1. A presentation of the Blue Cross and Blue Shield Association. All rights reserved. Alliance for Health Reform June 12, 2012 Scott P. Serota, President & CEO Blue Innovations: Whats Working?

2. A presentation of the Blue Cross and Blue Shield Association. All rights reserved. 12-150-R 2 Strategies to Bend the Cost Curve Payment Incentives Partnering with Clinicians Engaging Patients

3. A presentation of the Blue Cross and Blue Shield Association. All rights reserved. 12-150-R 3 Changing Payment Incentives Prevented 42 wrong-site surgeries hospital-acquired infections Saved up to $57M from Central-line infections MRSA cases

4. A presentation of the Blue Cross and Blue Shield Association. All rights reserved. 12-150-R 4 Changing Payment Incentives 6% readmissions 17% inpatient admissions $26M radiology savings

5. A presentation of the Blue Cross and Blue Shield Association. All rights reserved. 12-150-R Partnering with Clinicians 5 15% readmissions 50% inpatient stays > 20 days $15.5M annual savings

6. A presentation of the Blue Cross and Blue Shield Association. All rights reserved. 12-150-R 6 Engaging Patients 32% bypass readmissions 21% angioplasty readmissions $2,200-$2,500 cost savings per procedure

7. A presentation of the Blue Cross and Blue Shield Association. All rights reserved. 12-150-R 7