Member Centric Decision Management

1. Member Centric Decision Management Identification/Stratification and Consumer Segmentation BlueCross Blue Shield Tennessee Wednesday, September 26, 2012 General Session 3

2. Sherri Zink VP, Medical Informatics BCBST Email: Sherri_Zink@BCBST.com Phone:423-535-3324

3. Profile of Medical Informatics Team • PhD and Masters level analysts • 100+ publications between team members • Experienced Technical professionals in the field of healthcare with backgrounds in finance, actuarial, statistics, nursing and information systems • External market and competitive experience including BCBST, UHC, OptumHealth, Ingenix and CIGNA • Tenured leadership team with an average of 15+ years in the healthcare industry • Unique skill sets and experience leveraging Health Information Exchange , EMR, and Clinical Data SaTScan™

4. Member Centric Decision Management (MCDM) • Vision: To reach the RIGHT person, the RIGHT way, at the RIGHT time, with the RIGHT message. • MCDM is: • Consumer Segmentation • Continuous Monitoring of Population Health • Personalized Approach to Consumer and Provider Outreach

5. Painting the Consumer Profile Picture

6. INTEGRATED DATA Clinical, Financial, & Lifestyle Anchored around the consumer • Supports Total Population Health Management Reporting • Links consumer engagement to economic performance • Showcases consumer behavior • Empowers informed decision making

7. Consumer Advisory Monitoring System (CAMS) • Offers a total population health monitoring system with the goal of understanding consumers holistically • Maximizes consumer outreach opportunities through customized solutions • Enables our business to meet people where they are and to capitalize on those teachable moments • Empowers the BCBST brand experience • Improves targeted marketing for retail sales

8. Enabling a Personalized Approach to Consumer Engagement and Health Management The MCDM Process

9. Flexing the Outreach Delivery Model to Meet the Unique Needs of Each Individual • Jill, Age 36 • BMI < 20 • Potential High Risk Pregnancy • Young Married • Engage with a Case Manager • and Send High Risk Pregnancy Mgmt Tips • Janice, Age 54 • Diabetes • Frequent Usage of the ER • Non-Compliant with Meds • BMI > 35 • No Established PCP Relationship • Married with Family • Engage with a DM Nurse • Jim, Age 60 • Coronary Artery Disease • Post Heart Attack • Discharge Care Plan in Place • Compliant with All Meds • BMI < 25 • Empty Nester • Engage with a Letter or Email • Joe, Age 20 • Smoker • BMI < 20 • Young Single • Engage with a Life Style Coach; recommend an on-line Health Module; send regular SMS messages to track progress

10. The Importance of Segmentation Knowing Only Half the Story Clinical Profile • Janice, Age 54 • Diabetes • Frequent Usage of the ER • Non-Compliant with Meds • BMI > 35 • No Established PCP • Jackie, Age 54 • Diabetes • Frequent Usage of the ER • Non-Compliant with Meds • BMI > 35 • No Established PCP

11. Leveraging Segmentation Knowing the Whole Story Knowing the whole story • Janice, Age 54 • Diabetes • Frequent Usage of the ER • Non-Compliant with Meds • BMI > 35 • No Established PCP Clinical Profile • Jackie, Age 54 • Diabetes • Frequent Usage of the ER • Non-Compliant with Meds • BMI > 35 • No Established PCP Lifestyle Segment • Janice, Age 54 • Struggling Society Segment • Economically challenged • Unemployed • No access to computers • Transient • Jackie, Age 54 • Suburban Style segment • Established residence • Family-centric living • Internet savvy • Employed

12. MDCM: Empowering Integrated Health Management 43

13. Preference-Sensitive Conditions Healthy Lifestyles Chronic Conditions Complex care Major trauma Cancer Transplants Cancer Uterine Prostate Back Major joints Low Back Pain Diabetes COPD CAD CHF Asthma Hypertension Wellness Prevention Risk mgmt Seamlessly integrated BCBST Continuum of SupportLeveraging MCDM Capabilities to Strategically Position our Clinical Product Portfolio for Existing and Prospective Clients 24/7 Acute Conditions Injuries Colds Rashes Emergency Assessment Members receive the right support at the right time

14. MCDM: Empowering Pre-Sale Analytics Pre-Sale Analytics

15. MCDM: Empowering Exchange Analytics and Consumer Marketing Identifying At Risk Populations Due to Health Care Reform • Target members for retention • Target members at risk for leaving BCBST • Monitoring movement to the Exchange and Medicaid • Target members at risk for potential access to care issues • Persona Categorization • Persona categories by Federal Poverty Level (FPL) • Welcome Empty Nesters • Not so Golden Years • Making Ends Meet • Distribution of Population

16. Concluding ThoughtsWhy is this important to our Business? • Empowers total population health management • Brings BCBST to parity with key competitors • Commissions a pre-sale analytics process that will highlight up-sale opportunities with existing BCBST clients and new sale opportunities with prospective clients • Consolidates reporting and outcomes evaluation • Positions a real-time predictive capability for alerts to consumers and providers • Advances BCBST toward becoming a total health solutions company • Prepares our business for retail opportunities in the individual market or exchange environment • Streamlines dependence on vendors

17. How to Make Micro-segmentation Work Creating and Monitoring Your Segmentation Categories

18. Micro-segmentation Mosaic Lifestyle Groups • A – Power Elite: Enjoying all that life has to offer • B – Flourishing Families: Living very comfortable, active lifestyles • C – Booming with Confidence: Prosperous, established couples • D – Suburban Style: Middle-aged, ethnically-mixed suburban families • E – Thriving Boomers: Upper-middle-class African-American couples • F – Promising Families: Young couples living child-centered lifestyles • G – Young City Solos: Younger singles living active and energetic lifestyles • H – Middle Class Melting Pot: Mid-scale, middle-aged and established couples • I – Family Union: Somewhat diverse families supported by solid blue-collar jobs • J – Autumn Years: Ethnically-diverse and mature couples living gratified lifestyle • K – Significant Singles: Middle-aged singles leading active city styles of living • L – Blue Sky Boomers: Lower- and middle-class baby boomer-aged households • M – Families in Motion: Working-class families with diverse household dynamics • N – Pastoral Pride: Eclectic mix of widowed and divorced individuals and couples • O – Singles and Starters: Young singles starting out in diverse urban communities • P – Cultural Connections: Diverse families in urban apartments and residences • Q – Golden Year Guardians: Retirees in settled residences and communities • R – Aspirational Fusion: Multi-cultural singles striving to make a better life • S – Struggling Societies: Economically challenged looking to make ends meet Affluence High Low

19. Micro segmentation Lifestyle Clusters Money to Burn Tend to be more affluent. Like to know how a product can elevate their status and are more willing to take risks with their purchases. Stable Spenders Young to middle-aged individuals that tend to be driven by how to get the most “bang for their buck.” However, they are very aware of how specific brands can reflect their lifestyle and tend to gravitate towards popular logos. American Melting Pot Contains members from a wide array of income levels and ethnicities. They take pride in local and American made products and like to see a reflection of family when making purchases. Middle-of-the-Road Mixers Middle-class, diverse households and have spending habits that are just as varied. These individuals highly regard how products affect their family when making purchasing decisions. Single Savers Mostly singles living in urban areas that tend to gravitate towards discounts when spending their hard-earned money. They aren’t as concerned with the newest products, but tend to focus on those that are tried and true. Unassigned

20. Micro segmentation Clinical Clusters Mystery Members Majority have no claims information and missing MEDai information Barely Bothers Members in this cluster tend to do the bare minimum when it comes to maintaining their health. This is indicated by their infrequent interactions with the health plan and their low compliance rate and motivation. Moderate Movers These members value convenience when it comes to making healthcare decisions. When they do seek care from a PCP they don’t always have to see the same one. Their forecasted change is cost remains stable due to their inclination for maintaining their health. Inclined Increasers While extremely motivated and compliant, these members still seek a high amount of care. They are more chronic than the average cluster and are expected to far exceed their current year cost in the next year. Unmatched Utilizers These members are unmatched in cost and utilization. They are likely deemed highly motivated and compliant due to the increased frequency in opportunities for care. New Members Members with less than 30 days enrollment Unassigned

21. Lifestyle by Clinical Cluster Analysis Distribution of Lifestyle Clusters for VSHP, Commercial, and Company X Populations Affluence Government Low

22. MCDM Outreach Campaign Plan

23. Results of a 2012 Diabetes Call Campaign • Top 5 VSHP segments Dx: • Not very reachable • Not very impactible • Recommendation: Improve ability to contact members via phone, and consider different outreach modality, particularly for N & S (more rural segments)

24. Campaign Evaluation Effectiveness and Mode of Delivery Analysis Multiple campaigns were conducted each month as part of the MCDM process with the aim of increasing member compliance with certain evidence-based guidelines We analyze the effectiveness of these campaigns, both quality and cost This information is examined by each lifestyle segment to see how our unique customers respond differently to outreach efforts The results of this evaluation is fed back into the process to make the analytical process “smarter”

25. ISM Governance Structure • Purpose: oversee the Identification/Stratification/Microsegmentation process to set the communication strategy and to drive standardization for the enterprise. • Scope • Promote and monitor enterprise wide standardization/centralization of communication • Develop and approve annual member communication plan • Oversee the Identification/Stratification process by approving rules for the analytics engine • Drive standardization around the ID/Strat process • Determine prioritization of communications • Review evaluations/results and make recommendations to improve the process • Approve modifications to the process based on results/strategy • Oversight of the Contact Preference process • Membership: VP Medical Informatics (Chair), CMO’s, VP Performance Measurement, VP Strategic Marketing, VP Pharmacy, VP Product Development Onlife, Director Quality, Director Operations, Director Product Strategy, Director Brand Strategy & Director Clinical Programs Connecting Organizational Processes Breaking Down Departmental Silos