Array Bulletin: Service & Market Updates for November 2008

As year end draws near, we want to update you on industry and Array Health company developments. Because of the slowing economy and ever rising healthcare costs, our fixed-cost health benefits solution has gained even greater market acceptance.

Consider the following:

• In October, we implemented a record number of clients and received the most proposal requests to date.
• Five of our brokers have sold Array to multiple clients, and one is about to implement Array at her fourth company.
• Our most successful brokers have been e-mailing clients and prospects links to our new 2-minute demo video and website. These tools have been very effective introductions to Array. We encourage you to use them as well.

RUN Studios: Client Case Study

RUN Studios has been a client since last May. The company had not offered health coverage previously to their 50 employees. Company president, Darrek Rosen, said the following about Array's service:

"We were excited to choose and implement Array Health. Array has provided RUN Studios with a health care solution we couldn't find anywhere else. Their ability to give flexible options to our varied employee needs has provided us with the ability to contribute in a very effective and individually catered manner, giving RUN and our employees the most for our health care dollars. Now through Array's excellent service, and easy to use web-based platform, RUN Studios is pleased to say our employees are getting what we believe to be the best-in-class health care solution."

As part of our continued commitment to provide you with effective sales materials, we recently added a client case study section to the Resource Center of our website. There you can download a one-page RUN Studios Case Study. We encourage you to distribute it to interested clients and prospects.

2008 Premium Data

In September, The Kaiser Family Foundation and the Health Research & Education Trust released its Employer Health Benefits 2008 Annual Survey.

Premiums in 2008 were on average 5% more than premiums in 2007. However, this increase does not account for benefit changes. For example, the average annual deductible for employee only coverage in PPO plans increased from $461 in 2007 to $560 in 2008, which is a 21% rise.

Here are some other Average Premium data from the survey that we thought you might find interesting:

We were surprised to learn self-funded plans are on average more expensive than fully insured plans. However, we hypothesize because self-funded plans are typically offered by larger companies, the average benefits levels are probably more comprehensive, and therefore more expensive.

Please let me know if you have any current groups or prospects you would like to discuss.

Happy Thanksgiving!

Sincerely,

Christopher Moneta

Director of Sales

1-800-640-7086