To the benefit of all.

The Coalition Purchasing Group of Aon Consulting Inc. focuses exclusively on developing and managing benefit coalitions. It has nearly 40 large--employer members that participate in various coalitions--some in as few as one, others in as many as four, said Gerald Smith, vice president.

The group's coalitions are:

* National Group Homeowners and Auto Insurance Coalition: Designed for employees to manage large household insurance costs, such as auto and homeowners property and liability insurance; guaranteed three-year group discount filing in states where regulation allows.

* National Long-Term Care Coalition: Offered to select companies with a minimum of 7,500 employees; features "highly competitive" premium rates based on a minimum of 750,000 covered lives.

* National Dental Coalitions: A self-insured dental product for active employees and a voluntary dental product for retired employees, which offers a nationwide provider network with negotiated fees typically 10% to 20% below community average charges, the purchasing group said.

* National Prescription Drug Coalition: Aimed at controlling rising drug-plan costs, this plan applies to companies with a minimum $10 million in annual drug spending and 15,000 employees/retirees.

* National Group Legal Plan Coalition: As a resource to employees for personal matters, this covers frequently needed legal services such as preparation of wills and trusts, real estate closings, credit and debt issues, traffic matters, adoption, uncontested divorce and representation during tax audits. Offers choice of 9,000 experienced lawyers nationwide, with no copays, deductibles or usage limits.

By forming coalitions, Coalition Purchasing Group "can harness the power of large employer groups to create collective purchasing arrangements which are exclusive for member companies," Smith said. "They're flexible and they add value to the benefit programs of the employers at reduced costs."

Coalition Purchasing Group provides project management support, comprehensive due diligence and site visits, enabling the member companies to take advantage without having to commit their own resources to arranging these plans on their own. Coalitions provide lower product or service cost for both the employer and the employee, Smith said. "We minimize the company administration and staff expense," he said. "Coalition expenses are usually folded into the program expense, and there are no participation fees or up-front fees for the employer."

Since employees can compare the coalition's voluntary benefit programs with other programs in the marketplace, Coalition Purchasing Group works to negotiate competitive rates and usually can offer them at a reduced level compared with what an employee could obtain on the outside. Smith said.

"So having a critical-mass employers group is good for the participant because it usually results in lower fees and it always results in better performance guarantees and standards--much expanded terms and conditions--that are normally better than what a company could negotiate on their own," he said. "It's not just about price, it's about a comprehensive program arrangement that includes cost, performance, customer service, technology--all the bells and whistles that typically go along with what a supplier provides to a client."

For the companies in these coalitions, annual savings on health and welfare coverages can be significant, Smith said.

Coalition Purchasing Group sees opportunities for growth in the health area as well as in some voluntary benefits. "CPG has six coalitions that are going very well and we see opportunities to expand those," Smith said. "But we want to make sure we can provide exemplary service and support to those that we manage and are involved in before we just launch out and take on another four or five."

The group's focus has been on larger employers, but midsize employers are showing interest in becoming involved in these activities, too, Smith said .The greatest benefits for midsize employers would lie in prescription drugs, long-term care and some of the other voluntary products, he said.

"Companies should look to leverage coalitions and take advantage of coalitions because they can offer great potential areas for improvements in the marketplace," Smith said.