I'm reluctant to answer this because I've been wrong so often, and frequently things come up which someone thinks just has to be folded into HFv3, that adds a couple months.
But - we're right now implementing the LAST feature which I believe is a MUST for HFv3 - synchronization. My best guess is that we will have a feature-complete beta release within about a month.
If that works out - final release is probably around October (takes time to prepare marketing / web materials, and do documentation etc).
This could EASILY get pushed back by additional features (which are still under consideration, but I'm leaning against).
As for fees - we really have not thought this through. Our current plan is to have SOME upgrade fee, probably around 1/2 the regular purchase price of HealthFrame.
We do make MANY upgrades to HealthFrame free, but this is a major upgrade, several years worth of work.