The increase in medical expenses from self-insured employee medical plan was due to much higher utilization of the plan in the second quarter which reduced net income for the quarter by 2c. Absent these higher than expected costs, CTG's second quarter earnings would have met initial guidance for the quarter. The company added, "While this higher level of medical expense may be an anomaly to the second quarter, to be prudent we are increasing our projected medical costs for the rest of the year. While most of the earnings reduction relates to higher medical expense, we have also made adjustments in our earnings guidance for the full year based on some rate renegotiations in our staffing business. The reduction in revenue for the year is a result of slightly lower demand for our staffing business than previously projected."