Presentation to The Goekin Group

1. Presentation to The Goekin Group Service Disabled Veteran Enterprises, Inc.

2. Today’s Discussion • Introductions • Exit Criteria • What will we accomplish today? • Objectives and Key Strategies • Marketplace Overview • Personal Guardian Technology • Our Approach • Marketing on the Differences • Q&A/Next Steps

3. Objectives and Key Strategies • Generate awareness of Personal Guardian Products and Services • Position Personal Guardian Products and Services, SDVE, the Goekin Group and our partners as leaders in delivering community outreach programs that are helping to bridge the technology gap. • Enable target individuals to obtain medical records retrieval and management skills in an environment that provides technology learning

4. Objectives and Key Strategies • Expand market share by utilizing the Web to reach a broader audience and by deliver an expanded portfolio of products and services Encourage trial and repeat use of (insert solution name here)

5. Objectives and Key Strategies • Deliver a user experience that incites the desired behavior and clearly promotes and communicates the value proposition in a way that is… • Inviting • Friendly • Motivating • Easy to understand • Easy to use • Exciting

6. Marketplace Overview Service Disabled Veteran Enterprises, Inc.

7. “Too often, people with disabilities have been forced to live in institutions, many times because the services that would enable them to live in their communities are not available. We need to help provide for those services, and at the same time we need to support the many informal caregivers, the family and friends of people with disabilities, who dedicate themselves to providing the informal help with routine daily life in the community.” Tommy Thompson, July 26, 2002 Secretary of Health and Human Services

8. Marketplace Overview • At the end of 1994 (the last year for which Census data is available), 20.6% of the population (approx. 54 million people) had some level of disability • 9.9% or 26 million people had a severe disability • Among the 237 million people 6 years old and over, 1.8 million used a wheelchair • An additional 5.2 million people used a cane, crutches, or a walker and has used such an aid for 6 months or longer

9. Marketplace Overview • 7.5 million Americans receive benefits under Federal disability programs • Fewer than 1 percent ever leave those rolls to return to work • Over 3 million non-elderly disabled receive Supplemental Security Income • Many are deprived of their independence due to needless barriers, including: • access to assistive and universally designed technologies • expanding educational and employment opportunities, and full access to community life

10. Marketplace Overview • The likelihood of having a severe disability increases with age: • <22 years of age: 1.7% • 22 to 44: 6.4% • 45 to 54: 11.5% • 55 to 64: 21.9% • 65 to 79: 27.8% • 80 and older: 53.5%

11. Marketplace Overview • The presence of a disability tends to be associated with lower earnings • Among men 21 to 64 years of age, median monthly earnings were $2,190 among those with no disability; • $1,857 among those with a nonsevere disability; and • $1,262 among those with a severe disability • Comparable figures for women were $1,470, $1,200, and $1,000 respectively • The monthly earnings for women with a nonsevere disability was not statistically different from those of men with a severe disability)

12. Marketplace Overview • People with disabilities are less likely to have private health insurance coverage and more likely to have government coverage than people with no disabilities • Among people 22 to 64 years old with no disability, 79.9 percent were covered by a private health insurance plan, 3.0% had only government coverage, and 7.1% had no coverage • Nonsevere disability coverage: 71.%, 6.1% and 22.7% respectively • Severe disability coverage: 43.7%, 39.6%, and 16.7%

13. Marketplace Overview • Of those who participate in means-tested cash, food, or rent assistance, 50.6% had either a severe or nonsevere disability and 40.3% had a severe disability. • Although the disability rate is high among program recipients, most people with a severe disability did not receive benefits from an assistance program

14. Marketplace Overview • 28 Million Americans are veterans • The current median age of the veteran population is 58.6 years of age • 40% are 65 or older • While the overall population will decline over the next 20 years, the median age and the proportion of veterans 65 or over will increase • Providing care to this population will challenge America and the Dept. of Veterans Affairs

15. Marketplace Overview • 2.2 million veterans are disabled by disease or injury incurred or aggravated during military service • Approximately two-thirds of service disabled veterans are rated 30% disabled and below • The remainder have combined degrees of disability ratings from 40% to 100% • This group includes veterans rated permanently and totally disabled

16. Marketplace Overview • The Department of Veterans Affairs (VA) still fails to meet the needs of service disabled veterans • Historically, VA has provided healthcare to only 10% of service disable veterans • Currently, 87% of service disabled veterans either do not use or do not have access to VA healthcare

17. Marketplace Overview • An aging population, increasing healthcare needs and beneficiary concerns will be further impacted by • Rising healthcare costs • Already strained VA resources • The VA’s current and projected inability to provide emergency healthcare to veterans

18. Marketplace Overview • The proportion of children identified as having a developmental condition or other disability: • under 3 years: 2.6% • 3 to 5 years of age: 4.1% (1.9% had difficulty walking, running, or using stairs) • 6 to 14 years: 12.7% • The proportion of children in this age group with a disability classified as severe was 1.9%

19. Marketplace Overview • The proportion of children identified as having a developmental condition or other disability: • Among the 25.1 million people 15 to 21 years of age, 12.1% had a disability and 3.2% had a severe disability

20. Marketplace Overview • The number of people age 6 and over who needed the assistance of another person with one or more activities of daily living (ADL) was 4.1 million • 2.2 million were 65 years old or older • Among people 15 years old and over, 15.3 million were unable to perform one or more functional activities, and 9.0 million needed the assistance of another person with one or more instrumental activities of daily living (IDAL) • 4.9 million of this number were age 65 or older

21. Marketplace Overview • To facilitate community living for people with disabilities, President Bush issued an Executive Order directing key Federal agencies to evaluate and recommend ways to expand community-based services for qualified individuals with disabilities, including a series of grants totaling $119 million that the Department of Health and Human Services will award to states for the design and implementation of reforms to promote community living

22. Marketplace Overview • In fiscal 2002, the administration secured: • $20 million for the Department of Education Rehabilitation Research Centers, which conduct advanced research in the field of assistive technology • $5 million in the FY 2002 budget for the Assistive Technology Development Fund to assist small businesses in the development and transfer of new technologies

23. Marketplace Overview • In fiscal 2002, the administration secured: • $37 million (of $40 million requested) for the National Institute on Disability and Rehabilitation Research (NIDRR) to award matching grants to states to help people with disabilities purchase assistive technology through low interest loans and other means • $3 million to substantially increase funding for many Federal disability research programs

24. Marketplace Overview • The Olmstead decision • Interpreted Title II of the Americans with Disabilities Act (ADA) and its implementing regulation, requiring States to administer their services, programs and activities in “the most integrated setting appropriate to the needs of qualified individuals with disabilities.” • Medicaid can be an important resource to assist States in meeting these goals. • The Centers for Medicare and Medicaid Services (CMS) has begun consultation with States and with people with disabilities

25. Customer Profile: Consumer • Adam and Jeffrey Jones • Adam, 7, suffers from autism and his brother Jeffrey, 9, has Asperger Syndrome, a high-functioning form of autism marked by deficiencies in social and communications skills • Their parents have spent $150,000 on Adam’s therapies & $50,000 on Jeffrey’s • Health insurance pays very little and the family has no college or retirement fund because “everything goes to the kids’ therapies”

26. Customer Profile: Physicians • 490,000+ Private Practice Physicians • Responsible for $1 trillion in HC spending • Responsible for $100 billion in medications • Will buy over $14 billion in MedSurg supplies • Will spend over $7 billion for Malpractice Insurance

27. Customer Profile: Healthcare Facilities • “The current average number of days of care per 1,000 people is approximately 620 days for baby boomers, but this is expected to increase to 1,800 days per 1,000 people as baby boomers shift within the age groups...” • --American Hospital Association

28. Customer Profile: Healthcare Facilities • One third of U.S. hospitals are coping with negative operating margins. • Baby Boomers currently account for 31% of the U.S. population, straddling two age groups (15–44 and 45–64) • As Baby Boomers age, there will be a shift in the two age groups creating a third category: 64 and over, and even higher average required days of medical care • Focusing on ways to reduce costs is necessary to economic survival

29. Societal Impact Service Disabled Veteran Enterprises, Inc.

30. Societal Impact • More than 10% of U.S. households have offspring—adult and children included—with special needs • Those disabilities include autism, emotional and behavioral disorders and other learning problems • More than 6.5 million children, ages 3 to 21 have been diagnosed with special needs—up nearly 40% in eight years

31. Societal Impact • The costs of treating and educating these children runs into the billions • Employers suffer from the lost productivity of workers who must attend the needs of their affected children • The indirect costs and direct costs to a family with a child suffering from attention deficit hyperactivity disorder (ADHD) are 90% more than for those families with unaffected children

32. Societal Impact • States and local school districts also bear a huge financial burden • The federal government pays just 18% of the $50 billion spent annually on the expensive special-education services required under the Individuals with Disabilities Education Act (IDEA), which requires that each child receive an “appropriate education” • Congress is now working on the reauthorization of IDEA

33. Societal Impact • States and local school districts also bear a huge financial burden • Congress is now working on the reauthorization of IDEA • The bill calls for the federal government to increase special education funding by $2 billion each year for the next seven years • Without special investments in children when they are young, future costs to society will be astronomical

34. Marketplace Opportunities Service Disabled Veteran Enterprises, Inc.

35. Marketplace Opportunities • Leverage the database of customer profiles and spending history to deliver services that will deepen customer relationships • Identify cross-selling opportunities for additional products and services • Deliver information and services in a manner that is meaningful to the consumer – database-driven personalized user interface • Utilize optimization model to continue learning and leveraging that learning to grow product and service offering

36. Marketplace Opportunities • Expand online service offering • Deliver medical records access and management services online efficiently, cost effectively • Capture client profiles • Online application, evaluation and qualifying • Online access to accounts for clients and customers • Evolve call center facilities to an Internet-based e-care model

37. Marketplace Opportunities • Leverage the database of customer profiles and spending history • Partners & Sponsors • Access to highly targeted and captive audience is a unique selling proposition for service providers and others • Drive revenue with creative partnership programs (sponsorships, banner advertising, buttons, editorial features, etc.) • Leverage Easy Pay capability as a selling proposition and service to partners

38. Marketplace Opportunities • Reposition Personal Guardian Products and Services as solutions designed to facilitate universal access for the disabled • Title IV of the Americans with Disabilities Act has a clause that would allow Washington to expand the rule to include Internet technologies like voice over IP (VoIP) • Personal Guardian Products and services would need to be reconfigured so that they are universally usable • This enables disabled people to use the product “off the shelf”, but allows the non-disabled to purchase products and services as well

39. Information Management Depth/Credibility Personalization • Provides you with the information you want and need • Customizable • Flexibility • Prompt • Accurate • Credible • Reliable • Resources to obtain greater depth of information and services Marketplace Opportunities • Fast, personalized information and guidance regarding medical records information and management • Greater depth of resources

40. Marketplace Opportunities • With an optimized model for moving visitors through the suspect - prospect - customer cycle, SDVE will implement a proven method that can cut across as many 3rd party channels as possible • We can then leverage customer and interaction data that can build affinity and co-marketing relationships with other partners

41. Marketplace Opportunities • Communities, companies, and organizations around the country are using information and communications technologies to fight poverty and social isolation • Personal Guardian Products and Services and be positioned as a protector of workers and their families by: • Helping to limit exclusions for preexisting medical conditions • Enhancing individual health care rights and services that benefit individuals enrolling in new health coverage, getting married or adding a new dependent

42. Marketplace Opportunities • Protecting Workers and Their Families by: • Facilitating the prohibition of discrimination in enrollment and premiums charged to employees and their dependents based on health status-related factors • Improving disclosure to group health plans

43. Our Approach: Reaching the Target Audience Service Disabled Veteran Enterprises, Inc.

44. Our Approach • The “Rule of 45” states that 45% of everyone who responds or inquires about a company’s products and services will purchase within the next 12 months • But, to get them to buy from us, we’ll need to touch them 2 - 3 times • Interactive database marketing allows SDVE to interact through a number of communications that will help us determine specific interests and where in the buying process a visitor may be

45. Our Approach • Primary Target: • Consumer groups with a recurring need to access medical records and information • Secondary Target: • Consumers with a passive need to access medical records and information • Products and Services Providers • Tertiary Target: • Government Agencies and Private Sector Firms

46. Our Approach • Using proprietary technologies and an Internet-based distribution platform, the SDVE approach provides consumers, hospitals, clinics and physician practices with products and services that offer: • Direct reduction of practice overhead • User-friendly tools that increase office staff efficiency • A forum for business communication between Physicians

47. Our Approach • Potential Marketing Channels: • Direct Mail. • Print Advertising. • Co-Branding with State and Local Societies. • Marketing Affiliation/Partnership with Pharmaceutical Cos. • Public Relations

48. Reaching the Target • For Consumers: • Develop a Consumer Community homepage to deliver a more dynamic and interactive user experience by: • Developing a featured products section where consumers can search for and learn about various over-the-counter products. • Designing a glossary of medical terminology that includes conditions, treatments, equipment, and prescriptions. • Providing tools to organize and maintain family medical records online.

49. Reaching the Target • For Consumers: • Develop a Consumer Community homepage to deliver a more dynamic and interactive user experience by: • Adding monthly real-time chats with accredited medical professionals. • Refreshing and enhancing content and graphics to keep the user experience engaging. • Implementing tools that continually capture consumer feedback.

50. Reaching the Target • Medical Professionals: • Capture user profiles to identify specific disciplines, areas of interest, practice structures, etc. • Deliver meaningful information through a personalized interface, such as: • Discipline-specific news, information, and courses. • Links to special interest sites (dental journals and publications). • Discipline-specific discussion forums. • Marketing and business-management tips by practice size, specialty, and geographic location.