Mr. Albert Johnson- Mr. Johnson, I understand as director of compensation at Elite Financial Services you are seeking ways in which to lower the rising cost of healthcare. At Elite Financial you are faced with healthcare insurance consuming 1/3 of the overall benefits budget. Due to pay being dependent on incentives, Elite Financial has created an edge for themselves surrounding their excellent benefits. While other companies in the same field as financial planning are reducing their healthcare program costs, you are still maintaining low deductibles for your employees, and paying 90% of the premiums. I understand Elite also provides basic fee-for service indemnity for ALL 275 employees, which is composed of 60 single, 75 employee and spouse and the rest are family plans. Along so, you have included vision and dental. It will be easy to say, Mr. Johnson you have created your own monster and are above average when it comes to healthcare benefits being offered. Let’s look at ways to reduce costs. On average, a single employee will pay up to 21% of their premium and families will pay up to 32%. At Elite Financial you offer fee for service, which is a contract between the employer and insurance company which limits a covered individual’s financial liability. A different plan that could be substituted are managed care plans which are cost controlling by limiting an employee’s choice of doctors and hospitals. Three forms of managed care include HMP, PPO, and POS. An HMO plan provides prepaid medical services. A PPO closely resembles the fee-for service plan with close deductibles, out of pocket maximums, and coinsurances. A POS is a combination of fee for service and HMO’s which allow employees to pay nominal copayment for each visit, the one major difference of POS is that employees can go out of network. In regards to dental and vision, specialized insurance