1. Details modified for illustration purposes only Sample of Product Portfolio Analysis May 19, 2012

2. SlideDetails modified for illustration purposes only Analytic Notes All data came from the Product Analytic Database The core data pull for this report represents Group Counts, Membership, and Performance data for 2 years beginning 4/2010 to 019/2012 Sample MLR = Claim/Premium modified; 12 months rolling with 19 month run out Example: sample MLR for 04/2012 = Sum of (Claim/Premium) * modified in 01/2011-12/2011 with a 19 month run out For the purposes of the analysis in this presentation small group is defined as 2-99 211/23/2015

3. SlideDetails modified for illustration purposes only Portfolio Analysis Summary Central Region – State State does not actively market non-Lumenos CDH plans However, many products still have active membership, most notably in the SG market State has membership on non-Lumenos CDH products because the state has a guaranteed renewability mandate Seventeen SG products with 12480 members combined Three LG products with 1192 members combined Membership in all products has declined or stayed relatively flat No ASO membership All HSA plans 311/23/2015

4. SlideDetails modified for illustration purposes only Issues and Recommendations Issues: Sales, Product, and State Planners cite lower cost, lower admin fees due to no incentives and less expensive core H&W programs as the main reason the non- Lumenos CDH plans are marketed. Recommendations: Monitor sales of the Blue HSA product beginning in June. No longer actively market these products and remove them from the portfolio as part of product launch. Evaluate eliminating plans that are not actively marketed as part of product launch. If not allowed to force migrate, propose moving these groups to a PPO plan on renewal. Evaluate Lumenos incentive and H&W portfolio in early 20119; use strawman approach to evaluate what is needed by market segment/state. Consider including recommendations as part of product launch. Work with Actuarial and local UW to compare and evaluate administrative characteristics between Lumenos and non-Lumenos CDH plans. 411/23/2015

5. SlideDetails modified for illustration purposes only Membership and Performance State is trending toward higher deductible plans, but most still have significant membership in 100% plans. As expected, MLRs in the richer plans (aka,cadillac) trend higher than those with higher deductibles. Most states are moving more business in coinsurance plans and most see more growth in higher deductible coinsurance plans. This is especially true in small group versus large group. HRAs are just not selling very well - this is true in all group markets. Some “Deductible” sales in State have been flat. 511/23/2015

6. SlideDetails modified for illustration purposes only State 2-99 Observations 100% plans are still the biggest sellers. The $1500/100% HSA plan has an MLR of 150%. The $5000/100% plan is also performing poorly. More employers are choosing higher deductible 100% HSA plans. Little enrollment in HRAs compared to HSAs. The two 90% HSA plans also have limited enrollment. Notes on currently marketed plans in the 2-50 market Product portfolio offerings include: 14 HRA Plan Designs (9 will have 100% coinsurance) 16 HSA Plan Designs (10 will have 100% coinsurance) No longer selling other HIA or HIA+ in some instances 611/23/2015

7. SlideDetails modified for illustration purposes only State 2-99 Observations cont’d 711/23/2015 These plans are still being offered after 01/01/2012

8. SlideDetails modified for illustration purposes only State 2-99 Group Count by Product 811/23/2015

9. SlideDetails modified for illustration purposes only911/23/2015 Summary of 2012 Recommendations Product Offerings/Portfolio Reduction Remove remaining 100% plans with deductibles under $1500; no longer actively market $2000 100% plans. Continue to evaluate portfolios and remove low performing products. Since membership in most 90% plans is low and MLRs are trending high, eliminate 90% plans with low deductibles as part of the portfolio reduction process. Eliminate plans that are not actively marketed as part of Product launch. Remove SG products that have no membership from portfolio as part of Product launch. Migrate groups to SG PPO products.

10. SlideDetails modified for illustration purposes only1011/23/2015 Summary of 2012 Recommendations (continued) Benefit Changes Raise the HSA individual/family OOP max by $100/$200, respectively to meet the 2012 IRS limit of $6050 and $12,200. Incorporate enterprise pharmacy recommendations. Ongoing Initiatives Member Engagement – Continue Generic Outreach Campaign and expand if program is successful. Questions ?