Array Bulletin: Service & Market Updates for May 2009

Array Health continues to expand its operations. In this issue, we announce a key management team addition and our recent move to larger offices. We also explain how the medical underwriting process for individual health insurance works in Washington.

New Operations Manager Joins Array Health

We are thrilled to announce that Richard Moore has joined our team as Operations Manager. Richard brings many years of process improvement and operational experience. As a consultant for Group Health Cooperative, Richard was responsible for helping to successfully implement ERP, workforce management, and CRM systems. He holds a Juris Doctor from Seattle University Law and an MBA from the Albers School of Business and Economics at Seattle University.

Array Health Is Moving

We are moving into larger offices to provide more space for our rapidly growing operations.

Effective June 1st, our new office address will be:

200 West Mercer Street
Suite E-304
Seattle, WA 98119

Please note: Our billing address for monthly client remittances will not change.

Medical Underwriting

Background

Individual health insurance is medically underwritten in Washington. This means that insurance carriers evaluate a health questionnaire most applicants must submit to determine their insurability. In Washington, this questionnaire is called the Standard Health Questionnaire (SHQ). Medical underwriting for health insurance in Washington does not require either physical or diagnostic testing.

The Scoring Process

Insurance carriers use the SHQ to decide whether to accept or deny applicants for insurance coverage. The questionnaire is designed so 8% of people are denied coverage. All carriers in Washington use the same SHQ and score it the same way. Washington does not allow either individual surcharges or condition specific exclusions.

2008 Underwriting Data

The most recent data for medical underwriting in Washington is listed below:

• Applicants taking the SHQ: 99,197
• Acceptance rate: 95.3%
• Rejection rate: 4.7%

What Happens if an Applicant is Denied?

Denied applicants are generally eligible for the Washington State Health Insurance Pool (WSHIP), where they can purchase comprehensive health insurance coverage regardless of medical condition.

Source: 2008 Annual Report WSHIP

Washington State Health Insurance Pool

WSHIP provides health insurance coverage to those denied health insurance in the private individual market. By law, WSHIP rates cannot be more than 10-25% higher than the rates of comparable plans in the private market. Since WSHIP plans typically offer more comprehensive coverage than any plans found in the private market, premiums can appear more expensive. For more information, visit Array Health's Resource Center.

Array Health Offers Tools to Assist with WSHIP Applications

Denied applicants receive a denial letter and WSHIP application form from the insurance carrier that denied them coverage. Array Health subscribers can return to their Employee Portals, select a plan, and complete their WSHIP applications online.

Sincerely,

Christopher Moneta

Director of Sales

1-800-640-7086