Louisville, Ky. (March 2, 2006) SHPS, a leading Integrated Health Management provider, announced today the expansion of its Consumer-Directed Retiree Health Plan (CDRHP) solution to public sector employers, who continue to battle with concerns over the Government Account Standards Board (GASB) requirement under Rule 45 that requires them to account for unfunded financial liabilities for items such as retiree healthcare.

When it comes to the retiree healthcare crisis, public sector employers are facing many of the same challenges that private companies are encountering with the added complexity of the new GASB 45 requirements, said Rishabh Mehrotra, SHPS president. SHPS realized that its CDRHP product, which has been well-received by many large, private employers, was a very good solution for public sector employers as well.

CDRHPs offer employers the ability to maintain retiree healthcare benefits through consumer-based programs. Just as countless companies moved from offering traditional pensions to 401(k)s, CDRHPs transition retiree healthcare from a defined-benefit to a defined-contribution approach. Plus, CDRHPs have the added benefit of using tax-favored funds to purchase government-subsidized insurance offered through Medicare Advantage and Medicare Part D plans.

For public-sector employers, CDRHPs can be deployed using a variety of options, including a voluntary employee beneficiary association (VEBA)-funded health reimbursement arrangement (HRA). Employers may also establish a notional account-based retiree health plan.

By utilizing the wealth of consumer support tools available through SHPS Integrated Health Management solutions in conjunction with a CDRHP, employers can significantly reduce their healthcare liabilities.

The new GASB 45 requirements illustrate the full financial impact retiree healthcare benefits have on the financial stability of public sector employers, said Bruce Gillis, retiree administration product manager. Once employers account for the cost of the lifelong benefits theyve promised to employees, the retiree healthcare crisis becomes extremely evident. CDRHPs allow employers to manage their healthcare expenses while continuing to support their employees beyond their years of employment.

CDRHPs are available for both public and private sector employers immediately.

About SHPS | Carewise Health
SHPS is a leading, independent provider of integrated health solutions that improve personal health and reduce spending. By integrating traditional health management and benefits administration services, SHPS delivers people-centric solutions that empower individuals to make wise healthcare choices. It serves large and mid-sized employers, government agencies, and third-party administrators through the company’s Carewise Health, Landacorp, and SHPS brands. Visit www.carewisehealth.com.

For More Information
LeAnn Ross
Director of Marketing
leann.ross@shps.com

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