1. Essential Components Understanding a Comprehensive Wellness Program Presented by Principal Wellness Company

2. “Wellness is an active process of becoming aware of and making choices toward a more successful existence.” As defined by The National Wellness Institute What is Wellness?

3. “Active Process” l Participants actively engaged and involved “Aware” and “Making Choices” l Education is the single most important factor of any wellness program “Successful” Did the program reduce claims costs? Did the program improve the health and welfare of the participant?

4. Healthcare continuum

5. Other Wellness Programs consist of: Health Risk Questionnaire Health Fair Fitness Facility Nurse Line

6. 4 step process 1.Observation & evaluation 2.Targeted intervention 3.Counter-marketing and education 4.Reporting, administration and management

7. Observation and evaluation Health Risk Appraisal questionnaire Comprehensive on-site health screenings Blood pressure Heart rate Low back and hamstring flexibility Blood sugar Lipid profile cholesterol Height, weight Body composition analysis Immediate integrated results (including blood work) Immediate private one-on-one consultation Physician health screening packets Testimonial

8. Approximately 40-50% of any population we screen is high risk and eligible for our home based follow-up program. Empowers participants through year long education and assistance to lower medical claims and client risks. Targeted intervention

9. Reporting  Group Aggregate Report (GAR) –Comprehensive reporting and analysis of on-site health screenings; by location and overall  Actuarial Analysis of Medical Claims Impact –Medical claims impact overall and by participation –High risk evaluation and analysis –Chronic disease management evaluation and analysis –Clinical risk analysis –Drill down capability –Pharmacy impact capability  Consulting, Communication & Promotion Design

10. Directed to Home Words of Wellness Monthly Newsletter (mailed to families’ home) Mayo Clinic Guide to Self-Care Wellness Wall Calendar Take Care Benefits On-line Suite (lifestyle and health education, newsletters, etc.) Directed to Worksite Healthy Bytes Bi-Monthly Wellness Education (sent via e-mail, payroll stuffers or internal mail) Corporate Health Awareness Campaigns (quarterly focus on men, women, family and holidays) Monthly National Observance Newsletter (sent to wellness coordinator) On-Site Orientation Seminars (1st year of program) Counter marketing & education

11. Achieving high participation Executive/management support Premium contribution incentives Opt-out enrollment Prizes & giveaways Employers should consult their own tax and legal advisors about how use of incentives may affect them.

12. PARTICIPANTS: 1,885 employee lives PERIOD: 2002 through 2004 STUDY GROUP: Participants enrolled in high risk targeted intervention BENCHMARK: 2002 results for study group RESULTS: è 38% improved (lowered) their LDL cholesterol by 15% or more è 27% improved (raised) their HDL cholesterol by 15% or more è 21% improved (lowered) their body fat percentage by 15% or more Evaluating results: clinical trends

13. STUDY: Ref. MWC-03: Aggregate Client Pool PARTICIPANTS: 10,600 employee lives PERIOD: 1998 through 2002 STUDY GROUP: Employees with 3 or more wellness screenings BENCHMARK: Employees not participating in wellness screenings RESULTS: è12% lower medical claims trend over 4 years è $2.61 return for every $1.00 invested Medical trend methodology: employee/dependent monthly claims

14. STUDY: Ref. ACS0301: Trade Association Pool PARTICIPANTS: 1,220 employee lives PERIOD: 1998 through 2002 STUDY GROUP: Employees with 3 or more wellness screenings BENCHMARK: Employees without wellness RESULTS: è28% lower medical claims trend over 4 years è $4.09 return for every $1.00 invested Medical trend methodology: employee/dependent monthly claims

15. STUDY: Ref. MWC-109: Aggregate Client Study PARTICIPANTS: 1,297 employee lives of single employers clients implementing the wellness program in Q4 2001 or Q1 2002 PERIOD: 2001 through 2004 STUDY GROUP: Employees with 3 health screenings (492) BENCHMARK: Employees with 0 health screenings (512) RESULTS: è$45.39 gross medical claims savings Per Employee Per Month (PEPM) è $4.61 return for every $1.00 invested Notes: Based on employee medical claims excluding drug coverage’s for employees eligible from 2001 to 2004. Excludes claims PEPY over $100,000 Medical trend methodology: employee/dependent monthly claims

16. Thank You This is an overview of a complete wellness program based on the experience of the Principal Wellness Company. Savings and improved health are not guaranteed. Actual results may vary. Principal Wellness Company is a member of the Principal Financial Group® (The Principal®) GP 53856 © 2005 Principal Financial Services, Inc. 01/2006