HEALTHCARE MARKET OVERVIEW

1. HEALTHCARE MARKET OVERVIEW

2. Healthcare cost increase Annual costs of employer-sponsored health plans Four year cumulative increase = 75 percent Source: Employer Health Care Strategy Survey 2003, Deloitte & Touche

3. Benefit themes • Employer sponsored health benefits are viewed by employees as compensation • Costs are rising approximately 15% • Service and manufacturing industries with high human capital requirements are most affected

4. ID high risk population, target interventions, modify behavior and prevent high cost cases

5. Self-diagnosis and self-care • Most people self-diagnose frequently • 600+ prescription medications now are available over the counter • 75% of American adults use herbal and alternative remedies regularly • For up to 40% of doctor visits, self-care turns out to be the treatment of choice • For more than 100 conditions, home remedies result in the same outcome as doctor care • Correct “self-diagnosis” is critical

6. Non-acute conditions and ER use • 33% of ER visits are for 3 symptoms • Abdominal/ pelvic pain • Musculoskeletal pain • Respiratory infection • 36% could safely be deferred • 48% decline next-day care once in ER (despite 6+ hour waits) Source: Washington DL, et al. Annals Int Med 2002; 137 (9): 707-714.

7. Costs increasing – overall health declining • Diabetes prevalence growing - average treated diabetic has average blood sugar of 220 (Normal is less than 100) • Despite spending over $15 Billion in cholesterol meds in 2002, only 18% at goal. Most people don’t even know their goal. (Pearson TA – LTAP Arch Internal Medicine 2000;160:459-67) • 1 in 3 U.S. adults are obese. Total direct & indirect costs related to obesity in the U.S. totaled $117 Billion in 2000. • Asthma prevalence is increasing and death rate among asthmatic children is rising.

8. Physical inactivity – risk comparison 300% Increase Risk of Heart Disease! = = Sedentary Lifestyle Smoking Over One Pack/day • Walking 30 min, 4x/week can significantly reduce risk of: • heart disease • diabetes • cancer • osteoporosis • absenteeism “Physical inactivity is a major modifiable risk factor…and should be a direct target for clinical intervention.” -National Heart, Lung and Blood Institute, Expert Panel, 2002

9. Rising pharmacy costs Source: HHS, report to the President, April 2000, http://aspe.hhs.gov/health/reports/drugstudy/

10. Brands growing despite generics *Available as Over the Counter WorldDoc believes Rx costs should be decreasing with all of the generics now available

11. About WorldDoc • Founded in 1999 • New concept of taking the user interactively from their symptom(s) to possible conditions and giving them the tools to actively manage their health • Current Editorial Board of over 20 Board Certified Physicians • More than 50 clients including Culinary Health Fund, Coast Resorts, Central Washington Hospital, Price Waterhouse, Community Coffee, Las Vegas Metro • Integrated User, Pharmacy, Provider, Employer, and Disease Management Programs • Serving over 300,000 lives Mission: Empowering patients, payers and physicians to make better health care decisions

12. About WorldDoc, Inc. • Seasoned management team • Editorial Board of Board Certified Physicians from 20 different specialties • High-level alliance partnerships with: • HAYES, Inc. • MedImpact Healthcare Systems, Inc. • HealthShare Technologies, Inc. • Health Contact Partners, Inc.

13. About WorldDoc, Inc. – Value for the Client • Direct communication between all stakeholders • Single point of access for Users for all key health information • Claims and eligibility data directly incorporated into system portal • Aggregated reports to track workforce health and system success • Significant long-term cost savings*: • Overall health care savings ranges from 4 – 8% per year • The average WorldDoc member uses the technology 1.4 times each month • *Analysis of existing clients (40 employers with over 70,000 beneficiaries) An employer with 5,000 employees can save over $2.5 million a year on healthcare costs while empowering employees to live healthier lives

14. MyHealth 24/7Personalized Symptom-to-Condition Evaluations Wellness and Prevention Personalized Health Record and Healthcare control center ONE SYSTEM MULTIPLE APPLICATIONS Pharmacy Benefit Manager Cost transparency Consumer-centered applications Drugs value comparisons Care Management Provider-patient communications Back-end tracking and reporting Case management applications Total Solution

15. MyHealth 24/7 • Personal Evaluation System • Health Risk Assessments • Cyberfile • Core data manager across all system components • eVisit communication between patients and select physicians/nurses • Hospital Performance Comparisons • Evidence Based Treatment Assessments • 24/7 Inbound/Outbound Nurse Line

16. WorldDoc Rx • Cost transparency • Consumer centered applications • Drug value comparisons • Generic drugs promotion • Integrated with Cyberfile • Information importing • Behavior modification programs

17. Care Management • Tools and information necessary to remotely manage the health experience of their patients • Ready access for providers to identify and track chronically ill patients • Dashboard capabilities to monitor patient compliance • Two way communication between members and providers