1. DEPENDENT ELIGIBILITY VERIFICATION Agency Benefit Coordinators Training for the State of Ohio July 29 th and 30 th August 4 th, 6 th

2. Introducing Secova Our Mission: To help employers control and drive down the cost of delivering Human Resources & Participant Benefit Services.  Privately held company founded in 1989  Long-term relationships with many Fortune 500 companies  Dedicated Dependent Eligibility Verification team with 10+ years experience 2

3. Rising Cost of Benefits  Cost of medical benefits has risen by 151% from 1999 – 2008  Wages have increased 37 % in same period  Benefit costs are rising almost 5 times the rate of inflation 3

4. What is Your Role in this Process?  Information source for participants  Refer participants with questions to Secova. Do not accept documents from them – let Secova do the work.  Promote the message of “shared value” we all have in verifying that only enrolled dependents are covered under the state’s benefit plans  Assist with communications to participants who have not completed the dependent verification 4

5. Project Calendar Winter – Spring 2009  State of Ohio distributes internal communications to participants announcing upcoming Dependent Eligibility Verification Project  All employees provided a copy of Dependent Eligibility guidelines prior to Open Enrollment June - July  Project planning commences, project communications drafted  Secova conducts training webinars for Agency Benefits Coordinators August  Webinar training concludes  August 21st - Dependent Eligibility Verification Packet is mailed to participants August, cont’d  Each Verification Packet includes: Verification Letter, Verification Form, Definitions and Required Documents, FAQ’s and Postage-paid Return Envelope  Secova’s toll-free call center (24/7) opens to answer participant’s confidential questions, and assist with the verification of eligible dependents, 1-866-372-4519 September  September 21st – Reminder Letters mailed October  Secova begins outbound telephone communications to non- responders  October 31 st - Last day to submit documentation to verify dependent eligibility. State of Ohio begins termination of ineligible dependents from benefits coverage November  November 23 rd Suspension of Coverage letter mailed to participants with unverified dependents 5

6. Key Dates  August 21 – Secova mails Verification Packet to Participants – call center opens for participant calls, 1-866-372-4519  September 21 – Secova mails Reminder Letter to Non- responders  October 31 – Document Submission Deadline  November 23 – Secova mails Suspension of Coverage Letter – Reconsideration requests are considered  December 15 – Project closes

7. Tools for Managers/HR  FAQ’s included with all mailings to participants  Answers most frequently asked questions from participants  Reduces anxiety about submitting documents to verify dependents  Additional FAQs included which answer more detailed questions about verification process  FAQs will also be posted on Benefit website www.ohio.gov\benefits www.ohio.gov\benefits 7

8. Verification Compliance Support Participant Communications and Support Services 8

9. Dependent Eligibility Communications Clear and frequent Communication to participants is integral to a successful dependent verification: Internal Announcement Verification Letter Reminder Letter Utilize Multiple Mediums Provide every opportunity for the message to be received Direct Mail Phone Email Web 9

10. Easy-to-Follow Instructions  Bar Coded for Internal Tracking  Detailed participant instructions  List of dependents to be verified  Contact information (phone & email) for follow-up  Participant declaration of accuracy 10

11. Online Support Dependent Eligibility Verification System™ PARTICIPANTS:  Securely submit information online  View project communications online  Check status of verification process ADMINISTRATORS  Search & view status of participant’s verification status  View project communications online  View real-time reports on entire verification project 11

12.  Where to Look  What to Check  How to Identify Fraud Secova has an experienced team of document processor’s that are professionally trained to audit, identify variants, and ensure validity of documents. Document Review 12

13. Dependent Verification VERIFICATION REVIEW IS DEFINED FOR EACH DEPENDENT Dependent Type Required Documents Secova Verification Process SpousePage 1 and signature page of participant’s 2008 Federal Income Tax Return (1040, 1040A or 1040EZ) listing the spouse as dependent; or Marriage certificate and one of the following:  Proof that participant and spouse own a home or other real estate together  Proof that participant and spouse are both listed on a lease or share the rent of a home or other property  A utility bill listing both participant and spouse Tax Return  Check to ensure document is Federal Tax Return, not State  Ensure participant and spouse’s name is entered in the label section  Verify that Tax Return is submitted for appropriate year (2008) *Note: Signature or Proof of e-Filing Required Marriage Certificate  Validity of Document – Marriage Certificate?  Authenticity – Does it look official?  Confirm participant name under “Groom” or “Bride”  Validation of dependent name as spouse on Marriage Certificate Joint Tenancy Proof Document  Confirm that both participant and spouse are listed on document  Does dependent spouse’s name match?  Commonality of Address 13

14. Security: Top Priority ACCREDITATIONS & CERTIFICATIONS Certified HIPAA Business Associate Data regulation & privacy training for all Project Team Members, data security audit & process and procedures SECURE PROCESSES & PROCEDURES Dedicated & Secure processing room for incoming mail, faxes, scanning & processing Privacy Protection Policy for all participants & contractors Access-controlled review of Call Center Coordinators recorded conversations Secova offers peace of mind with top-level security & SAS 70 Type II certification INFORMATION SECURITY Password protected CRM client tracking application & database Server hosting in a restricted access room on RAID data backing systems with nightly tape backup All files encrypted prior to transmission 14

15. HIPAA Compliance/PI Security  Telephonic Verification All personal information (PI) is verified at the start of every call to confirm proper contact  User Access Control Applications are user access controlled  Password Protection Email attachments with confidential information are password protected  Clear Desk, Clear Screen Systems are locked and paperwork with confidential information is locked in desk drawers when not at workstation  Documents Official documents do not leave the office premises Processed documents are shredded 15

16. Call Center Support  1-866-372-4519 Participant Call Line  Live-answer, confidential 24x7 participant advocacy call center to assist with questions and compliance requirements throughout the verification process  Voice support in multiple languages  100% call recording with daily call monitoring Random call monitoring to track quality of service Feedback circulated to team leaders 16

17. Verification Outcomes Consequences and Support for Plan Members with Ineligible Dependents 17

18. What Happens When We’re Done  Non-responders and unverified dependents will terminate coverage October 31, 2009.  Secova provides State of Ohio with detailed analysis of dependent population and recommendations for effective management of dependent eligibility going forward. 18

19. Questions 19

20. Thank You Secova, Inc. 5000 Birch Street Suite 300, East Tower Newport Beach, CA 92660 1.866.257.0011 www.secova.com