Health Benefits Plans for Employers The Old Way: Defined Benefit Health Plan Every year 2 million fewer U.S. jobs provide group health benefits. For many employers, it is only a question of time before they are forced to terminate their group health benefits plan or go out of business. Employees receive a defined healthcare benefit—doctor visits, hospitalizations, pharmacy, and so on—at uncertain cost Average Cost in 2006: $14,000/family, $4,500/individual 20%+ annual rate increases limit your ability to grow Full-time HR people (or owner) required to administer the plan Few incentives to reward healthy choices or wise spending No protection for employees who quit or are fired The New Way: Defined Contribution Health Plan (HRA) Get a Quote on Individual/Family Insurance   Employees receive a fixed monthly tax-free contribution ($100-$400/month) to purchase their own individual/family health insurance Individual plans offer 80%-90% of employees better, safer coverage for 1/3 to 1/2 the price of typical employer group plans Average Cost in 2006: $6,492/family, $2,076/individual No annual cost increases except those you control Easy-do-administer HRA programs let each employee choose his/her benefits Employees with preexisting medical conditions get permanent, state-guaranteed coverage HSA & HRA program options let employees save for their future Consumer Incentives reward healthy choices and wise medical spending (e.g. generics, weight loss) Ex-employees keep coverage for as long as they choose to pay the premium

Getting Started: Establishing an HRA Step 1 Employer sets up an HRA Plan to reimburse employees a fixed tax-free amount (e.g. $100-$300/month) for health insurance premiums and/or medical expenses. Unspent amounts either stay with employer or accrue for future years and/or retirement. Step 2 Each employee receives a private phone or in-person consultation with a Licensed Benefits Consultant to choose their best coverage. Options include traditional BlueCross BlueShield type plans, state-guaranteed coverage (if unhealthy), or participation in another (spouses) employer plan. Step 3 Each employee is reimbursed monthly for their health insurance premium and/or medical expenses, up to their HRA maximum amount.

Employee HRA Brochure Employee HRA Enrollment Form Employee HRA Claim Form Employer HRA Setup Form Employer HRA Plan Document