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United Group Programs, Inc. Florida ● Georgia ● Pennsylvania

2500 North Military Trail, Suite 450 Boca Raton, FL 33431

Toll Free: (800) 842-8770 Website: www.ugpinc.com/daimlerchrysler.html

E-Mail: [email protected]

Welcome to United Group Programs, Inc.

Your Complete Employee Benefits Solution

Providing Old-Fashioned Customer Service The Way It Should Be.

YOUR DAIMLERCHRYSLER PARTNER

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United Group Programs was founded in 1968 with one major goal in mind. Simplify the administration of health benefits for Employers and Employees. With over 4,300 corporate clients worldwide and thirty-seven years of experience, UGP has grown into an organization that serves clients in every state in the nation as well as internationally. Additionally, we have five corporate offices where our Employees have become a team devoted to providing customer service that is second to none.

Our goal is to provide tools, training and motivation to create a unified team who have the desire, attitude, integrity, confidence and sincere commitment to provide a partnership internally within our organization and externally with our clients in order to exceed their expectations. We provide service with heart, and take responsibility and ownership to seize every opportunity to make our clients feel they have not only been served but also cared for.

Because of these principles and the efforts of our Employees, United Group Programs, Inc. has become one of the most prominent third party administrators in the nation. We possess the expertise, experience, resources, and commitment required for superior health benefits administration.

Our specialization is in providing Employers with very successful alternatives to control the increasingly high cost of providing healthcare benefits to Employees. UGP’s Third Party Administration services are tailored in design to a particular Employer’s benefit needs and implemented with old-fashioned personal customer service and proven administration techniques.

We will be pleased to offer you a cost-free analysis of your current plan in comparison with the personalized options we offer. Our experience gives us the added confidence of steadfast relationships with insurers and reinsurers, which leads to remarkable savings for Employers. UGP offers a host of options from fully insured and self-funded medical and dental plans to group life and disability insurance. Through the use of National and Regional PPO networks, United Group Programs, Inc. can offer Employers the plan of choice that fits with their needs and values. We also specialize in executive benefit packages. In addition to Third Party Administration Services, UGP provides COBRA, Cafeteria Section 125 plans and HIPAA services to assist Employers and human resource departments. The result is a comprehensive benefits package that is cost effective and stress-free.

United Group Programs is Your Unique,

Single Source Benefits Provider


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Our Goal is Customer Satisfaction

Performance Guarantee

When you choose United Group Programs, Inc. for your Employee benefits needs, you can be assured that we will provide you with outstanding service and unmatched performance. We aim to build long-term relationships by keeping our promises and earning your trust. Many of our first clients 37 years ago are still our clients today.

Creating Memorable First Impressions

At United Group Programs, Inc., we realize that making a change in your insurance plan seems to be a difficult decision to make. However, difficult decisions must be made for your company to run efficiently and prosper. For this reason we offer a cost-free analysis of your current benefit plan versus those alternatives offered by UGP. This analysis consists of benefit plan design review, viability of self-funding, and a review of disability and life insurance policies for adverse limitations and appropriateness. When Employers select a program through UGP, we take that decision very seriously. As such, we want our new clients to experience a smooth and comfortable transition. Therefore, we offer reliable and consistent consultation with Employers’ Human Resource and Risk Management Departments.

Consistency and Reliability

Using a detailed proposal developed with the client, our specialists manage the implementation of the benefit program from start to finish. Our representatives are qualified, accessible and accommodating. Our staff consists of Employee benefit consultants for self-funded plans and mini medical plans, in-house counsel, in-house Certified Public Accountant, and a registered nurse. You can count on our specialists to know what needs to be done and how to do it efficiently.

24 Hour Claims Processing Policy

Our efficiency begins with our 24-hour claim processing. Our staff proactively solves claims problems immediately and effectively, with as little client or human resources involvement as possible. For example, a claims processor may contact the provider directly if a statement of account, rather than a bill, is received, saving time for the human resources department.

Reinsurer Negotiation Policy

UGP's approach is not to “shop” the Employee benefits reinsurance as others do. Our approach is to negotiate with qualified and stable “A” rated Reinsurers with professionalism. With our 37 years of experience we are able to negotiate the most advantageous Aggregate and Specific Stop Loss Reinsurance contracts for our clients, providing us with an advantage over our competition.


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Our Proactive Organization

Financial Reliability

Our in-house Certified Public Accountant will work jointly with our clients to address all tax law and related issues promptly and professionally at no additional cost for services within the scope of his profession. The billing support staff is trained to work with each client’s specific accounting practices and bookkeeping needs to facilitate the production of easy to read monthly statements, to troubleshoot any problems if they occur.

Internal Organization

As a Third Party Administrator, we are proactive. While we are free to meet for consultation at any given time, we request informal meetings each quarter, allowing discussion of secular trends in the industry, claims experience (including actual and potential shock losses), proposed changes in legislation, the interpretation of Employee benefits legislation, and possible utilization abuse. At the conclusion of the meeting, we will discuss the client’s alternatives, renewal options, as well as important Human Resource and Risk Management issues.

Integrated Claims Administration

UGP provides an integrated claims system to streamline administration of multiple benefit programs in a managed care environment. Our clients enjoy enhanced data integrity and the most efficient claims operations available. We have built in the flexibility and adaptability we need to handle unique client requirements. Our commitment to service excellence creates timely and accurate claims administrative services for our clients.

Strategy and Legal Review

Upon request, our in-house counsel will work jointly with client’s corporate counsel at no additional cost for services within the scope of his profession. Our counsel will guide your company through HIPAA privacy issues and guidelines and advise you as to the appropriate course of action.

Registered Nurse

Our in-house Registered Nurse is available in her capacity for our clients when needed.

Benefit Plan Design and Review Whether your plan is fully insured or self-funded the design of your plan is crucial in affecting your costs. United Group Programs, Inc. provides a review of your current benefit plan to determine whether your plan has excess and unnecessary benefits that increase the cost of your plan, or limitations on benefits that negatively affect the Employees and executives. Studies have found by offering certain benefits the Employer’s cost for health insurance goes up, while those specific benefits in no way assist in the health of the Employee or provide a true benefit. Due to significant increases in the cost of healthcare, the implementation of Plan Design changes now, allows Employers to save on healthcare costs for years to come.

We at UGP are pleased to offer you a cost-free analysis of your current plan in comparison with the personalized options we offer. Our experience gives us the added confidence of steadfast relationships with insurers and reinsurers, which leads to remarkable savings for Employers.


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Our Services

Payroll Services

Whether a small or medium sized business with payroll processing needs, UGP has an affordable and comprehensive payroll solution for each Employer’s specific needs. UGP simplifies your payroll process.

At UGP, we directly contact the health care provider, requesting the itemized bill by fax in order to process the claim immediately. In this way, the claims examiner proactively intercedes to insure prompt servicing of the claim. The Employee is not confused and no time is taken from the workday to resolve this problem. Therefore there are no dunning notices and no phone calls. The plan runs smoothly for all involved, particularly for Human Resources.

Unique Administration Services

Unlike most Third Party Administrators, United Group Programs, Inc. offers a host of extra administration services to make your company more efficient and to reduce your overall administration costs.

Coordinated Billing & Carrier Invoicing - One List Bill for Multiple Products UGP’s services allow Employers to display invoices from multiple carriers into one consolidated report/bill. Our billing reports can show the Employer the cost of benefits for an entire organization or broken out by location or subdivision.

By utilizing UGP’s administration services, Employers reduce the time wasted in manual reconciliation of multiple invoices from multiple insurance carriers. This immediately reduces administrative costs and eliminates the human resource department’s involvement in reconciling bills.

Among multiple carriers offering health, dental, and other voluntary and non-voluntary Employee benefits, UGP not only coordinates billing, but also eligibility, enrollment, and termination.

Coordinated billing allows Employers to receive monthly a single invoice from UGP and to make a

single payment to UGP for all of the Employers’ insurance policies.


Free the Human Resource Department The human resource department for any Employer should be focused on core business competencies and company strategies, not on minor administrative issues.

United Group Programs Call Center provides a full range of services and benefits to Employers. UGP has the experience, management and staff to handle routine Employee inquiries freeing Human Resources to focus on more important issues.

Our Toll Free Call Center provides a centralized access point to resolve all Employee issues. UGP’s Call Center can also be utilized for enrollment and re-enrollment.

Asking all the right questions

Our case management is an integrated process that assesses, plans, implements, coordinates, monitors, and evaluates options and services to meet an individual's health needs. UGP communicates with healthcare providers and utilizes all available resources to promote a quality yet cost-effective outcome. When approved by the client, UGP's case management program targets individual members with catastrophic diagnosis and/or high cost procedures. Our case management team "steers" members through the complex medical considerations to maximize the member’s health.

Getting all the right answers

Normally, when an insurance company or Third Party Administrator (TPA) receives a claim from an Employee that consists of only a statement or “balance due”, or in some other way incomplete, the insurance company or TPA, would return the bill to the Employee with instructions that the Employee obtain the itemized bill from the service provider. A confused Employee often brings this problem to their supervisor, who then involves the Human Resources Department.

At the same time, we take the burden of keeping up with new tax and legal legislation off of the Employer. Our in-house counsel and Certified Public Accountant are up to date on all issues that may affect your company’s Employee benefits programs and we make changes where needed to assure compliance with the new regulations.

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Customer Service United Group Programs, Inc. maintains a toll-free telephone number for the convenience of clients, plan participants and healthcare providers. During normal business hours (9:00 am to 5:00 pm EST), the participant may speak directly with the person responsible for managing the day-to-day administrative activities of the plan. Most inquiries are answered accurately and immediately. There is convenient voicemail or e-mail for after-hours inquiries.

Reporting our Success Accounting & Financial Reporting At UGP, our accounting and financial reporting systems interface with all other administrative systems, such as eligibility, claims, payables, and collections. This integrated system allows us the flexibility to individually define and maintain accounting procedures and controls to meet the distinct needs of each client. Custom Client Reporting Timely and meaningful information is critical. UGP furnishes certain standard reports to each client monthly, quarterly, and/or annually, and clients may choose from numerous other reports. Our self-funded clients can choose to receive up to seventeen reports ranging from a monthly enrollment census or claims detail history report to a network discount report showing the discounts saved in-network for all claims processed. Stop-Loss Claims Reporting UGP maintains an experienced and dedicated Stop Loss Department that monitors potential stop-loss claims and files all appropriate claims with the reinsurance carriers on behalf of clients. The efficiency of claims submission and follow-up to assure quick reimbursement results in a favorable financial impact to the plan.

Our quick turn-around policy results in a number of desirable effects:

• Employees perceive their health plan as a true benefit. Thus, morale remains high.

• The need for calls by Employees and providers to check claim status is greatly reduced.

• Prevention of harassment of Employees by providers demanding payment.

Benefit checks along with detailed, easy to understand, explanations of benefit forms are issued to the covered Employee and/or provider, accurately and efficiently.

Claims Processing

We strive for 100% accuracy. Our audit procedures, training programs and system controls are designed to accomplish this objective. Mandatory pre-payment audits are conducted for claims that exceed designated dollar amounts.

Our system also reprices In-Network claims in accordance with the negotiated fee schedules and contracts. Non-Network claims are subject to the usual and customary fee data. When appropriate, charges are negotiated to obtain maximum savings for both clients and their employees.

United Group Programs, Inc. is proud that our claims turn-around time is among the fastest in the industry. Our system permits adjudication of many claims within 24 hours. Electronic and paper clean claims that are identified for review by the built-in controls are processed within 3 business days.


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Disease Management

People are living longer lives than ever before. This is not because there is less disease in the world. With today’s science and technology, people are able to live with otherwise deadly diseases for many years to come. For an Employer, this has only been financially possible through high-cost insurance. Now, as part of the Case Management Program developed by UGP, health care costs can be decreased through proper disease management.

UGP first provides all members access to information to educate themselves about their disease, thereby providing the necessary tools for the members to manage their own conditions. By providing information about diseases such as asthma, diabetes, congestive heart failure and hepatitis C, for example, members may proactively manage their condition and episodes in a quality manner.

Claims Negotiation

UGP has designed its programs to encourage in-network care. However, out-of-network care will occur throughout the plan year. In order to save our client healthcare dollars on care accessed out-of-network, UGP proactively negotiates the claim. UGP has developed a proprietary database for this purpose. In situations where a member accesses care out-of-network, UGP will negotiate discounts for physician and facility claims.

A-Rated Management & Negotiation

Utilization Management

United Group Programs, Inc. works with Utilization Review and Case Management programs to assure quality patient care delivered in a cost-effective manner. Our integrated database and software systems allow our claims examiners, auditors and stop loss department to share information on a real-time basis.

Case Management

80% of the health care costs come from 10% of the population. Unpredictable catastrophes and poorly controlled serious diseases are a very large source of these costs. At UGP, Case management opportunities are quickly identified and aggressively pursued, by focusing on members with serious or chronic illnesses.

The nurse case manager works closely with members, family, and physician to assess the member's health care needs and to coordinate services. Our case management team works to determine quality and cost-effective treatments of services by identification of alternative treatment plans, price negotiation, or both.

As an essential component for effective case management, case managers maintain a positive, professional relationship with healthcare providers to assure the patient's healthcare needs are met.

The goal is to assist the member to reach their optimal level of wellness through high quality, cost-effective care, while reducing potential claim and minimizing the current claims impact and overall costs.


Prescription Drug Management

UGP is a national leader in prescription drug management. We offer our clients the strongest and most aggressive prescription drug discounts and networks across the nation.

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Making Life Easier & More Efficient

Eligibility & Enrollment Services

Employee enrollment plays a critical role in the success of any voluntary benefits program.

Participant enrollment, coverage termination, and other changes to eligibility information are made using the unique enrollment systems process by United Group Programs, Inc. This information may also be submitted electronically or via fax. Upon receipt, all information is reviewed for plan compliance and immediately entered into UGP's eligibility database.

UGP provides the following services:

� One-on-one enrollment

� Group enrollment

� Enrollment by Phone

� Internet Web Enrollment

� Outbound Call Enrollment

Case Setup and Management

� Payroll Stuffers and Communication Materials

� Employee Education

� Professional Enrollment Counselors

� Employer Enrollment Reports

We specialize in enrollment customer service that includes communication and education services before and after enrollment. These areas are quite often overlooked. Through our proprietary and innovative system, we are able to communicate to Employees exactly how a particular benefit will impact upon them and their families.

Auditing & Subrogation UGP takes seriously the accuracy of its performance on every case. Each claim is audited for errors or inconsistencies during the first month of the plan. Thereafter, ongoing audits are performed based upon a random sample of claims. Additionally, all high dollar claims (over $5,000) are audited and approved before being released for payment. Quite often, bills presented for payment contain charges that are inconsistent with a patient’s condition, or they contain duplicate charges. Our staff is trained to look for these “errors” and to challenge the health care provider regarding suspect charges. We are often able to reduce hospital bills by up to 25%, resulting in an overall reduced claims experience for the Employer. We also will subrogate claims as needed to protect Employers’ or Employees’ interests. Reduction in claims experience is paramount to the long-term goal of reducing health care costs and in preventing industry premium increases. Eliminate Cookie-Cutter Benefits As a premier national Third Party Administrator (TPA), United Group Programs, Inc. understands the need for flexibility and creativity in Employee benefits programs. Reducing costs, therefore, requires something other than a “one size fits all” approach to obtaining quality care at affordable prices. We evaluate every situation, create a plan design specific to Employer’s needs, and provide unmatchable customer service to members, while assuring compliance with all applicable regulations and laws. ID Cards United Group Programs, Inc. provides a custom ID card for plan participants designed to assure that the healthcare providers receive the complete and current information needed for quick and effective patient processing.


Amendments & Modification From time to time, you may wish to modify your Plan Document for benefit or eligibility changes. There may also be times when the Employer Plan Document will need to be amended or modified to comply with legislative changes.

United Group Programs, Inc. can readily provide guidance and is prepared to assist the Employer in the preparation of these changes. We will also distribute the appropriate communication to Employees in the form of booklet inserts or payroll stuffers.

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Flexibility in Benefits Most importantly, the Employer is able to develop the flexibility it desires in making key decisions on benefits, administration and funding. Decisions as to what will be covered and what will not become easy, allowing the Employer to exclude certain vaccinations, drugs, behavioral diseases such as obesity or alcoholism, or infertility. The key here is the ability to tailor the plan to meet the specific needs and budget of the Employer.

Flexibility in Carriers

Another major advantage to self-funding is the flexibility in choosing a reinsurance carrier. Unlike fully insured plans, a shift from one carrier to another does not affect the choice in doctors, impose waiting periods, or require the issuance of new I.D. Cards and booklets.

Multiple Locations

Also, for Employers with multiple locations, the same plan may be offered to everyone in every location with no administrative difficulty. By Self-Funding, an Employer can utilize one national network or multiple local PPO networks with the same benefit plans.

Executive Benefits

Self-Funding provides the unique ability to class out the executives to provide 100% of all of their benefits where named executives and their families pay no co-pays, deductibles or coinsurance. Employers therefore can afford to provide ultimate benefit protection for executive personnel at a much lower cost. This is important in creating Employee longevity in a competitive job market.

The bottom line is that Self-Funding saves costs. In a good claims year, the best scenario would be that profit formerly enjoyed by the insurance carrier under a fully insured plan, now is enjoyed by the Employer who can choose to put it back into the company. But even in a bad claims year, maximum liability is in place to protect the Employer.

How Does Self-Funding Work?

The Employer purchases reinsurance for protection, and pays a small fraction of the conventional premium to the reinsurance carrier. The remainder of the conventional funds (claim funds) is held by the Employer who then invests them, segregates them if desired, or uses them for general business purposes until they are needed for the funding of claims. When claims do not materialize, the Employer keeps the balance of the unused claim funds, hence making a profit. In this way, the payment of claims is directly correlated to the premiums paid and the Employer keeps the profit instead of the insurance carrier.

Advantages of Self-Funding

The advantages of self-funding are numerous!

Self Funded Health Plans, Dental, & Short Term Disability Plans

Self-Funding is a successful alternative for Employers to control rising healthcare costs. While flexibility in making key decisions on benefits, administration and funding, is attractive to most Employers, limiting liability can be problematic. Partial Self Funding / Self Insurance with Stop Loss Coverage is an attractive alternative for cost conscious Employers in choosing an Employee benefits plan.

The goal of every insurance company in a fully insured program is to make the most profit. This profit can reach up to 60%. Under a fully insured plan, the Employer pays a fixed premium regardless of the amount of claims paid by the insurance carrier. Annual rates are often increased based upon the industry standard, otherwise known as “trend”, and not based upon the Employer’s claims experience.

In a self-funded or partially self-funded program, everything provided in a conventionally fully insured program is duplicated in the partial self-funded plan. All services provided by the insurance company in a fully insured plan are provided in the self-funded or partially self-funded program. The only difference is that the Employer retains the funds used to pay benefit claims.


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Stand Alone Prescription Drug Carve-Out Plans One popular means of reducing group health insurance premiums is to eliminate prescription drug plans, leaving Employees footing the bill for elevated drug costs and financially unable to do so. There are alternatives.

UGP offers several Prescription Drug Carve-Out options for Employers who need to reduce their group health premium by offering reduced Rx benefits. By replacing the current prescription drug plan with a Generic-Only Plan, Employers can save up to 20% on their health insurance premiums. Sometimes using a Stand-Alone Plan is all that is needed to cut costs.

Multiple Options & Custom Design: • $5 Generic/$30 Preferred Brand Drug Cards

• $5 Generic Only Rx Card

• $10/$20/$40 Copay Discount Rx card

• Discount Generic/Brand Rx Card.

Fully Insured Group Health, Disability & Life United Group Programs offers a host of fully insured Preferred Provider Programs, Point of Service and Health Maintenance Organization options. Many of these programs may be adapted to different regions and areas of the country. UGP also offers a host of Short and Long Term Disability options, along with many coverages of Life insurance, such as Term Life Whole Life, and Optional Life.

Consumer Driven Health Plans Consumer Driven Health Plans (CDHPs) are an increasingly important alternative to the current way of providing medical health insurance. Under traditional health care programs, Employers are faced with double-digit annual cost increases with no relief expected in the foreseeable future. Employers cannot absorb the rising costs alone and in turn have begun reducing benefits and raising Employee contributions. UGP specializes in providing Employers with very successful alternatives to control the increasingly high cost of providing healthcare benefits to their Employees.

Dental Plans UGP provides a single source solution for your dental insurance needs. We offer a nationwide network of fully insured and self funded options to make your dental plan a success.

DHMO * Preferred Provider Organization (PPO) * Indemnity Plan * Fee for Service Plans *

Voluntary Dental Plans – Direct Assignment/Reimbursement Plans.


The effectiveness of consumer-driven plans is controlling costs which rests on the ability and willingness of Employees to manager their medical care costs. The solution is contingent on raising the awareness of Employees to the actual cost of healthcare. Employers who attempt to cut costs by lengthening probationary periods, raising deductibles or co-pays or severing benefits altogether are only offering short-term fixes. The majority of Employees have no perception how much a doctor’s office visit actually costs. If the co-pay is only $20, the employee will use the service as frequently as he or she sees fit, with the end result of increased utilization and increasing the cost of the employer’s plan. By educating employees about the correlation between utilization and costs, they become partners in the solution and are more accepting of benefit changes and increased employee contributions.

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•Disability •Term Life •Critical Illness •Cancer Protection •Dental Plans

•AD&D Policies •Accident Plans •Hospital Indemnity •Gap Plans

•Doctor’s Office Visits •ER Visits •Accident Coverage •Daily Hospital Indemnity Benefits •Intensive Care Benefits

•Skilled Nursing •Substance Abuse •Mental Illness •Life Insurance

Worksite – Payroll Deducted Policies Today’s workforce is made of a diverse population with each employee having his or her own individual needs and circumstances. By offering Employee paid Voluntary benefits, Employers allow Employees to purchase coverage in addition to what the Employer may or may not offer based on that Employee’s needs. At no cost to the Employer, these Voluntary Payroll deducted policies have a value added benefit for Employees.

Voluntary policies available are:

For example, Employees may wish to purchase life insurance or disability insurance in addition to what the Employer offers to suit their individual needs. Or an Employer may not offer benefits to Employees, and by offering Employee paid voluntary plans, Employers allow Employees to get policies not otherwise attainable.

Your One Source Solution for Worksite Payroll Deducted Policies “Voluntary Plans”

UGP provides the Employer with a one-source solution for all of his worksite solutions. UGP offers a unique in-house solution found nowhere else in the marketplace: In-house enrollment firm, In-House TPA for billing and a In-House TPA directly contracted with Worksite Carriers. Employers & Employee benefits consultants can have one source for customer service, enrollment, and billing for all their worksite products. They no longer need to outsource their worksite products to multiple parties (enrollment firms, billing entities, and insurance carriers) who then have to coordinate amongst themselves. They now have a Single Source Solution!

Gap Plans

Gap Plans help pay for employees’ out of pocket expenses for Hospital and Outpatient services. They fill the “gap” caused by higher deductible or higher coinsurance plans. Gap Plans are an excellent tool for employers who have or are going to implement higher deductibles and coinsurance. The Gap plan picks up the difference caused by the new plan design and can significantly save the employer money on their health plan.

Mini Medical Plans - Limited Health Benefit Plans (Guarantee Issue)

No Pre-Ex Clause $49.99/month Health Plans for the American Worker, Part Time Workers, & Independent Contractors:

UGP offers fully insured and self funded “ mini medical plans” which offer health insurance benefits to Employees starting at under $50 a month.

These plans are guarantee issue, with no pre-existing conditions clauses or evidence of insurability. All Employees are accepted regardless of health conditions and are eligible for benefits. With limited, capped benefits the monthly premium is substantially reduced.

Benefits offered are:

Also included are national medical, dental, and vision PPO networks.

Monthly premium can be paid solely by the Employee or the Employer can contribute.


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Flexible Account Administration- Section 125 Cafeteria Plans Also known as Section 125 plans of the IRS Code, Flexible Spending Accounts (FSAs) offer tax advantages to both Employers and Employees. These plans offer Employers a way to save taxes on their group benefit plans and offer Employees a way to save taxes on money spent out-of-pocket for dependent care and medical expenses.

Money allocated to a Section 125 Plan is subtracted from the Employee’s taxable income and held in a dedicated account. Employees benefit by using the pre-tax income to pay eligible medical and dependent care expenses. In reducing the Employees’ taxable income base in this way, Employer-paid Social Security (FICA) and Unemployment taxes are reduced by approximately eight cents on the dollar. These savings can offset the cost of administrating the FSA program. Health care cost sharing becomes less painful for the Employer and Employees. It also improves morale by reducing Employee taxes, enhances your organization's image and attracts new Employees.

UGP offers both medical reimbursement and dependent care FSA programs, along with premium only plans (POPs).

Administration services can be interfaced with the medical and dental plans to allow for automatic filing and payment of eligible spending account allocations upon processing of the group benefit plans.

We take a unique approach to our cafeteria administration in that we perform the discrimination tests monthly, even though IRS rules require that they be run only once per year. Therefore, if any of our clients fail the test, we can move immediately to bring the account into compliance before the annual testing date.

UGP is customer service oriented; we have established an excellent rapport with our clients’ Employees and we work closely with them when issues arise, from questions about what is covered in their Flexible Spending Account, to easing the burden on human resources. Reimbursement checks can be issued based on the Employer’s desire to accommodate their Employees’ needs.

Section 132 Transportation Accounts

Section 132 of the Internal Revenue Code allows salary reduction and reimbursement for qualified parking, transit passes, and costs associated with commuter highway vehicles for transportation from an Employee’s residence to his place of employment. United Group Programs offers Section 132 transportation accounts that allow money to be subtracted from the Employee’s taxable income to be held in a dedicated account. Employees benefit by using their pre-tax income to pay for any eligible transportation costs.

Transportation accounts operate much like FSAs in a way that health care cost sharing becomes less painful for everyone involved.

Flex Debit Cards

With a Flexible Spending Account Debit card, your Employees can enjoy the convenience of paying for office visit co-pays, new glasses, prescriptions, and other eligible expenses with a Debit Card that is linked directly to their FSA account. Using the debit card, no paperwork is necessary to file a reimbursement claim.


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Debit MasterCard

For Cafeteria Plans, HSAs & Payroll The UGP debit card is an excellent and attractive benefit for both Employees and Employers. The debit card is used to pay for qualified medical expenses such as prescription drugs and copays at doctors’ offices and hospitals for both Cafeteria Flexible benefit plans and for Health Savings Accounts. It can also be used as a payroll debit card where Employees payroll is deposited into the card for Employees that may not have bank accounts or who cannot wait for paychecks to clear.

The card increases Employee participation in Flexible Spending Accounts (FSAs), because this increased Employee contribution and participation means more FICA tax savings for Employers and more take home pay for Employees. The card reduces the need to file claim forms and since it can eliminate the need to pay cash for eligible expenses, it makes the plan much more attractive and easier to use for Employees.

Employers love it because the debit card drives FICA tax savings by increasing Flex account participation and contributions needed to manage the qualifying events, track and manage changes to coverage, provide ongoing communication, and ensure regulatory compliance.

Health Savings Account (HSA) – Plus Debit Card A HSA is a health savings account that has certain tax advantages to Employees and their families covered under a high deductible plan. Like the FSA, an HSA provides that an Employer may subtract a certain amount of an Employee’s taxable income to deposit into a dedicated account. The difference is that these plans are only applicable for Employees under current health plans that have a deductible between $1,000 and $2,600 annually for individuals and $2,000 and $5,150 for a family. The maximum amount that may put away is $2,000 a year.

Distributions for qualified medical expenses are tax free, and an HSA account can earn interest tax-free and funds in the HSA may be eventually rolled over into a 401(k). The HSA is owned by the Employee and is portable. Unlike a Cafeteria account there is no “use it or lose it” provision and funds can be rolled over year to year. Employers who choose a health care plan with high deductibles to decrease costs may lessen the hardship on the Employee by instituting HSA accounts. At the same time, because of high deductibles, Employees experience the true cost of healthcare and start becoming cost conscious health consumers.


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Smooth Sailing Benefits Administration

COBRA & HIPAA Administration

COBRA Administration

United Group Programs, Inc. offers complete administration of your COBRA requirements. UGP will perform the following COBRA administration functions:

• Receive COBRA elections from eligible participants and process application forms

• Track coverage periods as dictated by law and maintain proper documentation of COBRA activity

• Provide expert advice on COBRA related issues • Collect participant payment • Answer inquiries from qualified beneficiaries • Handle monthly reporting COBRA administration is both complex and time consuming. By allowing UGP to administer your COBRA coverage, Employers are assured of adherence to the ever-changing regulations governing it. Like all of our programs, our unique system design provides for the integration of claims management and COBRA eligibility. Employers are relieved of the liability and the burden of staying on top of changing legislation. UGP will handle all member notifications.

Full-Service Administration – Because we manage a large number of clients in our system, we are able to spread the fixed costs to achieve economies of scale that an Employer could not. Employers avoid the expense of the staff and technology associated with administration of COBRA.

HIPAA Administration

HIPAA administration requires specialized knowledge of how governmental requirements relate to individual plans. Special notice requirements concerning pre-existing conditions, exclusion periods, rights regarding prior credible coverage and certificates, along with the necessary calculations can be an area of great confusion. United Group Programs, Inc. is able to eliminate this confusion and assure compliance with HIPAA provisions. We prepare the necessary notifications, and work with eligible participants to gather prior coverage information. We verify all information received, calculate periods of credible coverage and pre-existing exclusion periods, then track those periods within our eligibility and claims adjudication systems.

This added service provides assurance of HIPAA compliance without the associated confusion and time-consuming administrative tasks.

Compliance can be risky business

As a national Third Party Administrator, we understand that one small mistake could spell disaster. Every single detail — from initial notifications to retention of proof — must be handled correctly the first time, every time. UGP employs a staff dedicated to assuring that your plan remains in compliance with all applicable laws and regulations. There are numerous regulations that apply to group health plans, and these legal requirements change frequently. Our in-house counsel keeps abreast of the new legislation and court decisions that may affect your plan and the administration thereof.

UGP will consult with you to develop plan language to meet both your criteria and legal requirements. Our experienced staff, using our unique system, can design and prepare your plan document and summary plan description to meet your requirements and to assure legal compliance.


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Our PPO Networks A key to our success, United Group Programs, Inc. offers choice, flexibility, quality and ease of access with its established relationships with the largest PPO Networks in the country as well as strong local and regional PPOs. In today's Employee benefits environment, Employers are often faced with a trade-off between providing comprehensive benefits packages to their Employees and controlling costs by limiting or eliminating excellent provider networks. UGP’s network discounts enable Employers to enhance their existing benefit package by offering significant healthcare savings without limiting choices for providers.

Association - Affinity Benefit Programs

UGP tailors to the Association’s unique organizational needs

UGP specializes in the design, administration and marketing of custom private label insurance programs for Associations and their members.

Branding and private labeled services for association benefits is one of the key elements to maintaining and expanding overall member participation. It will also increase the association's image by enabling them to offer a total benefits program that is "exclusive" to their organization and only available to their members.

Primary Networks:

• Over 550,000 providers and more than 2,000 hospitals

• Centers of Excellence

• Online customized PPO Network directories

Supplemental Networks:

• Over 600,000 providers and more than 4,000 hospitals

• Online provider locations through our website.

For Agents & Consultants: Employers turn to their Employee benefits consultants for guidance in their benefit and administrative solutions. UGP provides a winning formula for Employee benefits consultants:

Excellent Customer Service & Quality Product Choices = Opportunity to Grow Their Business and to Retain It.

No More Referrals

UGP provides “open access” to its Preferred Providers that represents an extensive spectrum of care including all medical specialties. With the belief that referrals only cost clients more, Employees can avoid the visit to the primary care physician merely for the purpose of obtaining a referral. This saves the Employee’s costs for the visit, time away from work, and reduces claims liability. Our knowledgeable customer service staff is available to provide information on the specialists appropriate for the Employee’s condition.

UGP's National PPO Networks address our clients’ healthcare needs through a flexible and innovative approach. Our networks are the best for your Employees, while offering discounts up to 37% and more nationally.


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UGP Overcomes Common Employer Misconceptions At UGP, we understand that making a change in Employee benefits plans seems like a difficult decision and that implementation will be arduous. Knowing this, we specialize in overcoming these perceived obstacles.

Here are some common misconceptions:

“We do not have enough payroll slots to offer other voluntary or non-voluntary products.”

By offering a consolidated bill, UGP can combine different products and provide the Employer with one list bill with one payroll deduction for Employees for multiple products.

“We cannot offer more insurance products to my Employees nor are we willing to switch insurance carriers because we don’t have the support staff to take on additional work and the stress of a move.”

Choosing United Group Programs services will immediately release the client’s staff from administrative burdens they previously had with other products or carriers. UGP provides a seamless solution with the support staff to assist and take over some of human resource duties, so that human resources can focus on what’s most important – Increasing the Bottom Line.

UGP’s Customer Service

Customer Service “the way it should be.”

UGP has one customer service philosophy. To excel in customer service and provide the most responsive and personalized service for Employers.

Clients are assigned a dedicated account team that is cross-trained on the Employer’s plans, so that the Employer always has someone to call for immediate answers and solutions.

Worldwide Insurance & Financial Specialists Florida Georgia Pennsylvania

National Headquarters United Group Programs

2500 North Military Trail, Suite 450 Boca Raton, FL 33431 (800) 842-8770 x 2922

www.ugpinc.com/daimlerchrysler.html [email protected]


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