Reduce Your Costs Dramatically: Consolidate Healthcare Payments, Deliver Electronically TriZetto Healthcare Conference 2014 Presented by Bill Davis, ECHO Health, Inc.

Self-funded administrators used to have ONE simple solution: Issue ONE CHECK out of a plan’s account

Then times changed with the addition of multiple payment processes to Providers… Virtual Card Payments B2B ACH Processing CORE Electronic Mandate

Virtual Card Payments B2B ACH Processing CORE Electronic Mandate Virtual Card Payments B2B ACH Processing CORE Electronic Mandate …a dilemma for groups forced to offer multiple payment processes to Providers. Virtual Card Payments B2B ACH Processing CORE Electronic Mandate Virtual Card Payments B2B ACH Processing CORE Electronic Mandate Virtual Card Payments B2B ACH Processing CORE Electronic Mandate Virtual Card Payments B2B ACH Processing CORE Electronic Mandate Virtual Card Payments B2B ACH Processing CORE Electronic Mandate

What if… You had a single foundation that supported ALL your plans’ payment needs through a SINGLE PROCESS?

Consolidated Print Payments Direct ACH Payments Shared Payment Networks QuicRemit ℠ Virtual Card

The Strength of ECHO’s Payment Solution is Our Foundation

The Foundation of Our Electronics Success CONSOLIDATION Your data and payments DELIVERY, RECONCILATION & 1099s Your data and funds to Providers & Members in the manner they choose & reconciled to every check you have issued and reported on by our 1099s. REWARD With lower fulfillment costs and basis point revenue.

Consolidate - Data Simplicity Multi-claim provider payment documents

Consolidate - Funds EPC Trust Multi-claim provider payment documents Multi-claim provider financial instruments Simplicity

Delivery to Providers 1 st Branch ACH Existing ACH Connections Either established by Payer or Global ACH Electronic EOB (835/PDF) 2 nd branch Stored Value Card National Coverage Faxed EOB Voluntary acceptance 3 rd Branch National 835/ACH Provider Wrap Network 800,000 contracted Providers with 835s/ACH 4th Branch Default to Print Consolidate weekly payments to one Provider draft & weekly statement Consolidated Financial Instruments All Transactions are supported through Shared Services Global ACH Enrollment

The Most Important Issue Last is First – Settlement of Client Accounts!  Just like checks and ACH, credit card transactions are not ERISA compliant without daily funding from the funding source  There are only two ways to do this:  Daily tiered funding against client’s account  Globally through a settlement trust(s) account

Trust vs. Daily Tiered Settlements Daily Tiered Settlements Within Each Individual Account

Global Trust Account Trust vs. Daily Tiered Settlements

Reconciliation to Register Voided Payment by administrator Client Approved Register Debit from client’s current account Credit to client’s current account Stale Drafts Voided by Trust Credit to client’s current account Plan Sponsor Account Reconciliation to Trust EPC Trust Global Trust Account Details Trust vs. Daily Tiered Settlements

Benefits of Trust Lower Client Costs!  Lower than current banking costs  Much lower than tiered process Easier Reconciliation  Everything is electronic  Tied to your check registers, and ties to each transaction type Easier Implementation  99% group adoptions  For all the reasons above

Delivery - Members Default to Print  Consolidated monthly family EOBs  Dramatic print reduction  Weekly Member payments Electronic Member Payments  ACH to Member’s bank  notice of deposit  Payable daily Member-Chosen EOBs  Member receives EOBs  Delivered weekly  10 to 15% election of service Employer-Chosen EOBs  Employer delivers Member EOBs  Delivered weekly  97% of documents sent via service Consolidated Member EOBs

Reward $20 net per year per Primary Insured Medical Account

Connecting to ECHO Implementation 90 to 120 days for provider payments only Start with 4 to 5 groups within 45 to 60 days Resource requirements  System support is minimal  We are already connected to QicLink  Accounting & operations The most To learn the systems

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