September 2006
Volume 29, Number 7
September 2006
Council Programs Top $60 Million in Savings
"The Council has made its reputation by successfully pushing a public policy agenda that makes Massachusetts more competitive. But it's through the Council’s three cost-saving programs that we really see the return on investment for our membership. Over the years we have come to expect that Council programs will be innovative, professionally-serviced and reliable.”
– Peter Fuller, President of Fraen, which participates in all three Council programs.
Delivering Return on Investment for Members
All members of the Massachusetts High Technology Council are eligible to participate in our members-only programs that are innovative, professionally run and have saved participating members an aggregate of nearly $60 million. The Council’s programs - energy, workers’ compensation, and health care - are designed to help reduce members’ costs and improve operational efficiency. All three of the programs are born out of the Council’s public policy initiatives - building on what we do best to help make Massachusetts more competitive.
High Tech Energy Program
This summer Governor Mitt Romney unveiled a comprehensive, long-term plan to make Massachusetts more energy competitive. The four legs of Romney’s plan are to make Massachusetts more energy efficient, diversify and enhance our state and regional energy supply, fix the state’s energy infrastructure and create a leading cluster of energy technology development in the Bay State.
The Governor’s plan ties in well with the Council’s program to address the high cost of electricity and bring reliability and cost stability to the energy delivery system. Since 1996, the Council has been providing participating members with significant savings by creating and offering first-in-the-nation opportunities to reduce and manage energy costs.
Along with our exclusive partner, Constellation NewEnergy, the Council now provides a solution for you to minimize the risks associated with the electricity market’s ups and downs, limit electricity price increases, manage volatility, and benefit from any drops in power prices. Twenty-five Council members are currently participating in the program which has generated more than $50 million in energy savings since 1996.
Our latest program offering features the High Tech Power Portfolio Manager Program – an exclusive program created jointly by the Council and Constellation NewEnergy. This unique program provides a managed portfolio of diverse electricity products to limit price risk and deliver the benefits of price opportunities. The program allows members to apply financial portfolio techniques to their energy budget process by incorporating goals with strategy and execution, evaluation and periodic portfolio rebalancing. The program also provides members an unprecedented level of access to the wholesale electricity market and risk management services through Constellation NewEnergy.
Another option available to Council members is a fixed price agreement which allows members to pay a fixed rate for electricity consumed during the term of the agreement. Many businesses are risk averse and don't want to be exposed to electricity price volatility. Companies select this option because it offers the least amount of risk and provides budget stability.
You can’t predict future electricity costs but you can manage them. For more information on the High Tech Power Portfolio Manager Program or the fixed price product, contact Daniella Lutz, the Council’s Director, Member Services at daniella@mhtc.org or 781.890.6482, ext. 11. or Bob Kinscherf of Constellation NewEnergy at 617.772.7504.
Constellation NewEnergy is the number one competitive electricity supplier in North America and has been in business since the beginning of deregulated energy markets in New England 11 years ago. Currently they serve more than 10,000 diverse customers including more than two thirds of the Fortune 100 companies.
Workers’ Compensation Self-Insurance Group
The Council led efforts on Beacon Hill in the early 1990s to reform the state’s out of control workers’ compensation system, reigning in abuse and reducing costs for employers. One of the key provisions of the reforms enabled associations to create self-insurance programs.
The Massachusetts High Technology Self-Insurance Group (Mass. High Tech SIG) was developed in 1994 to assist Council members with workers' compensation costs while improving workplace safety.
The Mass. High Tech SIG can be an effective way to control costs for small to medium-sized companies seeking long-term program stability. In a self-insurance group, companies engaged in similar businesses pool their workers’ compensation and employers liability exposures.
The Mass. High Tech SIG may be attractive to companies who want to control workers’ compensation costs, are committed to safety, loss prevention and claims management programs, and believe their favorable claims experience is not adequately reflected in the price of their workers’ compensation coverage.
Members of the Mass. High Tech SIG work together to reduce losses and control costs. They share a superior workers’ compensation claims history, a commitment to aggressive loss control and claims management programs, and a desire to lower workers’ compensation costs because of their favorable experience.
Through participation in the Mass. High Tech SIG, members can take advantage of the following benefits:
In 2005, the Group distributed $327,000 in dividends to its members and will distribute $260,000 for 2006. Since inception, dividends earned by members total $5 million.
The Group offers competitive pricing on Workers’ Compensation premiums.
A dedicated claims and case management team provides a proactive approach enabling members to reduce claims costs.
Aggressive loss control services and programs tailored to fit each member company.
The Group’s experience for all fund years has led to an average loss ratio for all members of under 30%.
Coverage can be provided to members with multi-state operations.
For the members of the Mass. High Tech SIG, these benefits have resulted in a 42% reduction in premiums, representing more than $5 million in savings.
A member-elected Board of Trustees, govern the Mass. High Tech SIG. The Board of Trustees oversees all aspects of the program, including approving applications for membership and designating a program administrator to manage the Group’s day-to-day operations.
The key to a successful self-insurance group is managing losses. The Mass. High Tech SIG is supported by the professional administrators at FutureComp, a division of TD Banknorth Insurance Group. As one of the largest Third Party Administrators in New England, TD Banknorth Insurance Group’s FutureComp Division has been providing professional Third Party Administration services to self-insured clients since 1984.
For more information on the Mass. High Tech SIG, contact Daniella Lutz at daniella@mhtc.org or 781.890.6482, ext. 11.
High Tech High Touch Health Plan
This spring Governor Romney signed sweeping health care reform legislation that is designed to provide health care insurance coverage for all of Massachusetts’ residents. While there are many important reforms included in this new law, it did very little to help control the rising costs of employee health insurance. Despite the fanfare, in the end there was very little done to assist employers, like all Council members, who already provide generous health care coverage to their valued employees.
Fortunately, the Council has a program designed to help members control health care costs while maintaining award winning service. The High Tech High Touch Health Plan, launched in July 2005, is an exclusive partnership between the High Tech Council and Harvard Pilgrim Health Care to offer Harvard Pilgrim’s portfolio of health plans at lower cost premiums to Council member companies with 51 or more employees.
There are many aspects of this program that could be beneficial to Council member companies and employees, including:
Members will be eligible to receive special premium discounts and can choose from a full suite of Harvard Pilgrim health plans from high-deductible PPOs to HMOs with member cost-sharing.
Harvard Pilgrim coverage entitles members to receive additional discounts on other insurance products through the Guardian Life Insurance Company of America, including:
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5% savings on dental insurance premiums (exclusive to Council members)
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6% savings on life insurance premiums
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3.5% savings on disability premiums
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Access to more than 22,000 physicians and 135 hospitals throughout New England, an extensive national PPO network and an exclusive national alliance with United Healthcare.
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Plans for all of an organization’s employees, wherever they are. No matter where an employee works or lives – from Portland, Oregon to Portland, Maine – Harvard Pilgrim can provide seamless benefits administration, consistent benefits and a nationwide provider network.
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Free employee cholesterol screening at your worksite. A Harvard Pilgrim health professional reviews test results with each individual and offers dietary recommendations accordingly.
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Assistance from TotalAssist, Harvard Pilgrim’s fully integrated transition program that can help introduce one of our new health benefits options to employees. TotalAssist may include a dedicated phone line, welcome calls, onsite Account Service Coordinator, a nurse to assist with clinical transitions, and more.
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Up to $150 in fitness reimbursement.
There are many advantages to going with Harvard Pilgrim, ranked #1 health plan in America for two years in a row, according to a joint ranking by U.S. News & World Report and The National Committee for Quality Assurance (NCQA).
For more information on the High Tech High Touch partnership, please visit the customized partnership web page created by Harvard Pilgrim for Council members: www.harvardpilgrim.org/hphchightech.
Companies interested in joining this program should have their benefits administrator or broker contact Daniella Lutz at daniella@mhtc.org or 781.890.6482, ext. 11.
YoungStartup Ventures invites you to attend the New England Venture Summit
Tuesday, November 28
Burlington, MA
The program will feature live early stage company presentations, interactive VC and entrepreneur panels, an innovation showcase and high-level networking opportunities.
Confirmed speakers include executives from:
Boston Millennia Partners
Brook Venture Fund
General Catalyst Partners
Kodiak Venture Partners
MPM Capital
North Bridge Venture Partners
Oxford Bioscience Partners
Polaris Venture Partners
Sherbrooke Capital
Sigma Venture Partners
Techno Venture Management
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