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ACCOUNTABLE CARE PLATFORM

ACCOUNTABLE CARE PLATFORM. Delivering distinctive value to those we serve. Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group. Network Strategy | Delivering Distinctive Value.

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ACCOUNTABLE CARE PLATFORM

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  1. ACCOUNTABLECAREPLATFORM Delivering distinctive value to those we serve Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group. Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

  2. Network Strategy | Delivering Distinctive Value WE ARE TRANSFORMING HOW WE PAY FOR HEALTH CARE AND HOW HEALTH CARE IS DELIVERED We are paying for value through outcome-based payment models that reward care providers for improvementsin quality and cost-efficiency We are transforming the delivery system to be more accountable for cost, quality and experience outcomes, helping make health care more affordable We are aligning incentives across employers, consumers and care providersto achieve the Triple Aim of better health, better care and lower costs 2 Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group. Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

  3. Accountable Care Platform | Accountability Continuum OUR MODULAR SET OF VALUE-BASED PAYMENT MODELS ARE DEPLOYED ACROSS THE CONTINUUM. WE ARE ABLE TO ALIGN OUR VALUE-BASED PAYMENT MODELS WITH A CARE PROVIDER’S RISK READINESS. Capitation + PBC Shared Risk Shared Savings Level of Financial Risk Bundled/EpisodePayments Accountable Care Programs Performance-BasedContracts (PBC) Primary CareIncentives Centers of Excellence Fee-for-Service Performance-based Programs Degree of Care Provider Integration and Accountability 3 Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group. Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

  4. Accountable Care Platform | Deployment Snapshot OVER $22 BILLION OF NETWORK SPEND IS TIED TO OUR ACCOUNTABLE CARE PLATFORM1 Performance-based Programs Centers of Excellence Accountable Care Programs Achieving specific METRICS Managing a specific CONDITION Managing ENTIRE POPULATION HEALTH Bundle/episode payments Primary care incentives, Performance-based contracts Shared savings, Shared risk, Capitation (including ACO, PCMH) • 32,000+ physicians • 900+ medical groups • 575+ hospitals • 60,000+ physicians • 550+ medical groups • 65+ hospitals • 160+ Centers of Excellence Increasing level of integration, financial risk and accountability We have value-based engagement with more than 600 hospitals, 1,150 medical groups and 80,000 physicians participating in our Accountable Care Platform.1 1 Deployment statistics for executed contracts as of July 2013, net of program overlap. 4 Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group. Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

  5. Accountable Care Platform | Deployment Map DELIVERING DISTINCTIVE VALUE ACROSS THE COUNTRY Location of icon within state is for illustrative purposes only and is not indicative of program’s actual geographic locations within the state – many programs are state-wide. Deployment as of December 2012. 5 Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group. Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

  6. Accountable Care Platform | Managing Population Health PATIENT-CENTERED MEDICAL HOMES (PCMH) Our PCMH programs include more than 2,000 primary care physicians and 250 medical groups On average, our commercial model in the initial launch markets, AZ, RI, OH, CO demonstrates: • 4-4.5% • Medical Cost Reduction • 2:1 • Return on Investment (ROI) Additionally, we are participating in the CMS Comprehensive Primary Care Initiative Program in Ohio, Colorado and New Jersey Clinical quality results trending above program targets on 95% of all measures and delivering a 2 to 1 return on investment. 6 Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group. Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

  7. Accountable Care Platform | Managing Population Health Deliver Best Possible Quality Outcomes Improve Population Health and Patient Experience Reduce Medical Costs/Trend ACCOUNTABLE CARE ORGANIZATIONS (ACO) • Our ACO model incorporates proactive population health management strategies • The objectives of our ACO model are to: • Improve population health and patient experience • Deliver the best possible quality outcomes • Reduce medical cost and medical trend • 15 ACOs Selected (Commercial, Medicare, Medicaid): • ACO model live with 10Accountable Care Organizations • Participating in Dartmouth-Brookings ACO collaborative in Arizona • Additional ACOs launched in New York, North Carolina, Northern California, Rhode Island, Colorado, Texas and Ohio • Ongoing negotiations with ACOs in Arizona, New York, Ohio and other markets Medicaid Accountable Care Shared Savings programs launched in several states We are introducing Optum capabilities to our ACO partners to provide them with the analytics and decision support solutions to manage risk and improve quality outcomes. 7 Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group. Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

  8. Accountable Care Platform | ACO/PCMH Deployment Map As of 8/1/13 ACCOUNTABLE CARE ORGANIZATIONS (ACO) & PATIENT-CENTERED MEDICAL HOMES (PCMH) WA ME AK NH VT WESTMED Medical Group ND MT OR MN Lifespan MA ID WI NY SD MI RI WY North Shore LIJ Palo Alto Medical Foundation SUTTER IA CT New WEST Physicians COASTAL MEDICAL PA OH NE NV IL IN NJ UT WV DE CO KS Mount Carmel VA MO CA MD KY DC NC TN HI OK AZ AR NM CORNERSTONE Healthcare SC Arizona Connected Care GA MS AL LA ACO Model Launched TX ACO Ongoing Negotiation FL Seton Health Alliance ACO Model Launched ACO and PCMH Models Launched PCMH Model Launched 8 Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

  9. Accountable Care Platform | Proven Results SPECIFIC RESULTS Performance-based Programs1 Performance-based Programs have demonstrated improved quality and cost-efficiency outcomes: • 14% reduction in the use of non-Tier 1 prescriptions • 25% reduction in the use of non-participating laboratory services • ROI: Medical cost savings exceed incentive payout by at least 2:1 • The transplant Centers of Excellence program has improved health outcomes: • 25% decrease in the average length of hospital stays for transplants • Improved transplant survival rates at Centers of Excellence • 3% reduction in one-year mortality for liver transplants • 5% reduction in one-year mortality for heart transplants • 16% reduction in the incidence of transplants through application of evidence-based appropriateness criteria Centers of Excellence • Accountable Care Programs have proven results that demonstrate improved health outcomes: • 4-4.5% medical cost reduction • 17%reduction in inpatient days per 1,000 • 16% reduction in emergency room visits per 1,000 • 13% reduction in inpatient admissions per 1,000 • ROI: Medical cost savings exceed incentive payout by at least 2:1 • Programs focused on Medicare Advantage members achieved at least a 4 Star HEDIS level on screenings for diabetes, cardiovascular care, colorectal cancer and rheumatoid arthritis Accountable Care Programs2 1 Primary Care Incentive Program results from RI market and national performance-based compensation program results. 2 Commercial PCMH results from RI, OH, CO and AZ markets; Medicaid PCMH results from SW Arizona. 9 Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group. Proprietary information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

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