PROTECTING PATIENTS BY EXPOSING THE TRUTH & EMPOWERING CHOICE PROTECTING PATIENTS BY

SINCE 2007 SOURCE OF INDEPENDENT WE’VE BEEN AN TRANSPARENCY The top two logos are very difficult to see when projected. Any suggestions?

A sports loving kid needs an outpatient foot surgery…

Outpatient Procedures QUALITY VARIANCE COST VARIANCE Transplants Office Visits Outpatient Procedures Imaging / Labs Inpatient Procedures SOMETIMES YOU ARE A CONSUMER YOU ARE A PATIENT When we project this slide, the “cost variance” line is really difficult to see

he’s in need of a colonoscopy… A man learns he’s in need of a colonoscopy… The story can make a lot more points than an mri Facility not doctor Commodity- not quality Services change- g/y/r is better than penny pricing

Cost Variance – Denver Why is it important to have transparency inside an exchange? Exchanges accelerate the shift to consumerism. According to a study by John Young @ Consumerdriven, 1 out of 2 consumers are choosng an HSA qualified plan when selecting coverage on an exchange. As a result of this acceleration, employees must be empowered with the right tools to be good consumers. Transparency is viewed as a priority & “the right thing to do” by employers moving to exchanges. According to an NBGH study, 71% of employers identified price transparency tools as one of their most important offerings- 2nd only to decision support tools. Carrier tools can’t provide true transparency & consumers know it. According to Health Affairs Blog, only 2% of consumers use their health plan transparency tools. Healthcare Bluebook gets a much higher adoption rate than that.

PRICE VARIABILITY FOR COLONOSCOPY (NO BIOPSY) It’s not the physician, it’s the facility… PRICE VARIABILITY FOR COLONOSCOPY (NO BIOPSY) UNIQUE CASES $0 $500 $1000 $1500 $2000 $2500 $3000 $4000 TOTAL COST PHYSICIAN FACILITY

A woman learns she needs a knee replacement…

Hospitals may do everything, but they are not great at everything… CARDIAC SURGERY 57th percentile ORTHOPEDIC 94th percentile CANCER CARE 12th percentile

Joint Replacement – Denver Why is it important to have transparency inside an exchange? Exchanges accelerate the shift to consumerism. According to a study by John Young @ Consumerdriven, 1 out of 2 consumers are choosng an HSA qualified plan when selecting coverage on an exchange. As a result of this acceleration, employees must be empowered with the right tools to be good consumers. Transparency is viewed as a priority & “the right thing to do” by employers moving to exchanges. According to an NBGH study, 71% of employers identified price transparency tools as one of their most important offerings- 2nd only to decision support tools. Carrier tools can’t provide true transparency & consumers know it. According to Health Affairs Blog, only 2% of consumers use their health plan transparency tools. Healthcare Bluebook gets a much higher adoption rate than that.

Cardiac Surgery (Major) – Denver Why is it important to have transparency inside an exchange? Exchanges accelerate the shift to consumerism. According to a study by John Young @ Consumerdriven, 1 out of 2 consumers are choosng an HSA qualified plan when selecting coverage on an exchange. As a result of this acceleration, employees must be empowered with the right tools to be good consumers. Transparency is viewed as a priority & “the right thing to do” by employers moving to exchanges. According to an NBGH study, 71% of employers identified price transparency tools as one of their most important offerings- 2nd only to decision support tools. Carrier tools can’t provide true transparency & consumers know it. According to Health Affairs Blog, only 2% of consumers use their health plan transparency tools. Healthcare Bluebook gets a much higher adoption rate than that.

THEY YOU + SAVE SAVE MONEY LIVES

Transparency Commit to a culture of consumerism Understand your current carrier-based solution Rewards Reporting Communicate with plan members Evaluate third-party transparency solutions Consider unintended consequences when reviewing narrow networks Transparency

PROTECTING PATIENTS BY EXPOSING THE TRUTH & EMPOWERING CHOICE PROTECTING PATIENTS BY

EASY MEMBER EXPERIENCE THE Before we hop into a demo I wanted to note that Healthcare Bluebook offers a three-tiered approach: Online, Mobile, and phone support. (NOTE: You need to open the browser and set up the demo ahead of time) Ok, let’s go to the demo. ACTION: Switch over to the demo ACTION: When demo is complete – return to this slide Please note that the intuitive green/yellow/red color coding works even better on smaller screens. NOTE: Click on the blue background to advance to the next slide.

Savings Total Cost ROI Total: $127,551 Setup Fees $ 6,000 PEPM Fees $ 6,000 PEPM Fees $ 39,600 Total Program Cost $ 45,600 Outcomes Category Savings Bone Density Scan $2,916 Cataract Surgery $10,942 Colonoscopy (no biopsy) $1,773 CT (no contrast) $1,887 CT (with and without contrast) $3,930 CT (with contrast) $11,017 Digital Diagnostic Mammography (bilateral) $417 Digital Diagnostic Mammography (unilateral) $301 Digital Screening Mammography (bilateral) $4,433 Knee Arthroscopy $6,898 MRI (no contrast) $6,422 MRI (with and without contrast) $10,323 Ultrasound $44,601 X- Ray $21,692 ROI Program Cost $ 45,600 Total Savings $ 127,551 ROI (Savings) / (Cost) 2.8 : 1 Total: $127,551

More savings are available to capture Outcomes Category Savings Savings Opportunity Bone Density Scan $2,916 $10,137 Cataract Surgery $10,942 $13,808 Colonoscopy (no biopsy) $1,773 $42,020 CT (no contrast) $1,887 $4,316 CT (with and without contrast) $3,930 $248 CT (with contrast) $11,017 $3,805 Digital Diagnostic Mammography (bilateral) $417 $864 Digital Diagnostic Mammography (unilateral) $301 $682 Digital Screening Mammography (bilateral) $4,433 $10,784 Knee Arthroscopy $6,898 $10,132 MRI (no contrast) $6,422 $18,298 MRI (with and without contrast) $10,323 $3,062 Ultrasound $44,601 $76,049 X-Ray $21,692 $80,095 Other $839,329 Total $ 127,551 $1,113,629 Client has captured roughly 11% of the available savings for these procedures. $1.1M in additional savings can be achieved through further consumerism.

Ultrasound Year 1 Base Year Total Savings: $44,601 Average Case Cost: $304 Base Year Average Case Cost: $388 Total Savings: $44,601

Ultrasound $44,601 Change in Average Price per Case Case Movement Total Savings $44,601 $83