1Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
Minnesota Health Action Group February 21, 2013
Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
Delivering Value Through Our Private Exchange
2Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
Agenda
My Plan by MedicaSM
Accountable Care Organizations
Employer & Employee Experience with My Plan
3Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
My Plan by MedicaSM
4Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
What is My Plan by Medica?Employer-Sponsored Defined Contribution
What it is not What it is
An individual product Employer sponsored group plan
Employer chooses a few selected plans
Employee chooses from a variety of plan options
Employees see what they pay, but not the total cost
Transparent recognition of the total cost and employer contribution
5Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
What is Defined Contribution?
$$Predictable Employer Dollars
Defined ContributionHealth Benefits
EXPANDED PLAN OPTIONS
6Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
My Plan by MedicaShopping with My Plan
$$My Plan Account
7Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
5250
-80%
HSA
HDHP
300-
30 P
PO
20 PLAN POOLPre
miu
m
Benefit Designs
Lean Rich
My Plan by Medica Product portfolio
8Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
My Plan Decision Support Tool
My Plan by MedicaShopping with My Plan
Plan Options
Plan Recommendations
$$Employer Dollars
Some Employee Dollars
MEDIUM PLAN
$$Employer Dollars
More Employee Dollars
HIGH PLAN
$$Employer Dollars
No Employee Dollars
LOW PLAN
9Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
My Plan by MedicaShopping with My Plan
$$Employer Dollars
10Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
My Plan by MedicaUnique service approach
Employees use personalized tools and resources to help them select the plan that best meets their needs for coverage and cost
Pre-Enrollment Service & Support
My Plan Total Service Team Approach
Dedicated pre-enrollment advisors available (My Plan Advisors)
Dedicated My Plan service team for members, employers and brokers
A customized website designed for employees as they complete their plan selection and enrollment process
My Plan members access information about Medica tools and resources, view plan benefits, EOBs and account specific information
1-855-3myplan myplanbymedica.com
1-855-2myplanmymedica.com
11Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
Source: Data derived from AON Hewitt Corporate Health Exchange Survey, March 2012
Defined ContributionThe evolution of health benefits
Employer selects health plan and
funds 100%.
Employer provides options and employees
contribute %.
Employer offers private
exchange/defined contribution.
Employees choose form public exchange.
Percentage
0 20 40 60 80
Current Approach Future Approach (next 3-5 years)
12Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
Accountable Care Organizations
13Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
Accountable Care Organization (ACO)A healthcare organization that provides coordinated care to a defined population and is accountable* for:
Cost Quality Outcomes Consumer experience
What is an ACO?
*An ACO is accountable to patients it serves and the third-party payer with which it is partnered.
14Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
The Evolution of My Plan: ACO Partnerships
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Employer & Employee Experience with My Plan
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My Plan by MedicaMarket reaction
Over 75 employers have implemented My Plan by Medica, representing 22,000 members
Interest exceeds expectations Early adopters:
— Varied in size and industry
— Focused on cost management and more choice for employees High levels of employer
and employee satisfaction
My Plan renewals: 100%
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Employers are controlling costs
— Majority are holding contributions flat
Employers are offering choice
— Majority of employers offer all 20 plans
Employers are experiencing high levels of employee appreciation and engagement
Employer Experience
18Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.
Communication and appropriate resources key to success
My Plan Advisors utilized by employees from every company
More than 90% enrolled via Web
Employees appreciate transparency and flexibility
Importance of choice validated through selection of all plans
Employee Experience
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Employers are better managing costs and providing employees with more choice
Employees are taking advantage of Choice
— All plans chosen & 80% HSAs
— 40% have chosen an ACO Care Systems are engaging
differently
A Strategy that Works
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Thank You
21Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.Proprietary and confidential. Not to be copied or redistributed.
Barbara WattersVice President of Human Resources
Employer Experience
Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.