EMDEONVIRTUAL CARD PAYMENTS

Simplifying the Business of Healthcare

Emdeon Payment Network

Virtual Card Payments are just one component of the Emdeon PaymentNetwork, a comprehensive suite of services that combines electronic and printpayment infrastructures. By combining our vast network of providers andpayers with established relationships with f inancial institutions, payment cardprocessers and Emdeon owned and operated print centers, Emdeon PaymentNetwork can help give you an edge across all payment distribution methods.

Why Multiple Channels?If your long-term goal is to move the majority of your provider payments fromprint to electronic, you need the f lexibility to leverage a variety of providerpayment channels during your transition.

For example, you may prefer to migrate the majority of your low value claimreimbursements (below a $5,000 threshold) to Virtual Card Payments.Additionally, in instances when providers may opt-out of high value claimreimbursements, you can leverage other low cost payment mechanisms suchas Automated Clearing House (ACH) direct deposit and Image Cash Letter(ICL) payments as electronic payment alternatives. And, for any remainingpayments, Emdeon can economically print and mail those documents too usingour printing and fulf illment services including our unique postage cooperative.

One Vendor + One Payment File = Easier Implementation and ReconciliationInstead of using separate vendors to handle your print and electronic providerpayments, Emdeon can take your single payment f ile and convert it into avariety of payment methods to help you eff iciently pay your providers. Why isthat so important? Having a single partner to handle your provider paymentshelps you save valuable time and makes it much easier to reconcile paymentsacross multiple payment methods.

03At Emdeon, we’re here to help. To transform the way you run your healthcare business today, call us at 877.EMDEON.6 (877.363.3666) for a complimentary review.

How Much Could You BeEligible to Receive?

By switching provider payments from paper checks to Virtual Card Payments,you could be eligible to receive revenue share payments from Emdeon.

Virtual Card Payments at a GlanceUsing Virtual Card Payments, providers can accept your claims paymentselectronically using existing payment card networks instead of receiving paper checks.

Similar to how providers process co-payments today when patients present a credit card for payment, providers enter card account information into theirPOS terminals and the funds are deposited vir tually immediately into theirexisting merchant account.

Virtual Card Payments are processed similarly to credit card payments in theprovider’s off ice, but a physical, plastic card is never issued. The cardinformation is simply printed and mailed to the provider with the Explanationof Payment (EOP).

Emdeon Payment Network Infrastructure

Emdeon ePayment

Virtual CardPayments

ACHPayments

ICLPayments

Mailed CheckPayments

EmdeonHealthpayersUSA PostageCooperative

EmdeonPrinting andFulfillment

*Copyright MasterCard Worldwide 1994 - 2011. All rights reserved. MasterCard is in no way affiliated or associated with Emdeon.

And, we’re not talking about just a few dollars in savings here and there. Yoursavings could potentially exceed what you are paying today to print and mailchecks. Based on an analysis of numerous payers’ paper check-based paymentdistribution volume (facilitated by Emdeon), some payers were identif ied ashaving the potential to receive several million dollars each year based onconverting their organization’s annual paper check-based provider payments toVirtual Card Payments.

Easily Processed by ProvidersVirtual Card Payments do not require the swiping of a physical card forpayment to occur. To send a payment, Emdeon prints the 16-digit cardnumber, payment amount, Card Verif ication Code (CVC) and expiration datewith the provider’s EOP. To process the payment, the provider inputs the cardinformation into their POS terminal. It is important to note that the merchantprocessing fee that providers incur when processing Virtual Card Payments isnot dictated by you or Emdeon. This is the same rate that the providerpreviously negotiated individually with their preferred merchant processor.

Virtual Card Payments of fer mutual benefits. For providers, payment isreceived quickly and simply without the hassle of program enrollment or papercheck deposit procedures. Plus, the transfer of funds is virtually immediate,similar to credit card transactions.

For you, there’s a signi f icant cost reduction. In some instances, you mayreceive sizeable payments depending on your Virtual card transaction volume.

*Estimated potential annual value will be based on converting your organization’s annual paper-based providerpayments distributed by Emdeon to Virtual card payments as well as certain assumptions on payment conversionrates, provider adoption rates, applicable merchant processing fees and EPN services selected, among other items.

Your savings*

could potentiallyexceed what youare paying today

to print andmail checks.

05At Emdeon, we’re here to help. To transform the way you run your healthcare business today, call us at 877.EMDEON.6 (877.363.3666) for a complimentary review.

Overview

Payers like you have been taking notice of Virtual Card Payments recently.Why? Because there are substantial cost savings opportunities whentraditional paper check payments are replaced with Virtual Card Payments.

Using Virtual Card Payments, not only can you save money, but Emdeon couldeven pay you based on your Virtual Card Payment transaction volume.**

Prior to the arrival of Virtual Card Payments, many payers attempted to routemore payments electronically via ACH direct deposit in an ef fort to reducethe administrative expenses associated with printing and mailing paper checks.Since provider enrollment is required to switch from paper to ACH paymentdistribution, payers can be limited in successfully delivering the majority oftheir payments electronically which, unfortunately, can also limit their abilityto save money.

Unleash Your Ability to Reduce Print Distribution ExpensesWith Virtual Card Payments, you are no longer held back by the barrier ofprovider enrollment. This is an important facet of Virtual Card Payments sinceyou can be empowered to switch the majority, or even all, of your providerpayments from paper checks to Virtual Card Payments and reap a substantialcost savings as a result.

*Based on an analysis of Emdeon proprietary data.

**Estimated potential annual value will be based on converting your organization’s annual paper-based provider

payments distributed by Emdeon to Virtual card payments as well as certain assumptions on payment conversion

rates, provider adoption rates, applicable merchant processing fees and EPN services selected, among other items.

Some payerswere identifiedas having thepotential toreceive severalmillion dollarseach year.*

Contact Us Today!877.EMDEON.6(877.363.3666)

Your Organization *

Virtual Card Payment Expiration DateAf ter the expiration date, a Virtual Card Payment is no longer valid. Emdeon will not reissue thenumber or assign a new expiration date. Just as with paper check depositing, providers bear theresponsibility for processing their Virtual Card Payments in a timely fashion.

Reporting AvailabilityEmdeon generates two daily reports for Virtual Card Payments.

Payment Register ReportUsed by payers to identify the payment method utilized for each provider payment distributed. Thisis helpful when payers are using a variety of payment distribution methods.

This report is generated following each production release which normally occurs at approximately10:00 am Central Time each business day. The production release is triggered when Virtual CardPayment information has been generated. This report lists the payer’s payments from that day’srelease and denotes the payer’s original check number for each payment to be made and the finalmethod by which the payment will be processed: check, ACH or Virtual Card Payment.

Payers have the option to receive Payment Register Reports with or without claim numbersassociated with payments. They may access these reports through a secure File Transfer Protocol(FTP) site or receive them by email.

Funding File ReportUsed to notify payers that Emdeon will be withdrawing funds to cover the Virtual Card Paymentsprocessed by providers the previous day.

This report is relevant for payers who opt for the post-funded model, meaning they choose to fundthe Virtual Card Payments after the Virtual Card Payments are authorized (see details in the nextsection of this document). This report is run each business day at approximately 10:00 am CentralTime and reflects debit and credit transactions that occurred the previous day.

With this report, payers are notified regarding the total funds that Emdeon will withdraw from theirbank account in order fund the Virtual Card Payments, as well as details for each paymentrepresented therein. Payers may access these reports through a secure FTP site or receive by email.

07At Emdeon, we’re here to help. To transform the way you run your healthcare business today, call us at 877.EMDEON.6 (877.363.3666) for a complimentary review.

Provider Acceptance of Virtual Card PaymentsVirtual Card Payments represent an optional payment solution for providers. Providers may instead choose to receivereimbursements by ACH direct deposit (from participating payers) or paper check. Providers need to call the EmdeonPayment Network support team to verify or update their payment preferences. Providers electing to switch to ACH direct deposit have several convenient options for Emdeon ePayment enrollment which are described online atwww.emdeon.com/epayment/enrollment.

Provider Acceptance of MultiplePayment MethodsThere may be occasions in which providers receive payments through combinations of payment types as more payerstransition to Virtual Card Payments. However, they will never receive reimbursement through a method they have notstated among their payment preferences. For example, Payer A may distribute claims payments to Provider X via VirtualCard Payments while Payer B may still be distributing claims payments via paper checks to Provider X. In this scenario,Provider X is receiving two types of claims payments from two different payers, though never receiving duplicate payments for the same reimbursement.

Provider Participation: Opt-Out ModelEmdeon has created a turnkey solution. If payers agree to an opt-out strategy recommended by Emdeon, payers are notrequired to enroll providers into the program. Unless or until a provider alerts Emdeon that they would like to receive analternate form of payment, providers are automatically set up to receive Virtual Card Payments from participating payers.

Virtual Card Payment Security Measures • The card information is generated securely and seamlessly integrated into Emdeon’s system. Card numbers are activated

and assigned expiration dates only when payments are ready to be sent. Card information is sent with EOP’s directly to existing designated contacts within the provider organizations.

• Each payment is assigned its own card number; the monetary value of the Virtual card is equal to the payment amount for which it was issued.

• Virtual card numbers are credit card numbers, 16-digits in length and assigned specif ic dollar values, as well as corresponding expiration dates and CVC. Optional General Ledger (GL) clearing account numbers or reference numbers can also be provided.

• To process transactions, providers must correctly input the card number and expiration date (at minimum). Some POS terminals also require a CVC if a physical card has not been swiped.

• A card number is valid only up to the total amount for which it is issued. Once that dollar value has been reached, the card number is no longer functional. Thus, providers do not need to keep these numbers on f ile.

• Security restrictions can be added to only allow Vir tual Card Payments to be processed using a POS terminal associated with specif ic merchant codes (e.g. Healthcare related merchant accounts).

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Emdeon is a leading provider of revenue and payment cycle management and clinicalinformation exchange solutions, connecting payers, providers and patients in the U.S.healthcare system. To learn more, visit our website at www.emdeon.com.

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Advantages of Virtual CardPayments for Providers• Simplif ies electronic payment acceptance for providers since neither

registration nor enrollment with the payer is required• Eliminates the cost and hassle of processing paper check-based

claims payments• Eliminates the risk of checks being lost or stolen• Follows a transaction process most providers are already familiar

with requiring minimal instruction to get started• Provides an economical method of processing payments since the

merchant fees incurred by providers are, on average, of relatively low dollar value and in the range of fees already incurred by providers accepting credit card payments from patients*

• Accelerates cash f low since transactions are processed virtually immediately

Advantages of Virtual CardPayments for Payers• Emdeon Virtual Card Payments represent an important step in the

right direction to help you cut provider payment distribution costs• Emdeon could even end up paying you for provider payments sent

via Virtual Card Payments• Eliminates the hassle of printing and mailing of checks• Processes payments electronically to increase eff iciencies and

prof itability• Eliminates the hassle of managing provider enrollment for ACH

Virtual Card PaymentRouting Overview1. Provider submits claim to payer.2. Payer processes the claim.3. Payer submits provider payment file to Emdeon. (This file may

contain data only for providers receiving Virtual Card Payments or it may also include data for all provider payment types.)

4. On behalf of the payer, Emdeon prints and mails the EOP to the provider with the 16-digit card number, payment amount, expiration date and CVC.

5. Provider manually inputs the card number, payment amount, expiration date and CVC into their POS terminal. Once the transaction has been processed for the total amount allotted tothe card, the card information is no longer valid.

6. A secure payment transaction occurs virtually immediately.7. If the post-funded model is selected, the funds are withdrawn

from the payer’s financial institution account.8. The payer receives a reconciliation report from Emdeon.9. Based on transaction volume, the payer may receive a payment

from Emdeon.*

*Estimated potential annual value will be based on converting your organization’s annual paper-basedprovider payments distributed by Emdeon to Virtual card payments as well as certain assumptions onpayment conversion rates, provider adoption rates, applicable merchant processing fees and EPN servicesselected, among other items.