Aon Health Our Point of View April 2017

Stark Realities Employer health care inflation will continue An unhealthy and aging workforce burdens employers and our economy Our higher costs are not leading to better outcomes (at all) Emerging workforce needs and expectations will drive new strategies and solutions Healthcare industry is (slowly) going through large delivery system transformation Election impact will be felt by all stakeholders

Our “Dry Erase” slide – ACA to AHCA to ?? ACA Update Our “Dry Erase” slide – ACA to AHCA to ?? Repeal Replace Repair Reimagine Reupholster Rename Relive Reset Reverse Restart Renew Etc.

Potential Strategic Directions for Employers Current employer responsibilities remain largely intact Assess current environment Retain core elements Refocus energy on key levers Consider new strategies and approaches Repeal, Debate, Repair, Replace Advent of total benefits/total rewards strategies Provide benefit trade-offs Address benefits need spectrum Create true defined contribution Personalized Benefits Erosion of employer-provided health care Prepare for fundamental shifts Incorporate defined subsidy Reduce or transfer administrative burden

The key to win is through an adaptive and supportive Our Point of View The Key to Win Responsive Health Ecosystem The key to win is through an adaptive and supportive approach to health & wellbeing that drives individual accountability. The key to win is through an adaptive and supportive approach to health & wellbeing that drives individual accountability. Evolving Tailored Choices & Ongoing Guidance Health & Wellbeing Orientation Create an adaptive approach to health & wellbeing, working with players across the ecosystem, to provide options that evolve over time based on changing employee needs – improving both employee health and employer outcomes.

The key to win is through an adaptive and supportive Responsive Health Ecosystem The key to win is through an adaptive and supportive approach to health & wellbeing that drives individual accountability. Employer Tactics Change the way we pay for care Value-based payment arrangements Centers of expertise Convenience care Expert second opinions Manage the most complex Draw on employer scale and knowledge to take the lead in quickly driving positive changes with providers and carriers, to improve outcomes for all players in the health ecosystem

The key to win is through an adaptive and supportive Evolving Tailored Choices & Ongoing Guidance The key to win is through an adaptive and supportive approach to health & wellbeing that drives individual accountability. Help employees navigate the world of health year-round with innovative platforms and technologies that create tailored and evolving choices for employees, with ongoing guided support (e.g., cost and quality transparency tools, and advocacy) and recommendations Employer Tactics Hold people accountable and provide personally relevant benefit and total reward choices (health and beyond) Better support with a health care navigator

The key to win is through an adaptive and supportive Health & Wellbeing Orientation The key to win is through an adaptive and supportive approach to health & wellbeing that drives individual accountability. Support employees with benefit plans and programming that increase emphasis on holistic employee wellbeing, including their physical, emotional, social and financial health Employer Tactics Start and end with a holistic approach to wellbeing and behavior change including physical, emotional, social, and financial health Create measures for success for engagement, absence, value added

Building a Sustainable and Successful Health Care Strategy Focus Concentrate on opportunities to drive better results and a better employee experience Identify and resolve issues that will make the biggest difference for you and your employees Problem Solve Explore emerging solutions and strategies to lead market changes and take advantage of opportunities to create competitive advantage Innovate Recognize the most successful strategies have clear goals and excel at execution Execute

Mobile Service App “Aggregators” Guide vs. Empower Guide People Empower People Personal help Self Service ACOs Concierge Care and Service Coordinators/PCMHs Concierge PCP Plans Direct Primary Care Accountability With Support and Consequences COEs Telemedicine Shoppable Care/Transparency Choices, Apps Websites Accountability With Limited Personal Help Navigation/ Advocacy Expert Opinion Mobile Service App “Aggregators” Telemedicine Quantum Consumer Medical 2nd MD, Best Doctors Welltok Zest American Well MDLive Accolade Jiff Health Advocate Teladoc

How Employers Are Responding Create dynamic design and plan options in key locations Drive provider payment reform in the right markets Manage the experience and outcomes for your most complex patients and their providers Increase focus on health and wellbeing as business priority Offer a navigator or concierge Move to a defined contribution total reward strategy