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

2. 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

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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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.

11. 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)

12. 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

13. 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

14. 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

15. 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

16. 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%

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

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

19. YOUR LOGO Healthcare Where do we go from here?

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

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

22. 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

23. YOUR LOGO Great Healthcare Blog by Bob Laszewski http://healthpolicyandmarket.blogspot.com

24. YOUR LOGO This presentation is available on the web! http://www.alphabenefits.com/seminar Also, visit our website to sign up for our free bi-weekly newsletter!