An entirely new approach to benefits for private equity portfolio companies.
With Alterity's unique, holistic model, you can leverage scale to reduce the cost and improve the quality of coverage and directly address healthcare claims. We employ a collaborative approach and provide flexible access to comprehensive programs across procurement, health & wellness and benefits management.
How Can We Help?
Evaluate
Advise
Procure
Analysis simplified.
Health and welfare benefits represent the largest of fringe benefits cost for a company; costs which escalate annually at a higher rate than all other SG&A.
It is important to assess the costs and develop a baseline from which to identify opportunities for program cost reduction and plan efficiency.
Alterity can complete an analysis of specific benefit programs, or across all benefit programs within a portfolio. We gather data directly from the plan carriers whenever possible. This approach makes the analysis process easier by minimizing work efforts of the portfolio companies and their brokers.
Let us do the legwork.
Alterity uses a 4 step process to evaluate the benefit plans across the entire portfolio.
We'll provide a top-level view.
Alterity provides an executive level and company level dashboard/summary outlining findings and recommendations after the initial analysis is completed.
The dashboard shows highlights of the companies' benefit plans, claims and spend as well as benchmarks like portfolio companies. We provide overviews of the collective savings opportunities.
Our analysis also provides:
• PE level reporting drilling down to company detail
• Top performers/bottom performers within the portfolio
• Inventory snapshot of carriers/programs
• Claims and enrollment analysis
• Benchmarking at portfolio company level
We will customize our analysis to ensure we touch the areas of paramount concern to you and your portfolio companies.
We make engagement easy.
Our goal is to ensure that our analysis does not require any additional effort from you and your portfolio companies. We want to engage all parties but not through additional work or requests from Alterity or carriers.
After announcement of engagement, Alterity will set up introductory calls with all portfolio companies and their broker/consultants. We look forward to this opportunity to learn more about each company, their successes and challenges within the health and welfare space as well as what Alterity can do to impact their bottom line.
Alterity will provide letters of authorization and non-disclosure agreements to each company. This will authorize Alterity to collect data to perform the analysis. This does not change any broker or consultant relationship and is just a request for information.
After the initial call and receipt of signed documents, Alterity will provide our analysis and recommendations within 8-12 weeks.
We strive for a collaborative experience.
Alterity believes that staying aligned with clients needs and continuously adding value requires collaboration. We serve as a portfolio-level coordinator to facilitate best practices and knowledge sharing across a portfolio or throughout the entire consortium.
Our expertise in benefit plan efficiency, cost control, health and productivity and HR allows us to serve as a full spectrum resource.
We host an annual benefits symposium that provides an opportunity for our clients to get together and share their experiences. Each private equity firm is also invited to appoint a representative to the Alterity Advisory Board which helps shape the consortiums strategies, priorities and programs.
Your compass for employee engagement.
Preventable diseases such as obesity, diabetes, and hypertension drive a large proportion of employer health care costs. In addition, these diseases are also a major cause of lost productivity and disability.
Alterity's seasoned team of Health & Wellness experts design and implement proactive data driven strategies. Programs incorporate incentives, lifestyle modification and decision support tools to promote employee engagement in managing their health status. The team is also equipped to analyze program outcomes and return on investments.
Alterity Health & Wellness Programs include:
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Knowledge and result-driven focus.
In addition to procurement and immediate cost savings, Alterity can help to build tactical plans that address the short term opportunities and assist with longer-term human capital strategies. With expertise in Benefits, Health & Productivity and HR programs and administration, our team offers advice and results.
Key Benefit Programs:
Key HR Programs:
Key Administration Programs:
Introducing AlterityHR.
We work with clients to maximize organizational productivity, ensure HR compliance and reduce administration burden; ultimately enhancing value.
Our seasoned team of HR experts work with large and small companies, public and private entities, and multiple portfolios owned or managed by private equity and investment firms.
Click For More on AlterityHR
We understand one size does not fit all.
Alterity enables you to leverage the buying power of a broad portfolio of companies to not only reduce cost, but also improve benefits quality through better service levels and terms than firms can typically realize independently.
With Alterity, each company maintains an independent, distinct plan tailored to their needs.
Our Procurement Programs address a comprehensive range of benefits and other human resources-related services including:
We'll meet you where you are.
Strategic, broad-sweeping support.
Employers can implement strategies and programs to lower administrative/claims costs, improve health outcomes and support a more satisfied, productive workforce.
Innovation personified.
Alterity's primary focus is to provide innovative solutions within the significant savings/low employee disruption spend categories.
While performing this analysis, we take an overall inventory and offer high level recommendations within all employee benefit spend categories. This overall view provides all portfolio companies with benchmarking and best practices information to support the architecture of all benefit plans within a private equity firm.
Technology
People
Process
Download the AlterityHR brochure.
Technology.
We identify areas of opportunity, develop strategies for improvement and implement the determined solutions.
People.
AlterityHR also offers complete expert immersion into unique processes and expertise in all functional HR areas. We can act as an extension of the in-house team or as a total outsourced HR administration.
Process.
AlterityHR works on both a project and retainer basis to provide resources, solutions and support. We can customize our services to any specification required. And from the outset, every engagement is scoped to properly address size and complexity.
Home
We set out to do something entirely new.
Established by a diverse team with decades of experience across employee benefits, wellness, HR and finance -- working both with and within private equity firms -- Alterity is specifically designed to best meet the benefits procurement needs of private equity firms and their portfolio companies.
We believe that in order to maximize savings and value you need a collaborative and flexible partner that offers a holistic approach and will serve as a single-source expert for all benefits needs. We also believe that partner can coordinate with and not disrupt the portfolio company/broker relationship.
Alterity is that partner.
Download the Alterity brochure.
Case Study 2
Company 1
Industry: Financial
Type of Organization: Spin Off
Number of Benefit Eligible Employees: 5,500
Estimated Annual Gross Spend Prior to Alterity: $56.3mm
Case Study Results
The overall gross annual plan savings were $4.5mm or 8%.
While there was significant disruption to the employees during the formation of the new organization, retaining the prior parent company plans and vendors were not a priority. The new organization wanted to brand their own identity and find new vendors to partner with in the future. Alterity was asked to benchmark and recommend plans that were competitive in the financial industry and would be appreciated by employees under the new organization.
Alterity was enlisted to perform financial diligence, create and negotiate new benefit plans, carriers and rates for the new organization. Alterity was responsible for the implementation of the new benefit plans and ongoing management of the programs.
Alterity found that current plans were priced extremely high compared to the market. In many benefit categories, Alterity was able to provide significant savings by renegotiating and remaining with current vendors or procuring with more suitable vendors.
Click Here for Case Study Financials
Company 2
Industry: Newspaper Publisher
Type of Organization: PE Buy Out
Number of Benefit Eligible Employees: 4,000
Estimated Annual Gross Spend Prior to Alterity: $22.3mm
Over a three year period, the gross plan savings were in excess of $5.3mm.
Alterity was enlisted to perform financial diligence, create and negotiate new benefit plans, carriers and rates for the new organization.
There were many unions and collective bargaining agreements in place, which limited the ability to revamp the plans in the first year.
Alterity was responsible for the implementation of the new benefit plans and ongoing management of the programs including creation and oversight of a three year savings strategy.
The current plans were fully insured for medical and Alterity assisted in transition to a partially self funded platform.
Alterity planned, using a three year savings strategy to address the union/ collective bargaining agreements upon negotiations for benefit reduction opportunities.
There was a substantial value placed on implementation of cost savings measures. Through procurement opportunities, most benefits were able to be successfully procured with significant plan savings.
Company 3
PE Firm Portfolio
Number of Companies: 50+
Avg # of Benefit Eligible Employees: 30,000
Estimated Annual Gross Spend of Entire Portfolio: $250mm
Program Total Savings Since Inception: $48mm
Based on average annual spend of companies participating in the various programs of approximately $110mm per year, savings is estimated at 11% each year.
Alterity was enlisted to establish a baseline for the entire portfolio, maximize claims discounts, drive consumerism, procure health and welfare offerings across the PE firms portfolio of companies and provide oversight of carriers, vendors and brokers.
Alterity recommended the utilization of large carriers over TPAs for medical claims discount maximization, carved out pharmacy management to a pharmacy specialist carrier, implemented consumer driven plan designs and helped drive strategy over the last 4 years.
Alterity is exploring Value Based benefit designs to support the high risks members, increase Rx adherence and reducing barriers to appropriate care, incenting behavior change and improved health. Audits for medical/rx claims and dependent eligibility also provided savings opportunities not captured in the hard dollar numbers below.
Substantial value was placed on implementation of cost savings measures through procurement. Most benefits were able to be successfully procured with significant plan savings, providing cost mitigation without risk sharing among the portfolio. Companies take advantage only of the programs that provide savings and value for their populations. Ease of enter/exit from the portfolio while maintaining procured offers through the full contract period is required in all contracting.
Our clients.
Our clients include several top-tier private equity and investment firms and their portfolio companies across the country. Industry, company size, location and strategic objectives may vary but operational oversight of HR and benefit programs requires plan optimization, cost mitigation, compliance standards and opportunity for improved health and productivity outcomes.
Click here to request reference list.
Health reform updates
Health Care Reform Litigation Update
On Dec. 19, 2011, the Supreme Court announced that it will hear oral arguments on these issues for three days beginning on March 26, 2012, and ending on March 28, 2012, totaling 5 1/2 hours of actual argument. The court is expected to issue a decision by late June, in the middle of the presidential election year.
Supreme Court Argument Calendar
Initial HHS Proposal Gives States Flexibility to Define Essential Health Benefits
On Dec. 16, 2011, HHS released a "pre-rule" bulletin to provide information and solicit comments on the regulatory approach that HHS plans to propose to define essential health benefits (EHB) under PPACA, § 1302(b). Non-grandfathered plans in the individual and small group markets inside and outside of the exchanges must cover EHB beginning in 2014. Section 1302(b)(1) provides that EHB include items and services within the following 10 benefit categories:
Under HHS' intended approach as announced in the bulletin, states would have the flexibility to select an existing health plan to set the benchmark for the items and services included in the EHB package. States would choose one of the following health insurance plans as a benchmark:
To meet the EHB coverage standard, HHS intends to require that a health plan offer benefits that are "substantially equal" to the benchmark plan selected by the state and modified as necessary to reflect the 10 coverage categories.
The bulletin addresses only the services and items covered by a health plan, not the cost sharing, such as deductibles, copayments and coinsurance, which will be addressed in future bulletins. Final rules are expected to be issued sometime next year. HHS is accepting comments on the proposal, which are due by Jan 31, 2012, and may be sent to EssentialHealthBenefits_cms.hhs.gov .
Essential Health Benefits Bulletin
Fact Sheet
HHS Issues CO-OP Program Regulations
On Dec. 13, 2011, HHS issued final regulations implementing the Consumer Operated and Oriented Plan (CO-OP) program, which provides loans to encourage the establishment of consumer-governed, private, nonprofit health insurers (referred to as CO-OPs). CO-OPs are designed to offer individuals and small businesses additional affordable, consumer-friendly and high-quality health insurance options. Starting Jan. 1, 2014, CO-OPs will offer health plans through the new, competitive health care marketplaces in each state, called the Affordable Insurance Exchanges. In addition to offering health plans through an exchange, CO-OPs may offer health plans outside of an exchange.
Two types of loans are available under the program: startup loans for costs associated with establishing a CO-OP, and solvency loans to help CO-OPs satisfy state solvency and reserve requirements. The final regulations address eligibility standards for the CO-OP program, establish terms for loans and provide certain basic standards that organizations must meet to participate in the program and become CO-OPs. The regulations are effective Feb. 13, 2012, and finalize proposed regulations that were issued in July 2011.
Regulations
End Date Announced for Claims Under Early Retiree Reinsurance Program
Congress appropriated $5 billion for the Early Retiree Reinsurance Program (ERRP), established under PPACA, and directed the Secretary of HHS to set up the program within 90 days of enactment. By law, ERRP is scheduled to end when its resources have been used to pay claims. Due to the significantly high response from employers, the program stopped taking applications as of May 6, 2011.
On Dec. 9, 2011, CMS notified plan sponsors that $4.5 billion had been paid and issued further guidance informing plan sponsors that claims incurred after Dec. 31, 2011, will not be accepted. HHS has also announced that any claim list that includes a claim incurred after that date will be rejected in its entirety. Claims incurred on or before Dec. 31, 2011, but paid after that date may still be submitted, but not until the claim has been paid.
Reimbursement requests received after the $5 billion has been fully exhausted will be held in the order of receipt, pending availability of funds. Sponsors with reimbursement requests on hold can expect to:
In addition to the news release and notice, HHS issued an updated state-by-state list of amounts paid to approved sponsors.
Notice
News Release
Update
HHS Releases FAQs Concerning Implementation of Exchanges
On Nov. 29, 2011, HHS Released 13 FAQs addressing implementation issues for states and federally facilitated exchanges. The FAQs cover a range of topics, including funding responsibility and resources, information exchanges through federally managed data "hubs," and shared eligibility verification services. Among them are FAQs focused on issues raised by federally facilitated exchanges.
FAQs
New Release
Alterity news
January 2012
Alterity's Managing Partner, Kim Davis selected as one of the
Top 25 Women Entrepreneurial Leaders in Florida
January 10, 2012
Alterity Opens Registration for Upcoming
HR & Benefits Symposium
Scheduled for March 28 - March 30, 2012
Westin Beach Resort, Fort Lauderdale, FL
November 9, 2010
Alterity provides expert commentary for
PEI Media Portfolio Monitoring Supplement
March 4-5, 2010
Alterity exhibits at Women's Private Equity Summit
Ritz Carlton, Half Moon Bay, CA
Unparalled expertise.
We believe our expertise and accountability is what sets us apart from other procurement firms in this industry.
An ingredient for our success is having a group of people that want to be on a shared mission of excellence and innovation in this industry.
Our agnostic and inclusive approach with the portfolio selected broker provides a partnership that encourages collaboration and our people embrace that role.
Intrinsic to our success is communication with our clients and we pride ourselves on our responsiveness to their business needs and objectives.
Click here to request team bios.
We're here to support you.
Employee Benefits 2010-2012 Annual Limits
2012 Wellness Calendar
Healthcare Reform Timeline
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