BASKING RIDGE, N.J., Apr 29, 2010 -- Hooper Holmes (NYSE Amex:HH) today introduced iParamed e-Exam, a technology platform that delivers a complete digital case file for any life insurance applicant located anywhere in the U.S.
The iParamed e-Exam transforms the way applicant health information is collected and reported. Today, most insurance medical exams are captured on paper and eventually faxed to underwriters. Instead, iParamed e-Exam equips examiners with an encrypted, mobile netbook that automatically submits structured data to carrier underwriting or workflow systems.
"On average, insurance companies spend about $500 to underwrite a case. We believe we can cut that cost in half," said Roy H. Bubbs, President and CEO of Hooper Holmes. "Hooper Holmes' iParamed e-Exam changes how carriers work, and the products they can offer in the future."
iParamed platform capabilities will be rolled out in four stages. All iParamed technology features will be available by the end of this year. The first feature set, available now, has been deployed in two major metropolitan areas. It provides electronic image feeds, digital signature capture and reflexive exam questions, whereby additional applicant information is collected based on responses and insurance company requirements.
The second iParamed feature set includes automatic import of structured data into carrier systems, automatic lab slip population, reflexive Attending Physician Statement (APS) ordering and full tele-interview capabilities. These features will be available in June 2010.
"If information is missing from an application, the underwriting isn't accurate, and that affects carriers' claim ratios down the road. Hooper Holmes' iParamed e-Exam has been designed to eliminate that risk and increase placement ratios," said Richard Whitbeck, President of Portamedic, Hooper Holmes' paramedical exam business.
The third iParamed feature set includes a simplified underwriting engine for straight-through processing of certain life insurance products, integration with Bluetooth scales and blood pressure cuffs, and digital EKG integration. These features will be available by the end of the year.
The fourth iParamed feature set includes advanced underwriting. The platform's capabilities combine prescription histories, Physician Information Line (PiL) disease profiles and reflexive tele-interviews and engine-driven underwriting to process a larger percentage of applications, allowing underwriters to focus on more challenging cases. These features will be developed in partnership with carriers.
"Coupled with Portamedic's Instant Scheduling, Heritage Labs' disease risk scores and Hooper Holmes Services' tele-interviewing program, our iParamed e-Exam is another new, powerful tool to help life insurance companies reduce costs and improve placement ratios," said Roy Bubbs, President and CEO of Hooper Holmes. "The iParamed eExam completes an extremely compelling bundle of services for Hooper Holmes customers."
The iParamed e-Exam platform has been under development in Hooper Holmes since September 2008. The platform has been successfully in trial for more than six months in two metropolitan areas with a major life insurance company. Nine insurance companies have asked to participate in the platform launch.
About Hooper Holmes
Hooper Holmes is a leader in collecting personal health data and transforming it into useful information, enabling customers to take actions that manage or reduce their risks and expenses. With presence in hundreds of markets and a network of thousands of examiners, Hooper Holmes can arrange a medical exam anywhere in the U.S. and deliver the results to its customers.
Hooper Holmes has four businesses. Portamedic provides a wide range of medical exam services nationwide. Heritage Labs tests millions of samples annually and helps life insurers improve underwriting performance by better applying the predictive powers of today's tests. Hooper Holmes' Services reduces the submission-to-commission cycle through integrated data collection, tele-interviewing and underwriting services. Hooper Holmes Health & Wellness provides a complete service for wellness, disease management, and managed care companies including scheduling support, fulfillment of supplies, blood collection kits, medical screenings, lab testing and data transmission.
This press release contains "forward-looking" statements, as such term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, these forward-looking statements are our ability to successfully implement our business strategy; uncertainty as to our working capital requirements over the next 12 to 24 months; our ability to maintain compliance with the financial covenant in our credit facility; our expectations regarding our operating cash flows; and the rate of life insurance application activity. Additional information about these and other factors that could affect the Company's business is set forth in the Company's annual report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission on March 12, 2010. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events, except as required by law.