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Navigating the Healthcare Market inTough Economic Times

Welcome to the 8th Annual Alpha Benefits Healthcare Symposium

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Today’s Agenda

8th Annual Healthcare Symposium8:30 to 9:00 Opening Remarks/Marketplace Update

Presented by Rob Heller

9:00 to 9:30 Creating a Survival Plan for Tough Economic Times Presented by Kimberly Nash, SPHR

9:30 to 10:15 Keynote Address Presented by Dr. Reed Tuckson

10:15 to 10:30 Break

10:30 to 12:00 Panel Discussion

12:00 to 1:00 Client Luncheon

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Who is Alpha?

Full Service Employee Benefits Firm

Brokerage & Consulting

Voluntary Benefits

Human Resource Support Services

Retirement Plans

Executive Benefits

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Who is Alpha?

Locations

Plymouth Meeting

Mechanicsburg

Bethlehem

Pottsville

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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

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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

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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

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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

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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

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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.

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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)

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Our Partner for Financial Services

Executive Benefits

Business Owner Succession Planning

Individual Life, Disability, Long Term Care

Sagemark Financial AdvisorsJohn Coll, Jr., JD, LLM

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Our Partner for Administrative Services

COBRA Administration

HSA, HRA, MERP Administration

Section 125 Administration

Benefit Design Specialists, Inc. (BDS)formerly

Alpha Benefit Administrators

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High Deductible Update

Most clients have Medical Expense Reimbursement Plans (MERP)

Moving to higher deductibles

Not as many HSA’s

Unique to Central PA

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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 CompanyInsurance Company BDS BDS

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Average Upfront Renewals

Month Rate Increase

January 16.92%

February 18.04%

March 20.85%

April 26.58%

May 21.17%

June 26.83%

6 Month Average Rate Increase: 21.73%6 Month Average Rate Increase: 21.73%

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Small Group Marketplace

Rating changes for:

Trend

Demographics

Adjustments due to diagnostic codes

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Competition Suppressed Rates

Aging PA Population

Lack of Provider Competition

Why are Central PA Rates Increasing Faster than the National Average?

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Healthcare

Where do we go from here?

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Healthcare Drivers

Aging Population

Medical Technology

Brokers

Providers

Insurance Companies

Individual Lifestyle Choices

Information Technology

Government

Attorneys

Pharmaceutical Companies

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Everybody has to come together…

Proposals right now don’t address this.

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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

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Great Healthcare Blogby Bob Laszewski

http://healthpolicyandmarket.blogspot.com

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This presentation is available on the web!

http://www.alphabenefits.com/seminar

Also, visit our website to sign up for ourfree bi-weekly newsletter!