Allied National™ Funding Advantage New Funding Options September 2013

1. Allied National™ Funding Advantage New Funding Options September 2013 11199s0813

2. Allied National Profile Innovation Stability Service 2

3. Why Would a Small Business Want to be Self Funded? Projected Self Funding Costs

4. Why Self Funding 4

5. Alternative Funded Small Group Medical Plan Self Funding “on training wheels” 10 or more lives Self funding made “SIMPLE” Prepackaged plan docs and specific and aggregate stop loss Multiple funding options – cash flow management Terminal liability coverage included What is Funding Advantage? 5

6. Flexible Plan Designs Options: • Deductible • Coinsurance & Out-of-Pocket • Rx benefits • Office visit copays Plans: • Premium Advantage PPO plans • HSA Qualified HDHP plans • No PPO option plans 6

7. Provider Freedom Plan • True freedom of provider choice • No network – no penalties • Proven model • PPO like discounts • Better premium discounts • Will defend balance bills 7

8. How Funding Advantage Works 8

9. Sample Funding Advantage Plan

10. Why New Options? • Agent & Broker requests • Marketplace requires flexibility • Better cash-flow options • More immediate reward for well-managed plans 111660613 Edition 06.06.13

11. New Self-Funding Options 11

12. Full Pay Level Funded Specific Stop-Loss Agg Stop Loss Max Funded Employer Funds $390,048 @ $32,504/mo Employee’s Deductible & CoPay

13. Partial Pay Option Fund to Expected Specific Stop-Loss Agg Stop Loss Employer Funds $390,048 @ $32,504/mo Required Funding Unfunded Exposure Employee’s Deductible & CoPay

14. Pay As You Go Option Specific Stop-Loss Agg Stop Loss Employer funds claims as needed Employer Funds $390,048 @ $32,504/mo Deposit Employee’s Deductible & CoPay

15. iHRA Option Specific Stop-Loss Agg Stop Loss Required Funding Employer Funds $390,048 @ $32,504/mo Unfunded HRA Exposure Employee’s Deductible & CoPay

16. Important Considerations Regardless of funding option: • Employer spends same amount at end of the year • Employer always protected with accommodation to accumulated maximum exposure 111660613 Edition 06.06.13

17. Cash Flow Volatility Considerations Full Pay No volatility Partial Pay Driven by Severity iHRA Driven by Frequency Pay as You Go Not predictable

18. Allied National’sUnique Underwriting Philosophy TODAY Traditional Underwriting Past history Price based on past health history, industry trends, credits & debits Allied National “Health Risk Assessment” Future costs Price based on futurehealth care costs

19. Funding Advantage With 100+ experience underwriting

20. For Plans Effective 11-1-2013

21. Agent’s Compensation Structure <25 lives >26<50 lives >51-100 >100-151 151+ 6% 5% 4% 3% 2.5% Based on max-funded monthly cost

22. Allied Website Resources • Sales resources • www.alliednational.com/fa • “On the Air” programs • www.alliednational.com/ontheair.htm 111660613 Edition 06.06.13

23. Our Sales TeamContact Us Email or fax data to “Sales” sales@alliednational.com 888-767-7133 Fax: 913-945-4390 Our Team • Dan Meylan: National Sales Director; 913-945-4253 • Bill Ringhofer :Northern Sales Manager; 913-945-4266 • Randy Wehner: Southern Sales Manager; 913-945-4267 • Joy Bruno: Account Executive; Northern area; 913-945-4255 • Cheryl Knight: Account executive; Southern area; 913-945-4261

24. Allied National, Inc.4551 W. 107th St. #100Overland Park, KS 66207 Thank you! Allied Sales Support 888-767-7133 www.alliednational.com sales@alliednational.comtwitter.com/alliednational Fax: 913-945-4396