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

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

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

4. 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)

5. 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

6. 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

7. 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!!

8. 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

9. 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

10. 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.

11. 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

12. Medical Renewal Trends 11 – 12%

13. 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!

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

15. 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)

16. 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!

17. 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

18. 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

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

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

21.  Carrier Updates

22. 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!

23. 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!