WASHINGTON, D.C. — Ullico Inc., announced today that its group medical stop loss program with the International Brotherhood of Teamsters (Teamsters) will return an aggregate dividend of approximately $740 thousand to 29 self-funded Teamster health care plans across the country.
Because the stop loss program met its premium and claims targets, the health plans that participated will receive a premium volume dividend of five percent of their 2012 policy year premiums. The first dividend checks will be issued in January to ten Teamster health care plans in Illinois, West Virginia, Indiana, New York, California, Minnesota and the District of Columbia. Additional dividend checks will be issued to the remaining 19 plans as their policies renew in 2013.
“The success of our medical stop loss program with the Teamsters demonstrates the unparalleled expertise that Ullico has in meeting the evolving needs of our clients and others in organized labor,” said Edward M. Smith, president and CEO of Ullico Inc.
The Teamsters' medical stop loss program is offered through The Union Life Insurance Company (Union Labor Life), a subsidiary of Ullico Inc., the only labor-owned insurance and investment company.
The rising cost of treatments and the common use of new medical technology expose health care plans to a growing frequency of high-dollar insurance claims. With the changing landscape of the health care system, including the removal of lifetime and annual maximums, medical stop loss insurance is becoming an important tool for self-funded plans to help manage their claim costs and protect the plans' assets.
“A $2 million dollar claim for an individual participant is no longer uncommon,” says Union Labor Life President Daniel L. Wolak. “Self-funded group plans are experiencing high dollar claims because there has been a rise in the severity and number of large losses. This will most likely continue for the foreseeable future. Stop loss insurance can serve as an effective tool in mitigating these risks.”
Union Labor Life offers two types of medical stop loss insurance: specific stop loss insurance, which protects plans from large medical claims on any individual plan participant or dependent, and aggregate stop loss insurance, which protects plans from medical claims that are higher than expected for an entire group. Each policy offered is tailored to meet the specific insurance needs of these organizations because Union Labor Life has nearly 85 years of experience and expertise in providing quality insurance products that protect unions and their members.
The Union Labor Life Insurance Company is a member of the Ullico family of companies, which includes Ullico Investment Company; Ullico Investment Advisors, Inc.: Ullico Casualty Company; and Ullico Casualty Group Inc.
For 85 years, Ullico, the only labor-owned insurance and investment company, has been a proud partner of the labor movement, keeping union families safe and secure. From insurance products that protect union members, leaders and employers, to investments in building projects that have created thousands of union jobs, our customers continue to trust us with protecting their families, employees, businesses and investments. For additional information, visit www.ullico.com.
For more information, contact:
Ben C. Hardaway
Senior Media Relations Manager