1. Comments from the Chair of the Board of Directors Al Jacobs The Alliance 2003 Board Chair WEA Trust

2. Fiscal Year 2003 successes Quality Forum – Multi-year work plan focusing on: Reducing the Burden of Diabetes Improving Communication on Return to Work/Workers Compensation Issues Improving Patient Safety – Patient Safety Toolkit –Online at www.alliancehealthcoop.com

3. Fiscal Year 2003 successes – continued Alliance Provider Quality Investment Fund – Nearly $200,000 was distributed throughout fiscal year 2003 Consumer-Driven Health Care Options – Alliance/Definity Health Benefit Option Wisconsin Healthcare Purchasers for Quality (WHPQ)

4. Fiscal Year 2003 successes – continued Network growth – Viroqua and Associated Clinics – 18 Other Medical/Surgical Providers – Five Mental Health Sites – 16 Chiropractic Clinics Network Savings Rate – As of June, 2003 – almost 20%

5. Fiscal Year 2003 successes – continued Return on Investment – An Average of $15.50 in Savings for every $1 paid! Value-added services continue to grow – National Travel Network as a wrap to The Alliance health care network – Delta Dental consistently delivered value & service – Healthy People At Work (workers compensation claims) – “How to be a Wise Healthcare Consumer”, a consumer work-based presentation w/take-home reference book

6. Fiscal Year 2003 successes – continued Successful 2003 Educational Forums – Focus on Consumerism – Peer Networking Opportunities

7. Membership stable 157 employers on 5/31/03 34,673 employees on 5/31/03 Member retention – Overall: 87% versus budget of 87% – Standard employers: 90% versus 90% – Associate/NNV employers: 87% versus 87%

8. Board Service Recognition Skip Heffernan Joined the Board in 1999, term ran through 2001 Elected: 2000-2004 Member of A-CHIP Advisory Group Member of APQIF Evaluation Team

9. Board Service Recognition Florence Reisgies Joined the Board in 1999, term ran through 2000 Elected: 2000-2003 Board Secretary: June 2001-2002 Governance Committee: July 2001-2002

10. Alliance Employers— Informed, Invested & In Control Communicate with your employees – Impact of health care costs on bottom line – Share consumer education resources Looking Forward – WisconsinRx