HealthFlex Plan Sponsor Conference Calls

1. HealthFlexPlan Sponsor Conference Calls December 7-8, 2010

2. Agenda • Health Care Reform Update • Wellness Programs Update • Retiree Health Plans Update • Active Plans Update

3. HealthCare Reform Update • Small Business Health Care Tax Credit • Other updates

4. HealthFlex Wellness ProgramsRecommended Updates for 2011 • Screening program improvement • 2011 incentives strategy • Communications support • 2011-2012 Virgin HealthMiles transition

5. Screening Program Rationale • Comprehensive screening panel that does not vary by region or physician • Economy of scale for purchasing of comprehensive screening • Ease and clarity of incentive administration(unlike wellness exams) • Data available for population analysis

6. Screening Program Improvement • Improved access for participants/spouses: • Events (Annual Conference, Employee Event) • Local Quest service centers • (Physician verification form—exception) • Onsite event improvements • Online/phone scheduler • Plan sponsor administrative access • (Note: only eligible individuals can participate)

7. Screening Program Improvement • Greater administrative control and efficiencies: • Phlebotomist oversight and quality control • Data export to WebMD and Ingenix • Expanded aggregate reporting for plan sponsors and HealthFlex

8. Toolkits for New Screenings • Administrative Toolkit • Executive Summary/FAQ • Event “How-to” checklist • Physician form—exception instructions • Communications Toolkit • Promoting onsite events • Informing non-attendees how to accesslocal service centers • Participant FAQ (including privacy information)

9. 2011 HealthFlex Incentives: Targeted Behaviors 1 Complete Quest screening  Earn $100 HealthCash Complete HealthQuotient  Avoid higher 2012 deductible Take Action Post-HQ! (i.e. Health Coaching)  (Set up for possible future incentives) 2 3

10. Incentive Timing: Defined Periods for Each Desired Action • Ease of communicating deadlines • Screening precedes HQ to allow data import • Screening and HQ need to precede coaching • Distinct time periods for each behavior; screening close to HQ completion and creation of action plan with WebMD coach • HQ completion deadline must be before AE to allow completion data (not results) to be shared with carriers.

11. 2011 Incentives Schedule 1 April-July 2011: Complete Quest screening  Earn $100 HealthCash Aug-Sept 2011: Complete HealthQuotient  Avoid higher 2012 deductible September + : Post-HQ Take Action! (i.e. Health Coaching)  (Set up for possible future incentives) 2 3

12. 2011 Incentives: Communications Plan • Plan Sponsor Communications Toolkits • Incentives overview (late December) • New Quest screenings (January/February) • HealthQuotient blitz (late June) • Participant Communications • Incentives introduction (January/February) • Incentives kickoff/Quest reminder (Late March) • 1 Quest deadline reminder (late July) • 2 HQ reminders (late July and late September)

13. HealthMiles Objectives for 2012 • Enhance incentives: • More directly tied to desired behaviors (avoid engagement “gaps”) • Sustain interest and finances over a longer period • Allow integration with other HealthFlex incentives (HQ, Quest screening, coaching) • Improve administration: • Calendar-year program for all individuals, regardless of enrollment date • Messages and incentives same for all individuals

14. 2012 HealthMiles Transition • Beginning January 1, 2012, all participants will begin a calendar-year program • Quarterly “tasks” rather than 12 months-levels • Shortened earning period for program years beginning in 2011 • Anniversary e-mails starting Jan 2011 to inform participants of shortened time to reach target levels

15. 2012 HealthMiles Transition

16. Retiree Health Plans Strategy Proposed 2012–2013 Objectives Changes that allow for: • Reduced/stabilized premium costs and liability exposure • Reduced administrative exposure • Increased flexibility and agility • Increased choice

17. Retiree Health Plans Strategy Proposed 2012–2013 Objectives • Multi-year phased approach: by 2013 or 2014, all plan sponsors transitioned to Individual Plans Market option 2012 • Existing Medicare Companion/Rx Plans (with changes); or • Individual Medicare Supplement Plans Market (via Extend Health) 2013 • Individual Medicare Supplement Plans Market only; or • Same two options as 2012 2014 • Individual Medicare Supplement Plans Market Only

18. Retiree Health Plans Strategy Proposed 2012–2013 Objectives Business model* for “Individual Medicare Supplement Market” Option: • Creates an “exchange” for most available plans in geographic-specific market (Medicare Advantage, Medigap, Dental and Vision) • Manages eligibility, enrollment and annual renewals for plan sponsor retirees *Refer to “Retiree Health Plans Solution Diagram”

19. Retiree Health Plans Strategy Proposed 2012–2013 Objectives • Health Reimbursement Account (HRA) used for premium and eligible expense reimbursement • Lifetime customer service and advocacy provided by benefit advisors

20. Retiree Health Plans Strategy Proposed 2012–2013 Objectives • Existing Medicare Companion/Rx plan changes: aligned with transition to new offering; phase out by 2013 or 2014 2012 • Eliminate MC3; increase MC1 and MC2 OOP’s • Eliminate FX1; increase FX2/P1/P2 OOP’s (same as with active plans ) 2013 • MC1, 2 and 3—no longer offered?? (or 2014 total phase-out) • Eliminate FX2 (same as with active plans) 2014 • MC1, 2 and 3—no longer offered

21. Retiree Health Plans Strategy Proposed Next Steps • Q1 2011 • Webconference with HealthFlex and Extend Health with each interested plan sponsor • Model impact to plan sponsor: HRA funding, disruption to participants, etc. • Q2 2011 • Plan sponsor adoption for 2012

22. Active Plans Strategy Proposed 2012–2014 Objectives Trends necessitate changes: • Reduce/stabilize cost exposure for plan sponsors and plan • Greater consistency and equity in shared responsibility across plan sponsors • Streamlining of plans • Changes in plan benefits

23. Active Plans Strategy Proposed 2012–2014 Objectives • Refer to “Active Plans Strategy Summary”

24. 1-800-851-2201 www.gbophb.org