Minnesota Health Action Group February 21, 2013

1. Minnesota Health Action Group February 21, 2013 Delivering Value Through Our Private Exchange Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

2. Agenda • My Plan by MedicaSM • Accountable Care Organizations • Employer & Employee Experience with My Plan

3. My Plan by MedicaSM

4. What is My Plan by Medica?Employer-Sponsored Defined Contribution

5. What is Defined Contribution? $$ Predictable Employer Dollars EXPANDED PLAN OPTIONS Defined Contribution Health Benefits

6. My Plan by MedicaShopping with My Plan $$ My Plan Account

7. My Plan by Medica Product portfolio 300-30 PPO 5250-80% HSA HDHP Premium 20 PLAN POOL Benefit Designs Lean Rich

8. My Plan by MedicaShopping with My Plan My Plan Decision Support Tool More Employee Dollars HIGH PLAN No Employee Dollars LOW PLAN Some Employee Dollars MEDIUM PLAN $$ Employer Dollars $$ Employer Dollars $$ Employer Dollars Plan Options Plan Recommendations

9. My Plan by MedicaShopping with My Plan $$ Employer Dollars

10. My Plan by MedicaUnique service approach Employees use personalized tools and resources to help them select the plan that best meets their needs for coverage and cost

11. Current Approach Future Approach (next 3-5 years) Defined ContributionThe evolution of health benefits Employer selects health plan and funds 100%. Employer offers private exchange/defined contribution. Employer provides options and employees contribute %. Employees choose form public exchange. 0 20 40 60 80 Percentage Source: Data derived from AON Hewitt Corporate Health Exchange Survey, March 2012

12. Accountable Care Organizations

13. What is an ACO? Accountable Care Organization (ACO) • A healthcare organization that provides coordinated care to a defined population and is accountable* for: • Cost • Quality • Outcomes • Consumer experience *An ACO is accountable to patients it serves and the third-party payer with which it is partnered.

14. The Evolution of My Plan: ACO Partnerships

15. Employer & Employee Experience with My Plan

16. My Plan by MedicaMarket reaction • Interest exceeds expectations • Early adopters: • Varied in size and industry • Focused on cost management and more choice for employees • High levels of employer and employee satisfaction • My Plan renewals: 100% Over 75 employers have implemented My Plan by Medica, representing 22,000 members

17. Employer Experience • Employers are controlling costs • Majority are holding contributions flat • Employers are offering choice • Majority of employers offer all 20 plans • Employers are experiencing high levels of employee appreciation and engagement

18. Employee Experience • Communication and appropriate resources key to success • My Plan Advisors utilized by employees from every company • More than 90% enrolled via Web • Employees appreciate transparency and flexibility • Importance of choice validated through selection of all plans

19. A Strategy that Works • Employers are better managing costs and providing employees with more choice • Employees are taking advantage of Choice • All plans chosen & 80% HSAs • 40% have chosen an ACO • Care Systems are engaging differently

20. Thank You

21. Employer Experience Barbara Watters Vice President of Human Resources Proprietary and confidential. Not to be copied or redistributed. Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.