Overview of services and potential cost savings

1. Aon Consulting: Key Facts and Areas of Expertise
•Among the top global human capital consulting firms •Global leader in risk management & human capital consulting
Aon •6,000+ professionals in 117 offices worldwide Aon •36,000+ employees in 500 offices in 120 countries
•Voted world’s “Best Employee Benefits Consulting Firm” •World’s largest insurance broker based on brokerage
Consulting by the readers of Business Insurance (2006, 2007 and 2008 Corporation
revenues in 2007 and 2008 (A.M. Best)
Readers Polls)
HEALTH & BENEFITS HUMAN CAPITAL EMPLOYEE BENEFITS RETIREMENT & GLOBAL BENEFITS EXECUTIVE
OUTSOURCING INVESTMENTS COMPENSATION
• Absence & Disability • Benefacts® • Call Center Services • Retirement Plan • Benchmarking • Strategy Development
Management Personalized • COBRA Administration Strategy and Design • Benefit Audit • Competitive Analysis
• Medical and Pharmacy Communication • Investment Manager
• Defined Benefits • Benefits Consulting / • Incentive Plan Design
Plan Audits • Call Center Solutions Administration Performance Broking • Equity Plan Design
• Benefit Coalitions • Communication • Direct Billing • Investment Manager • Benefits Design • Employment Agreements
• Consumer Driven Strategy Administration Research & Selection
• Captives • Pay for Performance
Healthcare • Competency Modeling • Flexible Spending • Investment Strategy
• Expatriate Consulting / Assessment
• Flexible Benefits • Leadership Assessment Account Administration • Investment Education - Broking • Deferred Compensation
• Health Data Analytics & & Development • Health & Welfare Fiduciary / Employee
• Financial / Benefits • Executive Performance
Reporting • Organizational Change Administration • Legal & Documentation Accounting Evaluation
• Integrated Health • Recruitment Process Services
• Global Actuary • Compensation
Management Outsourcing • Member Annuity
• Global Benefits Committee Advice and
• Plan Design • Selection & Assessment Service
Manager Counsel
Benchmarking • Talent Strategy • Member
• Global Broking • Disclosure
• Post Retirement Communications
• Workforce Planning • International Pension Communications
Healthcare Valuations • Retirement Plan
Plans • Expert Witness
• Retiree Medical Benefits Benchmarking Analysis
• Merger and Acquisitions • Implementation Support
• Strategy Design & • Retirement Plan
Compliance • Multinational Pooling
Implementation
• Vendor Selection / Fee • Strategic Actuarial
• Workers’ Compensation
Analysis Adviser
Strategy
• Defined Benefit Plan • Strategy / Governance
• Health Care Analytics
Actuarial Services Consulting
• Online enrollment
• Executive Life/Disability • Vendor Selection
Management
• Executive Pensions

2. Sample Cost Saving Ideas for Health & Welfare Programs
Strategy EE Pain Potential Savings
Medical and Prescription Drug Benefits
Implement (or increase) CDH Reduce medical trend by 50% $$$
Limited medical plans in lieu of comprehensive plans 50% or more of medical/Rx spend $$$$
Mid-year or renewal re-bidding 2-15% of spend $$
Leverage Aon discount database to ensure most cost effective network Up to 10% of medical claims $$
Dependent Eligibility Verification Audit 2-10% of benefits spend $$$$
Convert to self-funding 3-10% of premium $$
Lump sum annual premium payment 1-4% of premium $
Aon Pharmacy Coalition 4-10% of Rx spend $$
Review Pharmacy Benefit Manager (PBM) contact terms Up to 10% of Rx spend $$
Generic drug programs 1% reduction in Rx spend for each 1% increase in generic usage $
Add or increase deductibles / copays / OOP / etc 1-8% of medical/Rx spend $
High performance network 2-4% of medical spend $$
Tier contribution based on health assessment Depends on existing program $
Core/Buy-up Depends on existing program $
Spousal Surcharge Depends on existing program $
Evaluate opt-out credit model Depends on existing program $
Tiered Pharmacy program Depends on existing program $
Eliminate lifestyle drug coverage Depends on existing program $
Pay-related employee contributions, deductibles and / or out-of-pocket maximum Depends on existing program $
Put stop loss in existing captive 25-50% of stop loss premium $$
Life and Disability Benefits
Convert LTD and STD to employee paid 100% of premium $$$$
Life/LTD/STD premium re-negotiation / re-bidding through Aon Online Marketplace 5-20% of premium $$
Use Rev. Ruling 2004-55 to reduce LTD/STD premiums 5-10% of LTD/STD premiums $
Vision and Dental benefits
Convert dental and vision to employee paid 100% of premium $$$$
Vision & dental premium re-negotiation / re-bidding 5-20% of premium $$