Aon Subsidiary First in Nation to Offer Private Fee For Service Plan; Sterling Life Insurance Co. Receives HCFA Approval.Business Editors & Health/Medical Writers CHICAGO--(BW HealthWire)--May 9, 2000 Aon today announced that a subsidiary, Sterling Life Insurance Co., has been approved by the Health Care Financing Administration Health Care Financing Administration, n.pr department in the U.S. agency of Health and Human Services responsible for the oversight of the Medicaid and Medicare benefit programs, including guidelines, payment, and coverage policies. (HCFA HCFA abbr. Health Care Financing Administration HCFA, n.pr See Health Care Financing Administration. ) to offer the nation's first Medicare+Choice Private Fee For Service Plan (PFFS PFFS Private Fee-For-Service ). The plan, available to most people eligible for Medicare, is part of the new Simply Sterling(SM) family of products. Private Fee For Service Plans were authorized under the Balanced Budget Balanced budget A budget in which the income equals expenditure. See: budget. balanced budget A budget in which the expenditures incurred during a given period are matched by revenues. Act of 1997. They were created to provide an alternative for Medicare recipients seeking flexible coverage with affordable premiums. A PFFS plan may include contracted providers or may operate without contracted providers if they are paid at or above Medicare allowable amounts. Sterling's first PFFS plan, known as Sterling Option I(SM), will be released to existing Sterling sales agencies this month. The new PFFS plan becomes the third member of the Simply Sterling(SM) family of products, which includes Medicare Supplement and Medicare Select. Sterling officials have said they also intend to file applications for PFFS plans utilizing contracted providers. The new contracted plans will be known as Sterling Partners(SM). Sterling is currently negotiating contracts with providers for these plans. The Simply Sterling(SM) concept was developed by Sterling Life Insurance Co. and Olympic Health Management Services Inc., another Aon subsidiary. "The Simply Sterling(SM) products offer Medicare recipients a family of benefit designs and premiums from which to choose," said Debbie Ahl, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. for Olympic Health Management Services. "In addition, Simply Sterling(SM) gives Medicare beneficiaries the ability to move among the family of Sterling products as needs change." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Steven E. Lippai, F.S.A., president of Sterling Life Insurance: "Traditionally, Medicare recipients have had to choose between high-priced products that provide flexibility in terms of coverage and providers, or low-price or zero-premium products that offer minimal flexibility." Lippai believes that the varying levels of coverage and provider choices, combined with a relevant premium, will give seniors and others enrolled in Medicare more freedom to choose plans that meet their individual needs. Olympic Health Management Services Inc., based in Bellingham, Wash., provides a broad range of Medicare strategic planning and product development services. Its sister company, Olympic Health Management Systems Inc., will serve the administration and medical management functions of the Sterling product line. Sterling Life Insurance Co. is a subsidiary of Combined Insurance Company of America (Combined). Both Sterling and Combined are part of Aon Corp. Aon Corp. is a holding company that comprises a family of brokerage, consulting and underwriting subsidiaries. Aon's common stock (Symbol AOC AOC, n an acronym for the Aromatherapy Organizations Council. ) is listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Chicago and London stock exchanges London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . See www.aon.com. |
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