1.Cost Saving Employee Benefit StrategiesToday and TomorrowGAP 3.0 and GAP 4.0

2. Premium increases? Continue shifting costs to employees? Aging workforce and early retirees? ACA Compliance?Everyones goal: multiple year strategy thatreduces costs ANDmaintain (or improve) your current benefit levels?Cost of Health Insurance-Todays Trends 3. Options for Employer GroupsDo nothing, hope for the best, then dumpyour employees to the Exchanges in 2014.Reduce employees real benefits byincreasing employee deductibles andpremium contributions.Or...Use one of 2 new, safe strategies toguarantee savings without riskAndstill maintain (or improve) benefits 4. GAPInsuranceHighDeductiblePlanThe GAP Insurance StrategyGAP Insurance is fully compliant under HIPAA and the Public HealthService Act (PHS Act) 5. MAJOR MEDICAL + GAP Insurance Equivalent (or better)coverage to current plans Same employee out-of-pocketexpenses (or better) Lower annual premium costs Stabilized annual insuranceincreases Typical annual savings up to$2k per employee!Combined plans cost lesswith same (or better)coverage! 6. Similar GAP Insurance Strategies Medicare + Medigap Supplemental PlansWe Love ourMediGap Plan 7. How GAP Works Employees receive two insurance cards; one for MajorMedical Plan and one for the GAP Plan. If the service is covered by Major Medical but is subjectto the new high deductible, employees bill will be paidby the GAP plan. No Claims forms necessary. 8. The GAP 3.0 Strategy Duplicate coverage Increase major medical deductible to lower premiums. BCBSM CB 15/0 or 15/20 (5k ded) BCBS SB 4000 HRA MCLAREN POS 3K DED/ 3K COINSURANCE Backfill the new large deductible sufficient enough toduplicate existing benefit plan. New Benefit platform saves premium dollars whilemaintaining existing employee deductible/coinsurancedesign. We call this our INSURED HRA 9. The GAP 3.0 Strategy Duplicate coverage 10. Sample Case GAP 3.0 Duplicate Coverage 11. Sample Case GAP 3.0 Duplicate CoverageCensus Status Medical Total58 Employee $471.11 $471.1123 2 Person $1,130.67 $1,130.6710 Family $1,366.19 $1,366.1991 $66,991.69 $66,991.69Census Status Medical Total58 Employee $494.39 $494.3923 2 Person $1,186.55 $1,186.5510 Family $1,483.18 $1,483.1891 $70,797.07 $70,797.07Census Status Medical GAP 3.0 Total58 Employee $320.36 $101.84 $422.2023 2 Person $768.88 $195.05 $963.9310 Family $961.09 $276.52 $1,237.6191 $45,876.02 $11,926.59 $57,802.61$155,933.52Annual Savings Versus Renewal PlanSAMPLE GAP 3.0 COMPANYCurrent Plan: BCBS $500 DED/20% TO $1500Renewal Plan: BCBS $500 DED/20% TO $1500BCBS $5K DED/2.5 COINSURANCE + GAP 3.0 = $500 DED/20% TO $1500 12. The GAP 4.0 Strategy Improve Coverage Increase major medical deductible/coinsurance to lowerpremiums. 2 Bucket approach Bucket 1 Inpatient Benefits1st dollar Inpatient benefits.GAP 4.0 covers the entire deductible/coinsurance .100% Inpatient benefits- 1st dollar coverage Bucket 2 Outpatient Benefits1st dollar Outpatient benefits.GAP 4.0 covers Outpatient services up to 70%Inpatient benefits- 1st dollar coverage We are calling this the REVERSE HRA 13. The GAP 4.0 Strategy Improve Coverage Increase major medical deductible/coinsurance to lowerpremiums. BCBSM SB 4000 HRA MCLAREN POS 3K DED/3KCOINSURANCE UHC ALLSAVERS TOTAL HEALTH POS 14. The GAP 4.0 Strategy Improve Coverage 15. Sample Case GAP 4.0 Improve CoverageBCBS $500 DED/20% TO $1500 BCBS 5K DED/20% + GAP 4.0Primary $30 Copay $30 CopaySpecialist $30 Copay $30 CopayChiropractic $30 Copay $30 CopayX-Ray 80% After Deductible 100% to $5250, 20% thereafterBlood/Lab Tests 80% After Deductible 100% to $5250, 20% thereafterDeductible perCalendar year$500 Per Person $0 inpatient/$0 outpatientIn Patient Services 80% After Deductible 100%Out Patient Services 80% After Deductible 100% to $5250, 20% thereafterMRIs/CT/PET Scans 80% After Deductible 100% to $5250, 20% thereafterEmergency Room $100 Copay $100 CopayUrgent Care $50 Copay $50 CopayOut of Pocket: $2000 Per Person $0 inpatient/$2250 outpatientPrescription Drugs Covered - Tiered Copays Covered - Tiered CopaysSAMPLE GAP 4.0 COMPANYYOUR BENEFITS AT A GLANCEOffice VisitsHospital - In & Out-Patient ServicesDeductibles capped at two per family 16. Sample Case GAP 4.0 Improve CoverageCensus Status Medical Total58 Employee $471.11 $471.1123 2 Person $1,130.67 $1,130.6710 Family $1,366.19 $1,366.1991 $66,991.69 $66,991.69Census Status Medical Total58 Employee $494.39 $494.3923 2 Person $1,186.55 $1,186.5510 Family $1,483.18 $1,483.1891 $70,797.07 $70,797.07Census Status Medical GAP 4.0 Total58 Employee $320.36 $88.19 $408.5523 2 Person $768.88 $183.43 $952.3110 Family $961.09 $255.92 $1,217.0191 $45,876.02 $11,893.11 $57,769.13$156,335.28"Annual" GAP 4.0 Savings Versus Renewal PlanSAMPLE GAP 4.0 COMPANYCurrent Plan: BCBS $500 DED/20% TO $1500Renewal Plan: BCBS $500 DED/20% TO $1500BCBS $5K DED/2.5 COINSURANCE + GAP 4.0 = $7500 inpatient/$5250 outpatient 17. How We Communicate Benefits to EmployeesWe create 30 second video clipsof every employee benefit yourcompany offers and upload themto your own Online Channel.Employees can view 24/7 oncomputers or smartphones.Scan here to view our Smartphone VideoBenefit Tool or visit:Www.vimeo.com/channels/abctoolcompany 18. Call Chelten Benefits Group248-464-6544