Cypress Benefit Administrators is a full service Third Party Administration (TPA) company. We specialize in helping companies outsource Flexible Spending Accounts (Section 125), HRA, HSA, and COBRA. Additionally, we provide expertise in self-funded medical plan administration.

1. The Cypress Solution

2. The Problem: Annual Employee Health Care Costs

4. Health Insurance Premiums vs. Other Major Indicators 12.0% 18.0% 8.5% 0.8% 8.2% 13.9% 9.2% 13.7%

8. We Bring the Industry’s Most Comprehensive Answers for Employers Through THE CYPRESS SOLUTION

9. The Cypress Solution: A Comprehensive Set of Administration, Service, Cost Control, Wellness & Data Management Tools for Employers Information Wellness Cost Control Service Claim Administration THE CYPRESS SOLUTION

10. The Cypress Solution: A Comprehensive Set of Administration, Service, Cost Control, Wellness & Data Management Tools for Employers Information Wellness Cost Control Service Claim Administration THE CYPRESS SOLUTION

13. The Cypress Solution: A Comprehensive Set of Administration, Service, Cost Control, Wellness & Data Management Tools for Employers Information Wellness Cost Control Service Claim Administration THE CYPRESS SOLUTION

15. The Cypress Solution: A Comprehensive Set of Administration, Service, Cost Control, Wellness & Data Management Tools for Employers Information Wellness Cost Control Service Claim Administration THE CYPRESS SOLUTION

19. Cypress Cost Control Tools Wellness Global Health Negotiated Discounts Upfront Claim Financing Organ Xplant Carve-Out Fraud & Abuse Detection Innovative Pharmacy Options Medical Advocacy Disease Management On Site Medical Active and Passive PPO Consumer Driven Health Plans The Cypress Solution

20. On-Site Medical Services

22. Disease Management

24. Medical Advocacy

25. Steering Patients Through the System February 27, 2006, PALLAVI GOGOI Reported: BusinessWeek “… half of patients left their physicians’ offices not knowing what to do … 61% of the time patients chose the wrong type of specialist. This misstep generated an average of $3,500 in extra costs .” “… most patients wanted more guidance in choosing health care.”

29. MAP Identifies Doctors Who Do the Most of a Specific Procedure

30. MAP Leads Patients to the Most Qualified Physicians Procedures per Year Total Knee Replacement DRG 81.54 Milwaukee, WI Surgeons MAP guides you to surgeons that do one-two-three procedures per week. Specialists on top of their game ! Low volume, Low current experience! Low volume, Low current experience! Physicians

31. MAP Narrows Down Physician Choices on a Name-Specific Basis Procedures per Year Physicians Total Knee Replacement DRG 81.54 Milwaukee, WI Surgeons with 50 + Procedures / Yr.

32. MAP Gives the Patient Doctors Who have Proven the Highest Quality Complication Rate will not recommend physicians with poor quality factors! MAP MAP IDs specialists with top quality factors: “ Complication Rates” HALF the State average! Physicians

33. MAP Recommends Several Doctors Who Fit the Patient Profile Surgeon A Surgeon E Surgeon D Surgeon C 0.8 1.0 0.6 1.2 1.4 1.6 1.8 2.0 2.2 Surgeon B Surgeon F Total Knee Replacement DRG 81.54 Surgeons by LOS / Charge Surgeon E Charge (1.0 = Average) Length of Stay (1.0 = Average Charge (1.0 = Average) Length of Stay (1.0 = Average)

34. MAP Shows the Hospitals that the Chosen Physician Admits to & What the Hospitals Charge for their Procedure Methodist, MN United Hospital Saint John’s Charge (1.0 = Average) 0.7 0.8 0.6 0.9 1.0 1.1 1.2 1.3 1.4 Saint Joseph’s 40% differential in billed charges! Total Knee Replacement DRG 81.54 Same Surgeon by Location * LOS / Charge Length of Stay (1.0 = Average)

37. Fraud & Abuse Detection/Inappropriate Billing Prevention

45. The Bottom Line Cypress Benefit Administrators – the industry leader in health cost management

46. The Cypress Solution: A Comprehensive Set of Administration, Service, Cost Control, Wellness & Data Management Tools for Employers Information Wellness Cost Control Service Claim Administration THE CYPRESS SOLUTION

48. Wellness Medical Advocacy Disease Management Consumer Information Incentives Coaching On Site Medical Health Risk Assessment The Cypress Solution

49. Introducing:

55. Incentives Drive Employee Participation 3-4% <4% <1% <1% SMOKING CESSATION 5% <4% <2% <2% WEIGHT LOSS >7% 5-7% 3% <3% 24/7 NURSE LINE 70% 21-30% 10% <5% HEALTH SCREENING 75-80% 30-50% 25% <20% HRA Significant Incentives ($100-$500) Moderate Incentives ($25-$75) Token Incentives No Incentives Activity

58. Compare Thrive vs. Others X On Site Medical X Disease Management X Online Consumer Information X Medical Advocate Plan X Incentive Plans X X Client Aggregate Report X Telephonic Health Courses X Trend Analysis X On Site Coaching X Compare to National Guidelines X X Detailed Lab Results X X Personal Report Mailed X Online Results X X Health Questionnaire X X On Site Blood Draw Other Plans Thrive

59. The Cypress Solution: A Comprehensive Set of Administration, Service, Cost Control, Wellness & Data Management Tools for Employers Information Wellness Cost Control Service Claim Administration THE CYPRESS SOLUTION

60. Information Provider Quality Measures Medical Advocacy Predictive Modeling Plan Modeling Cypress Online Client Specific Reports Monthly Reports The Cypress Solution

64. No single administrator has brought together Claim Administration, Service, Cost Control Programs, Wellness Options and Access to Information like Cypress Benefit Administrators through THE CYPRESS SOLUTION Information Wellness Cost Control Service Claim Administration THE CYPRESS SOLUTION