1. In the business plan, you reference “Special purpose healthcare line of credit”….. What are special purposes?
Special purposes include an expansion of consumer choices and purchase options beyond the typical medical model. Specifically, preventive healthcare options and alternatives to a strict medical (hospital, doctor, dentist) tradition. In addition, we estimate that up to 85% of the consumer population will qualify for a pre approved line of credit between $2500 - $5000. Other industry financial service programs are generally specific to a medical model, incorporate deep provider discounts, and only include the upper 15% more credit worthy of medical consumers.

Specific Components:

• Consumer proven ability to repay the debt and includes Medicare,
• Medicaid, private insurance groups, deductibles and co- pays.
• Combine charges for insured and noninsured purchases.
• Includes preventable healthcare goods and services that are both medical and non medical in nature.
• Two lines of credit based on credit worthiness/ability to repay.
• Program component (directory) provides consumer/employers with provider profiles for both medical and preventative healthcare goods and services. (On line access by area code)
• Incorporates catastrophic illness programs - reverse mortgage option – charitable support network – other Incorporates reserve for bad debts, charitable support network affiliations (risk reduction measures), in excess of industry standards.
• Primary owner/sponsor is a public non profit entity. 501 (a) (3) charitable support organization supporting 501 c 3 named charities. Eighty-five percent of net revenue is distributed to named charities.

2. Is the PayMed access card for medical use specific to use by a hospital and or doctor group?
No, it will be restricted during the “pilot” test market in order to fine tune the program and provide statistical, supportable data for evaluation and program/corrections.

Specific Components

• Goal is to include all employers, providers, and consumers within a defined market area (zip code/county).
• Consumer purchase options include medical goods/services, pharmacy and non traditional healthcare goods and services not covered by insurance IE. Preventive care, health foods, vitamins, weight loss programs etc.

3. How does the concept work? And what are the benefits?
The concept works by combining the network capabilities of separate consumer, provider, employer, public and private programs. The program is focused on healthcare related goods and services. We combined the “best of the best” service models in the fragmented healthcare industry to provide, easier consumer access, provider profile information, employer/employee benefits at a price point and terms that meet specific needs at every level of participation.

Specific Components

• Consumer, provider and employer benefits are identified by category under separate cover and become specific to each user group.

4. What is the application for consumer based electronic records?
Electronic records incorporate a host of network capabilities and technology integrated programs in compatible, easy access format.

Specific Components

• Consumer credit reporting and scoring
• Consumer billing/accounting detail (audit trails)
• A directory of healthcare good and services
• Electronic Insurance claims (optional)
• Consumer satisfaction surveys/education (online healthcare network guide)
• Provider network interface (information exchange)
• Security provisions in compliance with applicable law; i.e right to privacy and disclosure
• Marketing by geographic client specific network
• Network interface for the implementation of government/private healthcare insurance programs
• Integration of “leading edge” technology with credit/debit access card applications

5. Is the program available to any healthcare provider or facility?
Initially, during the “pilot” project process restrictions will be imposed by geographic and zip code area. Ultimately, through a carefully crafted expansion program we expect to be able to serve national and international clients.

Specific Components

• Consumer enrollment
• Provider enrollment
• Employer enrollment
• Government enrollment

6. Easily accessed health resource info benefit. What does this mean exactly?
The healthcare network guide includes a directory of healthcare goods and services and can be accessed by internet for provider categories and will be updated daily. Anyone, can access this information that is part of the participating consumer, employer and provider base by zip code, state, county etc.

Specific Components

• Healthcare network guide
• Directory of Healthcare goods and services
• Consumer Education
• Consumer access to government programs
• Statistical data base as to uses
• Employer access
• Access codes by user groups

7. What efficiencies are created by the PayMed program?
Efficiencies are created by incorporating the network capabilities and the ease of accessing information. Communications protocol is focused on the demographics and needs of the user group. Economies of scale come into play in considering basic service costs, cash flow, expanded choice and a method of purchase and payout for healthcare goods and services.

Specific Components

• Credit/debit access card – processing
• Electronic Insurance claim filing (optional)
• Healthcare specific programs – Specialized
• Intellectual processes and programs (copy right)
• High speed internet access capabilities
• Better informed consumer as to choice and price point

8. What are the benefits of the access card?
Primarily the ease of use by the consumer, provider, employer, and government in making informed purchases, credit/debit benefits interface transactions to create seamless access to pre approved credit lines and other specific financial resources by consumer category. Documented audit trails by user category.

Specific Components

• Credit terminals are universally accessible
• Processing and data base components are all inclusive
• 90 second credit approval with on the spot initial credit access.

9. What are other essential services? If important why not delineate them?
Keep in mind that our “pilot project” in Oregon will incorporate a brain trust of professionals and qualified experts in their fields that will identify/quantify and qualify initial and ongoing additions to our basic program. We believe the service options/ financial benefit of this program are far reaching and can be integrated into national and international sectors of finance,  insurance, labor union benefits etc. and can over time “change the way American pays for healthcare”. Essential services with statistical support documentation are the expected project result.

Specific Components

• Each network has specific internal capabilities
• Financial credit line/resource priority for access and draw down of
• funds
• Financial management component
• Contract vendor and provider contractual components
• Banking relationships (sweep accounts and access)

10. If the consumer can’t afford health insurance what makes you think they can afford the PayMed plan?
Simply stated, the benefits include pre approved credit lines with expanded choice and access to all categories of health care goods and services. Debit/credit capabilities go beyond the norm to incorporate employer benefits, employee health care savings accounts, preventative care options, and the budget monthly payment options by combining categories of healthcare goods and  services. We will strive to incorporate a credit line for roughly 85% of the populations that are uninsured, under insured and or participate in private insurance, Federal Medicare, and Medicaid programs. During previous consumer based focus group sessions certain individuals said they could afford alternative healthcare, preventative healthcare, and traditional medical care on an “ as needed” pay as you go basis. This was especially true if there was a budget monthly payment option available. Health insurance, especially for family coverage on the employee paid portion was perceived as “very expensive” or was not considered a priority given the needs of lower wage earners or fixed income elderly. They voiced concern about their option priority for
uses of disposable income and meeting basic household needs.

Specific Components

• An annual fee preserves the renewable line of credit
• Increases in credit lines are available with a positive payment history and or an improved credit score
• The PayMed program can access other financial resources available through employers, union memberships or qualified government programs, or network affiliations
• Informed consumers with defined alternative choices will make cost vs. value healthcare comparisons and decisions

11. How do healthcare savings accounts and other tax free programs fit the PayMed program? Where’s the benefit?
Simply stated, the government has endorsed before tax exempt programs to encourage less dependence on the government for costs of providing Medicare and Medicaid programs. Before tax employer payroll deduction options typically result in a 20% - 30% increase in consumer purchasing power when compare to after tax expenditures for the same healthcare purchases.

Specific Components

• Electronic access to employer/employee accounts
• Security fire wall
• Network interface
• Defined audit trails

12. How do you define your target market? How do you intend to reach this market? (Marketing)
The target markets are well defined at every level of participation in the pilot project. Our goal is to create the “win win” or blue ribbon net benefit for each participating group. Benefits seem to be self evident or we would not be afforded the opportunity to “prove” the concept on a “pilot” basis. In addition we have the support of a large hospital group, large employer groups, large insurance agency/companies and the largest data processor in the financial services industry supporting this pilot project. Furthermore the local, state and federal governments have a growing financial burden of meeting health care needs in an industry with a history of double digit annual cost increases. Funding for this two trillion dollar industry is waiting for a program that makes sense and creates a “win- win” at every level. Marketing will be the result of evaluating the pilot test market results. We expect to substantiate, use patterns, credit levels, risk/debt ratios, demographics and utilization patterns to name a few. Growth/expansion plans will mirror successes and reflect corrections if we experience underperforming results in any area.

Specific Components

• Pilot test markets (target market) have been defined
• Reaching the market is a function of referral from consumers, providers, employers and government

13. How was the “pilot” test site chosen? Why?
The need is universal but is most critical in rural America where there are less options/choices due to transportation and provider concentration issues. Lane County Oregon is a progressive healthcare area. Cottage Grove is an average community with most healthcare services in town or a short twenty minute drive to Eugene, Springfield OR, area with vast regional facilities and choices. Peace Health is a major hospital/medical provider. The area provides a diverse group of private pay, insured, underinsured and income tiered consumers. The area is considered by our affiliates as an ideal “pilot” test site.

Specific Components

• Concentrate location but accessible to the regional purchase of healthcare goods and services
• Population base (draw) is large enough to support a diverse ethnic, age, and income base
• Includes active medicare and Medicaid government programs
• Includes a percentage of an under insured, uninsured and insured populations

14. Some neighborhoods, counties, and states have special or distinct ethnic and or poor populations. How do you mitigate risk for these demographic disparities?
PayMeds programs and risk mitigation is predicted on establishing a broad base national presence. Insurance companies are experts at spreading risk through geographic modeling and actuarial profiling. We intend to integrate industry recognized analysis to risk based issues similar to those used by insurers. In addition, our program does contemplate an identifiable method of consumer repayment. Higher risk credit lines are supported by reserves for losses in excess of industry standards based on credit scoring. Our sponsors non profit status may allow for additional reserves to help pay for indigent care or catastrophic illness if all other financial options are exhausted. We intend to incorporate government programs, government guarantees, bonding, and establish sinking funds to mitigate presumed extra risk. Actual pilot project results should allow us to strike a balance between projected and real risk.

Specific Components

• Demographic analysis
• Actuarial analysis
• Credit scoring
• Credit report analysis
• Area specific provider actual credit experience
• Reserve for losses
• Sinking funds
• Network access to other financial service programs (private/government)
• Project is supported by definable statistical data
• The PayMed advisory board and management data team reflect a broad base of expertise in the healthcare, finance, credit/debit card applications, and general competencies in start up/operating successful businesses

15. Are there barriers to entry in the current system?
There are identifiable barriers to over come hence the “pilot” test project. We believe that with the current trends of higher cost, limits to healthcare access, and the combined benefits to consumers, providers, employers and government that we can overcome current identifiable barriers. Barriers to entry have been incorporated in our plan. They include proposed long term
contracted relationships with the major players participating in the pilot project, registered copy rights, Trade marks, etc. are in place or being processed. Even if others enter the field with similar products over time we will have been the first, and anticipate timely geographic expansion. We can be successful with a minor market share of this two trillion plus dollar industry.

Specific Components

• Current barriers to entry are exiting finance plans
• Consumers have been priced out of many medical/healthcare alternatives because of pre pay requirements
• Traditional credit cards are viewed as providing access to entertainment and merchandise purchases
• Current medical finance programs are targeted at the extremely credit worthy resulting in a vast market opportunity representing 85% of the population

16. What would happen to the PayMed program if the government alters the payment and healthcare delivery system?
Economic and political pressure will result in changes to the healthcare system over time. PayMed has incorporated a full time position for research focused on technology and information management. We expect to set trends rather than follow them. Our Advisory Board of Directors has diverse and recognized areas of expertise. It is impossible to forecast the future, but with their guidance we expect to be on the “leading edge” of innovation as we seek to “change the way America pays for healthcare”.

Specific Components

• Full time research and development position
• (technology/information management)
• Monitor healthcare legislative process at state and federal levels

17. Why are you proposing to declare profit sharing for community benefit?
Western States Land Reliance Trust, the current sponsor/owner of PayMed is a public non-profit charitable support organization. Its IRS approval as a non profit requires distribution of net profits to named 501 (C) (3) charities to remain in compliance. Joint ownership of PayMed is
ultimately contemplated which no doubt will result in modeling a “use of funds” agreement going forward.

Specific Components

• 509 (a) (3) mandatory IRS distributions for WSLRT portion of net profit
• Named 501 C-3 charities-(eleven currently)

18. This outline program proposes that all will be OK with very important factors that you have no control over.like hospital costs, doctor costs, cost of credit all which could greatly impact fees each year (unknown and uncontrollable factors.) What is your contingency plan?
Cost controls are regulated by the government providing DRG based payment scheduling for medical procedures. The public, assuming they are informed, will make their own decisions relative to cost vs. value issues when considering what healthcare goods and service they choose
and the price point. For example a consumer may opt to go see a chiropractor and pay for the office visit through PayMed as opposed to opting for a $90-$150 medical office visit/ exam and or paying an out of pocket up front deductible or co-pay. PayMed assumes that if the consumer authorizes the charge then value is received and therefore qualifies for financing.

Specific Components:

• Government regulated area specific diagnostic related group schedules (DRG’s) established price points for medical procedures.  (GVT. Cost control)
• Consumers can access the PayMed healthcare Network Guide and review the healthcare directory to make informed provider purchasing decisions

19. If it is true people are getting away from PPOs and HMOs and if 85 new firms are moving into the market segment, what makes this product different?
Consumers have generally not been happy with a lack of choices offered by HMOs or PPOs when faced with spending their healthcare dollars. They generally are required to select a doctor from a specific group and are seldom provided preventative healthcare options/choices. HMO’s and PPO’s are strict medical models and appear to be loosing support from consumers, employers, organized labor unions and providers.

Specific Components:

• No restriction on provider choices for either medical or non medical healthcare purchases
• Ease of access by combining all healthcare purchases into one budget monthly payment option
• Access through technology to multiple healthcare consumer payment choices

20. How would the PayMed program adjust to swings in the economic and employment markets?
We believe we would be better positioned to adjust to market swings or economic down turns. The directory of healthcare services provides access to a host of non medical options, comparative information for both medical and non medical providers, and a PayMed financing plan. PayMed just like banks will adjust its reserves to cover anticipated losses in a down market. In addition, these markets usually result in a lower cost of money which equates to lower consumer access card interest rates on unpaid balances. Margins are preserved by timely adjustments to change.

Specific Components:

• In house research and trend monitoring
• Technology based system that can modify reserve and interest rate programs in a matter of minutes
• Broader base of consumer price points and healthcare options
• Integration of government safety net programs.
• Integration of private safety net programs
• Reserves for bad debt/losses
• Ability to modify credit line limits (if justified)

21. Healthcare costs are soaring. How will this model mitigate against further cost increases?
We cannot control provider cost increases for goods and services. We can however, educate consumers in the healthcare network guide and list provider comparison information in the directory of the healthcare goods and services. The consumer will be able to make informed healthcare choices based on need and affordability. Preventative healthcare could have a significant impact in reducing medical costs. This area of opportunity has not been fully examined nor have there been methods of financing available. We hope to be able to prove that an “ounce of prevention is worth a pound of cure”.

Specific Components:

• Flexible and timely adjustment to credit terms
• Access options expanded and identified by area and provider groups
• Preventative care emphasis

Cost reductions by design incorporating the PayMed program as part of consumer, employer, provider and government healthcare plan.

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