1. Making managing healthcare expenses easier
2/24/17

2. Fulfilling our Mission
Helping people increase well-being through better health and greater financial security

3. Problems faced by Healthcare Consumers
Moving from Passive Patient to Active Consumer
Paradigm Shift in Cost-sharing
Consumers are confused
They don’t know the total cost prior to, or at the time of, service
Get multiple bills from several different entities. “What do I owe?”
X 2.5
2015
$1,541
2005
$622
Avg. deductible more than
doubled in last 10 years¹:
X 1.3
2015
$48,099
2005
$36,953
Avg. employee wages over last 10 years2:
¹ Agency for Healthcare Research and Quality : Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, July 2016.
2 Social Security Administration - National Average Wage Index

4. Consumerism causes Providers to
DO MORE
WITH LESS
Billing patients is very expensive for Providers
Patient payments are the most volatile and slow
It costs 3X more1 to collect from Patients than from Employers – Expected to increase 62% by 20192
Providers typically write off 30-50%4 of Patient payments as bad debt – this will increase 23% by
…and more staff is needed to support patient billing
…and lower utilization due to patient cost
35% of calls3 to Admin Staff are regarding billing issues
58% of people report they’ve foregone or delayed medical care due to financial concerns5
While keeping patients satisfied
1. Improving self-pay at all points of service. McKesson/ RelayHealth white paper. September 2010.
4. The next wave of change for US health care payments,” McKinsey Quarterly, May 2010
2. Citi analysis, 2014, Emdeon Analysis 2015, based on 2011 data gathered by HHS and CMS.
3. NextGen, Revenue Cycle Management Survey 2015
5. Kaiser Family Foundation, “Health Security Watch.” June 2012.

5. How do we fix this? Plans shift cost to Consumers
Consumers use less services
Providers raise fees to counter lost income
The same old “reactionary” approach can’t fix this – it only gets worse

6. An Innovative and Unique Solution
A healthcare financial benefit exclusively for CoreSource clients
A merger between the financial and healthcare industries
Making managing healthcare expenses easier for employees

7. About Simplicity
Simplicity is a healthcare financial benefit provided as part of the CoreSource benefits package.
It offers financial protection from high out-of-pocket costs and is a safety net members can count on when they need it most.

8. How Simplicity Works Member goes to doctor 1
Patient makes one payment to SIMPLICITY 7
Doctor submits claim 2
SIMPLICITY sends statement to Patient 6
CoreSource sends benefit payment to SIMPLICITY 3
SIMPLICITY sends ONE complete payment to doctor 5
SIMPLICITY pre-funds patient payment responsibility 4

9. Simplicity Offers:
Flexible payment options (debit, check, credit card, HSA/FSA card, or bank account)
12-months interest free payments for a financial safety net
Up to 5% SimpleRewardsSM credits on payments made to Simplicity

10. SimpleRewardsSM
Earn up to 5% SimpleRewardsSM credits on payments to Simplicity
Accrue SimpleRewards credits during the current plan year
Use SimpleRewards during next two plan years

11. Simplicity Value to Members
Financial Protection – medical expenses can be overwhelming and possibly catastrophic. Simplicity is a safety net and offers protection from high out-of-pocket costs with 12-months interest free.
Trust – members can be assured the balance bill confusion is removed. They can be confident the amounts they owe were clarified for them.
Advocacy – members get support and education from industry experts to navigate the complexities of healthcare expenses. They benefit from someone helping them while they focus on their health.

12. Key Aspects of Simplicity
Create a single, complete source of reimbursement for Providers
Add Plan benefits to Patient obligations at the time of adjudication
Send one, consolidated monthly statement to patients
Combine all provider bills and services into a simple statement
Give patients a single source of truth for what they owe by taking Providers out of the billing process - one amount due to one source
A New Type of Provider Network
Offer a consumer-focused payment network tied to the managed care environment

13. With Simplicity, Providers Can…
Benefits to Providers
Simplicity Offers Providers something they’ve wanted but never thought they could get:
A system where Payers bill and collect all patient responsibilities – taking providers out of the process.
Payments that finally work like other modern industries – one payment for one service
A more complete and expedited payment with less effort than ever before – no startup investments, no internal process change
With Simplicity, Providers Can…
Increase Liquidity
Receive Prompt, complete payments for services
Reduce days in A/R
Reduce administrative burden and Cost
Eliminate bad debt
Improve patient relationships

14. Benefits to Brokers and Consultants
Differentiator for Broker working through CoreSource
CoreSource is the only company leading the introduction of this benefit to the self-insured market
Protect retention of client with value of retaining rewards
No cost to client
Funded via fee paid by provider
No work on their behalf
Can leverage communication opportunities to educate employees

15. Simplicity Value Proposition
Trust and advocacy for the member
Confused? We’re here to help!
Simple bill payment process and rewards
One bill for Simplicity users
SimpleRewards
Control and transparency
Easy to understand statements & portal