich American Insurance Company, effective July 1, 2015. With more than 100 years of experience in the US and strong industry ratings, the financial strength and stability Zurich brings to the table ranks the company among the industry’s leaders. In addition, Zurich management holds extensive expertise working with carriers and managing general underwriters and their strong relationships and service capabilities strategically complement our own. With Zurich, we’ve got more horsepower to get things done for our clients.

With a large “strike zone” in terms of openness to new ideas and concepts in the dramatically changing healthcare market, the Zurich underwriting model gives us expanded authority and then lets us do what we do best. The company also has a large team in strong support of deals utilizing front carriers and captive arrangements with reinsurance administration. This includes traditional reinsurance structures as well as alternative deal structures for those entities desiring to take significant risk themselves.

Another strong point of interest for Summit Re is that Zurich has many in-force clients in the healthcare space purchasing a variety of property and casualty coverages. These include medical malpractice, general and commercial liability, and directors and officers errors and omissions covers. Healthcare reform is fueling their growth, in many cases, and Zurich wanted to make sure they had an integrated product and service strategy for their client base. Zurich acknowledges our expertise, relationships and strong service capabilities and has appointed Summit Re as the exclusive MGU for their managed care excess product portfolio, while we correspondingly acknowledge their strong, complementary franchise.

Mark Troutman, President of Summit Re states, “We also were pleased by the strong rating and capital position of the Zurich franchise which is already a market leader.” Brian Fehlhaber, Vice President – Sales and Marketing, speaks to the impact on our clients, “It is our intent to work together with the client and Zurich to make the transition seamless and allow them to continue with the coverage and service that have worked so well for them historically.”

Julie Bobak, Senior Vice President – Zurich American, summed it up as follows, “Our relationship with Summit Re will allow us to provide healthcare customers with solutions geared to their needs.”

Ed Tyburski , Senior Vice President – Zurich American, added, “We are very enthusiastic about the opportunity to work with one of the premier companies in the catastrophic medical excess market, one which has a demonstrated track record of profitable growth over its fifteen-year history.”

The Summit Re reputation of putting together dynamic solutions that accomplish each client’s specific goals for management healthcare risk will become even stronger. With Zurich on our team, we have more resources to embrace innovative deal structures that will move our clients forward. From full reinsurance to fronting and captive arrangements that allow clients to retain varying amounts of risk, the Summit Re – Zurich team offers a complete spectrum of product and service capabilities.

About Zurich

Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With more than 55,000 employees, it provides a wide range of general insurance and life insurance products and services. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, including multinational corporations, in more than 170 countries. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com. In North America, Zurich is a leading commercial property-casualty insurance provider serving the global corporate, large corporate, middle market, specialties and programs sectors through the individual member companies of Zurich in North America, including Zurich American Insurance Company. Life insurance and disability coverage issued in the United States in all states except New York is issued by Zurich American Life Insurance Company, an Illinois domestic life insurance company. In New York, life insurance and disability coverage is issued by Zurich American Life Insurance Company of New York, a New York domestic life insurance company. For more information about the products and services it offers and people Zurich employs around the world go to www.zurichna.com. 2012 marked Zurich's 100 year anniversary of insuring America and the success of its customers, shareholders and employees.

Zurich Financial Strength

Financial strength ratings (as of September 30, 2014): A.M. Best > A+/Stable

Standard & Poor's > AA-/Stable

Recognition and awards:

Zurich named “Best Insurance Company” (Captive LIVE USA Conference, October 2014)

2014 Innovation Award: “What if?” Zurich Risk Grading™ Application (Business Insurance, March 2014)

Zurich winner of the AGC Community Award (Associated General Contractors of America, Annual Conference, March 2014)

2014 Innovation Showcase: “Zurich Risk Room” and “My Zurich Portal” (Best’s Review magazine, January 2014)

Zurich “Best Political Risk Insurer,” “Best Global Supply Chain/Trade Disruption Insurer,” “Best Property Insurer,” “Best D&O Insurer,” “Best Employment Practices Liability Insurer,” “Best Crime/Fidelity Insurer” and “Best General Liability Insurer” (Global Finance Magazine, October 2013)

Zurich’s Trade Credit and Political Risk group named “Best Private Insurer in Trade,” “Best Trade Insurer in North America,” “Best Trade Insurer in Asia Pacific” and “Best Trade Insurer in Latin America” (Trade Finance, June 2013)

2013 Innovation Award: Zurich Risk Room Mobile Application (Business Insurance, March 2013)

2013 “Innovation in Fronting” Award: UK Captive Services Awards (Captive Review, February 2013)

Zurich named “Best Fronter of the Year” (Captive LIVE USA Conference, September 2012)

Zurich’s Trade Credit and Political Risk group named “Best Private Insurer,” “Best Trade Insurer in Asia Pacific” and “Best Trade Insurer in North America” (Trade Finance, August 2012)

Zurich named “2011 Insurer of the Year” (Daimler Financial Services AG, August 2012)

Innovation Award for Zurich Multinational Insurance Application (Zurich MIA) (Business Insurance, March 2012)

Deep Discounts on Transplant Program Fees

Deeply discounted transplant access fees are available through our new Platinum Rewards program, an enhanced OptumHealth Care Solutions (formerly United Resource Networks) program. This program is available only to Summit Re’s clients. Under our previous program, you received a 5% discount on network access fees, an additional 5% discount if you agreed only to use OptumHealth’s networks, and up to 10% based on Summit Re’s total volume of business with OptumHealth. The third discount was calculated retrospectively.

These three potential discounts are now bundled into one substantial discount. The program is easier to use and easier to understand. You will be able to realize the total savings we've negotiated “up front” through reduced access fees.

The savings from the Platinum Rewards program can be significant, as shown in the chart. Based on our historical case mix, the Platinum Rewards program represents an effective 27% discount off standard OptumHealth fees.

To be eligible for Platinum Rewards, you must agree only to use the OptumHealth networks for your transplants, although you can still “carve out” facilities with which you have your own contracts.

The new program is effective on January 1, 2008. You will need to execute a new Payer Access Agreement, selecting either the fees for the Platinum Rewards program or the standard access fees.

platinum rewards chart


Platinum Rewards Frequently Asked Questions

Which of the OptumHealth programs will be subject to the reduced fees?

The reduced fees apply to the Transplant Resource Services’ Centers of Excellence program and the Transplant Access Program for business that is reinsured through Summit Re. All other OptumHealth program fees remain unchanged.

Do the reduced fees apply to both adult and pediatric transplants?

Yes, the reduced fees apply to adult and pediatric transplants.

How will the Platinum Rewards program affect the OptumHealth transplant facility contracts and services?

The new program has the same facility contracts and services contained under the current OptumHealth programs.

Will I be able to “carve out” a specific facility from the OptumHealth contract and use my own contract at that OptumHealth facility?

You will still have the capability of carving out a facility or facilities from the OptumHealth agreement. Those facilities should be listed on Exhibit C of the Payer Access Agreement.

What happens if I want to use another transplant network in addition to OptumHealth?

You may use another network in addition to OptumHealth. However, if you do so, you will not be eligible for the reduced fees available through the Platinum Rewards program. You will pay OptumHealth’s standard access fees.

What do I need to do to initiate the new program?

If you are currently accessing OptumHealth through Summit Re, you will need to sign a new Payer Access Agreement. New Payer Access Agreements will be mailed to Summit Re clients. Be sure to indicate if you intend to use the OptumHealth network only or if you will use another network in addition to OptumHealth’s network.

Will I still receive this year’s discount based on Summit Re’s total volume of business with OptumHealth?

You will still be eligible for the discount for 2007 based on Summit Re’s total volume of business with OptumHealth, provided you are a Summit Re client at the time the refund is paid. OptumHealth has committed to paying this refund within 60 days after the end of the calendar year.

ERC / Westport Merger

Swiss Re has received regulatory approval to merge Westport Insurance Corporation into Employers Reinsurance Corporation. The merger is an example of Swiss Re’s focus on smart capital management, delivering greater efficiency and reducing operating costs. Reinsurance agreements issued after January 1, 2008 will bear the Westport name. There will be no changes in coverage as a result of the merger. If you have any questions, please contact Summit Re at 260-469-3000.