1Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

Minnesota Health Action Group February 21, 2013

Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

Delivering Value Through Our Private Exchange

2Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

Agenda

My Plan by MedicaSM

Accountable Care Organizations

Employer & Employee Experience with My Plan

3Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

My Plan by MedicaSM

4Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

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

What it is not What it is

An individual product Employer sponsored group plan

Employer chooses a few selected plans

Employee chooses from a variety of plan options

Employees see what they pay, but not the total cost

Transparent recognition of the total cost and employer contribution

5Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

What is Defined Contribution?

$$Predictable Employer Dollars

Defined ContributionHealth Benefits

EXPANDED PLAN OPTIONS

6Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

My Plan by MedicaShopping with My Plan

$$My Plan Account

7Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

5250

-80%

HSA

HDHP

300-

30 P

PO

20 PLAN POOLPrem

ium

Benefit Designs

Lean Rich

My Plan by Medica Product portfolio

8Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

My Plan Decision Support Tool

My Plan by MedicaShopping with My Plan

Plan OptionsPlan

Recommendations

$$Employer Dollars

Some Employee Dollars

MEDIUM PLAN

$$Employer Dollars

More Employee Dollars

HIGH PLAN

$$Employer Dollars

No Employee Dollars

LOW PLAN

9Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

My Plan by MedicaShopping with My Plan

$$Employer Dollars

10Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

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

Pre-Enrollment Service & Support

My Plan Total Service Team Approach

Dedicated pre-enrollment advisors available (My Plan Advisors)

Dedicated My Plan service team for members, employers and brokers

A customized website designed for employees as they complete their plan selection and enrollment process

My Plan members access information about Medica tools and resources, view plan benefits, EOBs and account specific information

1-855-3myplan myplanbymedica.com

1-855-2myplanmymedica.com

11Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.Source: Data derived from AON Hewitt Corporate Health Exchange Survey, March 2012

Defined ContributionThe evolution of health benefits

Employer selects health plan and

funds 100%.

Employer provides options and employees

contribute %.

Employer offers private

exchange/defined contribution.

Employees choose form public exchange.

Percentage

0 20 40 60 80

Current Approach Future Approach (next 3-5 years)

12Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

Accountable Care Organizations

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Accountable Care Organization (ACO)A healthcare organization that provides coordinated care to a defined population and is accountable* for:

Cost Quality Outcomes Consumer experience

What is an ACO?

*An ACO is accountable to patients it serves and the third-party payer with which it is partnered.

14Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

The Evolution of My Plan: ACO Partnerships

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Employer & Employee Experience with My Plan

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My Plan by MedicaMarket reaction

Over 75 employers have implemented My Plan by Medica, representing 22,000 members

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%

17Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

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

Employer Experience

18Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

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

Employee Experience

19Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.

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

A Strategy that Works

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Thank You

21Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.Proprietary and confidential. Not to be copied or redistributed.

Barbara WattersVice President of Human Resources

Employer Experience

Proprietary and confidential. Not to be copied or redistributed without written consent from Medica®.