1. UK Health Benefits Task Force October 24, 2001

2. Agenda n CHA Health Profile n Current Relationship n Future Relationship n Questions & Answers

3. CHA Health Profile

4. Profile n Roots began back in 1991 when a group of rural healthcare providers in Eastern Kentucky approached UK Hospital about working together to develop an integrated healthcare delivery system n Network was known as CHA Provider Network n 1995, CHA Health was created and licensed as an HMO by the Commonwealth of KY to offer fully insured health benefits to employers n CHA Health also maintains a Third Party Administrator (TPA) License for self funded administrative services

5. Profile n CHA Ownership –University of Kentucky Hospital 84.7% –Appalachian Regional Hospitals9.6% –St. Luke Hospitals 3.4% –Our Lady of Bellefonte Hospital 0.9% –Pattie A. Clay Hospital 0.7% –Gateway Regional Health 0.4% –Rockcastle Hospital 0.3%

6. Profile n Executive team and structure Chief Executive Officer Mark D. Birdwhistell Chief Financial Officer Dale Fisher Director Internal Audit Ken Taylor Director Govt. Relations and Legal Affairs Shawn Crouch Director of Corp. & Plan Development Matt Sanger Executive Assistant Sharon Scales Accounting Chief Operating Officer Brent Barber Chief Health Services Officer Tim Costich MD Chief Marketing Officer Mark Lamberth Claims Member Services Compliance/Appeals Information Services Medical Management Quality Improvement Pharmacy Sales Provider Relations Marketing & Communications Director of Human Resources Kim Nesbitt Premium Billing Legal Affairs Financial Analysis Account Services Network Development CredentialingUnderwriting

7. Profile n Mission Statement –Improve health and healthcare by providing value and exceptional services n Vision Statement –CHA Health is the trusted leader serving the community by making healthy living easier

8. Profile n CHA Network

9. Profile Kentucky Regions n Network Strength

10. Profile n Total Membership –147,600

11. Profile n Member Satisfaction Health Plan Overall Claims Processing Customer Service

12. Profile Getting Care Quickly Courteous and Helpful Office Staff Overall Health Care Provided Specialist Care Overall Personal Doctor Overall

13. Profile n HEDIS Results

14. Profile n Statutory Net Worth

15. Profile n Received B++ Financial Rating from A.M. Best –B++ is considered “very good” –Plans with B+ or higher are considered “secure” n Plans have a strong or good ability to meet their long-term obligations to members n Maintain a level of financial strength that can withstand unfavorable changes in the business, economic or regulatory environment –Heavy emphasis is placed on financial rating by Consultants and Brokers –“…rating formally ratifies the significant improvements that have taken place…”

16. Current Relationship

17. University of Kentucky (Self Funded Employer) *Maintains Risk UK Health Care Plans PPO Plan UKHMO Humana CHA Health Subcontracted Services Subcontractors

18. Current Relationship n UKHMO has had a contract with CHA Health to provide certain Administrative Services for UKHMO Lexington Service Area (LSA) and Regional Service Area (RSA) members since July 1997 n Obligations are different between LSA and RSA

19. Current Relationship n LSA n RSA

20. Current Relationship n LSA Services Performed UK HMOCHA Health 1. Payment settlement of all claims, 1. ID card production and COC excluding OOA emergency and DME distribution 2. Member Services2. Access to PBM 3. Utilization Management3. Network Access and Provider 4. Financial Accounting Directory development/distribution 5. Benefit Administration4. Utilization Management for OOA 6. Formulary Managementand emergencies and DME claims PBM Interface5. Membership eligibility and 7. Service Area determination reconciliation 8. Member Appeals

21. Current Relationship n RSA Services Performed UK HMOCHA Health 1. Financial Accounting 1. Payment settlement of all claims 2. Benefit Administration/Determination 2. Preparation of financial statements 3. Formulary Management and 3. All Utilization Management PBM Interface 4. Coordination of appeals process 4. Service Area Selection 5. Member Services 6. ID card production and COC distribution 7. Access to PBM 8. Network Access and Provider Directory development/distribution 9. Reporting 10. eHealthConnect sm access 11. Membership eligibility/ reconciliation

22. Profile n UKHMO’s relationship allows for access to technology and reporting capabilities that require economies of scale 1. eHealthConnect sm – CHA Health’s online service for members and providers that allows them to access key information n Members –Order replacement ID card –View claims status –Verify member eligibility –Change PCP –View member benefit information – Available 24 hours a day, seven days a week n Providers –View claim status and authorizations –Verify member eligibility –PCP access to patient list –View patient benefit information 2. CHA Health’s Reporting Module – Allows for real-time ad hoc reporting

23. Profile n UK HMO has access to all these services at competitive marketplace pricing

24. Future Relationship

25. n Today, UK Health Care Plans has 13,729 employees participating with its Plan –98% reside in the Commonwealth of Kentucky n CHA Health is well positioned as a locally owned Managed Care Organization to meet the needs of UK Health Care Plans –In addition to the UKHMO RSA, CHA Health Provider Network could accommodate a PPO product that would cover 96% of the UK employees

26. Future Relationship n Distribution of UK employees by county –96% reside in CHA Health service area Warren Logan Hickman Carlisle Ballard Graves McCracken Calloway Marshall Livingston Lyon Trigg Crittenden Caldwell Christian Todd Hopkins Muhlen- burg Union Webster Henderson McLean Ohio Daviess Grayson Hancock Brecken- ridge Hardin Meade Larue Marion Bullitt Nelson Wash- ington Spencer Shelby Oldham Henry Trimble Carroll Butler Simpson Allen Monroe Edmon- son Barren Hart Met- calfe Adair Taylor Russell Wayne Casey Whitley Bell Knox Lincoln Rock- castle Clay Leslie Boyle Jackson Garrard Mercer Perry Knott Pike Harlan Letcher Laurel Owsley Lee Estill Breathitt Floyd Wolfe Powell Magoffin Madison Cumber- land Jefferson Pulaski McCreary Green Clinton Martin John- son Morgan Menifee Clark Montgomery Lawrence Greenup Elliott Carter Lewis Rowan Fleming Bath Nicholas Bourbon Mason Bracken Harrison Pendleton Scott Fayette Jessa- mine Owen Grant Frank- lin Wood- ford Anderson Gallatin BooneKenton Campbell Robertson 86 6 5 8,723 4 4 2 4 107 20 9 22 12 3 10 9 51 16 3 5 6 10 8 119 15 9 5 12 4 66 78 4 7 11 6 14 6 5 6 3 4 2 3 4 2 4 420 6 157 12 23 16 9 7 2296 19 7 73 129 41 17 24 10 2 79 13 304 81 57 5 19 641 66 226 253 17 62 26 20 11 64 13 9 8 86 368 5 292 24 8 53 2710 12 2 3 21 3 24210 245 1718 4 99 13 4 4 12 3 76 166 12 20 Fulton Boyd

27. Future Relationship Partnership

28. Questions & Answers YOUR KIND OF PEOPLE. YOUR KIND OF CARE.