Presentation All Benefits 10 10 10

Innovative Strategies to

Reduce Healthcare Costsand other

Value Added Benefits

Managing Healthcare Costs

• Employers continue to seek creative solutions to

reduce healthcare costs, decrease absenteeism

and increase productivity

• They have been forced to restructure their

benefit plans, often reducing benefits and raising

deductibles and co-pays

• This leaves some gaps in coverage and more

exposure for employees

• This also leaves some strategic opportunities

Proprietary and Confidential

Managing Healthcare Costs

• One creative solution that can fill in these gaps

and minimize exposure for employees is the

HealthPerx™ Card, which offers a range of

affordable healthcare benefits.

• These benefits offer the entire family thousands

of dollars in savings.

• At the same time it offers the employer those

creative solutions they seek - reduced

absenteeism, increased productivity and

decreased overall healthcare costs.


Disclosures

• This plan is NOT insurance.

• Discount Medical Plan Organization: New Benefits, Ltd., Attn: Compliance Department,

• PO Box 671309, Dallas, TX. 75367-1309

• This plan provides discounts at certain healthcare providers for medical services.

• This plan does not make payments directly to the providers of medical services.

• The plan member is obligated to pay for all healthcare services but will receive a discount

from those healthcare providers who have contracted with the discount plan organization.

• This discount card program contains a 30 day cancellation period.

• Member shall receive a full refund of membership fees, excluding registration fee, if

membership is cancelled within the first 30 days after the effective date.

• The range of discounts for medical or ancillary services provided under the plan will vary

depending on the type of provider and medical or ancillary service received.


Benefit Choices


Health BenefitsTelemedicine

Pharmacy Savings

Vision Care

Dental Care

Hearing Care

Physician & Hospital Discounts

Medical Health Advisor

Telephone Counseling (EAP)

Lab, X-ray & Imaging

Complete benefit information, provider locators, FAQs and links to Rx price finder and Lab discounts can be found by

visiting www.hlperx.com

Health Care Reform and TeleHealth


With over 22 million consumers entering the system,

healthcare demand will be high.

There is already a shortage of primary care

physicians.

The Consequences:

Individuals ignore symptoms and delay

treatment which can lead to more serious medical

complications

Individuals often leave work for minor issues

which results in loss of productivity and

unnecessary costs

Individuals overuse Urgent Care and ERs

TeleHealth can provide immediate access to

healthcare to every individual wherever they are,

whenever they need it, without any added cost.

The most efficient and cost effective method to deliver telemedicine is by phone.

Studies Show


Physician telephone consults … have been proven to replace

45%-64% of doctor office visits and 15%-35% of hospital ER

visits. Source: TelaDoc 2007 Survey and Consult A Doctor Survey Results 2010

Costs can be reduced as the healthcare system moves from in-

person physical exams to virtual visits. The average ER visit is

$1024 and primary care office visit is $140. Source: BCBS 2007: Health

Cost Estimator

Patient satisfaction with telemedicine is high…due to

convenience, comfort , privacy…and the security of having 24-

hour access. Source: Us Department of Commerce, Office of Technology

The Challenge: Most telemedicine services require a co-pay.

This represents a significant barrier resulting in low usage

rates.

We have eliminated that barrier.

Featured Telemedicine Partner


Consult A Doctor™ provides a network of licensed, board certified physicians

24/7, available by phone or secure email, who can diagnose and treat non-

emergency, routine medical conditions. They can prescribe medications when

appropriate.

Call Consult a Doctor™:• When your physician is not available

• For non-emergent medical conditions or questions

• After normal business hours, nights, weekends

• When on vacation or in the field

• Requesting prescriptions or refills

Survey Results (Jan.-Jun. 2010)

• Patient calls for Consult a Doctor™ services

are diagnosed and treated successfully over

94% of the time (the other 6% cannot be

treated by phone) with 98% satisfaction rating.

• 64% of callers would have gone to physician

and 15% to the ER—a significant savings of

time and money.

DisclosuresConsult A DoctorTM physicians do not prescribe controlled medications. Consult A DoctorTM is not insurance.Consult A DoctorTM does not replace your primary care physician.

Consult A Doctor factsPhysicians:

Experienced—over 10 years experience

Progressive—trained in telemedicine

Quality Care—board certified and state licensed

US Based—available anytime, anywhere, for anyone

Compassionate—professional and knowledgeable

Quality Assurance—consultations peer reviewed

Common Conditions Treated:

Cold/flu

Bronchitis

Allergies

Sinus and respiratory infections

Headaches, stomach aches, diarrhea

Urinary tract infections

Prescription refills

Second Opinions


Consult A Doctor Summary

On-demand healthcare – wherever and whenever you need, as

often as you need.– by phone or email 24/7/365

Diagnosis, treatment and prescriptions when appropriate

Never wait for a doctor again

All physicians U.S.-based, licensed, board-certified, rigorously

credentialed and experienced

Saves Employers: Can reduce absenteeism, increase

productivity and decrease overall healthcare costs

Saves Employees: Can save thousands of dollars a year


Return on Investment


Expected ROI for this program ONLY calculates the Consult A Doctor benefit.

All other benefits are simply considered

value-added in this example.

Assumptions:

Company Contribution of $7.95 PEPM

Usage based on 2.4 members per family

Average office visits 3.07 per person per year

Average ER visits .405 per person per year

Productivity value measured on employees

With 20% participation: Receive $1.86 for every $1 invested



Disclosures:Office and ER visits taken from CDC Nat’l. Center for Health Statistics.Costs per office and ER visit based on BCBS negotiated rates.Reductions in office and ER visits based on actual survey results.

Imagine if every corporation strongly encouraged a “call first” policy

Pharmacy Savings Card


Even though employees may have a pharmacy benefit, many prescriptions aren’t covered.

Ex: cosmetic drugs, appetite suppressants, smoking cessation prescriptions, prenatal vitamins or nutritional supplies, inject-able supplies, contraceptive devices, immunizations and vaccines and many more

Our card covers them all.

The Pharmacy Savings Card is NOT Insurance.

The prescription drug benefit network delivers significant discounts on both

brand-name and generic drugs at over 60,000 pharmacies across the United

States.

Members save between 15% and 75% on prescription drug purchases, with

an average of 52% off the retail price of most Rx purchases.



Other Features:

• RxPrice Retriever - look up the discounted price of a

prescription drug and see average savings available on the

drug within the discount network.

• Generic Navigator - find generic equivalents of a

brand name drug and compare prices of the brand

drug and generic equivalents available within the discount

network.

The Pharmacy Savings Card is NOT Insurance.



Example of Generic Navigator • How it helps families save money • How it promotes consumerism

Drug Selected

LIPITOR 40 MG Tablet QTY 30 =$133.18 (discounted price)

Generic Alternative

GENERIC PRODUCT NOT AVAILABLE N/A

Optional Drugs within this Therapeutic Class

Speak to your Physician about a therapeutic alternative.

SIMVASTATIN 40 MG Tablet QTY 30 =$10.66

PRAVASTATIN SODIUM 40 MG QTY 30 =$13.67

LOVASTATIN 40 MG Tablet QTY 30 =$26.76

LESCOL 40 MG Capsule QTY 30 =$90.81

MEVACOR 40 MG Tablet QTY 30 =$124.02

CRESTOR 40 MG Tablet QTY 30 =$127.01

Physician & Hospital—Galaxy Health™

Save 10-40% at over 300,000 specialty physicians

and thousands of hospitals and urgent care

centers nationwide.

Save on cosmetic surgery procedures, including

skin resurfacing, acne scars, liposuction, and

more.

One of the largest physician and hospital networks

in the nation.

No age or health restrictions.

Other Health Benefits


Medical Health Advisor—Helps members:

Navigate the healthcare and insurance systems

Find the best doctors, hospitals and other providers

Resolve insurance claims and billing issues

Save time and money on healthcare bills

Locate and research current treatments for a medical condition

Help members make informed medical decisions

Schedule appointments with hard to reach specialists

Secure second opinions to provide peace of mind

Identify renowned "best in class" medical institutions



Telephone Counseling (EAP)

Our telephone counselors assist with problem resolution and suggest options to help members with personal issues of any size.

Highlights

Counselors work with a multitude of issues including:

Depression, anxiety or stress

Conflicts at work or home

Reliance on alcohol, drugs, tobacco or food

Sexual, physical or emotional abuse

Loss and grief

Change and transition

Members receive free unlimited telephone counseling services 24 /7.

All Counselor have a master's degree and five years of postgraduate experience

Counselors follow up and monitor progress until member is satisfied

Services are confidential




Dental Discounts not available to Vermont residents

Dental Care

Members save 15% to 50% on everything

from general dentistry and cleanings to

root canals, crowns and cosmetic

dentistry where available.

Over 76,000 dental practice locations.

Save on specialty care, orthodontics,

endodontics and periodontics where

available.

No limit on number of visits

*Actual costs and savings vary by provider and geographical area.

** According to the Aetna Enterprise Provider Database as of

October 1, 2008.

.


Savings Examples

Service Cost* Aetna Cost Savings

Adult Cleaning $96 $56 $40 42%

Child Cleaning $69 $39 $30 43%

Routine Checkup $49 $29 $20 41%

Four Bitewing X-rays $61 $34 $27 44%

Composite Filling $163 $84 $79 48%

Crown $889 $597 $292 33%

(porcelain fused to noble metal)

Complete Upper Denture $1207 $800 $407 34%

Molar Root Canal $1005 $678 $327 33%

* This represents average fees for procedures done in Los

Angeles, Orlando, Chicago and New York in 2009.


Vision Discounts not available to Vermont Residents

Vision Care

Save an average of 20%-60% on prescription

eyeglasses, frames, lenses, tints, coatings,

UV protection and specialty items

Savings on eye exams and 40-50% off the

national average on LASIK surgery and PRK

(where available)

Savings of 10%-30% on contacts

Over 12,000 locations including national

chains and independent providers

Pearle •Sears • JC Penny •Target • LensCrafters • Sterling •EyeMasters• QualSight LASIK

Vision Care Savings


Example 1 - New York, NY

Regular Exam (Ophthalmologist) $150.00

CTC Member pays: $120.00

Savings: $30.00 20%

Conventional Lasik: $5,500.00

CTC Member Pays: $3,600.00

Savings: $1,900.00 35%

Example 2 - Dallas, TXRegular Exam (Ophthalmologist) $190.00


Savings: $57.00 30%

Frames (Regular) $89.95

CTC Member Pays: $54.47

Savings: $31.48 35%

Progressive / Polycarbonate $209.00


Savings: $52.25 25%



Hearing Care-

Beltone Hearing Centers—1350 locations

Free hearing screening and substantial discounts on

hearing aids and other products and services.

Newport Audiology Centers

35% discount off hearing aid prices at over 2,000 locations 100% Service Satisfaction during the first 60 days

Mail Order Hearing Aids

Save 40% to 60% off average National Retail Pricing on

over 100 models of name brand hearing instruments.

Receive the lowest price available.

45-day in-home trial period and 1year factory warranty



Diagnostic Lab, X-Ray and Imaging

Affordable: Deeply Discounted Rates – 40-70%.

Never have to pay full price for any lab work, x-rays or imaging again.

Savings are bigger than any PPO or insurance company offers.

Convenient: Choose the lab location that's best for you…near home, work, or

even while traveling.

Quality: We use only federally and state certified clinics, including such

names as LabCorp. Over 2900 radiology centers in the US.

Easy Laboratory Testing: Order your tests online or call us. Have the test(s)

performed at the lab and generally within 48 - 72 hours, you will be notified of

your test results. It's that easy.

No co-pays

No deductibles

Confidential: Results sent only to you. See how easy it is to order a lab test:

http://hlperx.prepaidlab.com/

http://hlperx.prepaidlab.com/

Other Benefits


Lifestyle Benefits

Emergency Roadside Assistance

Identity Theft Protection

Legal Services Direct

Tax Help Line

Pet Care

Fitness Club Discounts

Complete benefit information, provider locators and

FAQs can be found by visiting www.hlperx.com

Lifestyle Benefits


Emergency Roadside Assistance –

Up to 15 miles towing (up to $80 retail value) per occurrence maximum for

covered charges.

Flat tire assistance, fuel, oil, fluid and water delivery service, lock-out

assistance, battery assistance, & collision assistance.

LifeLock™ ID Theft Protection * (for member only—family is extra)

Identity Alert™ System – provides early notification whenever they detect your

personal information being used to apply for many forms of credit or services

WalletLock™ helps cancel and replace the contents of a lost or stolen wallet

eRecon™ patrols the web and notifies you of illegal selling or trading of your

information

TrueAddress™ notifies you when a change of address is requested in your

name

Free annual credit reports from the three major credit-reporting agencies

24-hour customer service

$1 million total service guarantee –if you become a victim of identity theft

because of a failure in their service, they will help you fix it at their expense, up

to $1,000,000

Lifestyle Benefits



Nine free services which include: Unlimited initial phone consultations for new legal matters

Initial one-on-one consultations for new legal matters

Document review (6 pages or less)

Letters written on the member’s behalf

Phone calls made on member’s behalf

Assistance with governmental programs

Assistance with small claims court representation

Free simple will with free annual updates

Free living will—state specific

Eight commonly used legal services deeply discounted, such as traffic ticket defense,

name change, simple divorce, simple trust and more.

Plan attorneys will either charge $125.00 per hour, or 40% off their usual and

customary hourly rate, whichever is greater.

Lifestyle Benefits


Tax Help Line

• Unlimited advice on federal taxation

• Free tax return preparation for forms 1040 EZ, 1040A and standard 1040

• Deep discounts on numerous other tax schedules

• IRS audit assistance

• Tax planning

• Review of prior year's tax return

• Member portal with tax tips, tax law changes, member advice and much

more

Pet Care- Receive 25% off all services at participating vets. Free pet tag and

24/7 location service. Receive 10-30% off at participating providers on pet

services, such as boarding, doggie day care, training, pet sitting and grooming.

Fitness Club Discounts-International Fitness Club Network--Guaranteed

lowest rates at over 8,500 quality fitness centers nationwide. Introductory Free

Week Trial to all clubs. All meet ACSM guidelines.

Other Features


List-bill capabilities

Fulfillment Kit and Membership Cards

Website Access to benefits and provider locators

Onsite member services call center staffed with English

and Spanish speaking representatives who can help with

enrollment, verify discounts and assist with customer service

issues.

Compliance Department monitoring state legislative

requirements

Marketing assistance and brochures

Money Back Guarantee

All benefits are good for the entire family*

*LifeLock™ benefit covers cardholder only

Target Applications


Self-funded corporations

Fully insured companies with high deductible

plans

Limited-liability plans

Schools, Government, Associations

These low cost benefits complement any insurance

plan by offering innovative strategies for reducing

absenteeism, increasing productivity, and

decreasing overall healthcare costs for the

employer while encouraging employees to take

more responsibility for their healthcare costs.

Value Proposition


Employers Employees

• Ability to add a benefit with a high perceived value

• A program that will decrease absenteeism, increase productivity and reduce overall healthcare costs

• Ability to ensure that every employee has access to healthcare when they need it wherever they are

• Ability to promote health and wellness and encourage personal responsibility

• A program that can help with acquisition and retention of employees

• Access to medical consultations 24/7 as well as savings on pharmacy, vision, dental, hearing and more

• A benefit that can fill in many gaps in insurance coverage, particularly with high-deductible and consumer-driven healthcare plans

• A program that eliminates unnecessary visits to the doctor or ER

• A benefit that can save the family thousands of dollars a year

• Lifestyle benefits that can save the family additional money on everyday needs

Standard Benefits Package


Benefits Health Lifestyle

Health &

Lifestyle

COMBO

HEALTH BENEFITSTeleHealth


Dental Care

Vision Care

Hearing Care

Lab, X-ray & Imaging

LIFESTYLE BENEFITSFitness Center Discounts

LifeLock™ Identity Theft Protection

Emergency Roadside Assistance


Pet Care

Monthly Investment $15.99 $16.99 $26.99Enrollment and Fulfillment costs included

Health BenefitsStand-alone

Monthly Price

HPA Package

Price

Consult A Doctor™ 48.65 Incl

Pharmacy Savings Card n/c Incl

Physician & Hospital Discounts 12 Incl

Medical Health Advisor 9 Incl

Telephonic Counseling (EAP) 10 Incl

Vision Care 10 Incl

Dental Care 10 Incl

Hearing Care n/c Incl

Lab, X-ray and Imaging Discounts 11 incl

Total Cost/Value $110.65 $24.99

.lllllllllllllllllllll

Health Package Using All SelectionsCan create any combination the client wants

Packages and Pricing


Voluntary BenefitsSelect benefits to include and we will develop wholesale pricing.

We can bundle any combinations as long as we have 3 or

more paid benefits in a package.

Standard Health Benefits package includes Consult A Doc,

Pharmacy, Vision, Dental, Hearing, Lab and Fitness @ $15.99

PEPM

Involuntary or Embedded BenefitsBased upon group size and projections or guarantees, we will

develop involuntary pricing package.

Fulfillment Kits can be provided by client and reduce cost.

Contact:


Sample HealthPerx™ Card Website

www.hlperx.com

http://www.hlperx.com/

Presentation All Benefits 10 10 10

Documents

healthcare services

healthcare costsand

healthcare demand

certain healthcare providers

providers of medical

overall healthcare costs

benefits proprietary

plan member