1. Slide 1
Working Together to
Build a Better Health
Plan in the Face of
Change

2. Slide 2
Agenda
1 Explain how educating
your employees about Gap
or Bridge Coverage can
save you money today,
even if no employee enrolls
at this time.
2 Demonstrate how allowing
your employees to
purchase Gap Coverage
will save them money today
Carl Barber
and make the transition to a
high deductible health plan
[HDHP] easier tomorrow.

3. Slide 3
Employer Benefits
Benefits Achieved Today by Educating Your Employees about Gap Coverage
1 Your employees will place of far greater value on the
health insurance you currently offer.
2 They will expect increasing premiums, deductibles, and
co-pays every year going forward.
3 They will understand how moving to a high deductible
health plan and purchasing Gap Coverage can be to their
benefit.
4 They will make every effort to minimize your current
health insurance usage understanding this will result in
lower premium increases for both employer and
employee.

4. Slide 4
Employer Key Points to Know
Key Points to Know As an Employer Considering the Addition of Gap Coverage
1 Compared to others, my employee paid gap coverage is a
far greater benefit to both employees and employers.
2 No cost to the employer to add my gap coverage to your
current benefit plan.
3 It can lower your payroll taxes.
4 Makes transitioning to a high deductible health plan
easier.
5 We handle all education, enrollment, and claims
processing.
6 Employees need up to one year's exposure to gap
coverage to feel comfortable choosing an HDHP option.

5. Slide 5
Healthcare Costs
Where we have been…
Premiums have
increased 113%
for employers
and 131% for
employees over
the last decade

6. Slide 6
Healthcare Costs
Where we are headed…
By 2019
a single-family
plan is projected
to cost employers
and employees a
combined
$28,530

7. Slide 7
Healthcare Costs
Impacting employees and employers
• It is projected all companies large and
small will be offering a HDHP within the
next five years and 50% of employees
will select this option
• The current maximum deductible for a
HDHP is $6000

8. Slide 8
Healthcare Costs
Impacting employees and employers
•Unpaid medical bills are the number one reason
for bankruptcy filings in the US today.
•70% of those filing had health insurance.
•The average debt was $18,000.
•The current maximum deductible for a HDHP is
$6000.

9. Slide 9
What’s missing in your health plan?
A solution to minimize the impact of increasing
deductibles and co-pays.
Gap Coverage
1. Pays employee a fixed cash amount for
covered medical expenses.
Gap Coverage 2. No deductibles or co-pays.
3. Employee buys it, pays for it, and carries it
from employer to employer and even into
retirement.
4. My gap coverage has never had a premium
increase on an existing policy allowing
employees to lock-in today’s lower prices.
Health 5. No need to change your current plan.
Reimbursement Health Savings 6. Uses pre-tax dollars reducing payroll taxes
Account for employers and employees.
Account
7. Employee designs the plan that best suits
their needs.
8. Benefits can be increased as deductibles
and co-pays increase.
9. Affordable-plans average $6-$8 a week.
10. Works with your HRA and HSA or ours.

10. Slide 10
What’s missing in your health plan?
A solution to minimize the impact of increasing
deductibles and co-pays.
Health Savings Account
1. Employee owned and controlled.
Gap Coverage 2. Funded with pre-tax dollars.
3. Accumulates year to year if not spent.
4. Can be funded by employee and employer.
5. Employee takes employer contributions
Health with them upon termination.
Reimbursement Health Savings
Account 6. Funds can be invested similar to an IRA
Account
with similar penalties.
7. Employee determines eligibility of
expenses.

11. Slide 11
What’s missing in your health plan?
A solution to minimize the impact of increasing
deductibles and co-pays.
Health Reimbursement Account
1. Employer owned and controlled.
Gap Coverage 2. Funded with pre-tax dollars.
3. Stay with employer upon employee
termination.
4. Funded by employer only.
Health 5. Administered by plan service provider.
Reimbursement Health Savings
Account 6. Employer not required to prepay into fund.
Account
7. Plan determines eligibility of expenses.
8. Employer decides if funds are rolled from
year-to-year.

12. Slide 12
What’s missing in your health plan?
A solution to minimize the impact of increasing
deductibles and co-pays.
Alternatives:
Gap Coverage Flexible Spending Account-
Similar to a Health Savings
Account except with a “use it or
lose it” rule.
Health Personal Savings-
Reimbursement Health Savings
Account
Account 42% of workers report they live
paycheck to paycheck. ( Career
Builder survey)

13. Employers underestimate the power of non-medical
coverages and voluntary benefits to drive employee
loyalty.
Are benefits very important for feelings of loyalty to a company?
Health benefits 3Employers Yes
Category 57%
Employees Yes 66%
Non-medical
benefits
Category 2Employers Yes 32%
(dental,
disability, Employees Yes 51%
vision, life)
A choice of
Health Benefits
Voluntary
Employers Yes 24%
benefits Employees Yes 40%
0.00% 10.00% 20.00% 30.00%Met40.00% 50.00% Employee Benefits Trends
life 10th Annual Study of 60.00% 70.00%

14. Employees have a different perspective on the value of
personalized benefits than most employers.
Because of economic conditions:
• 73% would like more personalized benefits geared to
employee age groups
• 74% would like more personalized benefits geared to
individual circumstances
• 73% would like a greater variety of benefits to choose
from
• 59% are willing to bear a bigger share of the cost rather
than lose benefits
• 70% who are very satisfied with benefits state they are
very satisfied with their job
Met life 10th Annual Study of Employee Benefits Trends

15. Slide 13
Adding Voluntary Benefits:
•Increases employee
loyalty
•Improves job satisfaction
and performance
•Saves employers and
employees money

16. Slide 14
Is there any reason why
you would not want to add
voluntary benefits to your
benefit plan?