NACS HR Forum March 8, 2006

1. NACS HR Forum March 8, 2006

2. “The secret of a good Power Point presentation is to have a good beginning and a good ending; and to have the two as close together as possible.” - George Burns (modified)

3. Problem: Affordable Health Insurance for Non-Exempt Employees of Convenience Store Operations

4. Health Insurance Dilemma for Non-Exempt Employees • Price of Traditional Medical Insurance is reaching a point where it’s not affordable • Typically Non-Exempt Employees are either priced out of Traditional Coverage or excluded all together from their companies’ plans • Employees earning less than $15 per hour constitute more than 71% of all uninsured in the United States. (Source – Department of Labor)

5. Employer Health Care Dilemma: Providing Health Care for Non-Exempt Employees • Cost of Providing Traditional Medical for Non-Exempt Employees is out of proportion with earnings • Turnover Rates for Non-Exempt Employees is typically between 100% and 150% per year • Competitive labor market environment for quality Non-Exempt Employees ◙ Larger corporations (i.e. McDonalds, Wal-Mart, Home Depot) offer some level of benefit

6. Healthcare Solutions For Non-Exempt Employees

7. Basis for Non-Traditional Health Plans: Claims Experience 55% of insureds have annual claims < $1,000 70% of insureds have annual claims < $2,000 80% of insureds have annual claims < $3,000 Milliman USA (2002) - Source: Assurant Health/Time Insurance Company Small Group HSA/HRA Consumer Choice Product Training Presentation Disc 2004

8. Types of Non-Traditional Health Insurance Plans for Non-Exempt Employees • Discount Plans – Featuring discounts on services such as prescriptions, doctor/hospital network discounts, and vision programs.  Typically not “insurance” plans. • Dreaded Disease and Catastrophic Plans – Featuring limited benefits for specific types of illnesses such as cancer or heart diseases. They are normally limited to specific types of illness and are not comprehensive. • Mini-Medical – Featuring fixed cost benefits with Plan Maximums typically $5,000 or $10,000 Annual Maximums. • Limited Medical Plans – Featuring higher fixed costs than Mini-Medical with Plan Maximums that start at $100,000 in Annual or Lifetime Benefits.

9. Non-traditional Plan Spectrum

10. Solutions: The Lewer Agency - 50 years providing employee benefit solutions for petroleum and convenience store operators - from one location operators to multi-state national chains. Programs include: • Traditional Health Plans • Affordable Limited Medical Plans • Consumer Driven Health Plans (HRA/HSA) • Dental, Vision, and Disability Plans • Life Insurance • Retirement

11. Our Experience in Your Industry has indicated many Employers are: • Frustrated with the lack of creative and customized solutions • Challenged with providing affordable plans to full-time, non-exempt employees • Burdened with plan administration • Concerned with current renewal trends; premium costs are beyond the reach of the company’s resources

12. Solution: • Voluntary Plan • Employer Contribution Optional • Minimum Enrollment of 5 Employees

14. Solution: New!New!New!New!New!New!New!New! • Contributory Plan • Minimum Employer Contribution – 20% of premium • Minimum Enrollment – 25 Employees or 20% Participation

15. New!New!New!New!New!New!New!New!

16. Solution: New!New!New!New!New!New!New!New! • Minimum $4 per week premium or $5,000 Death Benefit, whichever is greater • Maximum $50,000 • No Exams

17. Custom, Flexible Benefit Solutions for Your Workplace Affordable Group Medical Plans: • Lewer ValueHealth (5 to 49 employees) • Lewer ValueMed (50 employees +)Group Life Insurance • Lewer ValueLifeGroup and Individual Dental, Disability and Vision Plans • Lewer HealthySmile • Lewer OptiView

18. 4534 Wornall Road Kansas City, Missouri 64111 1-800-821-7715 Michael D. Lewer President 1-800-821-7715 extension 101 mlewer@lewer.com www.lewerworks.com “We Are Known by the Companies We Serve.”