Velcro Self-Funded vs. Fully Insured Fully Insured vs Self Funded 2023 2024 Estimated Fully Insured (FI) cost $11,361,148 $12,351,339 Projected plan cost (SF) $10,190,011 $11,017,221 Return for self-funding at Projection $1,171,136 $1,334,119 Likelihood of beating FI 99.3% 99.3% 2023 2024 Likelihood of beating Fully Insured - 1 Year 99.3% 99.3% Likelihood of beating Fully Insured - 3 Year 100.0% 100.0% Likelihood of beating Fully Insured - 5 Year 100.0% 100.0% Using Velcro’s demographics (census data –age, gender, home state, contract type, industry code), plan design, and claims history, Claros projects appropriate fully insured premium costs and claims. Based on the last 12 months of claims data, Claros would expect 2023 fully insured premium to be 15% higher than current working rates. For 2024, Claros is projecting fully insured premium to be 25% higher than current working rates. 2023 EBS Services & Capabilities 52