1. How is BCBSNC using third party consumer data? Blue Cross and Blue Shield of North Carolina Wednesday, September 26, 2012 General Session 3

2. Biography Troy Buescher Sr. Clinical Informatics Analyst Blue Cross and Blue Shield of North Carolina Email: Troy.Buescher@BCBSNC.com Phone:919-765-2451

3. Collaboration with SAS Institute Insights to Improve Healthcare Customer segmentation using work done by BCBSA Preparing for customer migration in 2014 Employer group reporting? Four current and potential uses

4. Insights to Improve Healthcare

5. Customer Segmentation Segments123/45/6/7 Segment Description Price SensitiveDiscount SeekingInformation DrivenAccess Driven Characteristics Purchase based on price, doesn't value or understand insurance Values easy to understand info., streamlined and simple customer service Values access to specific providers, distinguishes between carriers

6. Customer Migration Segment 1/2/3… Agent Direct Etc. Current utilization Future utilization Risk adjusters Etc. Stay on grandfathered plan Upgrade plan and go to Exchange Etc. Grandfathered Non-grandfathered Rate increase FPL/subsidy impact Metallic level Etc. Rate Impact Net of Subsidy Channel Action Needed Consumer Segment Preferences Value / Predictive Risk Subsidy will be determined by Federal Poverty Level

7. Employer Group Reporting Group ABCIndustryBook of Business Subscribers2,00845,6231,253,688 Average Household Income$40,808$43,518$45,211 Median Household Income$45,000 Average Household Size2.732.952.80 Percent of Household Covered 64%77%66% Average Affordability201615 Percent w/ Exercise Interest51%58%47% Percent Smokers13.7%8.5%5.8% Percent Using Internet54%64%57% Percent w/ PC55%68%59% MetricDescription Average Household IncomeAverage annual household income (65 and under) Median Household IncomeMedian annual household income (65 and under) Average Household SizeAverage number of people in household Percent of Household CoveredPercent of household covered by BCBSNC policy Average AffordabilityMeasure of financial comfort from 1 to 30 (1 = very comfortable, 15 = keeping pace, 30 = very uncomfortable) Percent w/ Exercise InterestPercent of households having interest in fitness/exercise Percent SmokersPercent of households with a smoker Percent Using InternetPercent of households using interenet Percent w/ PCPercent of household with a PC