1. Proactive Health Management Plan
[PHMP]
A Revolutionary Program Benefiting
Employees and Employers
PHMP: The Gold Standard of Health Management Plans

2. Proactive Health Management Plan [PHMP] Advantages
Today the value proposition of medical benefits is upside down
Less Benefits for More Money
PHMP reverses the drainage of this value proposition by
Reducing benefit cost immediately
Improving the benefit offerings immediately
Improving the health of the covered workforce
All at no cost to employers or employees
The PHMP benefit value proposition reversal results in
Better Benefits for Less Money…
Really!!!

3. Problematic State of the Benefit Industry
The average annual premium for major medical coverage is $6,251 and average annual premium for family coverage is $17,5451
Since 2010, the share of workers with deductibles and the size of those deductibles have increased by 67%. This is 7 times the rise in wages (10%) and general inflation (9%) 1
For 2015, the average single employee premium contribution was $1,145 for PPO coverage and $5,216 for Family PPO coverage1
Average premium increase for covered workers with family coverage between 2010 and 2015 was 27%1
46% of covered workers have annual deductibles of $1,000 or more1
From 2015 to this year, the median in-network deductible increased by 50% from $1,000 to $1,500
65% of covered workers face additional cost sharing for Hospital Admissions or Outpatient Surgery1
1Kaiser Family Foundation 2015 Survey

4. Problematic State of the Benefit Industry
2016 Maximum Deductible and Out of Pockets are $6,850 Single, $13,700 Family and for 2017 they are $7,150 and $14,300.
Over 40% of adults say their deductibles cause undue financial burdens on them and their families
Employer and employee healthcare and benefit costs
Rising at an unsustainable rate
Benefits have been diminished and employer and employee cost have gone up dramatically
Consumerism is the buzz word rationalizing large employee deductibles and out of pocket expenses
The Beat Goes On…
The Value Proposition of medical benefits is upside down
Less Benefits for More Money

5. Problematic State of the Benefit Industry
An unintended consequence of consumerism
PCP Gate Keeper- “a failed strategy”
New normal is many employees are facing out of pocket expenses they
cannot afford
The balance of seeking out healthcare at the right time or waiting too long is out of balance
Remember, over 40% of adults say their deductibles cause undue financial burdens on them and their families. That percentage is rising at an accelerated pace
Right
Time
Waiting
Too Long

6. PHMP Design Principles
Must reduce employer costs immediately and in the future.
Must reduce covered members’ costs immediately and in the future.
Application of patented, proven population health management techniques.
Must include individualized coaching and healthcare purchasing decision making assistance.
Must reduce covered members’ financial barriers to entry into the healthcare system.
Can be added to any benefit plan regardless of the underlying benefit carrier.
Must wisely utilize all applicable sections of the tax code.
Flexibility and careful attention needs to be given to the payroll processing.
Must have clear and provable results.

7. PHMP Targeted Risk Management
The success achieved utilizing the AHDI patented processes in the middle circle can be applied to the outer circles with the “Unhealthy Well” and the “Healthy Well”
The “Unhealthy Well” represents members who are staying out of the healthcare system due to high deductibles, higher out-of-pockets and unhealthy lifestyles.
Slow the growth of the middle circle.
If we apply the same inner circle methods to the outer circles then we can achieve significant results at NO costs...Really!!!
Savings—Controlled Healthcare Costs—Improved Benefits – Increased Employee Appreciation

8. AHDI’s PHMP Targeted Risk Management: Good Health is Good Business!
The Proactive Health Management Plan engages, encourages and rewards employees to take proactive steps to assess their health and lifestyle and take action to improve both. Improving population health generates substantial and sustained savings.
Savings—Controlled Healthcare Costs—Improved Benefits – Increased Employee Appreciation

9. PHMP at Work: Monthly Fully Insured Indemnity Benefits of the PHMP Include
When employees, once a month, utilize any of the consultative or professional services listed and provided by the healthcare professionals under the PHMP, a Fully Insured Indemnity Benefit will be paid.
Health Risk Assessment (HRA) – helps determine which aspects of an employee’s well-being requires attention. Customized programs for each individual’s needs will be developed by a healthcare professional.
Telephonic Health Coaching Professionals – tailored training, prevention and dietary programs after an HRA has been completed by employee to address the health needs and goals for each employee.
Telemedicine – 24/7 access to top-quality, cost-effective medical care plus immediate telephonic medical advice when entering emergency care facilities.

10. PHMP at Work: Monthly Fully Insured Indemnity Benefits of the PHMP Include
Telephonic Professional Lifestyle Counseling – tailored counseling to meet the member’s needs
Biometric Screening – identifies risk factors for illnesses such as diabetes and cardiovascular disease up to 10 years before full onset.
Online Health Program Coaching – online lessons and professional training.
DNA Screening – provides information pertaining to diet, nutrition and exercise, data generated from testing genetics markers in a number of genes can be used to understand how to modify lifestyle and behaviors for optimum wellness.
A monthly benefit will be paid to the member upon the member’s completion of any one or more of the monthly benefits

11. PHMP Additional Per Day Fully Insured Indemnity Benefit Categories
A per day indemnity benefit will be paid for the following services for up to a specified number of days per year:
Hospital Daily Indemnity Benefit
Bone Marrow Testing Indemnity Benefit
CA 15-3 (Breast Cancer) Indemnity Benefit
Chest X-Ray Indemnity Benefit
Stress Test (Bicycle or Treadmill) Indemnity Benefit
Serum Protein Electrophoresis (Myeloma) Indemnity Benefit
Breast Ultrasound Indemnity Benefit
CEA (Blood Test for Colon Cancer) Indemnity Benefit
PSA (Prostate Cancer) Indemnity Benefit
Thermography (Infrared Photo) Indemnity Benefit

12. PHMP Consumerism Benefits
Medical Procedure, Pricing and Quality Comparison Engine
RealTimeChoices Quality
Cost Saving Rx – Price Comparison Engine
RealTimeTelemed
Emergency Care Center Assistance
No dollar benefit will be paid for the use of these comparison engines.
These benefits are included to add an element of price transparency assisting members in becoming better healthcare consumers.

13. PHMP Fully Insured Indemnity Benefit Engagement Campaigns
We want covered members to utilize the Plan in order to receive their monthly benefit. Therefore major PHMP campaigns will be utilized
Text message
Mailers
Telephonic outreach
Consumer services reminders

14. PHMP The Revolutionary Solution
The PHMP begins with the employee electing to pay for the PHMP premium and services through Section 125 payroll deduction.
The total monthly cost to the employee is approximately $755.
WAIT A MINUTE
There’s a Happy Ending to This!

15. PHMP Employee Cash Flow
PHMP Employee Cash Flow*/ $625 per Month Indemnity Benefit for Participation Filing Single
Employee’s Monthly Pay
Take-Home Pay
$2,900
Before
PHMP
Gross
Income
Taxable
Income
$4,000
$4,000
Taxes
$1,100
Employee’s Monthly Pay
Federal Tax Rate: 16.25%
FICA Tax Rate : 7.65%
State and local: 3.6%
27.50%
Net Pay** $2,418+$625
Difference=
$143
Additional Spendable Income
After
PHMP
Gross
Income
Taxable
Income
$4,000
$3,245
Taxes
$827
$3,043
Federal Tax Rate: 14.23%
FICA Tax Rate : 7.65%
State and local: 3.6%
25.48%
Single Employee Section 125 • Deduction
$755
Minus PHMP Employee Fee
-$130
Add PHMP Limited
Benefit Health Insurance
$625
*The information contained in this promotional material is for illustrative purposes only and is subject to change. Statements, figures, calculations, plans and representations are indicative only to the specific figures in the example given above using the current calculations utilized at the present time.
**This amount is a paid claim for the wellness screening fully insured indemnity benefit and is not guaranteed unless the insured utilizes the wellness screening benefits to generate a claim. Benefits paid under this program may be taxable income. Participants should consult with their tax professional.

16. PHMP Employee Cash Flow
PHMP Employee Cash Flow*/ $625 per Month Indemnity Benefit for Participation Married Filing Jointly
Employee’s Monthly Pay
Take-Home Pay
$3,026
Before
PHMP
Gross
Income
Taxable
Income
$4,000
$4,000
Taxes
$974
Employee’s Monthly Pay
Federal Tax Rate: 13.10%
FICA Tax Rate : 7.65%
State and local: 3.6%
24.35%
Net Pay** $2,469+$625
Difference=
$67
Additional Spendable Income
After
PHMP
Gross
Income
Taxable
Income
$4,000
$3,245
Taxes
$776
$3,094
Federal Tax Rate: %
FICA Tax Rate : 7.65%
State and local: 3.6%
23.89%
Single Employee Section 125 • Deduction
$755
Minus PHMP Employee Fee
-$130
Add PHMP Limited
Benefit Health Insurance
$625
*The information contained in this promotional material is for illustrative purposes only and is subject to change. Statements, figures, calculations, plans and representations are indicative only to the specific figures in the example given above using the current calculations utilized at the present time.
**This amount is a paid claim for the wellness screening fully insured indemnity benefit and is not guaranteed unless the insured utilizes the wellness screening benefits to generate a claim. Benefits paid under this program may be taxable income. Participants should consult with their tax professional.

17. PHMP Employee Cash Flow
PHMP Employee Cash Flow*/ $625 per Month Indemnity Benefit for Participation Filing Single
Employee’s Monthly Pay
Take-Home Pay
$1,575
Before
PHMP
Gross
Income
Taxable
Income
$2,083
$2,083
Taxes
$509
Employee’s Monthly Pay
Federal Tax Rate: 13.17%
FICA Tax Rate : 7.65%
State and local: 3.6%
24.42%
Net Pay** $1017+$625
After
PHMP
Difference=
$67
Additional Spendable Income
Gross
Income
Taxable
Income
$2,083
$1,328
Taxes
$311
$1,642
Federal Tax Rate: 12.14%
FICA Tax Rate : 7.65%
State and local: 3.6%
23.39%
Single Employee Section 125 • Deduction
$755
Minus PHMP Employee Fee
-$130
Add PHMP Limited
Benefit Health Insurance
$625
*The information contained in this promotional material is for illustrative purposes only and is subject to change. Statements, figures, calculations, plans and representations are indicative only to the specific figures in the example given above using the current calculations utilized at the present time.
**This amount is a paid claim for the wellness screening fully insured indemnity benefit and is not guaranteed unless the insured utilizes the wellness screening benefits to generate a claim. Benefits paid under this program may be taxable income. Participants should consult with their tax professional.

18. PHMP Employee Cash Flow
PHMP Employee Cash Flow*/ $625 per Month Indemnity Benefit for Participation Married Filing Jointly
Employee’s Monthly Pay
Take-Home Pay
$1,613
Before
PHMP
Gross
Income
Taxable
Income
$2,083
$2,083
Taxes
$470
Employee’s Monthly Pay
Federal Tax Rate: 16.25%
FICA Tax Rate : 7.65%
State and local: 3.6%
22.57%
Difference=
$57
Additional Spendable Income
Net Pay** $1045+$625
After
PHMP
Gross
Income
Taxable
Income
$2,083
$1,328
Taxes
$283
$1,670
Federal Tax Rate: 14.23%
FICA Tax Rate : 7.65%
State and local: 3.6%
21.27%
Single Employee Section 125 • Deduction
$755
Minus PHMP Employee Fee
-$130
Add PHMP Limited
Benefit Health Insurance
$625
*The information contained in this promotional material is for illustrative purposes only and is subject to change. Statements, figures, calculations, plans and representations are indicative only to the specific figures in the example given above using the current calculations utilized at the present time.
**This amount is a paid claim for the wellness screening fully insured indemnity benefit and is not guaranteed unless the insured utilizes the wellness screening benefits to generate a claim. Benefits paid under this program may be taxable income. Participants should consult with their tax professional.

19. PHMP Employer Savings Cash Flow
Employee’s Taxable Income
Employee’s Taxable Income
$4,000
$3,245
$470
Before
PHMP
Employer’s Monthly FIC Tax Obligation
Employer’s Monthly FIC Tax Obligation
After
PHMP
$306
$248
Employer’s Annual FICA Tax Obligation
Employer’s Annual FICA Tax Obligation
Net Pay** $2,418+$625
$3,672
$2,976
Monthly Employer Savings
$58
Annual Employer Savings
$696
Annual Employer Fee
$240
NET ANNUAL EMPLOYER SAVINGS
$456

20. PHMP Design Principle Compliance Check
Reduced employee cost Yes - $143/net savings per monthly pay check
Reduced employer cost Yes - $456 /net annual savings in FICA taxes
Application of patented, proven
population management techniques Yes – AHDI Techniques
Individualized Coaching and Yes – Customized coaching and Healthcare purchasing decision assistance advanced apps for cost comparison
Wise application of the tax code Yes- Section 125 & Fully Insured
Indemnity Benefits
Reduction of covered members’ Yes - $1,716/savings of extra
financial barriers to entry into the employee cash to buy down the
healthcare system out of pocket exposure and
additional benefits at no cost

21. PHMP Design Principle Compliance Check
Can be added to any benefit plan Yes – Requires no approval
regardless of medical benefit carrier or participation from underlying medical carrier
Flexibility and careful attention Yes – Monthly Indemnity needs to be given to the payroll Benefit added to pay check
processing.
Clear, provable results of the PHMP Yes- immediate financial results are mathematically calculated,
out of pocket exposures reduced due to supplemental products and improvement of health will follow AHDI’s
historic results

22. Thank You!