Member-Direct Demands

• Need for member engagement, loyalty at an all time high

• Distribution model changing – broker/ employer channel disintermediation

• New competitive environment in HIX market

GROUPSHDHP Shift

• Fortune 500’s are “Normalizing” CDH

• Refocus on innovative group options to accommodate more aggressive move toward consumerism, individual engagement

• Need solutions that “wrap” all of the CDH components together

Revenue

• Aggressive movement toward lower premium plans

• Underwriting capabilities extremely reduced in 2014

• Non-traditional administrative costs with every new product offering

COST CONTROL…P. P. A..C.A..

Member preferences and price sensitivity will drive more need for innovation in product and service offerings… quickly.

PRICE SENSITIVITY

The Future of Consumer Directed HealthcareText Document

John, Hipsley California

March 29, 2013

1) Need member engagement, with loyalty

2) Distribution model changing – broker/ employer channel (disintermediation)

3) Competitive environment in HIX market (Health Insurance Exchange)

1) Fortune 500’s are “Normalizing” CDH (Consumer Directed Health)

2) Refocus on innovative group options move toward individual engagement

3) Need solutions that “wrap” all of the CDH components together

1) Movement toward lower premium plans

2) Underwriting capabilities extremely reduced in 2014

3) Non-traditional administrative costs with new product

IMember-Direct Demands

IIGroups: HDHC Shift

High Deductible Health Coverage

IIIRevenue

Immediate Health Plan ChallengesIdentifying the Essential Ideas

IMember-Direct Demands

1) Need member engagement, with loyalty

2) Distribution model changing – broker/ employer channel (disintermediation)

3) Competitive environment in HIX market (Health Insurance Exchange)

1) Fortune 500’s are “Normalizing” CDH (Consumer Directed Health)

2) Refocus on innovative group options move toward individual engagement

3) Need solutions that “wrap” all of the CDH components together

1) Movement toward lower premium plans

2) Underwriting capabilities extremely reduced in 2014

3) Non-traditional administrative costs with new product

IIIRevenue

Immediate Health Plan ChallengesCombining Ideas & Images

IIGroups: HDHC Shift

High Deductible Health Coverage

Consumer

Wraparound

Member

Directed

Plans Shiftin

g

Consumer

Centered

Price Sensiti

vity

Group Innova

tion

Model for Consumer Directed Healthcare (CDH)5 Essentials of CDH Exchanges