Some examples of the types of outcomes that can be measured with a Performance Based Wellness initiatives

1. Presented By:
Jim Wachtel
National Sales Director
Jim.wachtel@healthcheck360.com
1

2. Claims Experience Correlated to Health Score
Paid Claims
$12,000.00
$10,214.99
$10,000.00
$7,826.56
$8,000.00
$6,391.89
$6,000.00
$4,229.58
$4,000.00
$2,000.00
$-
Ideal (85+) Low Risk (71-84) Moderate Risk (61-70) High/ Very High Risk(<60)
8/8/2012 Proprietary & Confidential
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3. Score Increase in Repeat Participants
Program Efficacy - Score Increase for Repeat Participants Only
82.00
81.04
80.00
78.00
77.43
76.00
75.70
74.00
74.00
72.00
70.00
2008 2009 2010 2011

4. Overall Health Score – Repeat Participants
ABC Company
Participants who took HRA in 2010 AND 2011
General Statistics
2010 2011 Variance
Population 491 491 N/A
Average Score Increase/Decrease/No Change from Year 2 to Year 3
Average 81.1 83.1 2.0 2010 Range Increase Decrease No Change Total
St Dev 12.3 12.2 0.1 96+ 2.2 (4.8) NA (1.7)
95-90 3.9 (5.1) NA (0.3)
Overall Score Distribution 89-80 6.2 (6.6) NA 1.8
96+ 54 84 30 79-70 8.4 (6.8) NA 3.0
95-90 91 99 8 69-60 9.8 (4.3) NA 4.8
89-80 148 138 (10) 59-50 11.5 (5.4) NA 7.5
79-70 106 95 (11) <50 11.7 (3.0) NA 8.0
69-60 61 57 (4) Grand Total 7.0 (5.7) NA 2.0
59-50 27 14 (13)
<50 4 4 0
Total 491 491 0
Increase/Decrease/No Change from Year 1 to Year 2
2010 Range Increase Decrease No Change Total 2010 Range Increase Decrease No Change Total
96+ 18 27 9 54 96+ 33.3% 50.0% 16.7% 100.0%
95-90 42 38 11 91 95-90 46.2% 41.8% 12.1% 100.0%
89-80 93 48 7 148 89-80 62.8% 32.4% 4.7% 100.0%
79-70 64 32 10 106 79-70 60.4% 30.2% 9.4% 100.0%
69-60 37 16 8 61 69-60 60.7% 26.2% 13.1% 100.0%
59-50 20 5 2 27 59-50 74.1% 18.5% 7.4% 100.0%
<50 3 1 0 4 <50 75.0% 25.0% 0.0% 100.0%
Grand Total 277 167 47 491 Total 56.4% 34.0% 9.6% 100.0%
8/8/2012 Proprietary & Confidential
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5. Case Study – Partial Union Environment
Plan Costs/Premiums per Covered
Plan Year
Employee
2007-2008 $8,852
2008-2009 $9,054
2009-2010 $8,365
2010-2011 $8,967
2011-2012 $8,823
• Medical and drug costs have actually decreased on a per employee and per
member basis over the last five years.
• If medical plan costs had increased at rate of 8% per year since 2007-08, ABC
Company premiums would be $7.24 million dollars higher than today. Total
Wellness investment less than $1m in same period.
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6. Case Study – Partial Union Environment
Typical Profile of New v. Repeat Participant
Avg. Avg. Avg. Avg. Avg. Total Avg. Nicotine
Biometric Profile 2011 Score
BMI Weight Systolic Diastolic Cholesterol Glucose POS
Repeat Participants 76.6 29.0 192.8 120.4 76.3 192.6 97.8 26%
First Time Participants 67.9 29.9 203.2 124.4 78.3 195.7 101.7 22%
 Of the 612 repeat participants between 2010 and 2011, the overall average health score
increased from 72.6 to 76.6. There was an improvement in health score in almost every
risk category (with the exception of those scoring over 96).
 Overall blood pressure for these same participants decreased, as did the overall cholesterol
levels.
 Of the 40 people who were at extremely high risk for blood pressure in 2010, 30 moved to
be at moderate, low, or ideal categories.
 Of the 173 people with high or very high cholesterol risk, nearly 45% moved to moderate,
low, or ideal categories.
 The number of people with very high glucose levels fell 35%.
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7. Repeat Participation = Reduced Claims Expense
$5,493.29
3 HRA w/ biometrics
$5,838.68
2 HRA w/ biometrics
$6,202.27
1 HRA w/ biometrics
$8,132.47
Non-participant/ HRA Only
$5,000.00 $5,500.00 $6,000.00 $6,500.00 $7,000.00 $7,500.00 $8,000.00 $8,500.00
Large Financial Services Firm
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8. Medical Trend Claims Analysis
$11,500.00
 2007: Client’s trends
increase exponentially
$11,000.00
HealthCheck360°
$10,500.00
implemented in
2008.
 2008: HC360° Implemented
$10,000.00
 2010 actual claims
$9,500.00
demonstrated:
$9,000.00
– Trend reduced to low single
$8,500.00
digits for two straight years
$8,000.00
– $959,051 saving from
$7,500.00 expected trend
$7,000.00
2006 2007 2008 2009 2010
– $1,470,386 savings from
Cost per employee on plan Average for Industry
industry average trend
Expected Claims
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9. Correlation to Health Score in Population
Score Correlation
$12,000.00
Average claims per HRA
participant: $10,000.00
$8,000.00
 Year 1 – $7,057.57
$6,000.00
 Year 2 – $6,023.68 $4,000.00
$2,000.00
$-
85+ 71-84 61-70 51-60 50 or less
Linear (2009) Linear (2010)
N = 1589
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10. Biometrics and Medical Expense
Glucose Level Correlation to Avg. BMI Level Correlation to Avg.
Claims (medical claims only) Claims (medical claims only)
$4,500 $7,000
$4,253
$6,000
$4,000
Incurred Medical Claims
$5,000
$3,500
$4,000
$2,973
$3,000 $3,000
$2,000
$2,500 $2,316
$1,000
$2,000
$0
Ideal < 100 Moderate 100-125 High 126+ < 18 18-25 25-29 30-34 35-39 40+
Avg. Claims Linear (Avg. Claims) BMI
Actual Results from HC360° Client Pool
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11. Impact of Nicotine Use on Claims
Nicotine Use Correlation to Avg. Claims
(medical claims only)
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
18-29 30-39 40-49 50-59 60+
NEG POS
N = 18,000
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12. Impact of Health on WC Costs
Total
Total Score Counts Avg WC
<50 150 $875.76
50-59 206 $1,007.89
60-75 561 $771.36
76-85 342 $703.24
86+ 330 $366.25
Total 1,589 $713.09
N = 1,589
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13. Doing Nothing is a Losing Strategy
Migration study of 43,312 Individuals Over 3 Years
Year 0 Year 3
Key Findings
Low Risk (0-2 Low Risk (0-2  Risk profile of a population
Health Risks) Health Risks) gets worse over time
27,951 26,591
 Number of high risk
individuals increased
11.4%
Medium Risk (3- Medium Risk (3-
4 Health Risks) 4 Health Risks)  Number of medium risk
10,670 11,495 individuals increased 7.7%
 Number of low risk
individuals decreased 4.9%
High Risk (5+  Results are a function of
High Risk (5+
Health Risks) Health Risks) American lifestyle habits
4,691 5,226 and the realities of age
Source: University of Michigan Health Management Research Center
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14. Excess Risk Equals Excess Cost
Cost Area Low Risk Medium High Risk
(N=671) Risk (N=396)
(N=504)
Short-Term $160 $288 $444 High Risk
Disability Employees
Worker’s $304 $325 $662 cost three
Compensation times as
Absence $327 $455 $703 much as low
risk
Medical & $1,544 $1,983 $4,929 employees!
Pharmacy
Total $2,335 $3,052 $6,738
Source: University of Michigan Health Management Research Center
Inflation adjusted to 2009: http://www.halfhill.com/inflation.html
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15. Presented By:
Jim Wachtel
National Sales Director
Jim.wachtel@healthcheck360.com
(563) 289-7360