Bernie,
Good - this functions with an OODB, that will allow you to export the data directly into a third party app (as the specs say). That app contains the up-to-date XML schema (you don't type this up - that is what the OODB is for).
Calculating the coverage periods is automatic, provided that your data entry is accurate. It's like entering a calculation in an Excel spreadsheet field. I'm sure you probably understand this, but you mentioned it like it was a big deal - it really isn't. Computers can actually be used for other things than posting rude messages to each other.
So the data you are populating is insurance company and ID, sub and dependents name, DOB, addy, and sub id. You are simply porting this output to either an XML file to send to MADOR or dumping it to a printer.
And what extra data is on this spreadsheet?
You still have not told me your cost/time breakdowns. Do you use pre-printed forms or do you print the whole thing? How about envelope stuffing - do you do that by hand?
I'll assume postage will be $2200 - though you may be able to reduce by presorting and bulk mail.
The data part should really be the cheapest and easiest. It might cost you $100-200 per year for a software package update, but that should also really be very simple. You probably wouldn't even need an IT guy to do it.
Steve