LOUISVILLE, KY. (January 13, 2004) - SHPS, Inc. announced today they have successfully completed the 2004 benefit plan year open enrollment for the Los Angeles Unified School District (LAUSD), the second largest school district in the country. SHPS provided LAUSD employees with multiple enrollment options and information resources to best suit their individual needs, including Web enrollment, IVR, call center support, employee communication services, and fulfillment. By utilizing SHPS' total enrollment solution, LAUSD was able to reduce their cost of enrollment processing through increased Web usage while overall improving the employee enrollment experience. LAUSD has nearly 150,000 active employees, retirees, and COBRA participants, and of those participants who elected to make a change, over 85% chose to enroll via the Web.

"We are very pleased with the outcome of our open enrollment this past season, due in large part to the knowledge, experience, and overall excellence exhibited by the SHPS implementation team," stated Brian Clelland, Director of Benefits Administration for LAUSD. "SHPS had a great understanding of our program from the beginning, and their ability to provide a wide breadth of services through a centralized location was a key driver in deciding to outsource and use their technology solutions."

SHPS' tailored solution leveraged the power of the Web to enroll employees via LAUSD's Smart Choice Web site. The Web site allows participants to enroll, track changes, and request personalized forms for medical, dental, vision, COBRA and supplemental plans, such as Flexible Spending Accounts (FSA), 24 hours a day, seven days a week.

"Our goal, first and foremost, is always to make the employee experience around the benefit enrollment process a positive one," said Mike Brennan, SHPS Chief Marketing Officer. "It's a testament to the functionality of our technology platform, particularly during the peak period of benefit plan activity, that we can consistently provide a high level of customer service that ensures participants enjoy a smooth enrollment experience."

At the heart of SHPS' administrative solutions is their technology platform, a 100 percent rules-based, date-driven management and reporting solution that helps SHPS clients meet their HR objectives and goals. SHPS' solutions make accessing data and information easy for participants, thus easy to enroll in HR benefits programs. It enables personalized enrollment applications to ensure that employees only see those benefits for which they are eligible. Employees also enjoy the flexibility of reviewing their selections and making corrections as often as necessary during the enrollment process.

In addition to employee access of secure personalized enrollment information, SHPS provides employers, through HR Access, the ability to manage their benefit program online and perform a variety of HR functions, such as:

• Maintaining up-to-date employee and dependent demographic information,
• Viewing and update employee, dependent, and plan coverage data,
• Requesting the fulfillment of benefit program communication materials,
• Generating standard and customs reports,
• Viewing and downloading customer-specific documents,
• Submitting COBRA qualifying event data.

About SHPS
SHPS provides a broad range of innovative health management tools, resources and services that empower consumers to make wise healthcare decisions. With comprehensive services that transform consumer health behaviors, SHPS’ integrated delivery system maximizes the value of consumers’ and employers’ healthcare dollars. Among its many clients, SHPS serves large and mid-sized employers, health insurance carriers, third party administrators, Medicare Part D providers and government agencies. The company employs registered nurses and health professionals, employee benefit specialists and IT experts in facilities across the United States. Visit www.shps.com.

For More Information
Sarah Bovine
Director, Corporate Communications
sarah.bovine@shps.com

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