Acquisition Enhances Hewitt's Capabilities to Help Employers
Reduce Their Health Care Costs
LINCOLNSHIRE, Ill., May 06, 2010 (BUSINESS WIRE) --Hewitt Associates, a global human resources consulting and outsourcing
company, today announced it has acquired HRAdvance Inc., a leading
benefits dependent audit services company. HRAdvance's solution further
strengthens Hewitt's existing dependent eligibility offer.
Hewitt's research shows that the amount employers pay in health care
costs per participant1 has almost doubled in a decade--from
$3,531 in 2001 to a projected $7,035 in 2010. With this trend expected
to continue over the next 10 years, more companies are looking for ways
to reduce their overall health care costs. According to data from
HRAdvance's client base and Hewitt's own experience, employers have
saved 4 to 8 percent of their annual health care costs by conducting
eligibility audits and removing ineligible dependents.
HRAdvance has a suite of products tailored for companies looking for
ways to reduce their health care costs. Plan-Smart(TM) offers
employers a comprehensive audit of their covered dependents to identify
potential cost savings from identifying ineligible dependents. Plan-Guard(TM)
is an ongoing solution that helps companies ensure dependent eligibility
at the time of enrollment.
HRAdvance will become part of Hewitt's Point Solutions business in
Benefits Outsourcing, which already provides a range of services
designed to improve workers' lives and solve productivity, compliance
and attraction/retention problems.
"With virtually all of HRAdvance's clients willing to serve as
references, it's clear the company delivers meaningful, high-quality
results for employers," said Russ Fradin, Hewitt's chairman and chief
executive officer. "HRAdvance's scalable, proprietary platform and its
experienced team bring important enhancements to Hewitt's existing
dependent audit capabilities. We're optimistic about the future growth
opportunities this acquisition will bring for our Point Solutions
"We've built a strong reputation in the industry, and we're well-known
for our ability to deliver real cost savings for our clients," said
Craig Firestone, founder and president of HRAdvance. "Joining Hewitt
gives HRAdvance the opportunity to significantly expand its reach
through Hewitt's already-strong market position in HR consulting and
HR Advance was founded in 2004 with a single mission: to provide HR and
benefits professionals with best-practice hosted solutions that can be
deployed without capital expenditure or IT dependency. Its guiding
principle is that employees are the most valuable assets of every
The company's core competencies are its Plan-Smart(TM) and Plan-Guard(TM)
dependent eligibility audit solutions. Its management competencies and
healthcare focus reflect more than 150 years of combined experience in
developing automated human resource, benefits, administrative and
financial services for government, public and private organizations.
to learn more.
About Hewitt Associates
Hewitt Associates (NYSE: HEW) provides leading organizations around the
world with expert human resources consulting and outsourcing solutions
to help them anticipate and solve their most complex benefits, talent,
and related financial challenges. Hewitt works with companies to design,
implement, communicate, and administer a wide range of human resources,
retirement, investment management, health care, compensation, and talent
management strategies. With a history of exceptional client service
since 1940, Hewitt has offices in more than 30 countries and employs
approximately 23,000 associates who are helping make the world a better
place to work. For more information, please visit www.hewitt.com.
1 Hewitt's health care cost data is derived from the Hewitt
Health Value Initiative, a cost and performance analysis database of
more than 1,700 health plans throughout the U.S., including 325 major
employers representing more than 13 million health plan participants.
SOURCE: Hewitt Associates
Amy Wulfestieg: 847-442-4982
MacKenzie Lucas: 847-442-2995
Media Helpline: 847-883-1000
Sean McHugh: 847-442-4176