1. “Reaching across Arizona to provide comprehensive quality health care for those in need” 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System 1

2. “Reaching across Arizona to provide comprehensive quality health care for those in need” Benefit Calculations  Pulled FY 2011 IP and OP spend by hospital Prop 204 TANF Childless Adults TANF + CA between 19 and 64 w/o Medicare (to approximate Newly Eligibles)  Total Spend converted to PMPM and adjusted for program changes, trended forward to State FY 14 and 15 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System 2

3. “Reaching across Arizona to provide comprehensive quality health care for those in need” Trend Analysis PMPM Trend from FFY11 to FFY14FFY15 Trend IPOPIPOP Prop 204 TANF(8.82)%2.38%1.00%3.00% Childless Adults(12.96)%2.44%1.00%3.00% Newly Eligible(10.84)%2.33%1.00%3.00% 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System 3

4. “Reaching across Arizona to provide comprehensive quality health care for those in need” Trend Analysis, ctd.  Used budget assumptions for member months to apply monthly PMPM for: Prop 204 TANF CA Newly Eligibles  Calculated estimated total IP & OP spend for FY 14 and FY 15  Applied per hospital proportions, by population 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System 4