1. North Carolina State Health Plan Office of State Budget and Management Annual Conference October 24, 2005

2. State Health Plan Facts and Figures Membership – 589,000 Biennium Rate Increase – 6.15% per year on average for plan – Avg. market rate increase 9.2% in 2005; expected 2006 - 9.9% according to a recent study by Hewitt Associates Plan Expense Budget – FY05$1.7 Billion – FY06$1.8 Billion – increase from FY05 – 5.9% – FY07$2.0 Billion – increase from FY06 – 11.1%

3. Integrated Health Management Care Management Disease Management Utilization Review Medical Policy Product Management Utilization Management Members

4. Value Equation Q PQ P V=V=