News Releases

February 1, 2007

Presentation: Lessons Learned on Managing Workers’ Compensation Drug Costs

Joseph Paduda, Founder and Principal, Health Strategies Associates and Francis Fey, CEO/President, JI Companies will be presenting lessons learned at the Pharmacy Benefit Management Institute (PBMI) annual conference in Phoenix on Thursday, February 22, 2007. Mr. Paduda will focus first on the results of the recent Workers’ Compensation PBM survey his firm conducts annually on trends in the pharmacy space. The results provide insights into how the WC industry is beginning to shift its focus to better managing their pharmacy spend.

While drug costs are the fastest growing element of workers’ compensation medical expenditures, payers are constrained by extensive state regulation of the programs. Mr. Fey will review effective strategies his firm has implemented with client workers’ compensation programs to curb the rate of increase in drug spend. JI’s clients have seen a dramatic slow down in pharmacy costs through both administrative and clinical initiatives, and have seen a resulting much larger savings from the consequential reductions in future medical and indemnity costs for those claims.

About Health Strategies Associates - Principal Joseph Paduda and his associates tap a wealth of industry insight and experience to deliver programs and services that reduce the cost and improve the performance of managed care programs without compromising the quality of health care.

We are smart and fast. Our continuous analysis of the health care industry and macro-economic factors along with our practical experiences working with clients to develop real savings keep us on top of the industry and able to respond with immediately actionable plans.

Services encompass research, competitive analysis, operational and sales improvements to the health care industry. It’s all highly customized – there are no cookie cutters in our briefcase.

Our national and regional client list includes insurers, managed care companies, employers, health care providers, and venture capitalists. Contact Joe Paduda at (203) 314-2632 or jpaduda@healthstrategyassoc.com or visit our website http://healthstrategyassoc.com

About JI Companies - Serving employers since 1985, JI Companies specialize in third party administration for all forms of self-funded risk management programs: Workers’ Compensation, and Liability and Property coverage. JI provides a single source Workers’ Compensation solution—JI does more than just handle claims, we help our clients actively manage their programs.

Our integrated systems are fully paperless and provide clients full 24/7 access to all of their claims information real time. JI provides public and private entities and associations with efficient claims administration, integrated medical & pharmacy benefit management, delivering performance-driven results and unparalleled customer service.

We approach each client relationship as a true partnership and respect our resources by being good stewards of that trust.

For more information about the pharmacy initiatives or about JI Companies, contact Francis Fey at (512) 427-2301 or francis.fey@jicompanies.com

Visit our website at www.jicompanies.com

About PBMI - The Pharmacy Benefit Management Institute (PBMI) provides research, continuing education, publications & Web resources that help health care benefit executives work effectively with their pharmacy benefit managers to improve the design and management of drug benefit programs. Learn more at www.pbmi.com.