Alpha Benefits Group Marketplace Update Presented by Rob Heller, President Welcome! The 7 th Annual Healthcare Symposium

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

Who is Alpha?  Locations  Plymouth Meeting  Mechanicsburg  Bethlehem

Sister Company: Alpha Benefit Administrators  COBRA Administration  Section 125 Cafeteria Plan  Premium Only Plans (POP)  Flexible Spending Accounts (FSA)  Full Flex Credit Based Plans  High Deductible Plan Design & Administration  Medical Expense Reimbursement Plans (MERP™Plans)  Health Reimbursement Arrangements (HRA)  Health Savings Accounts (HSA)

Reasons to Select Alpha as Your Advisor  Experience  Alpha Team!  Lower Costs  Larger Block of Business  Creative Plan Designs  In-House Administrative Capabilities  COBRA  FSA (with debit cards)  Medical Expense Reimbursement Plans (MERP™Plans)  HSA  HRA

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 Proccesses Early

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

Introducing…  Upcoming Events  Wednesday, May 21 st – Keys to Unlocking Difficult HR Issues  Wednesday, June 11 th – Assessing Your Retirement Plan  Wednesday, September 17 th – Pre-Retirement Planning For Your Employees  Wednesday, October 15 th – Human Resources Technology

Alpha Wage Survey  Area Codes – 717 and 570  Current clients who participate get a copy free!  Non-Clients who participate get a copy at a reduced cost of $250! For more information about participating in the survey, stop by the Alpha booth! Central Pennsylvania Benefits and Wage Survey

Announcing…  Retirement Plan Analysis  401(k) Review  Communicate and Educate Employees on Retirement Plans  Lunch-n-Learn Educational Updates  Pre-Retirement Planning  Executive Benefits  Business Succession Planning Strategic Alliance With Comprehensive Financial Associates, Inc. & Pennsylvania Pension Planners, Inc.

Announcing…  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

Medical Renewal Trends 11 – 12%

Strategies to Reduce Healthcare Costs  Negotiate, Negotiate, Negotiate  Creative Plan Designs  MERP™Plans  HSAs  Wellness Programs  At least 50% of claims are associated with behavioral and lifestyle choices!

High Deductible Update  Medical Expense Reimbursement Plans (MERP™Plans) – Self Insuring All or Part of Deductible  Marketplace Plan Design / Pricing  MERP™Plans / HSA

MERP™Plans By Alpha Benefit Administrators  Over $20 Million Saved!  We Administer Over 175 MERP™Plans  98% MERP Renewals  85% of MERPs Renewed with clients buying even less coverage!  Over 80% of our MERP clients are renewing at less than a 10% cumulative increase from what their medical costs were 3 years ago! (Average is less than 3.2% per year, many paying LESS than 3 years ago)

MERP™Plans By Alpha Benefit Administrators  Company A – 152 employees 3 ½ yrs into MERP, cumulative MERP savings from annual renewals $682,842 and able to allocate $158,100 of this savings to employee HSA accounts!  Company B – 30 employees 3 ½ yrs into MERP, cumulative MERP savings from annual renewals $70,453. Paying (11.7%) less in total medical expense than 3 ½ years ago!  Company C – 52 employees 3 yrs into MERP, cumulative MERP savings from annual renewals $246,537 and able to allocate $48,000 of this savings to HSA accounts! Paying (10.2%) less in annual medical expense than 3 years ago!

MERP™Plans By Alpha Benefit Administrators  Over 80% of our clients changed carriers at least twice in the past 5 years!  Insurance carriers have not been successful  One Stop Shopping Alpha Administering In-House

Donna Judd’s 3 Top Administrative Issues  Let carriers know about full-time students  Return form for Coordination of Benefits  Make sure Date of Hire / Effective Date is on employee applications

Warning! Be Careful When Changing Carriers  Benefits May Not Be 100% Equal  Deductible – Plan Year vs. Calendar Year  Difference in Rx Formularies

Pharmacy Developments  Many Popular Drug Patents Are Expiring  Some Over-the-Counter Meds Covered Under Prescription Benefit Plans  $4 Prescriptions at Many Large Retailers

 Carrier Updates

How to get your PHR and SPHR re-certification credits for today’s seminar? Stop by the Alpha booth in the back to pick up the form!

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