REPORT. CoreSource APRIL CoreSource Continues Along Path of Profitable Growth. Notes from Nancy. CoreSource News. CoreSource Family Values

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1 APRIL 2011 Questions? Comments? Ideas for future articles? Contact Amanda Richter. Notes from Nancy CoreSource Continues Along Path of Profitable Growth As I look back on an exciting first quarter, I m thrilled to report that CoreSource remains on the road to profitable growth, a trend demonstrated by far-better-than-expected business results and the continuing progress of projects critical to our success. Read full story. CoreSource and Trustmark Join Forces in Large-Scale Effort to Meet NLB Deadline CoreSource Employees Learn About Mayan Culture at Trustmark Conference Lancaster Office s Award-Winning Wellness Programs Help Employees Reach Fitness Goals CoreSource Strengthens Client Management Team With Two New Hires From Principal CoreSource Family Values Sharing Family Values If you would like to participate in the new CoreSource Family Values section, please contact Amanda Richter. New Sales Update CoreSource New Sales Update Industry News Review of Recent Studies Shows Predominantly Positive Results for Health Information Technology Report to Nation Finds Continued Declines in Many Cancer Rates For the latest news and trends, stay connected with our new blog, BUZZ WORTHY.

2 Notes from Nancy CoreSource Continues Along Path of Profitable Growth As I look back on an exciting first quarter, I m thrilled to report that CoreSource remains on the road to profitable growth, a trend demonstrated by far-better-than-expected business results and the continuing progress of projects critical to our success. Driven by sales to Nippon Life Benefits (NLB), a subsidiary of Japan-based Nippon Life Insurance Company, the world s largest mutual life and health insurance company, the first quarter set a tremendous pace. Reaching $12.2.million, first-quarter sales were more than double the plan of $5.4 million. In February, CoreSource was awarded a contract to administer claims for NLB. When the business is fully transitioned to CoreSource, it will bring in $5.4 million in revenue annually. Planning for the transition, now under way, focuses on close collaboration between CoreSource; our new client; and the Principal Financial Group, NLB s former administrator that decided to exit the medical employee benefits administration market. Nancy Eckrich President, CoreSource Executing on the plan will be even more challenging, but I m confident we have the right people on the job to ensure that the migration of NLB clients to CoreSource will begin on July 1, 2011, as scheduled. Other signs of a positive outlook include $7.4 million in sales (including NLB) for February to May, the highest for the four-month period in four years. Two new large clients are coming on board in July and August: Mueller Industries Inc., a manufacturing company in Memphis, Tenn., will bring in $1.1 million, while Methodist Health System in Kansas City will generate some $900,000 in revenue. The upward trend we re experiencing follows strong results from 2010, when sales exceeded lapses by $700,000, marking the first time since 2007 that CoreSource achieved overall growth. Understanding what we re doing well and where we need to improve is also critical to our success. Our employees shed light on these important issues by generating their highest-ever participation rate in the Trustmark Employee Engagement Survey. Ninety-three percent of CoreSource employees responded to the survey, providing an outpouring of information and insight that can only help us improve our services, capabilities and processes. Leaders throughout CoreSource recognize the significance of this level of response, and employees should expect to receive information about the results and action planning will be forthcoming. As we plan for the future, I m happy to report continuing progress in our plans to establish an Integrated Client Environment (ICE). With advancements in client-facing capabilities, reporting and web portal technology through ICE, we will further enhance our ability to compete in the marketplace and better serve our clients. (continued on next page)

3 Notes from Nancy CoreSource Continues Along Path of Profitable Growth (continued) We re also discussing with our sister company, HealthFitness, how to best expand its services and capabilities to provide our clients with a new and broader suite of wellness solutions. While HealthFitness now provides health coaching services for YourCare, we are considering enhanced solutions that would involve a wellness focus for each employee in a health plan, incentive tracking and self-service organizational programs that would be supplied by CoreSource but run by our clients. The market has embraced YourCare health and wellness programs since their introduction in With the assistance of HealthFitness, we want to roll out new and meaningful wellness products by the fall of this year. Both ICE and our new wellness solution will be important topics discussed at the annual CoreSource Sales Meeting, which will be held primarily for sales and client management on June 6 and 7 at the Lincolnshire Marriott in the Chicago area. This year started out with tremendous possibilities, and I m looking forward to watching the optimism and growth continue throughout the remainder of the year.

4 CoreSource and Trustmark Join Forces in Large-Scale Effort to Meet NLB Deadline Guided by a complex to-do list entailing more than 1,300 tasks, business units across CoreSource and Trustmark have joined forces to ensure that Nippon Life Benefits (NLB) clients can begin migrating to CoreSource on July 1, 2011, as scheduled. In the biggest sale of the year so far, CoreSource was awarded a contract to administer claims for NLB, a subsidiary of Japan-based Nippon Life Insurance Company, the world s largest mutual life and health insurance company. When the business is fully transitioned to CoreSource, it will bring in $5.4 million in revenue annually. To ensure that deadlines are met and that the transition is successful, CoreSource is working closely with NLB and the Principal Financial Group, NLB s former administrator. The door to the new contract opened last fall when Principal announced that it would exit the employee medical benefits administration market. Principal fully supports and is an active participant in the transition. This is by no means a small undertaking, said Lloyd Sarrel, Chief Operating Officer, CoreSource. It is large. There is the pressure to deliver, not only for ourselves, but for Nippon and Principal as well. No one is taking this lightly. It s an aggressive schedule. In addition to CoreSource staff, employees of Trustmark s Employer Medical and Benefits divisions, as well as Compliance and Managed Care functions, are working with NLB and Principal on the transition plan, which has 1,380 tasks. We have a separate workstream for claims, customer service and other critical functions, said Barbara Brekke, Project Manager. We have teams of people working with business leads from the three main players, all focused on ensuring the migration is successful and goes smoothly. I really give everyone credit. People are really trying to help one another in any way possible. At the same time that CoreSource is preparing for the NLB business, the TPA is getting ready for the onboarding of other new business after a tremendous first quarter and is marking progress in the development of an Integrated Client Environment to better serve clients. In this complicated business environment where several critical projects are under way simultaneously, even terms used for certain processes or tasks have created challenges for the teams working on the NLB transition. While CoreSource, Nippon and Principal may use the same term, Brekke said, it may mean something different, thereby creating another item that must be addressed as preparations continue. It s been a real learning process, Brekke said. We re working very hard to ensure that all teams from all the entities involved know what we re talking about, really know what we re talking about and that we re not walking in with assumptions about anything. (continued on next page)

5 CoreSource and Trustmark Join Forces in Large-Scale Effort to Meet NLB Deadline (continued) CoreSource is planning to rent approximately 5,000 square feet of office space in West Des Moines to accommodate some 40 employees who will be assigned to the NLB business. Already, CoreSource has hired 25 employees from Principal, nine of which speak Japanese and Korean and will serve as customer service representative for NLB clients. We re proud that NLB selected CoreSource to administer claims, said Ben Frisch, President, FMH CoreSource, which led the efforts to land the new client and will oversee the new office. It was clear from the very start that both CoreSource and NLB share a passion for client service and that our work together would be a great fit. With the transition just around the corner, we ll be able to demonstrate just how well our services and capabilities will serve our new client.

6 CoreSource Employees Learn About Mayan Culture at Trustmark Conference Nine award-winning CoreSource employees and guests joined Trustmark colleagues in learning about and supporting the Mayan culture during a special event at Trustmark s eighth annual Leadership Awards Conference, held April 7-10 in Cancun, Mexico. As part of a team-building exercise organized by a local Mayan organization, the Society of the Wildflower, conference attendees and their guests built 10 beehives that were donated to bee farmers in Quintana Roo, Mexico. Mayan farmers raise bees for honey and for other products used to make items such as shampoo and lotion. The public awareness and support acquired through these team-building activities has much more value than any dollar amount, said Amanda Dunaway, event coordinator. It brings awarenss to the public on the impact deforestation has on a culture and a habitat. Each beehive, which produces about $200 worth of income per harvest, contributes to the recovery of the Xunan-kab bee, which provides an exotic form of honey. In the mid- 1900s, deforestation in the Yucatan Peninsula led to near extinction of the stingless bee. To spark a friendly competition, conference organizers divided attendees and their guests into 10 teams to build double-colony wooden beehives. Each team selected a queen bee who was responsible for charades-style nonverbal communication to lead members to hidden puzzle pieces. When teams arrived at the right locations, they picked up the pieces and returned to the starting point. Teams had to complete the bee-themed puzzle before getting the materials needed to build the beehive: wood panels, frame inserts, the hive body, a hammer and nails. The first team to finish building a hive received T-shirts. Richard Maher (left) and Ed Murphy pick up material needed for the beehive. Mike LaHood helps build a beehive during the team-building exercise. Everybody loved it, said Mike LaHood, Vice President, Claims Administration, FMH CoreSource, who was named a recipient of the Making a Difference Award. The best part of the exercise was getting to meet people and work with people that I didn t know before. In addition to LaHood, CoreSource employees who attended the conference were: Ed Murphy who won the Sales Contest for highest net revenue for January 2011 and Jason Dennis, Lee Rufty and Kevin Foltz who had the highest annual net revenue for 2010; June Helms who won the Client Managers Contest for best client retention in January 2011 and Kevin Magrann, Cheryl Dulaney and Kevin Ray who had the best client retention for 2010; and Becky Thompson, who also won the Making a Difference Award, which honors employees whose commitment and hard work helped in retention or led to a sale that otherwise may not have occurred. CoreSource will participate in next year s conference which will be held March 8 to 11, 2012, at the Ritz Carlton in Fort. Lauderdale, Fla. More information about the contests will be shared in the coming months. Sue Castelloe (from left), Ed Murphy and Jerry Castelloe from CoreSource join Trustmark Voluntary Benefit Solutions Cindy Taylor and Employer Medical s Denny Glick and Richard Maher on the winning team. A Society of the Wildflower beekeeper (far right) is photographed with the team.

7 Lancaster Office s Award-Winning Wellness Programs Help Employees Reach Fitness Goals CoreSource Lancaster has earned two awards for its innovative office wellness programs from Lighten Up Lancaster County, a local coalition focused on encouraging healthy weights for adults and children. Lancaster received the Workplace Award for promoting weight management and exercise among employees, and earned the Innovative Award for Large Businesses because of the hard work and dedication of the staff. The awards program was held in February at Lancaster General Hospital, a coalition partner and a CoreSource client. It was exciting for our organization to be recognized for our workplace wellness programs, said Sandy Graham, Manager, Specialty Services, and leader of the Lancaster Wellness Team. The fact that we were able to work with other local businesses, including one of our major clients, on this important issue made it even better. Representing Lighten Up Lancaster County, Catherine Newkirk (right), of Lancaster General Hospital, presents Sandy Graham (left) and Amanda Killian of the CoreSource Lancaster office with an award. The Lancaster Wellness Team had created an exercise and weight-loss challenge, named the Be Your Best Self Challenge after Trustmark s wellness program. The challenge encouraged participants to track their exercise and weight loss for a chance to win group or individual participation awards. Every two weeks, the team encouraged employees to try something more, such as reducing their sugar intake or adding strength training to their routines. A total of 78 employees logged 3,326 hours of exercise and 258 lbs. in weight loss during the 12-week challenge. The office also received kudos for offering onsite Zumba classes for a minimum cost, discounted gym memberships, lunch-and-learn seminars, scavenger hunts to promote wellness and for sponsoring a Day in the Park for employees and their families, complete with games, healthy snacks and access to walking trails. Kurt Henry, Assistant Vice President, PSERS Operations, accepted the wellness challenge and came out a winner. He was thumbing through a Time magazine last year when he saw an ad for the P90X workout DVDs and decided try the program. Then, he joined his coworkers in the Be Your Best Self Challenge. After teaming up with several managers in his area for encouragement and following the home fitness program for 60 days, Henry s fitness level improved and he lost 28 pounds. The Wellness Team got me active and interested in some friendly competition, and I m more fit as a result, Henry said. The fitness challenge helped me commit to following through. If I didn t have the positive peer pressure, I don t know that I would have been as successful.

8 CoreSource Strengthens Client Management Team With Two New Hires From Principal CoreSource expanded its client management team by hiring two senior-level Account Managers from the Principal Financial Group, which has decided to exit the medical employee benefits administration market. Gayle Cohen and John Wombacher, who previously worked for Principal, joined CoreSource as Client Managers on March 28. We re thrilled to have Gayle and John onboard as part of our client management team, said Richard Naumann, Vice President, Client Management and Sales Support, CoreSource Lancaster. It is clear that their experience with Principal gives them the skills and passion we need to best serve our clients as our company continues to grow. They have brought more depth to our ability to quickly identify and resolve complex client issues that arise on a regular basis. Gayle Cohen Cohen has more than 20 years of experience in group health. Prior to joining CoreSource, she was a Senior Account Manager for the Principal Financial Group. She served as the primary relationship manager and consultant for large, multi-site, self-funded customers representing more than $6 million in business. Cohen worked as a Regional Claims Manager for Principal Health Care and in several claims management roles for the Principal Financial Group before moving to Account Management. She earned both her bachelor s and master s degrees in business from Temple University in Philadelphia. She also is a Fellow with the Life Management Institute and holds designations from the Health Insurance Association of America and American College of Healthcare. John Wombacher With 20 years of experience in the group life and health industry, Wombacher has served in various underwriting, new sales and client management capacities. Prior to joining CoreSource, he was a Senior Account Manager with the National Accounts Division of the Principal Financial Group. At Principal, he was the primary relationship manager for a block of self-funded clients representing 24,000 employees and retirees and $7.4 million annual administrative fee income. Wombacher earned a bachelor s degree in business administration in finance from the University of Iowa.

9 CoreSource Family Values Sharing Family Values By Scott Ockington, VP Client Management, CoreSource Tinley Park I am not really a person that shares very much outside of my core group of family, friends and associates that I can really trust (one of my other values), so writing my thoughts about values for all CoreSource employees to read is going to be a bit of a stretch for me. My number one value is Honesty/Integrity. I truly believe that not only do you have to be honest with yourself, but you also have to be honest with those you let into your circle of life. In addition, I strongly believe that you have to be honest with your clients, advisers and co-workers. As a part of the Trustmark/ CoreSource family, I set out each day intending to be honest and earn the integrity I am due from my clients, advisers and associates. We have a huge responsibility to help our clients manage their benefit plans. At any time, a client could lose trust in what we are doing, which would have a as a key value. direct impact on our integrity. In that respect (another one of my values), I set out every day with the intent to be honest with all of my clients and advisers regarding what is happening with their programs. I also enlist the assistance of all my associates (Claims, Customer Service, Eligibility, etc.). There are so many things that can go wrong, many of which are beyond our control. But, if the problem lies on our end, then I speak the truth, (another value of mine) and explain to the client how we will fix the issue and what procedures will be put in place to minimize the possibility that the situation will occur again. I have to deviate for a moment. One of the values not on our list is Character. On the morning of June 29, 2008, doctors told me that they were trying to save my son s life after an auto accident. He caused it by himself, so there is nothing I could have done to change the outcome. Through the help of an outpouring of family, friends and co-workers, I survived one of the darkest moments in my life, and for that I will forever be grateful. This brings me to the close of my value statement. That incident tested my character, and I believe more in character than anything else. That date rocked my world. I lost somebody that was rock solid in my life. I ve always lived by a statement about reputation vs. character. It is very important to me. I don t know the author, and can t give props to him or her, but I wish I could. It goes like this: Reputation is who people think you are, and character is who you are. In the long run, character wins out over reputation. Honesty/Integrity goes a long way to accomplish that goal. Nine share the Honesty/ Integrity value in Tinley Park, and 245 people across all CoreSource locations identified Honesty/Integrity

10 CoreSource New Sales Update CoreSource welcomes the following new clients to its growing book of business. Congratulations to all who played a role in getting the new clients to choose CoreSource as their next TPA! Name of New Group Office Sales Executive Health Fitness Baltimore Sernyak Brown Advisory Baltimore Curtiss Metron Aviation Baltimore Wiederhold Sam Ash Baltimore Wiederhold Stream Energy Baltimore Wiederhold Sidney Frank Baltimore Polly Isabella Geriatrics Baltimore Wiederhold Solers Baltimore Curtiss Atlantic Express Baltimore Wiederhold Mueller Baltimore Wiederhold Diamond Comic Distributors Charlotte Rufty Saft America Charlotte Rufty EFA, Inc. Charlotte Rufty Power Curbers Charlotte Rufty NAMG Insurance Charlotte Rufty Starr Electric Charlotte Rufty Facilities Logistics Charlotte Rufty Smokey Mt. Center Charlotte Rufty Heritage Enterprises Chicago/West Murphy PDRMA Chicago/West Murphy Healthscape Chicago/West Murphy Donahue Schriber Chicago/West Murphy Cincom Columbus Foltz (continued on next page)

11 Name of New Group Office Sales Executive Janus Hotels Columbus Foltz Ludowici Columbus Foltz Crestview Schools Columbus Paul Hubbard Schools Columbus Foltz Licking County Columbus Foltz Ajax Paving Detroit Farley City of Battle Creek Detroit Ellwood Cooperative Elevator Detroit O Grady Dexter Schools Detroit Ellwood EDSI Detroit McLellan Hantz Group Detroit Farley Harbor Beach Hospital Detroit O Grady Lamphere Schools Detroit Ellwood Lincoln Consolidated Schools Detroit Ellwood Mancelona Public Schools Detroit Ellwood Memorial Hospital Detroit O Grady Orchard Hiltz Detroit McLellan Ruprechrt Detroit McLellan Saginaw ISD Detroit Ellwood Trendway Detroit McLellan Washtenaw ISD Detroit Ellwood Wayne County Adult Waiver Detroit Farley MIEHIP Detroit Ellwood Columbia Insurance Group Kansas City Frisch Daybreak Kansas City Frisch Newcomer Funeral Services Kansas City Frisch (continued on next page)

12 Name of New Group Office Sales Executive MidAmerica Hotels Kansas City Frisch Nippon Life Benefits Kansas City Frisch Methodist Kansas City Frisch Cross Keys Lancaster Dennis Bollman Hat Lancaster Dennis Rockefeller University Lancaster Weiderhold Prime Pay Lancaster Dennis Township of Pemberton Lancaster Cusumano Lifetime Brands Lancaster Polly Hillendale Lancaster Dennis Tri-M Lancaster Dennis ESA Lancaster Wiederhold Somnia Lancaster Wiederhold Inspectorate Lancaster Wiederhold Fulton - COBRA Admin Lancaster Dennis Glatfelter Lancaster Dennis Luthercare Lancaster Dennis Watson Affiliated Mgmt Little Rock Wilson

13 Industry News Review of recent studies shows predominantly positive results for health information technology Source: U.S. Department of Health and Human Services A study completed by the Office of the National Coordinator for Health Information Technology (ONC) and published in the journal Health Affairs finds growing evidence of the benefits of health information technology (HIT) for healthcare organizations of all sizes. Using methods that were employed by two previous independent reviews, the new study finds that 92 percent of articles on HIT reached conclusions that showed overall positive effects of HIT on key aspects of patient care including quality and efficiency. In addition, the study finds increasing evidence of benefits for all healthcare providers, not just the larger health IT leader organizations, or early adopters of HIT, that have provided much of the data regarding experience with HIT in the past. The review reflected a new balance of evidence between HIT leader organizations and other entities, especially smaller medical practices. This article brings us much more up-to-date, both in our confidence regarding the overwhelming evidence of the benefits of adoption and use of HIT, and also in our understanding of problem areas that still need to be addressed, said David Blumenthal, M.D., the national coordinator for HIT and one of the authors of the review. This review is important because it helps us correct for the lag in evidence that occurs naturally in the dynamic HIT field, where changes in technology and accelerating adoption cause the old literature to become quickly outdated. The review included articles published from July 2007 to February 2010, following up on earlier reviews of articles from 1995 to 2004 and from 2004 to This latest review initially surveyed more than 4,000 peer-reviewed articles, of which 154 were found qualified for the parameters of the study, a number similar to the previous efforts. The current review found positive results in 96 of the articles (62 percent), and mixed but predominantly positive results in 46 other articles (30 percent). Ten articles were found to have negative or mixed-negative results. In addition to quality and efficiency of care, the authors categorized additional outcomes including access to care, preventive care, care process, patient safety and provider or patient satisfaction.

14 Industry News Report to Nation Finds Continued Declines in Many Cancer Rates Source: Centers for Disease Control and Prevention Rates of death in the United States from all cancers for men and women continued to decline between 2003 and 2007, the most recent reporting period available, according to the latest Annual Report to the Nation on the Status of Cancer. The report also finds that the overall rate of new cancer diagnoses for men and women combined decreased an average of slightly less than 1 percent per year for the same period. The drop in cancer death rates continues a trend that began in the early 1990s. The report finds, for the first time, lung cancer death rates decreased in women, more than a decade after rates began dropping in men. The report is co-authored by researchers from the North American Association of Central Cancer Registries, the National Cancer Institute (NCI), part of the National Institutes of Health, the Centers for Disease Control and Prevention, and the American Cancer Society. It appeared online March 31, 2011, in the Journal of the National Cancer Institute. Of special note, childhood cancer incidence rates (rates of new diagnoses) continued to increase while death rates in this age group decreased. Childhood cancer is classified as cancers occurring in those 19 years of age or younger. Overall cancer incidence rates in men were essentially unchanged. There was a very small uptick in prostate cancer rates, and if these rates were excluded from the analysis, there would be a continued decline in overall male incidence rates. In the Special Feature section of the report, the authors explore the diversity of brain tumors and other nervous system cancers beyond those that are identified as malignant, including those that are borderline and benign. The researchers analyzed data between 2004 and 2007 and found that in adults, non-malignant tumors were about twice as common as malignant tumors. Other highlights from the report show that, in men, incidence rates have declined for cancers of the lung, colon and rectum, oral cavity and pharynx, stomach, and brain (malignant only) while rates have risen for kidney, pancreas and liver cancers, as well as melanoma of the skin. In women, incidence rates decreased for breast, lung, colorectal, uterine, cervical, bladder, and oral cavity cancers, but increased for kidney, pancreas, and thyroid cancers as well as for leukemia and melanomas of the skin. It is gratifying to see the continued steady decline in overall cancer incidence and death rates in the United States the result of improved methods for preventing, detecting, and treating several types of cancer, said Harold Varmus, M.D., NCI Director. But the full repertoire of numbers reported today also reflects the enormous complexity of cancer, with different trends for different kinds of cancers, important differences among our diverse people, and different capabilities to prevent, detect, and treat various cancers. Moreover, as our population continues to age, we have an obligation to discover and deliver better ways to control all types of cancers.