Imagine Corporation

Memorandum

TO: All Employees

FROM: Ethan Wierenga, CEO
DATE: January 31, 2021
SUBJECT: Healthcare Plans

For the past 20 years, we have been able to provide you, my valued employees, excellent
healthcare options. This includes the company covering all costs in the medical-benefits plan,
with only a small copay of $10 per service. When this agreement was instated 20 years ago, the
average costs were $8,500 per employee, and it has been my personal pleasure to be able to offer
this.

Unfortunately, the costs per plan on average have increased to $12,500. The resulting 47%
increase has led to an additional cost to the company of $1.2 million.. While we strive to provide
everyone with outstanding benefits, we are no longer able to financially provide the current
option. Throughout the past several months, I have worked personally with HR and the Finance
department to determine the next best steps, and what we can do to provide for you. This
decision has been hard to make; however, the current plan can no longer exists in its current
form. We as a company are going to be able to cover 80% of the costs, but not all.

Plan Changes
Starting August 1st, 2021:

 Average individual plans will be $2,000 per year.

 Average spouse or single dependent will be $3,000 per year.
 Average family plan of 3 or more will cost $4,000 per year.
 Co-Pay will rise from $10 to $15 per service or office visit.
In order to accommodate you the best we can, annual costs will be individually scaled based on
current salary. To keep the business running as successfully while carrying as small of burden as
possible, those who make more will be charged slightly more than those who make less. We
understand how this may affect your financials, and due to the personalized nature of the plan we
are unable to give an exact cost at this time. I will be available for any personal discussion about
the changes, per appointment starting February 3rd, 2021 for those who have any questions.
Reach out to me to schedule a time. For those who wish to get more detailed personalized
quotes, please contact James from finance (jmiller@imaginecorp.net).

While this change affects everyone, I believe we as a team can come together and adapt to the
change. It is and will always be part of my core values to care for you all, and I wish you the
best. Please do not hesitate to contact me regarding changes.