1、Employer-Sponsored HealthcareQ1 2023TPAS AND BENEFITS SOLUTION PROVIDERS SECTOR SPOTLIGHTLarge and Growing Addressable Market2U.S.Health Insurance Market by Coverage TypeEmployer-SponsoredIndividualTraditional MedicareMedicare AdvantageMedicaid105M LivesEmployer Self-Funded55M LivesEmployer Fully Fu

2、ndedHealth Plan by Coverage TypeFully Insured Health Plan55M Lives Covered(35%)Employer purchases health insurance from a carrier;carrier assumes financial risk of providing healthcare for employers beneficiaries Carrier keeps any surplusLack of customizationLimited insight into cost driversNo rate,

3、access,or repricing controlLack of dedicated supportMisaligned incentivesSelf-Funded Health Plan105M Lives Covered(65%)Employer pays for claims incurred by beneficiaries and partners with TPA for claims administration,stop-loss,and value-add solutions,including data analytics and cost containmentEmp

4、loyer keeps surplusComplete visibility into each claim incurred and active management of costsNot tied to carriers rates,fees,or restrictionsOptions to address cost drivers through incentives and educational resourcesPlans customized to employers specific health benefit requirements and goalsEmploye

5、rs are increasingly moving toward self-funded health plans in order to reduce costs and retain surplus;the TAM will continue to increase,benefiting innovative TPAs prepared to capitalize on new SMB lives entering the marketSources:Kaiser Family Foundation Employer Health Benefits Annual Surveys;Wall

6、 Street research;(1)As of 03/27/2023 51%8%10%8%22%310M+Total Insured Population(1)Self-Funded Strategies PrevailingAs employers take more control over rising healthcare costs for their employeesincreasingly implementing self-funded strategiesthey will look to their TPAs for ROI-generating cost conta