Southeast Health Plans, Inc. is a service company that will provide health plan administrative services to self-insured employers. The company will be focusing on employers with 50-50 employees. Many of these employers have a current HMO, PPO and major national insurance carrier healthcare plans. While the majority of employers with 500 or more employees have at least some element of self-insurance incorporated into their health care programs, our target market is often ignored by the major national insurance companies. While more than 80% of companies with 500 or more employees are self-insured, the management of Southeast Health Plans has identified that less than 25% of Atlanta area companies with 50 to 500 employees have self-insured plans.

Companies who are currently self insured and those with other types of insurance will have to transition to self-insurance. One factor in the transition to self-insurance is the availability of quality administrative and consultative services. Southeast Health Plans, Inc., led by experienced management, has formed an alliance with Blair Mill Administrator, Blue Cross/Blue Shield’s wholly-owned subsidiary, for the purpose delivering first-class benefits administration services to its target markets.

Southeast Health Plans, Inc. will achieve revenue of more than $5 million in five years with a net profit after tax of $1.6 million. After-tax earnings of $560 million will make the company profitable by year three. Margins as a marketing company and service provider will be high. Gross margins exceed 80% (less sales incentives costs) and close to 50% after operating expenses. Once market penetration has reached maturity, the company will turn profitable.

Southeast Plans, Inc. will succeed if it can attract the initial capital needed to market its services throughout the Atlanta metropolitan area and northern Georgia. The company must have the right professional sales staff. It is then necessary to establish a solid formula for expansion in the Southeastern regions. It is important to control costs, especially for marketing and sales programs. The internal cash flow will fully finance the expansion.

1.1 Objectives

The objectives for the company are:

1. To create co-operative marketing with Blair Mill advertising executions using media in the Atlanta Metro Market.
2. To hire and identify sales people to follow up on sales leads.
3. To have at most 4,800 cumulative employees under the management by year one.
4. To break even by the end year two with a net loss of less than $100,000. While increasing market share,
5. To shift from earnings to year three and to improve gross margin contributions.
6. To grow regionally, with sales and media personnel, to penetrate new markets and consolidate service capabilities.
7. To achieve constant cost benefit through an ever-expanding provider network without compromising patient service.
8. To have more than 98,000 cumulative employees under management by the end of year five.

1.2 Mission

Southeast Health Plans, Inc. was established to offer small and mid-sized businesses a comprehensive benefits program. This will enable them to keep their health insurance costs under control, and allow employees to have access quality health care. Southeast will combine self-insurance, stop-loss plans, and efficient plan administration to offer both employers and employees the best in health care. Southeast will provide quality and choice at an affordable price.

1.3 Keys to Success

These are your keys to success in the business.

1. Marketing. Southeast Health Plans will have the ability to sell both directly to employers and through independent insurance brokers and agents. It will be necessary to establish name recognition among more established programs. It is important to control media budgets and maintain closing ratios of 5% per annum for leads.
2. Quality service. Blair Mill Administrators’ services are considered the best among small-employer providers. Customers will be satisfied due to the value-added experience of the Southeast Health Plans, Inc. Management Team and their provider network.

It is a necessity that clients maintain satisfaction both with service and plan cost to minimize client erosion and to combat competition. Clients who have been clients for more than 85% should be renewed.