What is PPACAcalc? PPACAcalc is a web based tool designed for insurance brokers PPACAcalc provides a customized employer impact study that will quantify the impact of PPACA in 2014 and 2018 for an employer group The application was designed by credentialed health actuaries at Verisight Applicable for fully insured or self insured group health insurance plans Webcast Demonstration of PPACAcalc

Summary of PPACAcalc’s Modeling Capabilities - 2014 Using actual employer premium rates, employee contribution rates, and census data the application projects employee migration in 2014 related to PPACA and the associated cost impact Enrolled employees who migrate to state exchange Waiving employees who elect coverage with the employer plan or the state exchange Newly eligible employees who elect coverage with the employer plan or the state exchange PPACAcalc models the following three scenarios and the associated cost impact: Employer makes no changes to its current benefit plan designs in 2014 Employer terminates its group medical plan in 2014 Employer offers only a 60% actuarial value plan in 2014 Webcast Demonstration of PPACAcalc

Drilldown on PPACAcalc Assumptions & Methods PPACAcalc models how the employer’s covered and uncovered population will migrate in 2014 once the state exchanges become operational: Enrolled employees may stay on the employer’s plan or migrate to the state exchange Waiving employees could join the employer plan, purchase a state exchange plan, or continue to waive due to the presence of other coverage Currently ineligible employees might join the employer plan if they gain eligibility in 2014 The general rule in modeling migration is that if the employer plan is projected to cost the employee more than 9.5% of household income, the employee is assumed to migrate to the state exchange PPACAcalc’s financial projections include the income tax and FICA tax impact on the employer to present the full financial impact of PPACA. Employer penalties are quantified Certain important assumptions are designated by the user, which allows greater modeling flexibility: Household Income Factor Wage Inflation Employer Marginal Tax Rate Seriatim calculation, which means that all calculations are performed at the employee level and summarized for the group Webcast Demonstration of PPACAcalc

Summary of PPACAcalc’s Modeling Capabilities - 2018 PPACAcalc projects an employer’s exposure to excise taxes in 2018 Projection is calculated on a plan by plan basis PPACAcalc provides reporting by plan design so an employer can dill down on the specific source of an excise tax liability ------------------------------------------------------------- Sample 2014 and 2018 reports are available on our PPACAcalc product page: www.verisightgroup.com/Home/Solutions/PPACASolutions.aspx Webcast Demonstration of PPACAcalc

Soon To Be Released Enhancements Refinement with respect to seasonal employees Flexibility to adjust medical trend assumptions Migration with respect to new eligibility for Medicaid Flexibility with respect to employer salary adjustments Ability to make claim morbidity adjustment in 2014