What Factors Effect Group. Ins. Costs?

1. Transaction & Administration Fees 2. Claims Incurred by Plan Members What Factors Effect Group. Ins. Costs? There are 2 main factors that effect your costs?

2. 2. Health Claims Management: • Detailed claims reporting is the key 1st step. • Optimization of plan design (including current plan benchmarking). • Preferred Pharmacy Networks. • Employee Wellness. • Employee Communication. • Permanent Reduction of Transaction/Administration Fees: • Investigate alternative funding arrangements. • Investigate Third Party Administration. • Execute proper Risk Management Strategies. The 4 KEYS to COST CONTAINMENT We deliver strategies that result in permanent cost savings!

3. 4. On-going (REGULAR) Advice/Consulting: • Regularly scheduled meetings to stay on top of trends in claims, spikes, dips, etc. • Proactive versus Reactive advice! • Stay on-top of Industry trends, new innovative ideas, legislative changes. • Work with an experienced Benefit Consultant. • 3. Disability Claims Management (Absenteeism): • Do you have the right insurer for STD and LTD? • Salary Continuation, EI Sub Plan, Insured STD? • Utilize an “Advice to Pay” program? The 4 KEYS to COST CONTAINMENT We deliver strategies that result in permanent cost savings!

4. Transaction & Administration Costs How you Fund of Your Program Which is the BEST way to fund health, dental, vision care & WI benefits? … • Fully-insured • Refund/Retention Accounting • Administrative Services Only (ASO) • Stop-loss Insurance (per cert, per individual, aggregate) • Administration Fees (G.A., claims adjudication, etc.) • Health Care Spending Accounts (HCSA) • Hybrid Plan (Fully-insured and ASO) NOTE: Life, AD&D, Dep. Life & LTD benefits should always be fully-insured

5. Average “Paid” Cost/Claim - 2012 (excludes co-pay and/or deductible) National: $47.50 Change from 2011: - 2.9% Source: Claimsecure $42.89 $52.20 $39.83 $51.12