Summer 2007

President’s Message...............1-2

Life, Annuity , LTC & DI...........2-7From The Desk of the VP.........2New Product & Carrier Updates..........................3Service Updates.........................5Underwriting Updates..............6

Health Benefits.......................7-8

Individual Health...................8-9Assurant Health’s NEW Initial Rate Guarantee Program...................................8Sales Flash!.................................9Successful Individual Seminar......................................9Keeping Rates Low....................9

Group Benefits....................10-14Revised Benefit ProgramApplication- Benefit Plan Selection Form.........................10Introducing 7/1/2007 BCBSIL Changes.....................11UniCare’s New Plus Plans.......12Group Bonus Corner...............13Our Destiny Will Soon Be Fulfilled.....................14BlueChoice Select Out-of-Network Enrollment...............................14

Calendar Events......................15

Contacts...................................15

President’s MessageBy John Rippinger CLU, ChFC, CFP™, LUTCF, RHU, REBC, RFC, LTCP

I would like to start this message by thanking the close to 300 brokers and sponsors who attended our first annual “The Sky is the Limit” seminar on April 18. We are still getting notes and emails telling us what a great meeting it was. Personally having attended more than 25 MDRT meetings, I can tell you that General Steve Ritchie and Dan Sullivan gave “Main Platform” presentations. I know it will be a tough act to follow but just wait until next spring for our second annual event. By the way, some of you asked if we were going to make available audio CD’s of the presentations. We now have them available so just give us a call or stop by and pick up both of them.

If you don’t want to be bothered by the clutter of more CD’s, both presentations will be available on our website. You’ll have the option of either listening at your computer or downloading the file to play on your iPod or other MP3 player. This is a new capability for us and right now these two programs will be available to any broker. In the future you will need to have a user name and password to access the recordings of our seminars. We want to make sure that only our brokers are getting the benefits of being associated with Resource Brokerage. This will be a great way to review a seminar that you missed or just brush up on what you heard when you attended the meeting. Please give us your feedback on what you think of the new service.

We are very pleased to announce that the Rippinger Financial Group of Companies, which Resource Brokerage is a part of, was recently named as one of the “Thirty Best Places to Work in Illinois.” The rankings were determined through a criteria developed by Best Companies Group of Harrisburg, PA., following employee surveys and interviews. Our exact ranking will be published on our website as well as our next newsletter. It is flattering that our employees have reinforced what you already knew…Resource Brokerage treats both our brokers and employees with respect and provides a superior work environment. As I’m sure you are all aware by now, the governor’s proposed Gross Receipts Tax was defeated soundly! This means that Resource Brokerage can continue to contribute 1% of its gross revenues to charitable causes rather than cutting the practice out entirely because of the additional proposed 2% tax. Make no mistake about our good governor’s intentions. He thinks he can provide health care more affordably and efficiently than we can. If you are not a member of NAIFA or NAHU then sign up now by visiting our website. We all need a strong unified voice not only in Springfield but also in Washington. We would be proud to be able to sponsor you.

Blue Ocean Strategy is the book you want to read by the pool this summer. Here is a brief review:

“Companies have long engaged in head-to-head competition in search of sustained, profitable growth. They have fought for competitive

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advantage, battled over market share, and struggled for differentiation.

Yet in today’s overcrowded industries, competing head-on results in nothing but a bloody “red ocean” of rivals fighting over a shrinking profit pool. In a book that challenges everything you thought you knew about the requirements for strategic success, W. Chan Kim and Renée Mauborgne contend that while most companies compete within such red oceans, this strategy is increasingly unlikely to create profitable growth in the future.

Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, Kim and Mauborgne argue that tomorrow’s leading companies will succeed not by battling competitors, but by creating “blue oceans” of uncontested market space ripe for growth . Such strategic moves - termed “value innovation” - create powerful leaps in value for both the firm and its buyers, rendering rivals obsolete and unleashing new demand.”

Blue Ocean Strategy provides a systematic approach to making the competition irrelevant. In this frame-changing book, Kim and Mauborgne present a proven analytical framework and the tools for successfully creating and capturing blue oceans. Examining a wide range of strategic moves across a host of industries, Blue Ocean Strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. The six principles show how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy. Upending traditional thinking about strategy, this landmark book charts a bold new path to winning the future.

Life, Annuity, LTC & DI

From the Desk of the Vice PresidentBy Michael Walls, LTCP

The Excitement of Growth and Opportunity

I’ve never been more excited to be a part of Resource Brokerage, because with the help of now hundreds of brokers, our Life, Annuity, DI, and LTC business is growing by leaps and bounds. And while business growth is good, it is even more exciting because that production has gotten us noticed by the important players in the brokerage business, and has allowed us to grow our carrier stable as a result. On the Life side, we’ve added some of the premier carriers in the brokerage business, namely John Hancock Life and Hartford Life. Both these carriers offer market-leading permanent and term life plans, and with commission rates that are making producers give us a second look to handle their business. Our impaired risk life insurance offerings also have gotten better, with access now to 8 specialty carriers designed to place just about any life risk, up to and including $250,000 of coverage all done non-medically. For DI, we’ve added 11 A-rated or better carriers to our portfolio, which makes us one of the most comprehensive providers of Disability Income products and services in the Midwest. Our LTCI resources continue to grow also, with training, on-line quoting, and underwriting tools second to none in the business. And finally, we’ve worked to add Annuity carriers that lead the market, whether it is rate, commission, or flexible consumer-friendly products.

None of it works, however, unless we have a quality back-office to support our customers. I’m pleased to report that with the addition of Diana Fortich, ACS to our team, we’ve built one of the most experienced and capable staffs found anywhere in the business. The majority of our staff comes from a carrier Home Office background, which is giving us a great edge when it comes to getting things done. I would urge

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you to consider us as a viable business partner when it comes to your Life, DI, LTC, or Annuity business. Read on below for more information about our products and services, I think you’ll be impressed. As always, I’m available to talk with anyone at anytime about our services.

New Product & Carrier UpdatesBy Michael Walls, LTCP

Impaired Risk DI now available…we’ve added Assurity Life and Fidelity Security Life to our already outstanding list of DI insurance carriers for their specialty impaired risk DI insurance. Had a case declined medically? Had a problem with financials or documentation? Call Mike on ext. 0024 to discuss your next DI case. John Hancock’s “Leading Edge” LTCI is just that. It is true innovation for the needs of Baby Boomers seeking smart and affordable coverage. This innovative product provides a complete set of solutions to a variety of industry challenges:

• Automatic Inflation Coverage offers a more affordable approach to inflation protection. It provides built-in, compound inflation protection linked to the Consumer Price Index (CPI).

• Caregiver Support Services provides a tangible “now” benefit designed to help ease the stress on policyholders who are called on to provide care giving or care planning for parents or other family members.

• 5 Years Plus $1 Million is a creative alternative to costly lifetime coverage that provides policyholders with an additional $1 million in coverage should the pool of money from their initial 5-Year Benefit Period run out.

• Comprehensive Coverage with a Streamlined Design helps to reduce the complexity of LTC insurance without sacrificing coverage. Leading Edge helps take the guesswork out of policy design by offering strong, built-in benefits and just the right choices.

• Built-in features include:- Automatic compound inflation linked to the Consumer Price Index (CPI)- A standard 100-day Elimination Period- International Coverage- Expanded home health care services, including Total Homemaker Services and independent home health care where provider qualification is not required.

Here’s a chance for you to enjoy the summer out of the office and still be working! If you don’t have your own free website through InsuranceLook.com, there is no better time to get it up and running! Your existing clients and prospects will have the ability to get quotes, review benefits, apply for coverage and even have their policy issued, all on-line, while you spend time doing something you enjoy! Best of all, all street commissions will be paid directly to you by the carrier!

Available On-Line Products

Short Term Major MedicalDentalPrescription Discount CardTerm Life InsuranceInternational Major Medical Trip Cancellation / InterruptionAir Ambulance Membership

On-Line Quoting Request Capabilities for:

LifeGroup HealthIndividual Major MedicalDisability IncomeLong Term Care

Don’t delay - Let InsuranceLook.com and the power of the internet drive new business and clients to you!

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• Your clients only have to make a few key decisions:- Daily/Monthly Benefit: Choose $50-$500 per day or $1,500-$15,000 per month- Benefit Periods: Choose 3 Years, 5 Years, or 5 Years Plus $1 Million- Optional Riders: Shared-Care, Nonforfeiture, and Zero-Day Elimination Period for Home Care

Aviva takes over AmerUs Group…including our market leading Indexed UL carrier, Indianapolis Life. With over 37% market-share, Aviva now rules the Indexed UL market and offers a No-Lapse premium product, the Vista Index with extremely competitive pricing.

Principal Life (DI): Has made underwriting enhancements that are making them stand out. These include increased Simplified Issue limits, increased Benefit amounts for many incomes and occupational classes, and changes to certain classes to expand issue and participation limits.

Prudential LTC: Has made changes to their already competitive Employer Sponsored LTC Program. These include: expanded benefit offerings, lower minimum participation requirements, and superb marketing materials designed for the Small Group market. Contact Mike on ext. 0024 for your next Multi-Life LTC sale using Prudential.

John Hancock Life: Now added to our carrier lineup with superb underwriting and great products, especially for the older age market. We just completed an extensive training session with our Underwriting team in Toronto, and I’m pleased to report they’re ready and anxious to earn our business.

North American: Released new lower term rates effective 2/15/2007 and we have updated on our on-line quote engine.

Banner Life: Released new lower term rates effective 3/21/2007 and we have updated on our on-line quote engine.

West Coast Life: Introduced their new Lifetime Platinum II UL with great flexibility and no-lapse pricing to age 100+, and we’ve added to our broker enabled Winflex Web on-line permanent plan illustration system.

Fidelity Life Association: Introduced their new simplified issue accidental death product for the impaired risk market.

Genworth Life: Continues their business success with their new Lifetime Protector Flex Plus UL, combining the best of their no-lapse UL products into one chassis.

American General Life: Innovation continues to be their forte, with their new Elite Global Indexed UL, which is a market leading Indexed product with an array of choices unmatched in the business.

Principal Life: Introduced their new Protector III Universal Life policy with competitive no-lapse pricing great for the business market. Principal is known for their commitment to business insurance, so if you’re in that market let us help you with plan design and illustrations.

Allianz Life LTCI: Introduced their Generation Protector II and Generation Protector Select. The Protector II brings a hybrid concept that combines reimbursement and cash but is priced more like a traditional LTCI policy. The Protector Select makes things easy by giving clients pre-designed benefit packages. Both plans offer a unique enhanced coverage option allowing clients to upgrade coverage every five years without underwriting.

US Financial: Has announced they are shutting down operations effective 7/22/2007. In addition,

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they are also increasing mortality costs on in-force Nova and Super NovaUL policies. Call Mike Walls on ext. 0024 to discuss possible options for these clients.

Hartford Life: Continues to be a product and underwriting leader in the Universal Life market, but did you know they also have excellent term rates with GREAT commissions? Call Tom Merrion on ext. 0032 for your next term quote that includes Hartford Life.

Lloyd’s of London: Offers specialty DI for unusual occupations or circumstances, often making offers on cases we would have thought lost. Also, if you have doctors, they’ll issue some ultra-high limits, as high as $100,000 per month or more. Bring us your next tough DI client, and let us show you what we can do. Contact Mike on ext. 0024 for quotes and product support.

Life, Annuity, LTC, & DI Services UpdateBy Rodney Dator, ACS, Life & Annuity Brokerage Specialist

New faster time service for Medical Records acquisition…Resource has officially changed our APS vendor to EMSI, and we’re seeing remarkable improvements in our time service for these often tricky requirements. As most of our brokers know, we do build entire files for most of our carriers, so when a case from us hits their desk, we’re expecting decisions in 3-5 business days. The advantage to you, our broker, is that we’re in control of the process from day one, so things rarely go awry, and our average time service from exam to policy issue is excellent.

Two page licensing agreement available…if you’re tired of filling out onerous contracting paperwork over and over again for different Life, LTCI, DI, and Annuity companies, consider Resource Brokerage and our exclusive Producer Census. Simply complete this two page form and sign in the box, and we’ll handle all that annoying tedious paperwork needed to contract you with a specific carrier.

Advanced Underwriting Resources are available from Resource Brokerage. We’ve partnered with the teams at American General, Genworth Life, and North American to give our brokers access to a wealth of information as needed to support any advanced sales concepts they’re working on. Check out the Advanced Underwriting portion of our website for an updated list of resources.

HSA Legislative Update!

The Health Opportunity Empowerment Act of 2006 stated, by law, the government had to have the HSA deductibles/contributions released to the market by June 1st of every year. We are excited to announce the government has met the deadline!

Inflation adjustments for HSAs for 2008 are as follows:

Annual Contribution Limitation (calendar year 2008)

An individual with single coverage under a Qualified High Deductible Health Plan can deposit up to $2,900 into their HSA.

An individual with family coverage under a Qualified High Deductible Health Plan can deposit up to $5,800 into their HSA.

High Deductible Health Plans (HDHP) for 2008

Qualified Health Plan Deductibles remained/were renewed at the current 2006 levels with the minimum deductibles starting at $1,100 or more for single coverage and $2,200 for family coverage.

cont. on page 7

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The Resource Appeal is our approach to re-working cases upon any notice of adverse action by a carrier. First we get exactly what the issue is from the underwriter, and check that against the exam and APS which we almost always have. If we do find that the case isn’t appropriate for the applied carrier, we then immediately go back out, electronically, to our other impaired risk carriers for assessment. As needed, we summarize the APS, or provide copies so we can get the best offer possible. We’re proud to say that our medical decline rate is less than 5% of our business. It’s a reflection of our success at placing just about any client a broker can bring to us.

LTC Policy Reviews…provide a much needed value-added resource for you to analyze your client’s in-force LTCI policy. With all the recent press leveled at carriers and their ability (and desire) to pay claims, it can pay to ask your clients about their in-force coverage. Get us the last premium notice, a copy of the schedule page, and any recent correspondence, and we’ll go to work to give you a comprehensive overview of what the client has, and point out advantages and disadvantages of the current plan. Make sure your clients’ policies are up to date, and with a carrier that will actually pay claims when they’re needed most. Fax what you can to: (847) 619-9592 for a confidential client review by Mike Walls, or call him on ext. 0024 to discuss.

Multi-cultural marketing materials are now available… from Resource Brokerage. Take your Life, Annuity, DI, and LTC Sales to another level with multi-cultural markets! With help from our friends at American General Life, and the LIFE Foundation, we have both generic and carrier specific pieces available, in a multitude of languages, including Korean, Chinese, Spanish, Portugese, and Vietnamese. Please call Mike Walls on ext. 0024 to find out what is available and for information on imprinting.

Underwriting UpdateBy Tom Merrion, Brokerage Assistant

Hepatitis is an inflammation of the liver, primarily due to viral infections, the most common being A, B, and C. It does NOT automatically mean that a client will be uninsurable, or so highly rated that you can’t place the case. We’ve had remarkable success placing these clients with Prudential, some on a non-rated basis. Underwriting action is largely dependent on the type of Hep, with “C” being the worst.

Anxiety and depression seem to be an epidemic these days. But depending on the severity and medications, we’ve had cases issued as good as Preferred. Some of it is situational, usually related to grieving. Others have just been chronic anxiety, usually treated with all those drugs you see on TV; i.e. Paxil. If you have a client with either anxiety or depression, don’t balk. Carriers are out there that want that business, Genworth being a good example. Important things to know are: time of diagnosis, the medication and dosage, and has there been any history of hospitalization.

GERD, or Gastroesophageal Reflux Disease, is on the rise, and at times can cause underwriting issues. By itself, it isn’t usually an issue, but related diseases such as Barrett’s Syndrome are often considered pre-cancerous conditions, and create problems for underwriters. Another problem area is Colitis or Crohn’s Disease, again conditions that could be considered pre-cancerous, so underwriting tends to be very careful with these risks. Generally the longer its been since an episode (known as a “flare-up”) the better off underwriting views the situation. Some clients can even qualify for plain old Standard rates. What, no green card? Yes it should come as no surprise that underwriting has a problem with this issue. But hope is not lost, we do have carriers that will insure such clients, it just depends on the TYPE

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of visa. Perhaps you read recently that the United States recently met its entire annual quota of high-tech (H-1 Visas) in one day? Those clients are absolutely insurable, and most at Preferred rates.

In the end…Resource Brokerage is an incredible resource for impaired risk, whether it is Life, DI, or LTC insurance. We’ve built the tools and carrier relationships to help our brokers place the case, no matter the client profile. We invite you to go back to your last few declines, and let us take a look. Any one of our staff can help you, and we want to earn your business.

Health Benefits

From the Desk of the Vice PresidentBy Blair Farwell, RHU

In the last issue, I spent time offering sales tips/suggestions how to most effectively bolster your small group enrollment (at the employee level presentation). In that issue, I promised to offer tips on how to sell the individual on the need for health insurance. A lot of brokers know this information and assume their prospects do as well. But the sad fact is that many of the people are not aware of the complications of going uninsured (beyond the basic risk of medical claims exposure).

There are several things related to individual coverage that the AVERAGE consumer may not be aware of or have conveniently forgotten:

1.) The coverage is not guaranteed issue/acceptance (like group). This means that although you may be healthy now, in the event that an illness sets in, it is quite possible that no private insurance company will offer you coverage. Of course, once the malady has set in, that is when you will want or need it most. Realize insurability has no income bias. There are a lot of wealthy people who want, and are willing to pay, and can afford to pay large premiums, but the carriers will not offer coverage—at any cost because the medical risk is too high to be taken on with an individual policy.

2.) Riders. Although down the road you may get a policy, the carrier has the right to EXCLUDE specific condition(s) of which the member wants coverage. Again, had the member taken the policy before the condition set in, the referenced coverage

Resource Brokerage believes this is the government’s commitment to these programs (by not moving the deductibles) while simultaneously increasing the eligible write-off amounts.

The Group Health team can offer you 7 Major Medical carriers (all with HDHP options). We have multiple carriers that offer dual plan options--conventional PPO and HSA plan designs. We also have two different carriers that provide triple options—PPO, HMO and HSA.

Go here for the 3 page Tresury Document:

http://www.resourcebrokerage.com/PDFs/Group/hsa_update08.pdf

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would be covered in its entirety but by waiting, it is quite possible that unless the person gets a job with group coverage, that condition may never be covered!

3.) 365 day wait! Some carriers, even though a condition is “accepted” on the application, will not pay benefits for 365 days after issue. Meaning, the member could be “accepted” with no riders, but still have to pay the claims associated with ANY malady that existed before the policy was issued for 365 days—even if it was disclosed on the application.

4.) Provider Discounts- Some MD’s sign contracts with discounts up to 60% off their charges in exchange for guaranteed prompt payment (from an insurance company). If a member goes to an MD, without insurance, there are no protections for them, and they will be exposed to “market value” and will have to do their own negotiating on their own behalf. Simply by having a policy (regardless of how high the deductible), the member can capture the power of the carrier’s contract negotiations. Nobody likes to have to negotiate their care directly with their MD, especially when they need it most. So the uninsured routinely face the collections agency after they have utilized the services (for services billed way outside the “reasonable and customary limits”). Get a large deductible policy and leave all that negotiation to the carrier.

5.) COST- Most “prospective” individual policy holders have a distorted view of the insurance market. Either, they are expecting excessively rich benefits (coming from the large employer—which are neither offered, or practical in the individual market) or they have a distorted view of what a policy costs after getting a COBRA notice. Again as insurance brokers know the “purpose” of insurance— to insure against financial ruin, NOT to cover EVERYTHING.

But most people have not understood this. It either has not been explained, or it has not been illustrated to them. Show your clients some higher deductible (HSA) plans. Explain the benefits and show them the premium savings/ versus out of pockets on an ANNUAL basis.

Remember, 1 in 7 people in this country are running around without health insurance. Most of them do not understand their exposures above, or how AFFORDABLE a comprehensive, high deductible plan can be. You just need to spend a few minutes explaining the exposures and the importance of “getting into the system” and then you can talk to them about the brass tacks of the BENEFITS of the specific policy you are trying to sell them.

Individual Health

Assurant Health’s NEW Initial Rate Guarantee ProgramBy Judi Macino, Administration

Remember, for Assurant plans with February 1, 2007 or later effective dates, all Individual medical plans come with an initial rate guarantee period of 12 or 24 months—at no additional charge. Clients who choose plans with the 24-month rate guarantee also have an option to buy-up to a 36-month rate guarantee.

Plans with a deductible of $3,000 or lower include a 12-month rate guarantee. Plans with a deductible of $3,500 or higher include a 24-month guarantee with an option to buy up to a 36-month rate guarantee. Please call the Individual Major Medical Division for more information or a quote with these new features!

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Sales Flash!By Mike Kuchar, Product Representative

World Insurance recently announced rate changes for many of their markets including a 5% reduction for Illinois ZIP Codes 600xx through 609xx!

With competitive underwriting and many popular plans and networks from indemnity plans to money saving PPO and HSA options (including Great West, First Health, HealthLink and PHCS). World Insurance offers you the flexibility to offer your prospect an alternative for their Individual health insurance needs!

Call an Individual Major Medical team member at Resource Brokerage for more information on how World Insurance can increase your health insurance sales!

Successful Individual SeminarBy Judy L. Wrigley, Assistant to Blair Farwell

Recently the Resource Brokerage Individual Health Division hosted an informative seminar for 3 C.E. credits at our office campus in Schaumburg. Blair Farwell presented his thoughts and findings on the recent Federal HSA and State legislative activity. Ken Sloan presented on Destiny Health’s Individual product plans and its Vitality program and Norvax’s representative, Jeremiah Desmarais, presented “7 Secrets of Top Individual Health Producers”. Broker attendance surpassed our earlier projections, and we look forward to presenting more carrier- and sales-related seminars in the near future. If you haven’t attended one of our seminars yet, you’re missing out on something special!

Keeping Rates Low –So Your Sales Can Grow!By Linda Medrano, Brokerage Coordinator

You and your clients know you can depend on the strength and stability of BlueCross BlueShield of Illinois, one of the state’s leading insurers. Despite the continuously rising of health care cost, BCBSIL maintains annual increases well below trend.

The Sky Is the Limit Seminar

Attendees registering for their C.E.

National Anthem

A packed house

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Group Benefits

Revised Benefit Program Application- Benefit Plan Selection FormBy Craig Thomas, New Business Case Management

BCBSIL has updated their Benefit Plan Selection form (BPS) for groups with 2-150 employees. When submitting new business or making a benefit plan change for an existing account, the three-page BPS needs to be completed. It is important to point out Category 4—Participating Provider (PPO) Products to all readers. The boxes with an asterisk (*) next to them are for groups enrolling 50+ lives and is available only if shown on your BCBSIL “Blue Print” proposal (only offered to groups with 51+ total employees). After completing the plan(s) to be offered, don’t forget to have the Employer/Authorized Purchaser sign and insert their title and current date at the bottom of page three.

The Form Number is:• GA-10-9-SMGRP BPSF HCSC Rev.11/06

This form replaces all of your old BPS forms and is available on our website (http://www.resourcebrokerage.com/new_group_forms.asp).

If the group is NOT doing a plan change but wishes to change some other aspect of the plan (like waiting periods or retiree coverage), all that would need to be filled out would be the Benefit Program Application (BPA). Although these changes increase the new enrollment paperwork, it greatly reduces the complexity of the paperwork once the account is in force and doing regular account maintenance!

2007 New Business Rate Updates Areas Product Family w/o maternity & Products

1 2 3 4 Series 3 Affordable Products BlueChoice Select, BlueChoice Value, SelectBlue Advantage, -2.60% -2.60% 5.20% 5.20% BlueValue Advantage Series 3 SelecTEMP and all HSA SelectBlue, Blue Value, Traditional Blue, Basic Blue, BlueEdge 5 .50% 5.50% 13.90% 13.90% Individual HSA, BlueEdge Individual HSA 5000, SelecTEMP Closed (excluding Transfer) 7 .10% 7.10% 15.70% 15.70% Product Family w/ maternity & Products Series 3 Affordable Products BlueChoice Select, BlueChoice Value, SelectBlue Advantage, 2.30% 2.30% 10.50% 10.50% BlueValue Advantage Series 3 SelecTEMP and all HSA SelectBlue, Blue Value, Traditional Blue, Basic Blue, BlueEdge 1 0.80% 10.80% 19.60% 19.60% Individual HSA, BlueEdge Individual HSA 5000, SelecTEMP Closed (excluding Transfer) 1 2.50% 12.50% 21.50% 21.50%

Transfer block increases only by 10%- Includes Series 1 and Older Lines

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Introducing 7/1/2007 BCBSIL Plan Changes!By Jane Kopecky, RHU REBC CSA CMS, Senior Marketing Representative

Effective 7/1/2007, BCBSIL introduces additional Embedded Deductible plan options to its HSA Compatible Plan Portfolio. Currently, the HSA plans have an “aggregate deductible”; meaning the entire “family” deductible must be met before benefits begin for any covered family member. A couple of quick reminders: 1.) A “family” is defined by IRS code as any unit with employee + one or more dependent(s) covered on the health plan. 2.) This “one deductible” can be met by one person, or a collection there of ” on the plan.

The new “Embedded Deductible” means that each family member has an individual deductible amount and once satisfied, benefits begin to be available for that family member. This is similar to how traditional PPO deductibles work.

Four new “Embedded Deductible” HSA plans are being rolled out effective July 2007.

• Two BlueEdge HSA plan designs: 100%/80% coinsurance and 80%/60% coinsurance. Both plans have $2,500/$5,000 (in/out) deductible and a $5,000/$10,000 (in/out) Out of Pocket Limit

• Two BlueEdge Select HSA plan designs: 100%/70% coinsurance 80%/50% coinsurance. Both plans have $2,500/$10,000 (in/out) deductible and a $5,000/$20,000 (in/out) Out of Pocket Limit. Remember the SELECT plans means nested “smaller” PPO network.

Each of these plans has a family deductible limit of two per family.

PPO and HMO changes:For products that are paired with drug card copay options, there are two changes effective July 2007: New $10/$40/$60 drug card and the closing of $15/35%/50% hybrid drug card. This design of the new drug card option will help increase generic prescription utilization and on average groups could realize a premium savings of about 2.5% over the cost of the $15/$30/$50 drug card! The hybrid copay/coinsurance drug card will no longer be offered for new business starting July 1st but existing businesses can retain it upon renewal if desired.

SBA Challenge 2007

RB playing dodgeball

One of the trivia teams

Celebrating our wins and losses after the games

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Changes related to HMO only coverage:In light of recent Serious Mental Illness legislation, new copayments were introduced for HMO products. Effective July 1st, new business and existing businesses upon their renewal will find their mental health/chemical dependency copay aligned with the specialist copay thus simplifying/reducing the number of copay the provider groups need to track.

Effective May 2007, networks will be created for new provider types: Prosthetist, Orthotists, and Pedorthists. These are Allied Health Professionals clinically trained to provide or manage care based on clinical assessment and a physician’s prescription. Prosthetists provide the evaluation, design and fabrication of prosthetics (artificial body parts). Orthotics is the evaluation and design of orthoses (braces). Perorthotics is the design, manufacture, modification and/or fit of footwear, including shoes, orthoses, and foot devices, to prevent or alleviate foot problems. Networks will also be established for CSA/CST/CRNFA – Certified Surgical Assistants, Certified Surgical Technicians, and Certified Registered Nurse First Assistants.

New legislation (Senate Bill 2917 – Multiple sclerosis preventative physical therapy) was put into effect as of December 29, 2006 and was expected to systematically be in place as of April 2007. This bill mandates that all insured group policies must provide coverage for medically necessary preventative physical therapy for members diagnosed with multiple sclerosis identical to that provided for any other therapies under the policy. The difference is that this therapy is also for preventive services, not just rehabilitative, including sustaining the level of function the person has achieved. Until systems are updated, BCBSIL will handle adjustments to preventative MS physical therapy on an inquiry basis.

If you have questions on any of these changes or on any of the features and benefits of BCBSIL plans, feel free to call any Resource Brokerage, LLC marketing representative today!

UniCare’s New Plus Plans Are Here!By Patricia Favela, Marketing Representative

In February, 2007, UniCare Health Insurance Company unveiled its new line of Premier Flex Plus group health plans, causing many producers to take another look at the portfolio of this regional carrier. Here a few of the most pertinent changes:

Inclusive $35 office visit copay which now includes X-rays and lab work performed by the physician on the same date of service (all items must be billed by the same provider)

• All-inclusive $150 emergency room copay which includes the physician, facility and ancillary charges

• Elimination of the separate brand name drug deductible. The member pays only their copay ($15/$30/$45)

• Physical/occupational therapy paid at the plan coinsurance of 80% (maximum of 20 visits per member per year)

• 90 day supply of mail order Rx for the cost of a 60 day copay.

Also new to UniCare is the HSA Plan D which features a 100% coinsurance level after a deductible of $2,600 per individual and/or $5,200 per family has been satisfied.

Our website has been updated to include sales literature on all of the new plans and changes. Should your current UniCare groups want to move to the new Premier Flex Plus plans, they can request

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the change at the time of their next renewal. Remember, for every UniCare group, it is not required that all employees share the same plan design. Each employee is free to pick and choose the plan and/or deductible that best fits their needs and budget. If you want to show UniCare to your next group, be sure to indicate it at time of quote!

Group Bonus CornerBy Judy L. Wrigley, Assistant to Blair Farwell

Here is a recap of the ongoing bonus campaigns that we have been communicating to you. Note that several of these campaigns will not end until December 31st or later so you still have time to meet the carriers’ sales criteria.

BCBSIL-Remember, to qualify for BlueLeader status, you need to enroll 10 cases totaling at least 250 lives in one calendar year. We’d LOVE to hand-deliver a BlueLeader bonus check to you!

Humana-1. Become a member of the Leaders Club, Humana’s exclusive program for their top producers (commission change was effective 1/1/07)

2. You’ll receive bonuses when you sell a medical, dental or life case during Underwriting Days. The bonus applies to new business:

Medical cases- 2 to 25 enrolled employees: $350 26 to 50 enrolled employees: $250 51 to 99 employees: $150Each dental case: $100Each life case: $50

Around the Office

The Friday before Superbowl Sunday

The royal family of Resource Brokerage

The bike path clean up crew

14 Summer 2007 15

3. Drive For The Green! Effective date of coverage-April 1 through August 31, 2007

Total Administrative Services Corporation (TASC)—

You can earn a trip for two to the wine capital of America—Sonoma Valley, California!

• Place $15,000 in new business in 2007 and you will receive a 10% bonus on all your new TASC sales….and that bonus is on top of their already impressive commission schedule.

• There’s even more!! Earn bonus commission all year long with TASC’s exclusive Quarterly Qualifier Program. Receive a 10% bonus for every quarter in 2007 in which you place new business worth at least $3,750 AND you can compound that cash bonus for every preceding qualifying quarter. You could walk away with an extra $3,750 in your pocket!

• And if that wasn’t enough, for only $5,000 in new TASC business, you will receive a valuable one-of-a-kind gift!

To learn more about the Provider Incentive Program, Sonoma Valley, the bonus levels and the rules

and regulations of the program, visit: http://www.resourcebrokerage.com/PDFs/Group/Carriers/tasc_provider_incentive.pdf.

Our Destiny Will Soon Be Fulfilled!By Susan Garcia, Quoting Specialist

Destiny Health has recently launched their fully insured PPO plans! Enrolled groups of 2+ will choose a PPO plan stand-alone or in conjunction with an HRA or HSA plan. This is perfect for groups considering the implementation of an HSA or HRA. Remember, Destiny Health is fully integrated and truly has a seamless process between the HSA and the health insurance plan. This makes plan setup, plan premium/HSA contribution and claims handling effortless for the employer

and employee end user. Realize, this is different than several other carriers “seamless approach” which usually includes multiple entities during the setup/admin process and additional fees associated with the “seamless” process. Not to mention destiny is the leading carrier on the market to encourage healthier employees through their Vitality program. Make sure to quote Destiny Health for your next prospect. Call our Group Health Marketing Specialists for more details!

BlueChoice Select Out-of-Network EnrollmentBy Katie Streff, Existing Case Management

BlueChoice Select (BCS) product membership guidelines require that individuals enrolling for coverage must live in the Chicago metropolitan service area. BCBSIL’s current system cannot tell if a BCS enrollee lives outside of the BCS service area. Shortly, however, the carrier’s membership system will be enhanced to block out-of-area employees from enrolling in the BCS product.

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In the meantime, BCBSIL has been identifying their existing small groups that have employees who are enrolled in the BCS product but reside outside of the BCS service area. The group administrators are being notified via letter; and as we hear of groups being affected, we will notify you.

Affected employees will need to be moved (by way of an employee application) to a PPO plan that the group offers. Note, this also applies to BCS members who move out of the service area after enrollment. Remember to notify your groups that if an employee relocates outside the BCS service area to change their plan election! BCBSIL will allow members that have relocated outside the BCS service area to switch the broader PPO network within 30 days of their move. Please contact us with questions!

Contact Us800 605-7566

President & CVOJohn Rippinger Jan Gohl Exec. Asst. ext. 0007

Group BenefitsBlair Farwell ext. 0012Mary Dynes ext. 0021Susan Niziolek ext. 0031Jesse Rawley ext. 0011Jane Kopecky ext. 0008Susan Garcia ext. 0030Katie Streff ext. 0015Valentina Alic ext. 0026Nancy Loda ext. 0006Judy Wrigley ext. 0039Craig Thomas ext. 0002

Individual HealthBlair Farwell ext. 0012Linda Medrano ext. 0018Janine Skolmoski ext. 0009Sue Pitzmeyer ext. 0029Mike Kuchar ext. 0023Judi Macino ext. 0013

Life, Annuity, Long Term Care & DIMike Walls ext. 0024Tom Talbot ext. 0033Tom Merrion ext. 0032Rodney Dator ext. 0027Jennifer Clow ext. 0036Diana Fortich ext. 0038

LicensingShea Gamble ext. 0019

CommissionsMarianne Puzzello ext. 0020

Calendar Events

August 7th: Young Agents Pro-Am Golf Outing – PIIAI Prairie Landing Golf Club – West Chicago, IL

August 22-24: Senior Market Advisor Expo 2007 Wynn Las Vegas – Las Vegas, NV

September 8-12: NAIFA 07 Convention & Career Conference – NAIFA Washionton DC

September 12: Streamline Your Investment Management Business – FPA Holiday Inn – Oak Brook, IL

October 3-5: PIIAI Convention Showcase – PIIAI Crown Plaza – Springfield, IL

October 30: MAXIMIZE Business Profitability – FPA Danada House – Wheaton, IL

November 15: A Taste of MDRT – NIAFA Drury Lane Convention Center – Oakbrook, IL

Resourceful Words is an informative newsletter designed to help the independent producer with creative sales ideas and information for today’s competitive market place. With a portfolio of over 50 Carriers, Resource Brokerage, LLC helps producers find the right product for all their clients.

Visit www.resourcebrokerage.com to run your own illustrations, obtain case status, access forms and supplies, review the most updated product information and follow links to carriers.

1501 East Woodfield Road, Suite 110ESchaumburg, IL 60173-4945

Toll Free: 800-605-7566www.resourcebrokerage.cominfo@resourcebrokerage.com