LOCKTON COMPANIES University of Alaska Wellness – FY 2016 & 2017 May 2, 2014

1 UA Wellness Plan Guiding Principles  Measurement − Establish a baseline of all employees  UA is building baseline through biometric testing and physician forms in April – June 2014 − Continuous Measurement for areas of improvement  Incentives and Communications − Completion of biometrics and health risk assessment to reduce employee charges (Implemented for FY15) − Utilize point system to reduce medical plan employee charges in future years − Reward outcomes and not just activity  Target high risk individuals − Reduce health risk factors − Improve employees health thru tools and programs  Telephonic Coaching and Wellness Portal

2 UA’s Wellness Program Goals  UA’s Wellness Program Goals – Establish a culture of wellness – Emphasize utilization of no cost preventive services – Continue to identify the risk factors or problem areas for the University of Alaska members – Help University of Alaska employees improve their health by providing tools and programs – Slow the rate of increase in health plan costs – Keep Healthy People Healthy

3 No <10% of the cost of the health plan Incentive Yes >10% of the cost of the health plan Disincentive Tie to Employee Contributions Are you linking to your health plan? Incentive/Disincentive How large is your incentive/disincentive? Employee Engagement How are you driving participation? Participation Achieving healthier outcomes Participation/Outcomes How are you measuring success? Influence the Economic Behavior of Your Population Less Effective/Less Savings More Effective/More Savings

4 Wellness – What We Believe  Healthcare Reform is going to increase medical trend over and above current projections  Participants must have “skin in the game” through active engagement and financial accountability. − Incentives should drive participation and reward those who do achieve results  Integrated claim, Health Risk Assessment, and Biometric data establish the Risk Profile and allow for continuous program measurement – Targeted and population based, integrated with plan design and outcome based  Outcomes should be tracked by improving aggregate health status: − BMI, Blood Pressure, Cholesterol/Fasting Glucose and Tobacco Use  Long-term health improvement and cost reduction can only be achieved with: − High consumer engagement (80% over 3-5 years)

5 Proposed Wellness Strategy FY 2015 – July 1, 2014  Preferred Employee Pricing with Biometric Screening and Health Risk Assessment (HRA) completion for employee and spouse  Biometrics reported via service centers, screening events or doctor form  On-site biometric screening events from April to June 2014  Reduced employee charges of $600 for Employee and $600 for Spouse FY 2016– July 1, 2015  Completion of Biometrics and Health Risk Assessment required to be eligible for accumulation of points and employee preferred pricing  Employees and Spouses achieve point level that determines FY 2016 (July 1, 2015) employee preferred pricing  Introduce new streamlined number of activities required to get points

6 Incent Healthy Behaviors – FY 2016 (Example)  Need other Ideas from the University of Alaska

7 Points to Preferred Pricing – FY 2016 (Example)

8 Outcomes based Wellness Strategy – FY 2017 FY 2017 – July 1, 2016  Implement Metabolic Syndrome & Non-Tobacco Outcomes based Wellness plan  Communicate in FY 2015/2016  Employee charges for FY 2017 (July 1, 2016) - Achieve 3 out of 5 Wellness Categories  Components  Collection of Biometric Data – Baseline established in FY14 & FY15  Collection of Biometric Data Spring 2016 – Determines FY17 Employee Charges  Collect Biometrics thru service centers, on-site events or doctor visit  Healthyroads aggregates information and provides file to the University of who achieved 3 areas for July 1, 2016 (FY17) Employee Charges  Potential to add Tobacco as part of the outcomes based plan

Outcomes WOMEN HDL Cholesterol ≥ 50 Triglycerides < 150 Waist Circumference < 35 inches (not pants size) Blood Pressure < 130/85 Fasting glucose < 100 MEN HDL Cholesterol ≥ 40 Triglycerides < 150 Waist Circumference < 40 inches (not pants size) Blood Pressure < 130/85 Fasting glucose < 100 Employee and Spouse must achieve 3 out of the 5 measures Can add Tobacco in the future