No More Compromises

Group Broker Concerns with Defined Contribution

1. Loss of Revenue

2. Too Much Work

• Can I make as much money 1st Year & Beyond?

• DC seems to require so much more to enroll

3. Loss of Ownership

4. Compliance

• I do not want to lose control of my book of business

• “I hear so much about legality of DC”

5. Fear of Unknowns • What is going to happen if?....

Who Is Hamilton Edwards

A Private Exchange Marketing Organization

Providing Services, Products, Marketing and Support including Setup/Implementation to the Broker Community for Employers in a Private Exchange

Exchange

Services

• Customized Exchange

• Support & Education

General Agency • Insurance

• Non- Insurance

Implementation• Enrollment

• TPA Services

How Does HE Help the Broker

Private ExchangeMarketing Organization

1. Benefits for the 21st Century2. Employer Defines Dollars 3. Employee Chooses Plans4. Employers Have More Control 5. Employees Have More Options 6. Insurance Products Offered On Tax Free

1. Can Be Offered Under A Cafeteria Plan2. Work in Conjunction with HSAs3. Third Party Administration Minimizes Workload

for Employer & Provides Compliance

Customized

Exchange

• Agency, Employer, Association Branding

• Flexible Set Up of Products & Services on Website

Support

• Setup & Enrollment via Call Center or One On One

• TPA Support

Education

• On Line Training

• Innovation to Market

• Benefit Partners University

How Does HE Help the Broker

Private Exchange Services

Worksite

• Top Contracts

• Best in Class Products

• Best in Class Enrollment Tech Platform

Individual

• Major Medical

• STM

• Medicare

• Voluntary

Non Insurance

• Patient Advocacy

• Telemedicine

• Medical & Domestic Tourism

How Does HE Help the Broker

General Agency Services

Supplemental1. Critical Illness2. Accident3. Cancer4. Hospital Indemnity5. Life6. Disability

General AgencyTop Contracts

Health Insurance1. Major Medical2. Short Term3. Limited Medical

Selection Criteria • Tools for Simplification• Ease of Implementation• Ease of Administration• Works with Private Exchange

Non Insurance1. Telemedicine

2. Patient Advocacy3. Employee Counseling4. Travel Medical Coverage5. Billing Negotiation6. Medical Tourism

Full Service

• Set Up and Structured Enrollment

• Maximize Revenue through Cross & Combo Selling

Support Only

• Provide Materials

• Answer Questions

• Provide Guidance & Direction

Call Center

• Inbound & Outbound

• Direct Non Payroll

• TPA Services

How Does HE Help the Broker

Implementation

1. Products/Services

2. Ownership

• Top Contracts Insurance & Non-Insurance

• As An Agency You Can Own Your Book of Business

3. Innovation

4. Compensation

• Best Alliance Partnerships in the Country in Overall Innovation – Technology & Services

• Remain competitive and grow market share

• Proven System That Maximizes Income Stream

5. Support • Provide or Support Enrollment, Sales, & Marketing

Why Would You Want To Partner with Hamilton Edwards?

But More Important Than Anything Else…

Why Would You Want To Partner with Hamilton Edwards?

…We Know Where The Bodies Are Buried!

Ways Brokers Can Do Business

Send Implementation to Call Center

Connect Call Center with

Employer

Handle Implementation

Internally

1. Broker Sales Case

2. Broker Decides How to Enroll

Case 3. Manage &

Service Account

Weigh What is Best for ROI for Agency & Client

Call Center Sends Reports Of Who Enrolled to Agent Cubed

Ways Brokers Can Do Business

Referral

Broker Refers the Business

Handle it All

1. Broker Sales Case

2. Broker Decides How to Enroll

Case 3. Manage &

Service Accounts

Broker Can Refer, Handle the Whole Thing,Or Something In Between

Sales Only

Outsource Enrollment 1. Hamilton Edwards2. Call Center

Broker Compensation Schedule

Independent

Agency Sales Agent Referral

Compensation A B CBroker A

Maximum Comp. Structure.

Has GA Support Health Insurance 100% 30% 20%

Supplemental Insurance 100% 29% 20% Broker B

Sales Case/Helps Set up

Enroll TPA Fees

Paid % Anything Above $10 PEPM

<$2000/Mo. Revenue 50% 30% N/A Broker C

Referral Only

>$2000/Mo. Revenue 100% 30% N/A

TPA Set Up Fees 100% N/A N/A

* TPA Set Up fees can be $50 to $150 1 time/per person

Case Example Home Health Care Agency

Size Group Current Group Rates

(Actual) Private Exchange ExamplePrivate Exchange

Actual (Final)

$2,500 $2,500 Deductible Includes (Supplemental)

Employees Current Best Worst Accident/HI

15 Employees $10,776.00 $5204.69 $6174.65 $5,689.73

Proposed Savings $5,517.31 51.20% Actual Savings $5086.27/47.2%

GA Support Commission Sales Agent ReferralCommissions Based on Total Comp

(Monthly)

Total Ins Comm(Monthly) $1275.50 $377.58 $255.10 $5689.73

Commission Admin Fees

Set up Fee ( 1 Time) $750 1 Time Charge Set Up $50/per. Fee

On Going Monthly Fee $225 $67.50 $0On going fee based on 15

employees

Total Monthly Payout $1500 $445.08 $255.10Includes Ins. Commission &

TPA Fee Payout

Total Annual $18,006 $5340.96 $3061.20 Monthly Payout over 12 months

Break Down $100 PEPM $30 PEPM $17 PEPM

Actual Example Broker Comp PayoutHome Health Care Agency

Case Example Radiology Group

Size Group Current Group Rates

(Actual) Private Exchange ExamplePrivate Exchange

Actual (Final)

$3,500 $3,500 Deductible Includes (Supplemental)

Employees Current Best Worst Accident/HI

25 Employees $9,273 $6227 $7606 $7,240

Proposed Savings $3045 32.8% Actual Savings $2033/22%

GA Support Commission Sales Agent ReferralCommissions Based on Total Comp

(Monthly)

Total Ins Comm(Monthly) $1593 $500 $333 $7240

Commission Admin Fees

Set up Fee ( 1 Time) $1250 1 Time Charge Set Up $50/per. Fee

On Going Monthly Fee $275 $114 $0On going fee based on 25

employees

Total Monthly Payout $1525 $614 $333Includes Ins. Commission &

TPA Fee Payout

Total Annual $18,300 $7368 $3996 Monthly Payout over 12 months

Break Down $61 PEPM $25 PEPM $13 PEPM

Actual Example Broker Comp PayoutRadiology Group

GA Support Commission Sales Agent ReferralCommissions Based on Total Comp

(Monthly)

Total Ins Comm(Monthly) $362 $109 $70 $7240

Commission Admin Fees

Set up Fee ( 1 Time) $0 (New Hires $50) 1 Time Charge Set Up $50/per. Fee

On Going Monthly Fee $375 $223 $0On going fee based on 25

employees

Total Monthly Payout $737 $332 $70Includes Ins. Commission &

TPA Fee Payout

Total Annual $8844 $3984 $840 Monthly Payout over 12 months

$30 PEPM

Actual Example Broker Comp PayoutRadiology Group – Second Year – Nothing New –No New Hires