Exhibit 12.1

Exhibit 12.6

Exhibit 12.2

Exhibit 12.7

Exhibit 12.3

Exhibit 12.8

Exhibit 12.4

Exhibit 12.9

Exhibit 12.5

¹² Kaiser Family Foundation, Kaiser Commission on Medicaid and the Uninsured. Health Insurance Coverage in America, 2002 Data Update, December 2003.

¹³ These answers are not exclusive: 11% of firms that shopped switched both carrier and type of health plan offered. 

Exhibit 11.1

Exhibit 11.4

Exhibit 11.2

Exhibit 11.5

Exhibit 11.3

¹¹ Twenty-eight percent of Medicare beneficiaries receive prescription drug coverage from an employer, a far higher number than receive coverage through a Medicare HMO (15%), Medigap (7%) or Medicaid (10%). Laschober et. al., Health Affairs, February 2002.

Exhibit 10.1

Exhibit 10.5

Exhibit 10.2

Exhibit 10.6

Exhibit 10.3

Exhibit 10.7

Exhibit 10.4

¹⁰ A self-funded plan is one in which the employer assumes direct responsibility for the costs of enrollees’ medical claims. Employers sponsoring self-funded plans typically contract with a third-party administrator or insurer to provide administrative services for the self-funded plan.

Exhibit 9.1

Exhibit 9.5

Exhibit 9.2

Exhibit 9.6

Exhibit 9.3

Exhibit 9.7

Exhibit 9.4

Exhibit 9.8

⁹ There are fewer observations for estimating the average copayment for four-tier drugs compared to other drug types.

Exhibit 8.1

Exhibit 8.4

Exhibit 8.2

Exhibit 8.5

Exhibit 8.3

Exhibit 6.1

Exhibit 6.9

Exhibit 6.2

Exhibit 6.10

Exhibit 6.3

Exhibit 6.11

Exhibit 6.4

Exhibit 6.12

Exhibit 6.5

Exhibit 6.13

Exhibit 6.6

Exhibit 6.14

Exhibit 6.7

Exhibit 6.15

Exhibit 6.8

The distribution of enrollment among types of health plans has remained fairly constant over the past several years. The majority of covered workers are enrolled in PPO plans (55%), followed by HMO plans (25%) (Exhibit 5.1).

Although annual changes in plan enrollment have been moderate, enrollment in PPO plans has grown by nine percentage points since 2001.

• More than half of covered workers (55%) are enrolled in PPO plans, an increase from 46% in 2001 (Exhibit 5.1). Conventional plan enrollment has remained fairly minimal since 2000, comprising less than ten percent of total enrollment.
• There are slight regional differences in plan enrollment. PPO plans have higher enrollment in the Midwest (64%) and the South (64%). HMO enrollment is consistently highest in the West (36%). POS plans tend to have higher enrollment in the Northeast compared to other regions (23%) (Exhibit 5.2).
• PPO enrollment is particularly strong in certain industries. Enrollment in PPO plans is high in the mining, construction, and wholesale industries (68%), and in the transportation, communications and utilities industries (65%) (Exhibit 5.2).
  • The percentage of workers enrolled in HMOs has remained steady since 2001 at approximately 25% (Exhibit 5.1).
  • Conventional plan enrollment remains low at five percent of covered workers (Exhibit 5.1).

Exhibit 4.1

Exhibit 4.6

Exhibit 4.2

Exhibit 4.7

Exhibit 4.3

Exhibit 4.8

Exhibit 4.4

Exhibit 4.9

Exhibit 4.5

Exhibit 4.10

⁵Survey respondents were asked whether the firm offers a personal or health savings account, including a Health Reimbursement Arrangement (HRA) or other type of health savings account option.

⁶There are several savings account options permitted under the law, including health reimbursement arrangements, health savings accounts and medical savings accounts.

⁷Due to the low number of respondents offering a combination high-deductible plan with a personal or health savings account, data on average deductibles and worker contributions are not suffciently robust to publish in the 2004 survey. We hope to report these values in future surveys.