MANAGEMENT INFORMATION REPORTING

Reports are prepared monthly to enable our clients the opportunity to observe how the program functions. These reports have been designed to analyze plan costs and savings, utilization, payment frequency and history, and volumes. Stop-loss reports are prepared for the insuring company, and can be transmitted by paper, disc, tape or electronic modem transfer, and always by facsimile.

ADMINISTRATION FEES AND CONTRACTS

Administration is done on a fee for service and is negotiated at the time of the sale with each client. A proposal will usually follow with these fees.

Startup or Setup fees are also negotiated at the time of sale. These would include drafting of Plan Documents, certificates and/or plan booklets, communication materials, and any special material requested by the client.

Claim administration fees are billed as a flat monthly fee per employee or member.

R H Administrators, Inc., administrative services are provided under a written contract "Administrative Services Agreement," which sets forth the guidelines for both parties. This contract can be for any amount of time that is mutually agreed to.

When other vendor services are utilized by the client, a separate agreement will be provided for each.

PRE-CERTIFICATION, CONTINUED STAY

Pre-certification and continued stay will be offered through other vendors. R H Administrators, Inc., currently has a large volume with such vendors, and these vendors will provide other services for a fee. There will be a monthly per enrollee, per month charge for pre-certification and continued stay programs. See proposal.

SPECIAL SERVICES

We also have the capability to offer each client the opportunity to provide in-house functions such as claim inquiry, claim entry, and claim processing. Equipment installation and training of employees, claim supervision and claim audit could possibly provide the larger employer an opportunity to save on costs.