HEALTH & WELFARE CONSULTING SERVICES

Initial Planning Meeting. We often begin each new client relationship with this meeting intended to:

• Understand Client’s formal or informal employee benefit objectives

• Learn about emerging corporate direction, perceived competitive posture, and other issues that may affect benefits
• Confirm the timing and items to be addressed in Employee Surveys (Optional)
• Reach understanding of the parameters for a general competitive benefit review
• Obtain finance and/or risk management staff feedback about the effectiveness of current plan designs and vendor performance
• Discuss parameters and strategies for vendor performance guarantees which would be implemented for the renewal (focusing on medical/dental benefit plans)
• Discuss emerging trends in the marketplace
• Finalize an action plan for the remainder of the plan year
• Receive as much specific benefit plan documentation as is available from staff
• Begin compliance audit

Follow-up Renewal & Plan Design Planning Meeting. In this meeting, we expect to:

• Share results of the Employee Surveys (Optional) and general competitive benefit review.
• Suggest plan design changes as appropriate, including the multi-year staging of possible changes.
• Review emerging claim experience.
• Select type and number of ABD-prepared quarterly experience reports.
• Review current benefit plan funding mechanisms and any applicable alternatives.
• Schedule bid solicitation activities.
• Update on compliance audit activities, especially annual ERISA filings (discussed in more detail below.)

We suggest scheduling this meeting 2 - 3 weeks after the initial planning session.

Quarterly Meetings. We will meet at least every calendar quarter to:

• Furnish status updates on any open items from previous meetings or conversations.
• Review emerging claim experience results, mid-year renewal forecasts, or other renewal issues. ABD will prepare the needed reports and exhibits for these sessions.
• Discuss new or anticipated legislative or regulatory matters and how should efficiently respond to them; also discuss new benefit industry or other related industry developments and their impact on ’s plans.
• Evaluate vendor service levels.
• Understand any changes in ’s business characteristics or operating performance and discuss their impact on the company’s benefit plans.

Renewal and Bid Solicitation Management. We plan to competitively bid all benefit plan vendor or insurance arrangements. In this process, ABD will:

• Assemble bid specifications
• Identify qualified bidders
• Manage bidder queries
• Analyze and condense submitted proposals
• Present findings with recommendations
• Prepare senior management decision support materials.

Our recommendations will be based on the following partial list of characteristics:

• Best adherence to overall objectives
• Cost (including evaluation of alternative funding mechanisms and risk assumption levels)
• Network access (for medical, dental or vision benefit plans)
• Demonstrated service levels, including claim and other related service performance guarantees. This would also encompass desired levels of automation compatibility with or other external systems.
• Installation resources and track record
• Willingness to allocate funds to employee communication budget
• Needed data reporting capabilities
• Demonstrated quality of care initiatives.

Participant Contribution Analysis. With each health benefits renewal, we review the contributions required for employee or dependent coverage. We will share our experiences about the relative competitiveness of current contribution levels and offer suggestions to address corporate budget or other cost-sharing objectives.

Construct and Manage Detailed Implementation Plans. When changing carriers, we find that the time we spend in advance of the effective date clarifying administrative procedures and coverage details pays dividends later. We will lead these detailed meetings to minimize surprises later for either your benefit management staff or your plan participants.

Communication, including Open Enrollment. We will:

• Facilitate communication tasks within overall management of new/revised plan implementation activities
• Prepare open enrollment templates for your review and production. These include coverage and contribution comparison exhibits and sample letters to communicate important changes or other intended benefit management messages.
• Conduct open enrollment meetings or "train the trainers" meetings.
• Prepare draft and/or final presentation materials.
• Draft coverage clarification or minor change memos for employees or vendors.
• Share items of interest for internal newsletter articles.

Compliance Activities. We will:

• Conduct compliance audit and prepare a report summarizing the findings. We anticipate presenting these findings either as part of a regular quarterly meeting or a separately scheduled session.
• Prepare all required compliance documents each year in accordance with stated ERISA requirements including appropriate plan documents, Form 5500 filings, summary annual reports, summaries of material modifications (if needed), and summary plan descriptions.
• Make retained ERISA counsel available for routine interpretations and legislative/regulatory updates.
• Prepare and deliver COBRA compliance guide.

We suggest conducting the compliance audit as soon as possible, so we can identify and remedy any compliance issues as soon as possible.

Automation Solutions. The introduction of BenefitPoint, an automation platform designed to streamline the way we conduct business for our clients, will also more efficiently deliver benefits administration processes and plan information to staff and plan participants. BenefitPoint will deliver:

• A front-end transaction tool for the employees. Employees will be able to enroll, make status changes, compare contribution amounts, access carrier information & track claim data all in real time
• A connection to Payroll or HRIS to update employee data and capture changes
• End-to-end connectivity with the carriers – this will include use of a common database to reduce or eliminate coverage disputes, facilitate problem resolution, etc.

Most of the BenefitPoint automation features are scheduled for a second quarter, 2000 rollout. In the event the BenefitPoint rollout is delayed, ABD will identify and propose alternative automated front end solutions for our client's consideration.

Other Services. ABD furnishes the following standard services as-needed:

• General guidance on emerging legal, regulatory, or marketplace issues or opportunities
• Claim assistance packages, which help participants understand the claim adjudication process and give them a way to reach out for help
• Office hours, where we periodically come onsite, answer employee benefit questions and solve individual coverage or service problems
• Periodic wellness and other related materials
• Administration consulting, focusing on automation and outsourcing initiatives.
• Ongoing health improvement activities.