Finally, A solution to

Help Employers & Help Employers & EmployeesEmployees

with health care costs

The Medical BridgeSM Opportunity

Are you ready to…

Compete for employee top talent with a strong benefits program?

Control health care costs and expand coverage for your employees?

Provide 1-to-1 benefits counseling and enrollment at no direct cost?

Innovative solutions are necessary

Offering a competitive benefits package remains critical to attracting and retaining key talent

Managing health plan costs is a top business priority

1Source: Hewitt Associates: “U.S. Health Care Cost Rate Increases Reach Highest Levels in Five Years, According to New Data”

Average cost of group health coverage expected to rise 8.8% from 2010 to 2011*

Employers respond to rising costs

Absorb rate increase at

renewal

Shift more contribution to

Employee

Direct impact to employer’s bottom line

Shift more contributions to

employees

Direct impact to employee’s pocket book

Re-design plan and introduce

HDHP solutions

Increase in employee’s exposure to

health care costs

1Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006-2010.2National consumer study, Financial Industry Regulatory Authority Investor Education Foundation in consultation with the U.S. Department of Treasury and President’s Advisory Council on Financial Literacy, 2009.

Current Health Plan

•Higher annual deductible

•Higher co-insurance amounts

Employees face more costs• 2X increase in employees covered

by plan with a $1,000+ deductible1

• 60% of Americans do not have funds to cover unexpected costs2

Employee out-of-pocket costs

Expenses covered by health plan

Employer faces higher plan costs at renewal with current plan design

Employers respond to rising costs

Expenses covered by health insurance

Medical Bridge solution

Out-of-pocket costs

1Plan design and benefits vary by state. See state specific plan information for availability in each state.

Expenses covered by health insurance

The Medical BridgeSM opportunity A solution for employers and

their employees• Employer saves money by

redesigning the health plan

• Employees receive benefits to help pay out-of-pocket costs from a hospital confinement or other covered health care event

• Pays lump-sum benefits directly to employees

• Benefits for outpatient surgery, diagnostic tests, and wellness visits may also be available1

Current Plan

Annual Deductible $500

Coinsurance 80/20

EE Cost $177

ER Cost $532

Total Cost $708

% Increase +17%

Proposed Health Plan

$1,500

70/30

$154

$461

$615

(13%)

Add Colonial Life’s Hospital Confinement Indemnity Plan

MB3000GMB 1.0

• Premiums have decreased; however, employees are now faced with more out-of-pocket exposure.

• Solution…

The Medical BridgeSM opportunity

Plus GMB 1.0 Plan 2 with Health Screening*

Hospital Confinement $1,000

Outpatient Surgery Option 1 ($500 Tier 1, $1,000 Tier 2, $1,500 CY Max)

Health Screening = $50

GMB 1.0 Premium

Proposed Health Plan

Annual Deductible $1,500

Co-insurance 70/30

Total Health Cost $615 (ER Savings is $532 - $461 = $72/EE/Month)

Employer can use savings to purchase GMB1.0 100% for the employees.** $72.00 X 100 Employees = $7,200 savings per

month $17.47 X 100 Employees = $1,747/month

EE Discounted Composite Rate = $17.47/month

The Medical BridgeSM opportunity

**Employers who pay 100% of the premium for any Colonial Life product may not be eligible for certain complimentary employer services offered by Colonial Life.

*Plan options and benefits vary by state, and product may not be available in all states. Ask your Colonial Life contact for the plan options available in your state.

Expenses covered by health insurance

Medical Bridge solution

Out-of-pocket costs

Expenses covered by health plan

The ShiftEmployers are changing health plans to manage benefit costs

The RiftEmployees face more out-of-pocket costs

The BridgeMedical Bridge helps provide a soft landing for employees

A solution that works for you and your employees

Group Medical BridgeSM 1.0 Highlights

Group contract

• Situs state• Optionally renewable• No portability option• Minimum account size 10 enrolled + participation• Defined enrollment period required

Flexible plan designs

• HSA-compliant option (in most states)• Higher benefit amounts and flexibility• Employer optional benefits

Underwriting options

• Guaranteed issue (GI)• Guaranteed issue with pre-existing conditions

waived (GX2)

Premium options

• Age-banded• Composite• Discounted composite

Benefits vary by state, and product may not be available in all states.

Competitive underwriting• No health questions*

• Pre-ex waived for all covered insureds*

• Available in accounts with 10+ employees

Group Medical BridgeSM 1.0

Why it’s appealing

*Participation requirements must be met for GI and GX2**Employer contribution required

Flexible rating options• Rates for voluntary and employer-paid business

• Composite and discounted composite rates available**

Group Medical BridgeSM 1.0

Why it’s appealingNot affected by health care reform• Offered in addition to qualified health insurance.

• “Excepted benefits” under HIPAA and not subject to market reform provisions.

Minimal federal law implications to an employer• Colonial Life believes this plan is not subject to COBRA.1, 2

• May qualify as an ERISA plan. Colonial Life can provide assistance to employers in complying with certain ERISA requirements. 1

1Employers should consult their attorney concerning the applicability of COBRA and ERISA. 2The obligation to provide continuation of coverage under COBRA is imposed by Federal Law on the employer.