1. 1 Wellness A Carrier’s Perspective

2. 2 HOW MEDICAL EXPENSES ARE MANAGED Precertification Case Management Disease Management Worksite Nurses Wellness MEDICAL Rx Drug Safety Formulary Quantity Limits Precertification

3. 3 Common Wellness Plan Features Carrier Options Possible Additions -Online HRA - Health Fairs -Online Health Improvement Programs - Biometrics -Smoking/Weight Loss Programs - Carrier Reports -Health Information - Worksite Nurses

4. 4 Wellness – Return on Investment All Employers Self Insured Employers Fully Insured Employers -Fewer Sick Days -More Productive Employees -It Sounds Like the Right Thing To Do -Lower Claim Costs -Lower Trend for a Few Years -Lower Premium -Lower Trend for a few Years

5. 5 PREMIUM AND CLAIM DRIVERS CategoryWellness Impact Medical Loss Ratio1 – 3 Year Lag Risk Factors1 – 3 Year Lag Demographic ChangesNo Impact Ongoing/High Dollar ClaimsNo Impact on Some Claims Large Impact on Other Claims

6. 6 YOUR CHALLENGES - Impact the right people 1.0 4.9.76 14.3 5.3.97 3.2.45 1.1.85 - Employee Turnover - Employee Participation - Dependents are 40% of Total Members