This document summarizes The Alliance Cooperative, a not-for-profit cooperative that provides health care benefits and services to self-insured employers. Key points include: - The Alliance was founded in 1990 by seven Madison-area employers and is member-owned. - Between 2010-2012, the average annual increase in medical costs per employee for Alliance members was 4.6%, lower than the national average. - The Alliance has contracts with over 63 hospitals, 5,100 doctors, and other provider types across over 2,675 clinic sites. - The claims process involves health providers submitting claims to The Alliance, who reprices and sends to the third-party administrator to pay according to the employer's plan

1. Solution
Advantage
Quality
TPAs
Resource
THE
®
ALLIANCE
VBBD
Agent
Self-Insured
Health Care
Benefits
Self-Fund
Employees The Alliance
Cooperative
Network Control
Cost Moving
Engage
Employer Solution
Forward
Benefits Cost
Value Cooperative
Self-Insured
Quality
Control Self-Funded VBBD
Engage Improve
Members The Alliance Moving Forward Members
Network Improve Resource Value
Employees Advantage
Health Care

2. Cooperative
As a not-for-profit cooperative our
members are the owners.
The Alliance was founded in
1990 by seven Madison-area
employers.

3. What Difference Does
Member-Owned Make?
4.6%
The average increase Alliance
members experienced in
medical costs per employee
per year.
*Does not include pharmacy data, (2010-2012).
12%
10%
8%
6%
4%
2%
0%
10.6%
8.3%
4%
2.7%
2008
2009
2.5%
2010
2011
2012

4. Provider Contracting with over:
63 Hospitals
5,100 Medical Doctors
10,365 Professional Service Providers
2,675 Medical Clinic Sites
422 Chiropractic Clinic Sites
433 Mental Health Clinic Sites
195 Home Care Agencies

5. Claims Flow
Health care
provider
generates claims
and forwards to
The Alliance.
The Alliance receives
claim, collects data,
reprices, and sends on
to TPA within three
working days.
TPA receives claim and
pays according to The
Alliance directive
based on the
employer’s benefit
plan design.

6. Membership Fee Schedule
ONE TIME FEE
Membership Stock=$10
Capital Equity Stock = $10 per Alliance enrolled employee
ONGOING FEES
EXAMPLE
Access Fee = $1 per employee per month
Retainage = 3.3%
$100 claim – 34.7% average discount
$34.70 savings – 3.3% retainage
$1.15 in retainage paid to The Alliance
$33.55 net savings (savings minus
retainage)
-an effective discount of 33.55%
PATRONAGE
Average annual patronage dividend over
the past five years has been 14.28%.
Net income for The Alliance is allocated
to our member companies at the end of
the fiscal year.

7. Facilitating Member Interaction
Alliance Learning Circles
Alliance Product Partnerships
Alliance-Supported Tools
Free Reports
Initiatives

9. www.the-alliance.org
crigsby@the-alliance.org
800.223.4139 x6643
608.630.1865 (cell)
Calvin Rigsby
Business Development Manager