RD146 - Mandated Benefits Report - Fiscal Year 2010

Executive Summary:
Aon Hewitt was retained by the Commonwealth of Virginia’s Department of Human Resource Management to review and evaluate the Mandated Benefits Reports as prepared by Anthem and Optima for the Commonwealth’s Health Benefits Plans. They received the reports provided by each of the vendors as well as the insured “book of business” reports provided by both vendors at our request. The Commonwealth specific reports are attached. The reports provide cost and utilization information for each of the mandated benefits and providers as required. Aon Hewitt reviewed and compared both reports specific to the Commonwealth’s plans alongside the “book of business” reports. The Commonwealth reports reasonably tie to internal data. To itemize and comment on any material impact of the mandated benefits provisions and project future trends, Aon Hewitt would need to observe comparative data over time. At this point, they do not have sufficient history to draw any specific conclusions. Aon Hewitt will continue to monitor the reports, and expect to have more information in the coming years as they are able to compare year over year results.