Blue Cross and Blue Shield of Minnesota

1

• Blue Cross and Blue Shield of Minnesota
  SelectAccount
• Marlo A. Peterson
• Options Blue Specialist
• October 9th 2008
• South Central
• Service Cooperative
• SelectAccount
• Overview

2
Who is SelectAccount?

• 20 years in the medical banking industry
• 8th largest medical banking facility in the
  country
• 3,000 employer groups
• 160,000 medical accounts
• Over 60 million in medical funds
• 2005-2006 - 56 growth
• 2006-2007 40 growth
• 2005 - 40 Employees / 2007 160 Employees
• Fully owned subsidiary of BlueCrossBlueShield of
  MN

3
Products Offered and Sold at SelectAccount

• HSA (Health Savings Account) Administration
• HRA (Health Reimbursement Account) Administration
• FSA (Flexible Spending Account) Medical,
  Dependent care Transportation
• POP (Premium only Plan) Pre Tax medical
  deductions
• VEBA - For Service Cooperative Groups Only

4
Unique Services available at SelectAccount

• Account Stacking
• Crossover
• Direct Deposit
• BCBS Integration
• Member Service Call Center
• Dedicated Broker Group leader service lines
• Web site www.selectaccount.com

5
Changes to the VEBA plan effective 11-1-07

• SelectAccount will be the banking custodian
  lower fees. Fees reduced from 2.45pmpm to
  1.83pmpm One customer service location and
  number
• Claims will pay from base balance only unless
  directed by member to pay claims from investment
  account. Better control for members with their
  VEBA funds.
• Investment fees 1.50/month will only be charged
  if the member invests in Mutual funds Base
  accounts currently earn between 2.00 5.2
  interest with no investment fee
• 15 top in class mutual funds available -
  optional
• No additional fees to add a FSA along side a VEBA
  account
• If the member does not want the VEBA account but
  does want the FSA members pays same 1.83pmpm
• Investment training A DVD is in production

6
Cost Table For November 1, 2007

• Coop Pricing

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VEBA investment Transition Timeline

• September 13 17 Group leader/Agent conference
  call
• September 15th members received a transition
  notification letter
• October 3rd No movement between investment
  funds at Wells Fargo (black out period)
• October 23rd Member Investment Web Cast
• October 30th Wells Fargo will liquidate
  account and transfer funds to SelectAccount
• November 1st New Selectaccount Premium Saver
  accounts established
• November 5th Members may invest funds over 1,000
  with SelectAccount / Devenir
• No Action is required for this transition from
  the member

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Customer Service at SelectAccount

• Average Speed to Answer, August 2007 11 seconds
• 93 of Claims Paid in Less than 7 days After
  Receipt
• New Coordination With Blue Cross Customer Service
  so that Incoming calls are Soft Transferred to
  SelectAccount
• IVR Voice Recognition Customer Service Phone
  System
• Upgraded Software Platform
• Dedicated Agent and Group Leader Lines
• Agent 1-888-460-4015
• Group Leader 1-888-460-4013

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In Summary..

• November 1st will bring changes to the VEBA plan
  however the well thought out transition plan will
  be a positive member experience.
• SelectAccounts Key Advantages are crossover, low
  administrative Costs and enhanced customer
  service.
• Service Cooperative Groups Have Advantages Beyond
  VEBA For example Lower HSA FSA pricing,
  dedicated service team
• SelectAccount will continue to concentrate
  resources on maintaining our current customer
  service statistics, a 7 million dollar
  investment.
• The Service Cooperatives are SelectAccounts
  largest customer and will continue to be provided
  every resource available

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Questions ???