January 2003 A 90-Year History of Service · [email protected] Trustmark Announces New...
4
January 2003 T his month, Trustmark celebrates its ninetieth anniversary. That’s 90 years of service, 90 years of financial strength and reliability. But in many ways, Trustmark has come full circle. We’ve gone from specializing in health and disability benefits for railway workers to insuring groups of all sizes in all industries. Now, in some ways, we’ve returned to our roots. We’re specializing again, marketing our strength as the industry expert at serving multi-market groups of 51 to 500 covered lives. Guided by an Ideal In 1913, four enterprising railway workers decided that “passing the hat” no longer adequately provided for an injured or disabled co-worker. They formed a small fraternal organization, offering insurance benefits and asserting that more than 90 percent of claims were paid the same day they reached the office. Since that pioneering, one-desk beginning, Trustmark has been a company uniquely linked with the people it serves. Some Trustmark Milestones • Ten years after starting with 500 members in the Midwest, the fraternal organization had grown to some 80,000 members on 110 railroads in 35 states. That year, the company purchased its own home office building on Montrose Avenue in Chicago. • In 1929, Trustmark introduced group health insurance to employees outside the railroad industry. The first group insurance contract holder was the Mac Sim Bar Paper Company. • In 1931, the nation was in the grip of the Depression. CEO Robert Leitz asked each employee to contribute one dollar per month for a period of three months. In those days, one dollar bought a dozen eggs, a half-gallon of milk and five pounds of flour. • Trustmark entered the computer age in 1969 with the purchase of a Control Data Corporation 3300 computer. • In 1978, Trustmark paid its billionth dollar in benefits to Charles E. Risner, a Conrail employee and member of the Brotherhood of Maintenance Way. • Trustmark expanded its managed care network capabilities by joining a national PPO network, Private Healthcare Systems, Inc. (PHCS). Today, Trustmark is a major shareholder in PHCS, and also has affiliations with dozens of leading regional networks around the country. • In 2002, Trustmark celebrated a golden anniversary with one of its largest customers. For 50 years, Trustmark has provided benefits for the Tool & Manufacturing Association. Such a long-term relationship is almost unheard of in the industry, but it demonstrates the value and respect Trustmark accords the people it serves. A 90-Year History of Service 90 Years and Growing Look for the ninetieth anniversary logo on Trustmark materials this year. We are proud of our long tradition of providing affordable benefits to the workers of America. And we know you want to be proud of the carriers you represent to your clients. So, just as when the company began, Trustmark continues to anticipate and respond to customer expectations – one group at a time. G r o u p B e n e f i t s • S t a r m a r k • C o r e S o u r c e • V o l u n t a r y P r o d u c t s 1 9 1 3 • Tr u s t m a r k • 2 0 0 3 Trustmark on Track for Best Year Ever Through the first three quarters of 2002, Trustmark remains on pace to approach the ambitious earnings goals set last year, despite the slump- ing economy and rising healthcare costs. “If we close out the year strong, it could be the best in Trustmark’s history,” said CEO Grover Thomas. Trustmark realized a $28.8 million gain from operations through September 30, 2002, a 47 percent increase over the nine-month period last year. Expense reduction, according to Trustmark CFO Brinke Marcuccilli, helped the company generate its best earnings since prior to 1997, every quarter thus far this year. One exam- ple is claim administration costs, which were 14 percent lower than last year. The expense reduction and new focus on strategic, more profitable markets led Trustmark to project earnings of $32.0 million for the full year. Results for 2002 will be announced in the first quarter.
Transcript of January 2003 A 90-Year History of Service · [email protected] Trustmark Announces New...
January 2003
This month, Trustmarkcelebrates its ninetiethanniversary. That’s 90 years of
service, 90 years of financial strengthand reliability. But in many ways,Trustmark has come full circle. We’vegone from specializing in health anddisability benefits for railway workersto insuring groups of all sizes in allindustries. Now, in some ways, we’vereturned to our roots. We’respecializing again, marketing ourstrength as the industry expert atserving multi-market groups of 51 to500 covered lives.
Guided by an IdealIn 1913, four enterprising railwayworkers decided that “passing thehat” no longer adequately providedfor an injured or disabled co-worker.They formed a small fraternalorganization, offering insurancebenefits and asserting that more than90 percent of claims were paid thesame day they reached the office.Since that pioneering, one-deskbeginning, Trustmark has been acompany uniquely linked with thepeople it serves.
Some Trustmark Milestones• Ten years after starting with
500 members in the Midwest, thefraternal organization had grownto some 80,000 members on 110railroads in 35 states. That year,the company purchased its ownhome office building on MontroseAvenue in Chicago.
• In 1929, Trustmark introducedgroup health insurance toemployees outside the railroadindustry. The first group insurancecontract holder was the Mac SimBar Paper Company.
• In 1931, the nation was in the gripof the Depression. CEO Robert
Leitz asked each employee tocontribute one dollar per monthfor a period of three months. Inthose days, one dollar bought adozen eggs, a half-gallon of milkand five pounds of flour.
• Trustmark entered the computerage in 1969 with the purchase of aControl Data Corporation 3300computer.
• In 1978, Trustmark paid itsbillionth dollar in benefits toCharles E. Risner, a Conrailemployee and member of theBrotherhood of Maintenance Way.
• Trustmark expanded its managedcare network capabilities by joininga national PPO network, PrivateHealthcare Systems, Inc. (PHCS).Today, Trustmark is a majorshareholder in PHCS, and also hasaffiliations with dozens of leadingregional networks around thecountry.
• In 2002, Trustmark celebrated agolden anniversary with one of itslargest customers. For 50 years,Trustmark has provided benefitsfor the Tool & ManufacturingAssociation. Such a long-termrelationship is almost unheard of inthe industry, but it demonstratesthe value and respect Trustmarkaccords the people it serves.
A 90-Year History of Service90 Years and GrowingLook for the ninetieth anniversarylogo on Trustmark materials this year.We are proud of our long tradition ofproviding affordable benefits to theworkers of America. And we knowyou want to be proud of the carriersyou represent to your clients.
So, just as when the company began,Trustmark continues to anticipate andrespond to customer expectations –one group at a time.
Grou
pBe
nefit
s •Sta
rmark • CoreSource • Voluntary Products
1913 • Trustmark • 2003
Trustmark on Track for Best Year EverThrough the first three quarters of2002, Trustmark remains on pace toapproach the ambitious earningsgoals set last year, despite the slump-ing economy and rising healthcarecosts. “If we close out the yearstrong, it could be the best inTrustmark’s history,” said CEOGrover Thomas.
Trustmark realized a $28.8 milliongain from operations throughSeptember 30, 2002, a 47 percentincrease over the nine-month periodlast year.
Expense reduction, according toTrustmark CFO Brinke Marcuccilli,helped the company generate its bestearnings since prior to 1997, everyquarter thus far this year. One exam-ple is claim administration costs,which were 14 percent lower thanlast year.
The expense reduction and newfocus on strategic, more profitablemarkets led Trustmark to projectearnings of $32.0 million for the fullyear. Results for 2002 will beannounced in the first quarter.
The Year in Review:
New Ad Campaign Aims toCapture Group Business
January 2002New ads, under the headline“Touching lives. One group at atime,” emphasize Trustmark’sexcellent service, cost control featuresand multi-market expertise. As thenew campaign goes into full gear, adsaimed at attracting new producers willrun in trade publications such asHealth Insurance Underwriter, TheForum and Broker World. If youwould like to use one of the ads aspart of your presentation, pleasecontact Bob White [email protected]
Trustmark Announces NewStrategy Targeting Specific MarketsSights set on lower expenses,carefully planned growth
March 2002 Trustmark executives have outlined anew strategic direction focused on
four key employer-based businesses:Group Division groups of 51 to 500lives, Starmark groups of 2 to 50 lives,CoreSource clients of 300 to 3,000lives and Voluntary Products forgroups of 200 or more lives.
“The plan,” said CEO GroverThomas, “has a three-year horizon. Bythe end of 2004, Trustmark will havelowered its risk profile, increased theamount of its contributions to thecommunity through the TrustmarkFoundation, have substantial excesssurplus and be more closely alignedwith the criteria used by the ratingagencies. We’ll have a larger marketshare in a smaller number of marketsegments.”
The ideal target for Group is a multi-market company looking for moreflexibility than an HMO can offer.“We can create seamless managed carenetworks to serve all their employees,”said Thomas.
Claim Look-Up Get DedicatedE-mail Response Team
May 2002Claim Look-Up, trustmark’spersonalized online claim statusservice for insureds, now includes adedicated e-mail response team. Toask a question, an insured simplyclicks on the link at the bottom of theClaim Look-Up page. Trustmark’s E-team responds to questions daily,assisting with claims, registration orpassword inquiries. Insureds can nowalso click on a processed claimnumber to call up a page resembling
an Explanation of Benefits (EOB).That page can then be printed forpersonal records or for submission toa secondary insurance carrier.
LabOne Lab Card Benefit Now in Effect
July 2002Lab card benefits, offering freelaboratory testing for Trustmarkinsureds, apply to all new or renewedgroups with an in-network deductibleof $1,000 or less. Using the card isvoluntary, but you can help yourclients’ employees save money byletting them know the advantages ofthis new Trustmark partnership.
By using the lab card, your clients’employees realize significant savingson out-of-pocket medical expenses.LabOne prices are so much lower thantypical lab charges that Trustmarkcovers the entire cost. For insuredsthat means:• No deductibles• No copayments• No coinsurance
LabOne is easy to use. The insuredsimply locates an approved LabOnecollection site or asks the physician tosend tests to LabOne for processing.LabOne performs the tests and sendsthe results to the doctor, usually thenext day. For specimens sent to alaboratory other than LabOne, regularbenefits apply.
A 40-person accounting firm. A 4,000-employee tire manufacturer. Before 2002, these companies wouldhave been targets for Trustmark Group Sales. Not anymore. The year marked the culmination of monthsof market research and internal assessment.
The result was the big story of 2002: a new strategic direction for Trustmark. One that envisions a moreaggressive company focused on specific segments within four key employer-based businesses. For Group,that has meant marketing its proven expertise in the 51- to 500-life, multi-site market.
Enhanced benefits and services, such as LabOne, LTD coverage, IVR upgrades and new sales tools, alsodebuted in 2002. It’s all designed to make it even easier for you to sell Trustmark and for employers andinsureds to get the most value for their benefit dollars.
detail. It is designed as a presentationpiece, carefully organized to help youtouch on topics important to yourclient.
The Multi-Market Specialist Flyer usesnumbers gathered from Trustmark’sactual book of business to provideproof of the company’s real advantagein the multi-site market.
More Personalized InformationNow Available
September 2002Anticipating market demand forconvenient and secure access topersonalized information, Trustmarkhas enhanced the Boardman, Ohio,Interactive Voice Response (IVR)system and made more informationavailable to insureds via the Web.“Claim status has been available forsome time through IVR and ClaimLook-Up,” said Denise Chap, Senior
Market Differentiators: TrustmarkOffers Minimum Premium toMidsize Groups
July 2002Most Trustmark competitors don’toffer minimum premium fundingoptions to groups of fewer than 100employees. But with Trustmark, youcan provide the benefits of minimumpremium funding to clients with just51 or more covered lives.
With healthcare costs rising at double-digit rates, employers are looking atevery option to keep quality benefitsaffordable. Trustmark is the smartchoice for midsize employers lookingfor the right combination of securityand savings. Trustmark-designedminimum premium funding offers:
• Improved cash flow• Savings• Loss protection• Lower premium taxes• More accurate reporting
Contact your local Trustmark SalesRepresentative today for copies of thenew Minimum Premium Planbrochure or to schedule apresentation.
Why Choose Trustmark?For some clients, first question is:Who is Trustmark?
July 2002It’s one of the toughest challenges insales – proving to clients theadvantages of a company they knowlittle about when there are other,more familiar names out there.
That’s why Trustmark’s GroupDivision has produced two newsophisticated sales tools to help youintroduce and sell Trustmark to yourclients: the Group CapabilitiesBrochure and the Multi-MarketSpecialist Flyer.
The Group Capabilities Brochure tellsthe compelling Trustmark story in
Manager, Benefits Technical Support.“Now group insureds who call theBoardman automated system can geteligibility and detailed benefitinformation, including encounter fees,coinsurance and deductible amountssatisfied year-to-date.”
In addition to the expanded IVRservices, more information is nowavailable online atwww.trustmarkinsurance.com/group.
Best Benefits,® Another GreatReason to Sell Trustmark
November 2002Trustmark has teamed with BestBenefits, the nation’s largest providerof non-insured, reduced-feehealthcare benefit programs, to helpyour clients’ employees save time andmoney.
For a minimal additional fee, the BestBenefits program provides discountsthrough a nationwide network ofthousands of providers. Best Benefitsservices and discounts include:
• 24-hour nurse helpline• Coast-to-coast vision care• Audiometry and hearing care• Emergency travel assistance• Vitamins and nutritional
supplements
Talk to your clients about the valuablehealthcare savings they can offer theiremployees through Best Benefits.
Claritin No Longer Covered
Claritin is now available without aprescription. Because Trustmark’sprescription benefits do not coverover-the-counter medications, Claritinwill no longer be covered as ofJanuary 1, 2003.
Trustmark will mail notification lettersto all insured groups and to insuredswho have filled prescriptions forClaritin within the past year.
Strategic Focus, Service and Product Enhancements Highlight 2002
Trustmark Enters Tenth Decade2002 Year in Review
Trustmark on Track for Best Year Ever
400 Field Drive Lake Forest, Illinois 60045
www.trustmarkinsurance.com/group
Inside this issue of Group Producer Outlook...
The Department of Labor has enacted Regulation 29 CFR 2560.503-1governing claim and appeal procedures for employer-sponsored employ-ee benefit plans. These regulations apply only to groups governed byERISA.
As of January 1, 2003, Trustmark will be in compliance with the newregulation. A description of procedures followed by Trustmark when pro-cessing claims and appeals will be sent to fully insured and self-insuredgroups no later than January 15, 2003. An attached cover letter willinstruct groups to provide copies of this information to all coveredemployees.
Once each State Department of Insurance has approved the procedures,they will be included in the Certificate of Coverage issued to Plan partici-pants. If you have any questions relating to the procedures or notifica-tion letters, please contact your Sales Representative.
New Department of LaborRegulations Take Effect
PRESORTEDFIRST CLASS US POSTAGE
PAIDPALATINEP&DC, IL
PERMIT NO. 30
R E G I O N A L O F F I C E SLake Forest (Home Office) 1-800-621-4784John Rowlette,Regional Sales [email protected] Tirakian, Regional Manager(Central Illinois)[email protected] Dennis Walsh, Regional Manager (Northern Illinois)[email protected] AtlantaCharlie Swahn, Regional Manager1-800-745-3162charlie.swahn@trustmarkins.comCincinnatiJack Comerford,Sr. Account Executive1-866-526-6285jack.comerford@trustmarkins.comClevelandJohn Valvoda, Account [email protected] Wintersteller, Regional [email protected]
DallasMichael Collins, Sr. Account [email protected] Murphy, Sr. Account [email protected]
DenverTom Luddy,Regional [email protected]
Grand RapidsTerry McDonough,Regional [email protected]
HoustonBrent Schultz,Sr. Account [email protected] Hindman, Regional Manager [email protected] Kansas City1-800-407-2345Jack Trook, Regional Sales [email protected]
Kansas CityJim Walter, Regional [email protected]
New OrleansAllen Saba, Sr. Regional [email protected]
PhiladelphiaJim O’Connor, Regional [email protected]
PhoenixDave Houser, Regional [email protected]
St. LouisSusan Sander, Regional [email protected]
South BendMike Balsan, Regional [email protected]
