YOUR LOGO Navigating the Healthcare Market in Tough Economic Times Welcome to the 8th Annual Alpha Benefits Healthcare Symposium

YOUR LOGO Today’s Agenda 8 th Annual Healthcare Symposium 8:30 to 9:00Opening Remarks/Marketplace Update Presented by Rob Heller 9:00 to 9:30Creating a Survival Plan for Tough Economic Times Presented by Kimberly Nash, SPHR 9:30 to 10:15Keynote Address Presented by Dr. Reed Tuckson 10:15 to 10:30Break 10:30 to 12:00Panel Discussion 12:00 to 1:00Client Luncheon

YOUR LOGO Who is Alpha?  Full Service Employee Benefits Firm  Brokerage & Consulting  Voluntary Benefits  Human Resource Support Services  Retirement Plans  Executive Benefits

YOUR LOGO Who is Alpha?  Locations  Plymouth Meeting  Mechanicsburg  Bethlehem  Pottsville

YOUR LOGO Alpha Benefits Joins Brown & Brown Family  Alpha acquired by B&B June 1, 2008  7th Largest Broker in the US  1 Billion in Revenue in 2009!  Well Capitalized  Decentralized Philosophy

YOUR LOGO Advantages with Brown & Brown  No changes! Alpha’s philosophy and staff are here to stay!  Negotiating Power  Property & Casulty Opportunities  200 offices across the country = collective knowledge!  Clients with multi-locations  Ability for Alpha to make acquisitions and aquire talent

YOUR LOGO Reasons to Select Alpha as Your Advisor  Experience  Alpha Team!  Lower Costs  Larger Block of Business  Creative Plan Designs  Administrative Capabilities  COBRA Administration  FSA with Debit Cards  Medical Expense Reimbursement Plans (MERP™Plans)  HSA  HRA

YOUR LOGO Reasons to Select Alpha as Your Advisor  One Stop Shopping  HR Services – Kimberly A. Nash, SPHR  Answer HR Questions  Employee Handbooks  HR Audits  Training Programs  Wage Surveys  Personalized Claims Assistance  Initiate Renewal Processes Early

YOUR LOGO Reasons to Select Alpha as Your Advisor  Educational Updates  Bi-Weekly Newsletter  Periodic Marketplace Updates  Client Appreciation Breakfast  HR Training Classes  Onsite Visits  Alpha University

YOUR LOGO Our Financial Partners  Retirement Plan Analysis  401(k) Review  Communicate and Educate Employees on Retirement Plans  Lunch-n-Learn Educational Updates  Pre-Retirement Planning Strategic Alliance With Comprehensive Financial Associates, Inc. & Pennsylvania Pension Planners, Inc.

YOUR LOGO Our HR Technology Partner  Partnership with HRT Advisors  HRT is on retainer with Alpha  HRT will completely review a client’s technology-related HR needs  How to get started?  Conference call to review current system and to assess needs HR Technology (HRT)

YOUR LOGO Our Partner for Financial Services  Executive Benefits  Business Owner Succession Planning  Individual Life, Disability, Long Term Care Sagemark Financial Advisors John Coll, Jr., JD, LLM

YOUR LOGO Our Partner for Administrative Services  COBRA Administration  HSA, HRA, MERP Administration  Section 125 Administration Benefit Design Specialists, Inc. (BDS) formerly Alpha Benefit Administrators

YOUR LOGO High Deductible Update  Most clients have Medical Expense Reimbursement Plans (MERP)  Moving to higher deductibles  Not as many HSA’s  Unique to Central PA

YOUR LOGO BDS Admin vs. Carrier Admin  Seamless  Sometimes cost built into premium  Easier when moving carriers  Find errors  Less claims payments  Great customer service  One call to Alpha  No upfront funding  Any size Insurance Company BDS

YOUR LOGO Average Upfront Renewals MonthRate Increase January16.92% February18.04% March20.85% April26.58% May21.17% June26.83% 6 Month Average Rate Increase: 21.73%

YOUR LOGO Small Group Marketplace  Rating changes for:  Trend  Demographics  Adjustments due to diagnostic codes

YOUR LOGO  Competition Suppressed Rates  Aging PA Population  Lack of Provider Competition Why are Central PA Rates Increasing Faster than the National Average?

YOUR LOGO Healthcare Where do we go from here?

YOUR LOGO Healthcare Drivers  Aging Population  Medical Technology  Brokers  Providers  Insurance Companies  Individual Lifestyle Choices  Information Technology  Government  Attorneys  Pharmaceutical Companies

YOUR LOGO Everybody has to come together… Proposals right now don’t address this.

YOUR LOGO What’s an Employer To Do??  Negotiate  Look at all Alternatives  Funding Approaches  Wellness  Get an Early Start  Keep an Eye on Legislation  Partner With a Broker You Trust

YOUR LOGO Great Healthcare Blog by Bob Laszewski

YOUR LOGO This presentation is available on the web! Also, visit our website to sign up for our free bi-weekly newsletter!