St. Louis, Mo November 13, 2007: Health Alliance Medical Plan, headquartered in Urbana, Illinois, has joined the Center for Health Value Innovation. This is the first health insurance plan to join the Center, an indication that the quest for value goes beyond the major employers who are members of the Center and extends into the health insurance industry.

"We believe in supporting our members who wish to achieve optimal health. The latest tool to help attain this goal is an employer-based health improvement and wellness program, with our parent company Carle Clinic Association among the first pilot sites. We have tested the model of value-based benefit design, initially focused on medications for diabetes and asthma, as one element of the program at Carle. The Center for Health Value Innovation’s mission lined up so well with our current activities, that we jumped at the opportunity to join. The Center allows us to work with innovators who understand that investing in the health of the employee, including designing benefits based on value rather than cost, is the best way to address the ever spiraling direct and indirect costs of health care," says Robert Scully, Chief Medical Officer of Health Alliance Medical Plan (HAMP).

"Pricing medication out of reach for many of those with chronic medical problems like diabetes is not the way to control costs," says Director of Pharmacy Christina Barrington of Health Alliance. "In fact, the medical literature has shown that such strategies actually increase costs over time."

David Hom, chairman of the board of the Center and former vice-president of human resource strategy for Pitney Bowes, agrees. "The Center was established to elevate the evidence of value-based designs as an investment in health management that produces results—results that mean improved health and financial sustainability. This ‘concept studio’ framework allows innovators to consider models for benefits designs and, using their data and the best practices information, design a benefit that meets their organization’s requirement. Dr. Scully and Ms. Barrington are welcome additions to the Center, as an employer, a health plan, and an industry leader."

Cyndy Nayer, President of the Center, adds, "Health Alliance has publicly embraced value-based designs. Their culture of health investment layered with their leadership acumen is a model for others to emulate. Those of us in the Center welcome them to the innovators’ showcase and look forward to other leading health plans, consultants, provider groups and trust funds—everyone who has a responsibility for the health of a population—joining us for sustainable solutions to the health cost inflation that is driving poor health outcomes."

Health Alliance Medical Plans is a leading provider-sponsored health insurer in the Midwest, providing health care coverage to more than 260,000 members in Illinois and Iowa. Health Alliance is named on of ‘America’s Best Health Plans’ in the 2007 U.S. News and World Report and National Committee for Quality Assurance (NCQA) rankings of commercial and Medicare health plans. Additionally, in recognition of its exceptional commitment to quality, Health Alliance has maintained the highest accreditation possible from NCQA for its HMO, POS and Medicare HMO plans since 1997. For more information, visit www.healthalliance.org

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