MEDFIELD, Mass. and SUNNYVALE, Calif.—Aug. 10, 2004—When offered a consumer directed health plan (CDHP) for the first time, 66 percent of eligible employees at Micro Focus, a Sunnyvale, California-based software company, chose the higher priced CDHP over a traditional HMO. The innovative plan, designed by benefit management firm Benemax, gives employees a premium health plan while allowing Micro Focus to contain increases in health premiums.

Skyrocketing costs convinced a veteran HR manager to offer a CDHP for the first time. "Premiums rose 25 percent last year. We had to do something to get health costs under control," said Diana Bonogofsky, Micro Focus's North American Human Resources Manager, who oversees offices in Sunnyvale, Rockville, Md., Morrisville N.C., Beaverton, OR and Wayne, Pa. "Benemax's consumer-directed plan was the right way to go."

A recent survey of 3,000 benefits professionals conducted by the International Society of Certified Employee Benefit Specialists (ISCEBS) and Deloitte Consulting LLP supports the growing trend toward CDHPs. More than 85 percent of respondents ranked controlling the cost of health benefits among their top priorities, and 32 percent said they would look to consumer-directed models for
cost savings.

Micro Focus employee Heather Welsh appreciates the new plan's Health Reimbursement Account (HRA), which rolls any unused funds over to the next year.

"The cost of routine tests I need every few months will no longer be coming out of my pocket," she says. And she'll take advantage of the 80 percent health club reimbursement, part of a Healthy Living benefit that includes smoking cessation, weight loss programs, nutrition counseling and lifestyle drugs

"We want employees to be healthy and not worry about whether doctors' visits and hospital stays will be paid for," Bonogofsky added. "Our health benefits, which include vision and dental, are part of a rich compensation and rewards package to attract top employees and stay competitive."

"A well-designed consumer-directed plan can hold health cost increases to single digits, benefiting companies and their employees who appreciate the plan's flexibility and extras," said Benemax Executive Vice President David Cowles. "Members are free to use health care providers of their choosing and the plan provides access to hospital report cards, health and dental data bases, prescription cost comparisons and online second opinion-tools that promote healthy lifestyles and prudent consumption of healthcare."

At Micro Focus, the plan, which went into effect this week, is already making inroads. "One staffer said he smoked his last cigarette. Another took a walk around the building, something she had never done before. People are starting to think about the cost of health care and how to stay healthy while spending less. That's the whole idea," Bonogofsky said.

About MicroFocus
Micro Focus (www.microfocus.com) is the leading provider of legacy application development and deployment software for contemporary platforms, enabling organizations to reuse their business-critical assets with .NET, Java, XML and Web services. Founded in 1976, Micro Focus is a global company with principal offices in the United Kingdom, United States and Japan.

About Benemax
Benemax (www.benemax.com), based in Medfield, Mass. was founded in 1975 and manages employee benefits for 250 corporate clients ranging from start-ups to divisions of Fortune 500 companies. Benemax designs and administers attractive yet highly cost-effective employee benefit packages, including consumer-directed health and dental plans. The company has grown by an average of 30 percent annually for the past four years.