Subject: Counsyl internal discussion
From: "John DeLoche" <[email-masked]>
To: "Neil Callahan" <[email-masked]>, "Hunter Biden" <[email-masked]>, "Eric Schwerin" <[email-masked]>, "Rob Walker" <[email-masked]>, "Devon Archer" <[email-masked]>
Cc: "William Lee" <[email-masked]>
Date: Mon, 24 Nov 2014 22:29:30 -0800

Guys,

One of the things that came out of the board meeting last week is that
Counsyl may be in network with insurers but is not being compensated for
it--their competitors are still doing max out of pocket programs which are
bad for the insurance companies because they bill them exorbitantly to make
up the difference. Counsyl's out of network competitors are charging higher
ASPs as a result which Counsyl can't do because of its in network
agreements and its mission to drive down testing costs.

One thought we had which I wanted to test is can we go on the offensive by
partnering with a lobbying firm or some other way to make it very clear to
the insurance companies that Counsyl is leading on transparency for
consumers as well as Drs and is the low cost leader for insurance
reimbursement (i.e., this is good for the industry as well as the
insurers). This way the insurers could be more aggressive with Counsyl's
competitors by stopping immediately the exorbitant out of network billing
reimbursement and potentially forcing the competitors out of business, or
at least making it much harder for them to compete without Counsyl's cost
advantages.

Would be great to get your thoughts on this. It's time for Counsyl to use
its war chest to play offense.

Best,

John

John DeLoche
*Co-founder and Managing Director*
RSTP
333 Bush Street, 21st Floor
San Francisco, CA 94104
office: 415 767 1288
mobile: 415 793 7070

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