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F' A Health Benefit Intelligence <br />SEMMA Health Company <br />March 10, 2017 <br />James Mueller <br />Chief of Staff <br />Jennifer Hockenhull <br />Deputy Controller <br />City of South Bend <br />Dear James and Jen, <br />Thank you for your interest in partnering with SEMMA Health. We look forward to bringing <br />health benefit intelligence to your team with the end goal of significantly reducing the City of <br />South Bend's expenses. We recognize that the increasing cost of healthcare presents a significant <br />challenge to an organization's financial health and SEMMA offers a unique data solution to this on- <br />going challenge. <br />Should you wish to partner with us, SEMMA would begin our standard protocols to help you <br />proactively manage your healthcare spending. In this period, SEMMA would monitor your claims <br />and act to mitigate high dollar claims. In this capacity, SEMMA will actively engage with your team <br />and your other health benefit partners (i.e. your broker, your carriers, your TPA) to ensure that <br />your employees receive the highest quality healthcare in our community and that the City of South <br />Bend can offer this in the most cost effective way possible. <br />SEMMA's typical fee structure has been designed to ensure we have aligned incentives for your <br />cost savings. There is a per member per month base monthly fee (typically $1.50 to $3,50 based <br />on size of member population) and a success fee of 20-40% on all cost savings after the base <br />monthly fee. For example, if we can reduce healthcare spending for a 7,000-member plan by $1M, <br />the net savings to the client is $624,000. This assumes a 25% success fee and a $2 per member <br />per month base monthly fee. <br />Attached is our Data Services Agreement and Business Associate Agreement for your review and <br />signature so that we may formally begin our partnership. <br />Please let us know if you have any questions. <br />Thank you and kind regards, <br />Susan <br />Susan H. Ford <br />SEMMA Health, Inc. <br />16A^ X. <br />�q <br />130 S. Main St., Suite 200, South Bend, IN 46601 <br />