Blue Cross and Blue Shield of Minnesota & SelectAccount Marlo A. Peterson Options Blue Specialist

1. Blue Cross and Blue Shield of Minnesota& SelectAccount Marlo A. Peterson Options Blue Specialist October 9th 2008 South Central Service Cooperative SelectAccount Overview

2. Who is SelectAccount? • 20 years in the medical banking industry • 8th largest medical banking facility in the country • 3,000+ employer groups • 160,000+ medical accounts • Over $60 million in medical funds • 2005-2006 - 56% growth • 2006-2007 – 40% growth • 2005 - 40 Employees / 2007 – 160 Employees • Fully owned subsidiary of BlueCrossBlueShield of MN

3. Products Offered and Sold at SelectAccount • HSA (Health Savings Account) Administration • HRA (Health Reimbursement Account)Administration • FSA (Flexible Spending Account) – Medical, Dependent care & Transportation • POP (Premium only Plan) – Pre Tax medical deductions • VEBA - For Service Cooperative Groups Only

4. Unique Services available at SelectAccount • Account Stacking • Crossover • Direct Deposit • BCBS Integration • Member Service Call Center • Dedicated Broker & Group leader service lines • Web site www.selectaccount.com

5. Changes to the VEBA plan effective 11-1-07 • SelectAccount will be the banking custodian – lower fees. Fees reduced from $2.45pmpm to $1.83pmpm – One customer service location and number • Claims will pay from base balance only unless directed by member to pay claims from investment account. – Better control for members with their VEBA funds. • Investment fees $1.50/month will only be charged if the member invests in Mutual funds – Base accounts currently earn between 2.00 – 5.2% interest with no investment fee • 15 top in class mutual funds available - optional • No additional fees to add a FSA along side a VEBA account • If the member does not want the VEBA account but does want the FSA – members pays same 1.83pmpm • Investment training – A DVD is in production

6. Cost Table For November 1, 2007 Coop Pricing

7. VEBA investment Transition Timeline • September 13 & 17 Group leader/Agent conference call • September 15th members received a transition notification letter • October 3rd – No movement between investment funds at Wells Fargo (black out period) • October 23rd Member Investment Web Cast • October 30th Wells Fargo will liquidate account and transfer funds to SelectAccount • November 1st New Selectaccount Premium Saver accounts established • November 5th Members may invest funds over $1,000 with SelectAccount / Devenir No Action is required for this transition from the member

8. Customer Service at SelectAccount • Average Speed to Answer, August 2007 = 11 seconds • 93% of Claims Paid in Less than 7 days After Receipt • New Coordination With Blue Cross Customer Service so that Incoming calls are “Soft Transferred” to SelectAccount • IVR Voice Recognition Customer Service Phone System • Upgraded Software Platform • Dedicated Agent and Group Leader Lines Agent 1-888-460-4015 Group Leader 1-888-460-4013

9. In Summary….. • November 1st will bring changes to the VEBA plan however the well thought out transition plan will be a positive member experience. • SelectAccount’s Key Advantages are crossover, low administrative Costs and enhanced customer service. • Service Cooperative Groups Have Advantages Beyond VEBA – For example: Lower HSA & FSA pricing, dedicated service team • SelectAccount will continue to concentrate resources on maintaining our current customer service statistics, a 7 million dollar investment. • The Service Cooperatives are SelectAccount’s largest customer and will continue to be provided every resource available

10. Questions ???