HNE had a transformative year in 2007. The company finished the year with over 100,000 members, U.S. News and World Report rated HNE among the top 10 health plans in the United States, and we provided new affordable health insurance products for sale through the Commonwealth Health Connector, including a narrow provider network product managed jointly with Baycare Health Partners .

2008 offers many more challenges and opportunities.

• We are preparing for our next NCQA site visit in early 2009.
• The Commonwealth has required that all health plans report quality and cost data to the newly created Quality and Cost Council.
• As a Group Insurance Commission contracted health plan, HNE has developed a tiered network based on care efficiency and quality for state employees and dependents.
• Also in 2008, HNE intends to file an application with the Centers for Medicare and Medicaid Services for a Medicare Advantage HMO and a Part D Medicare pharmacy benefit.
• Finally HNE is committed to addressing health care disparities based on a member’s race or ethnicity. HNE has trained most of our staff to understand this complex issue. Managers in health services and member services have developed scripts for an HNE associate to discuss this potentially controversial subject with a member, provider or employer so that HNE can collect member specific race and ethnicity information.

As always, HNE could not have accomplished or contemplated these objectives without continued support from our provider network. Sometimes our ideas need “vetting.”As Chief Medical Officer, I know that I can count on your feedback about all our initiatives. Your feedback is important; we regularly modify those iniatives after hearing from you. We look forward to your support as we take on the opportunities and challenges in 2008.