FALL 2007
IN THIS ISSUE

    MESSAGE FROM THE CEO
    UP CLOSE
    CASE STUDY
    NEWS YOU CAN USE

 
UpClose
Ken Dowell,
Evergreen Rx Practice Leader




New Drugs and Treatments Contribute to Rx Trend Increase

In March of this year, a drug called Soliris, costing each patient about $500,000 a year, was approved to treat a rare stem cell disease affecting one in 1 million members. Just recently a discussion with a health plan with a membership of 300,000 revealed the health plan had two of its members utilizing this new drug with a projected annual expense of $500,000 of therapy each, This was an unexpected, significant expense for a drug that was not even available until earlier this year.

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A Message from the CEO
by Charles Crispin, President & CEO, Evergreen Re

Quota Share Treaties Help Plans Meet Surplus

Rapidly growing health plans and insurers, including start up plans and plans with new product offerings or service area expansion are turning to quota share reinsurance to help spread the risk and meet or improve their surplus positions. This risk transfer insurance strategy not only provides much needed capital relief, it also comes with an army of actuaries and other experts working with plans they have partnered with to ensure the plans' future success.

Quota share treaties are risk transfer products using pro-rata or an excess reinsurance structure. They can help to spread the risk for an organization, or provide much needed capital relief to organizations undertaking major, capital intensive projects and/or growth initiatives.

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