1. July 2015 Cover SC Expanded Coverage Options For South Carolina

2. Cover SC  Task force formed in November 2014  Reviewed the current costs being invested by the state  Healthy Outcomes Plan  Healthy Connections Checkup  Began evaluating how hospital tax could be leveraged to expand coverage options  Reviewed the revised Milliman report and compared to November 2012 report  Gave input on proposed Senate bill for a private option

3. Cover SC Task Force Recommendations  Engage an external consultant with experience in Medicaid expansion in other states  Consider coverage through a private option or expansion  Develop a definitive timetable for implementation of a strategy

4. Cover SC Task Force Process  Conversations were held with several consultants  Manatt was asked to present to the Task Force  Engaged Manatt effective June 30, 2015

5. Scope of Manatt’s Consulting Engagement  Review coverage systems and features adopted in other “red states”  Evaluate Senate bill, particularly in light of implications of using Medicaid funds to purchase coverage through the Marketplace  Evaluate personal responsibility initiatives such as premiums and cost sharing, health savings accounts and behavior incentives  Review Milliman report factoring in experience in expansion states and identifying unrealized additional savings to the state budget Cover SC

6. Scope of Manatt’s Consulting Engagement (continued)  Address mechanisms for covering the state match when the federal matching rates drop below 100% in 2017  Prepare a one to two page paper describing the salient features of a plan for increased insurance coverage to be used by SCHA and member hospitals with Legislators and other key individuals Cover SC

7. Timetable  Reaffirm SCHA member commitment at July Leadership Meeting and Board Retreat  Finance Council will meet August 5 to review Manatt’s draft and make recommendations  Review with BCBS  Meeting with Manatt representatives at SCHA, August 27, to share their findings and recommendations with Finance Council and other CEOs/CFOs

8. Cover SC Public Outreach  Reaffirm and increase business association support  SC Chamber  Business Coalition on Health  Local Chambers  Coordinate effort with other relevant groups  Heart Association  Cancer Association  AARP  Religious Organizations

9. Cover SC Legislative Outreach  Meet with Speaker Lucas (mid August)  Discuss Manatt recommendations with bill sponsors: Lourie, Matthews, Cleary, Campbell (early September)  House and Senate leadership meetings: Leatherman, White, Alexander, M. Smith (September)  Other potential Republican supporters (September – November)