1 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Minnesota Health Action Group February 21, 2013 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Delivering Value Through Our Private Exchange

2 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Agenda My Plan by Medica SM Accountable Care Organizations Employer & Employee Experience with My Plan

3 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. My Plan by Medica SM

4 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. What is My Plan by Medica? Employer-Sponsored Defined Contribution What it is notWhat it is An individual productEmployer sponsored group plan Employer chooses a few selected plans Employee chooses from a variety of plan options Employees see what they pay, but not the total cost Transparent recognition of the total cost and employer contribution

5 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. What is Defined Contribution? Defined Contribution Health Benefits EXPANDED PLAN OPTIONS

6 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. My Plan by Medica Shopping with My Plan

7 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica® % HSA HDHP PPO 20 PLAN POOL Premium Benefit Designs Lean Rich My Plan by Medica Product portfolio

8 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. My Plan Decision Support Tool My Plan by Medica Shopping with My Plan Plan Options Plan Recommendations

9 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. My Plan by Medica Shopping with My Plan

10 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. My Plan by Medica Unique service approach Employees use personalized tools and resources to help them select the plan that best meets their needs for coverage and cost Pre-Enrollment Service & Support My Plan Total Service Team Approach Dedicated pre-enrollment advisors available (My Plan Advisors) Dedicated My Plan service team for members, employers and brokers A customized website designed for employees as they complete their plan selection and enrollment process My Plan members access information about Medica tools and resources, view plan benefits, EOBs and account specific information myplan myplanbymedica.com myplan mymedica.com

11 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Source: Data derived from AON Hewitt Corporate Health Exchange Survey, March 2012 Defined Contribution The evolution of health benefits Employer selects health plan and funds 100%. Employer provides options and employees contribute %. Employer offers private exchange/defined contribution. Employees choose form public exchange. Percentage Current ApproachFuture Approach (next 3-5 years)

12 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Accountable Care Organizations

13 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Accountable Care Organization (ACO) A healthcare organization that provides coordinated care to a defined population and is accountable* for: Cost Quality Outcomes Consumer experience What is an ACO? *An ACO is accountable to patients it serves and the third-party payer with which it is partnered.

14 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. The Evolution of My Plan: ACO Partnerships

15 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Employer & Employee Experience with My Plan

16 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. My Plan by Medica Market reaction Over 75 employers have implemented My Plan by Medica, representing 22,000 members Interest exceeds expectations Early adopters: Varied in size and industry Focused on cost management and more choice for employees High levels of employer and employee satisfaction My Plan renewals: 100%

17 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Employers are controlling costs Majority are holding contributions flat Employers are offering choice Majority of employers offer all 20 plans Employers are experiencing high levels of employee appreciation and engagement Employer Experience

18 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Communication and appropriate resources key to success My Plan Advisors utilized by employees from every company More than 90% enrolled via Web Employees appreciate transparency and flexibility Importance of choice validated through selection of all plans Employee Experience

19 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Employers are better managing costs and providing employees with more choice Employees are taking advantage of Choice All plans chosen & 80% HSAs 40% have chosen an ACO Care Systems are engaging differently A Strategy that Works

20 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Thank You

21 Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®. Proprietary and confidential. Not to be copied or redistributed. Barbara Watters Vice President of Human Resources Employer Experience Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.