BancorpSouth Insurance Services, Inc. is a wholly owned subsidiary of BancorpSouth Bank. Insurance products are • Not a deposit • Not FDIC insured • Not insured by any federal government agency • Not guaranteed by the bank • May go down in value

©, 2012, BancorpSouth Insurance Services, Inc.

Brian Braniganbrian.branigan@bxsi.com

225-215-9479

Health Care Reform TimelineWright & Percy Insurance

• Temporaryhighriskpool• Earlyretireereinsuranceprogram• Smallbusinesstaxcredit• Dependentcoverageforadultchildrenuntilage26

• Nopre-existingconditionexclusionsforindividualsuntilage19

• Rescissionsprohibitedexceptforfraudornon-payment

• Lifetimedollarlimitsprohibited• Annualdollarlimitsrestricted• Preventiveserviceswithnocostsharing(G)

• PediatriciansasPCPs,directaccesstoOB/GYNs(G)

• ERcoverageasin-network,nopriorauthorization(G)

• Appealsprocessandexternalreview(G)• MedicarePartDrebateforbeneficiariesinthegap

2010

• Annualratereviewprocess• Medicallossratio(MLR):85%forlargegroup;80%forsmallgroupandindividual

• HSAs/HRAs/FSAs:limitationsforOTCmedications

• Increasepenaltyfornon-qualifiedHSAwithdrawals

• Smallbusinesswellnessgrants• Annualfeeonpharmaceuticalmanu-facturersbegins

• DiscountsinMedicarePartD“donuthole”

• Nondiscriminationrulesapplytoinsuredplans(G)(implementationdelayed)

• Auto-enrollmentforGroupswith200+FTEs(implementationdelayed)

2011 • SummaryofBenefitsandCoverageandUniformGlossary

• Expandedwoman’spreventiveservices(G)

• 60dayadvancenoticeofmaterialmodification

• AccountableCareOrganizationrequirements

• QualitybonusbeginsforMedicareAdvantageplans

• Comparativeeffectivenessfee($1permember/year)

• Administrativesimplificationbegins• 1stmedicallossratiorebatestobepaidbyAugust

2012

• Exchangenoticestoemployees• Employerstoreportvalueofemployer-

sponsoredhealthbenefitsonW2s• FSAcontributionslimitedto$2,500• Highearnertaxbegins• Annualfeeonmedicaldevicesales

begins• DeductionforexpensestothePartDsubsidyfor“qualifiedprescriptiondrugplans”eliminated

• Comparativeeffectivenessfeeincreasesto$2permember/year

2013 • Healthbenefitexchanges• Guaranteedissueandrenewalrules(G)• Noannuallimits• Nopre-existingconditionexclusions• Ratingrestrictions(G)• Individual&employermandates• Taxcreditsandsubsidiesforindividualsandsmallemployers

• Standardizedessentialhealthbenefits• Waitingperiodlimit(90days)• Mandatorycoverageforclinicaltrials(G)• Reinsurancefee• Annualinsuranceindustrytax• OOPlimitsmustcomplywithOOPlimitsforHSAqualifiedplans(G)

• Deductiblecapscannotexceed$2kforindividualand$4kforfamily(G)

• ICD-10codeadoption

2014

• StatescanopenExchangetoCHIPeligibles(2015)andallemployers(2017)

• Sunsetofcomparativeeffectivenessfee(2017)

• High-valueplanexcisetax“CadillacTax”begins(2018)

• Insuranceindustrytax(through2018)

• MedicarePartD“Donuthole”closed(by2020)

2015 & BEYOND

(G)=Notapplicabletograndfatheredplans.Note:Someprovisionsapplyonlytofullyinsuredplans.Thisisforinformationalpurposesonlyandisnotintendedtobeusedaslegaladvice.BancorpSouthInsuranceServices,Inc.isawhollyownedsubsidiaryofBancorpSouthBank.Insuranceproductsare•Notadeposit•NotFDICinsured•Notinsuredbyanyfederalgovernmentagency•Notguaranteedbythebank•Maygodowninvalue©,2013,BancorpSouthInsuranceServices,Inc.

Rev.2/8/2013