1. Attract | Reward | Prosper What Factors Effect Group. Ins. Costs? There are 2 main factors that effect your costs? 1.Transaction & Administration Fees 2. Claims Incurred by Plan Members

2. Attract | Reward | Prosper The 4 KEYS to COST CONTAINMENT We deliver strategies that result in permanent cost savings! 1.Permanent Reduction of Transaction/Administration Fees: -Investigate alternative funding arrangements. -Investigate Third Party Administration. -Execute proper Risk Management Strategies. 2. Health Claims Management: -Detailed claims reporting is the key 1 st step. -Optimization of plan design (including current plan benchmarking). -Preferred Pharmacy Networks. -Employee Wellness. -Employee Communication.

3. Attract | Reward | Prosper The 4 KEYS to COST CONTAINMENT We deliver strategies that result in permanent cost savings! 3. Disability Claims Management (Absenteeism): -Do you have the right insurer for STD and LTD? -Salary Continuation, EI Sub Plan, Insured STD? -Utilize an “Advice to Pay” program? 4. On-going (REGULAR) Advice/Consulting: -Regularly scheduled meetings to stay on top of trends in claims, spikes, dips, etc. -Proactive versus Reactive advice! -Stay on-top of Industry trends, new innovative ideas, legislative changes. -Work with an experienced Benefit Consultant.

4. Attract | Reward | Prosper Transaction & Administration Costs How you Fund of Your Program Fully-insured Refund/Retention Accounting Administrative Services Only (ASO) Stop-loss Insurance (per cert, per individual, aggregate) Administration Fees (G.A., claims adjudication, etc.) Health Care Spending Accounts (HCSA) Hybrid Plan (Fully-insured and ASO) Which is the BEST way to fund health, dental, vision care & WI benefits? … NOTE: Life, AD&D, Dep. Life & LTD benefits should always be fully-insured

5. Attract | Reward | Prosper $42.89 $51.12 $39.83 $52.20 Average “Paid” Cost/Claim - 2012 (excludes co-pay and/or deductible) National: $47.50 Change from 2011: - 2.9% Source: Claimsecure