This document discusses the differences between fully insured and self-funded health insurance options for employers. It introduces Premium Analysis, Inc., a company that provides risk analysis tools to help employers choose between funding options. Monte Carlo simulation software can analyze different scenarios and predict that self-funding has an 84.5% probability of equaling or improving costs compared to fully insured plans, by quantifying risks. The company's fee structure and compensation model are also outlined.

1. Health Insurance Fully Insured or Self Funded Financial Analysis Raymond J. Gianantoni, FLMI

7. Example – Using Specific Deductible Software Stop-Loss Quotes Analysis -$190,176 -$88,437 n/a Projected Savings $280,780 $93,593 n/a Additional Claims $90,604 $5,156 n/a Premium Savings $305,099 $390,547 $395,703 Annual Premium $77.01 $98.58 $99.88 Family: 252 $27.11 $34.70 $35.16 Single: 222 Census $ 125,000 $ 100,000 $ 75,000

9. Monte Carlo Simulation Probability of Results There is a 84.5% probability that the self-insured plan will breakeven or improve the fully insured cost. Based on census of Single-222 Family-252 Why not have the benefit of technology to help you make sound business Decisions on a large recurring expense? 204,580 3,986,507 4,191,087 80% 0 4,191,087 4,191,087 84.5% -277,371 4,468,459 4,191,087 Worst Case -277,371 4,468,459 4,191,087 90% 581,412 3,609,675 4,191,087 70% Savings Self-Funded Fully-Funded Probability

11. For more information contact: Raymond J. Gianantoni, FLMI Premium Analysis, Inc. 20 Maple Street, Suite 3 Springfield, MA 01103 Tel 413-732-2888 [email_address]