1. Pennsylvania HealthCare Cost Containment Council Seeing is Believing Francis S. Soistman President and CEO June 4, 2003

2. Subsidiary of Coventry Health Care, Inc. HealthAmerica & HealthAssurance Regional health plan founded in 1975 Over 650,000 members 132 hospitals & 17,000 doctors Over $1.3 billion in revenue run rate Full product spectrum Highly experienced leadership team H ealthAmerica Overview

3. Service Area

4. Never compromise quality –HEDIS ® --highest quality ratings in the region and above national averages Customer-driven Efficiency through technology Innovative in medical management and products Our Approach

5. Shows how we compare against our peers & state averages HealthAmerica and/or HealthAssurance: –Surpassed competitors in 10 of 15 measures for preventive care –Surpassed state and national averages in all but1of 15 measures Utilization of PHC4

6. HEDIS Scores

11. Gives ideas for new initiatives for improving –Always room for improvement –Diabetic incentive program to improve outcomes ) We are well organized to supply data –HEDIS –Data warehouse Utilization of PHC4

12. Quality Improvement Identify issue Collect data Analyze data for concern Baseline Improvement Draw conclusion Formulate action plan Implement plan Remeasure Modify as needed

13. Utilization PHC4 Quality comparative information about health care is minimal Heath care decisions can be the most important of an individual’s life Plethora of subjective, erroneous, and biased information Comparative information can be of help

14. Filling the Void To make educated decisions, unbiased information is needed PHC4 fills part of the void Useful to those who emphasize quality Cost of care is still important The available information serves as a good foundation

15. Managed Care Focus on competitive differences Optimize outcome Stimulates plans with lower scores to improve Plans with higher scores still focused on improvement Size of plan doesn’t matter Health of community is improved

16. Future Help foster discussion between all players Set the stage for collaboration Best health care system in the world Solutions exist

17. Solutions

20. Future Accountability by all We’re in this together Courage to make change