FOR IMMEDIATE RELEASE
Contact: Ed Domansky
Director, Corporate Communications
(770) 994-4579
ATLANTA, May 19, 2005 -- LogistiCare announced today that it has received approval to launch a vehicle insurance program for transportation providers operating within the company’s network. The new insurance program was created in response to provider concerns about the high cost of vehicle insurance.
Sponsored by LogistiCare Provider Services (LPS), the program will provide automobile and general liability insurance coverage for commercial vehicles. This insurance program is offered in partnership with three of the world’s premiere insurance industry companies – Marsh, Discover RE and Crawford & Co.
“We have been working for many months to develop a lower cost insurance program for transportation providers in our network,” said Allen Bogenschutz, director of LogistiCare Provider Services. “With vehicle insurance rates skyrocketing as they have been lately, we believe that this new insurance program is something transportation providers cannot afford to ignore.”
LPS will offer rates 10 percent or more below what commercial providers currently are paying. To be eligible for the insurance, transportation providers need only complete an application along with submitting their current insurance policy and their loss runs for the current and three previous years for review by LPS underwriters.
“We did this because it is the right thing to do. The insurance market continues to be extremely volatile, and our providers are facing escalating costs for their vehicle insurance,” added John Shermyen, president and chief executive officer of LogistiCare. “Providers can achieve immediate savings. And, based upon the exceptional interest we’ve seen already, we believe that this offering supports our transportation partners in the non-emergent transportation market. We will continue to do everything we can to support their efforts to increase their efficiency and profitability.”
“LogistiCare’s insurance program clearly demonstrates their understanding of a serious issue we are facing,” said Sylvia Robinson, owner of We Care Transportation in Riverdale, Ga. “Insurance is a huge expense for us and our rates seem to keep going up. This program reduced my cost substantially, and the service was very quick. No other transportation broker has taken this level of interest in helping us. I would recommend it to others, and I definitely would do it again.”
For more detailed information about the program, interested transportation providers should contact Mr. Bogenschutz at 770.994.4551 or allenb@logisticare.com.
Headquartered in Atlanta, LogistiCare is the nation's leading provider of specialized transportation network management. The company's government clients include state Medicaid agencies, Medicare HMOs, school boards, transit and paratransit authorities. Health care sector clients include hospital systems and many of the nation's largest managed care organizations.
With its market innovation, proprietary software, and proven record of creating budget stability and program integrity, LogistiCare is well known as the leader in improving non-emergency transportation programs. On an annual basis, the company manages a national network of more than 1,700 transportation companies that deliver more than 13 million trips to customers annually.
