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Travelers Insurance and Physicians Health Services jointly market workers' compensation program.

HARTFORD and TRUMBULL, Conn.--(BUSINESS WIRE)--March 16, 1995-- Seeking to improve effectiveness in managing work-related injuries, Travelers Insurance and Physician Health Services Inc., the state's largest managed care company, have formed an innovative HMO-insurance carrier partnership to jointly market workers' compensation products, the companies announced today. Beginning April 1, Travelers and PHS will offer Connecticut employers workers' compensation products that combine guarantee-cost ("fully insured") commercial insurance protection with the cost-saving benefits of managed care for medical treatment and services. The program will help employers reduce costs by fostering a better medical delivery system while helping injured employees return to work more quickly.

Under the agreement, PHS, through its workers' compensation subsidiary Total Employee Care Inc. will be responsible for all aspects of medical treatment and management. Travelers will focus on underwriting, risk financing and management of claim activities relating to employee wage-replacement benefits -- the non-medical portion of the workers' compensation benefit known as indemnity benefits.

"The medical component of workers' compensation costs has been rising out of control in recent years," said Richard H. Eskow, president, Total Employee Care. "What's more, the knowledge and approach used by a medical provider in treating a workers' compensation claimant also has a huge impact on indemnity costs.

"At PHS, we are using managed care techniques to provide cost-effective, high-quality medicine that helps people recover quickly. More importantly, we aid our insurance partners in helping injured workers get back to work. Our partnership with Travelers will make this team approach available to the state's small, midsize and large employers."

"By allowing each party to do what they do best, the PHS-Travelers partnership represents the latest thinking in the development of both workers' compensation insurance and managed care," said Richard W. Palczynski, senior vice president, Travelers Commercial Lines.

"In short," Palczynski said, "Travelers and PHS will provide Connecticut employers with an easy-to-use bundled package of insurance, medical care and return-to-work services at affordable rates."

Participating Connecticut employers who embrace proven workers' compensation cost reduction techniques such as safety management, early claim reporting, HMO network utilization and return-to-work programs may qualify for dividends based on their loss experience.

"From launching the industry's first nationwide workers' compensation preferred provider network to treat worker injuries in 1990, through forming partnerships with PHS and Dallas-based OccuSystems occupational health care clinics, Travelers has consistently raised the bar in providing its customers with effective workers' compensation loss-reduction methods," Palczynski said. Travelers is exploring similar opportunities with HMOs in key markets across the country.

Travelers Insurance's Companies Lines division provides property and casualty insurance to business nationwide. Travelers Insurance is a subsidiary of Travelers Group, a diversified financial services company providing investment services, consumer finance, life and property casualty insurance, serving individuals, institutions and corporations.

Physicians Health Services, based in Trumbull, is Connecticut's largest managed care company with more than 170,000 members in Connecticut and New York's Hudson River Valley. Its workers' compensation subsidiary, Total Employee Care Inc., also provides a self-funded workers' compensation managed care program to Connecticut employers.

CONTACT: Travelers Insurance

Francis Onofrio, 203/277-8510


Total Employee Care Inc.

Richard H. Eskow, 203/380-5260
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Publication:Business Wire
Date:Mar 16, 1995
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