Business Express Update Connector Board Meeting June 10, 2010

1. Business ExpressUpdateConnector Board MeetingJune 10, 2010

2. Business Express Update:Presentation Objectives • Overview of Small Group Market • Business Express Product • Employer Shopping Experience • Results To Date • Challenges

3. Business Express Update:Introduction • C.58 directs the Connector to provide products for individuals and small businesses (1-50) • Statutory mission of MA health reform • Vision of national reform • Governor Patrick and legislative leaders have highlighted the need for relief for small employers • Business Express meets key goals for CChoice: • Reduce employer costs • Promote choice and simplify quotation/enrollment • Reduce Health Connector’s costs via scale efficiency • Improve ESI offering in 1-9 employee market • Looks to future of enhanced automated functionality

4. Overview of Small Group Market * Data provided by SBSB

5. Business Express Product:Value for Constituents Small Employers • Reduce admin charges to “mini-employers” (typically $35/sub/month) • Simplify shopping experience for small employers/brokers Carriers • Reduce duplication for carriers • Reduce Admin Fee: From 4.5% to 3.5%

6. Business Express Product:Product Features • Sole source product; 1 carrier, 1 benefit plan design • Available to small employers (1-50) • New business sold online via Health Connector web site, either through brokers or direct to the employer • Employer makes the following key decisions • Selects a Health Connector Seal of Approval Plan: Choice of Gold, Silver and Bronze plans* available on sole source basis • Determines the employer contribution level (e.g. minimum of 50% for employees, 33% for dependents/families) • All employees enroll or waive in the Employer’s plan • * Young Adult Plans not part of the product offering

7. Employer Shopping Experience: Business Express – Bronze, Silver, Gold

8. Employer Shopping Experience: Business Express – List of available plans

9. Employer Shopping Experience: Business Express – Side by Side Comparison

10. Results To Date Over 4,500 members are currently enrolled in the Business Express program

11. Employer Shopping Experience: Business Express – Employer Testimonial “When our existing health plan presented us with a 23% rate increase, we wanted to explore our options.” “Business Express made it very easy for us to perform a side by side comparison of each of the health plans offered. Benefits are standardized on the website so you can really compare apples to apples to make the best choice.” “Perhaps the best part is that our company and our employees saved money.” - Matt McGinity, CEO, SuperLogics

12. Challenges • April 2010 product launch with six carriers • Currently, some carriers are not participating in Business Express • Limited participation reduces carrier options and benefit plan choice via Connector

13. Summary • Business Express shown to be attractive solution for small businesses, particularly employers with 1-9 employees • Business Express meets directive of c.58 and goals of Governor and legislature to provide more affordable options for small business • Connector engaged carriers early in product design and implementation plan • Administrative costs to carriers being reduced based on CommChoice’s enrollment growth • Letters to non-participating carriers sent requesting their reconsideration of decision to avoid participation