1. California Health Benefit Exchange Planning Overview and Context Peter V. Lee Executive Director California Health Benefit Exchange February 21, 2012

2. California Health Benefit Exchange 1 California Health Benefit Exchange Vision and Mission The vision of the California Health Benefit Exchange is to improve the health of all Californians by assuring their access to affordable, high quality care. The mission of the California Health Benefit Exchange is to increase the number of insured Californians, improve health care quality, lower costs, and reduce health disparities through an innovative, competitive marketplace that empowers consumers to choose the health plan and providers that give them the best value.

3. California Health Benefit Exchange 2 California Health Benefit Exchange Values Consumer-focused At the center of the Exchange’s efforts are the people it serves, including patients and their families, and small business owners and their employees. The Exchange will offer a consumer-friendly experience that is accessible to all Californians, recognizing the diverse cultural, language, economic, educational and health status needs of those we serve. Affordability The Exchange will provider affordable health insurance while assuring quality and access. Catalyst The Exchange will be a catalyst for change in California’s health care system, using its market role to stimulate new strategies for providing high-quality, affordable health care, promoting prevention and wellness, and reducing health disparities. Integrity The Exchange will earn the public’s trust through its commitment to accountability, responsiveness, transparency, speed, agility, reliability, and cooperation. Partnership The Exchange welcomes partnerships, and its efforts will be guided by working with consumers, providers, health plans, employers and other purchasers, government partners, and other stakeholders. Results The impact of the Exchange will be measured by its contributions to expanding coverage and access, improving health care quality, promoting better health and health equity, and lowering costs for all Californians.

4. California Health Benefit Exchange 3 Timeline for California Health Benefit Exchange

5. California Health Benefit Exchange 4 Major Issues before the California Health Benefit Exchange Major Issues: Business, Operations, and Financial Sustainability Enrollment & Information Technology Communication Support; Research and Marketing, Outreach, and Education Assisters Strategy Health Plan Management and Delivery Reform Small Business Health Options Program (SHOP) Essential Benefits Basic Health Plan All supported by: Alignment and coordination with State partners Stakeholder Consultation Research and Analysis

6. California Health Benefit Exchange 5 The Exchange’s Process for “Evidence-Based Policy Making” 1.Legal Scope Regulatory requirements Prohibited approaches Allowable alternatives 2.“Just the Facts” Current California activities California and National relevant data 3.Stakeholder Perspectives 4.Options and Recommendations 5.Detailed budget and timeline for Level II grant

7. California Health Benefit Exchange 6 California Health Benefit Exchange 2012 Working Discussion and Decision Calendar FebruaryMarchApril Information & Discussion: Quality Health Plan and Delivery Reform Landscape Plan Designs Benefit Designs Provider Contracting Delivery Reform Information & Discussion: Outreach and Assistance Landscape Report on outreach input Eligibility and enrollment estimates Outreach Models Assistance Models Information & Discussion: Basic Health Program Options and Implications Service Center Options SHOP Landscape Working Timeline

8. California Health Benefit Exchange 7 2012 Working Discussion and Decision Calendar MayJune July and future months Information and Discussion: 1.Scope/options for outreach and communications 2.Options for Assisters 3.Options for branding/campaign 4.Options for SHOP 5.Options for Qualified Health Plan strategies that impact Level II 6.Rough of Level II Grant (2013-2015 Budgets and plans with completed Draft Components) Decision: 1.Outreach and communications plan scope/nature 2.Assisters and broker scope, policies and budget 3.SHOP Policies (as needed for Level II Grant and Alignment with QHP policies) 4.Level II Grant (2013-2015 Budgets and operations plans) Decision: 1.QHP and Ben. Design Policies 2.Assister/ Navigator Training and Oversight Solicitation Working Timeline: the Exchange Board to consider need for multiple meetings for option presentation/discussion in May or early June.

9. California Health Benefit Exchange 8 Communications, Outreach and Assistance: Major Decisions 1.Scope and Nature of Outreach and Marketing 2.Targeted Outreach and Enrollment Support (public program “transfer” and capturing change of life circumstance) 3.Scope and Nature of Individual Assistance a.Service Center b.Navigator / Assisters c.Brokers 4.Ongoing Stakeholder Engagement Structures and Processes 5.IT and CalHEERS a.Assuring first class consumer experience b.Provider Directory

10. California Health Benefit Exchange 9 SHOP: Major Decisions 1.Benefit Designs 2.Employer Benefits Administration 3.Plan Selection, Participation and Management 4.Marketing and Promotion 5.Employer / Employee Rules 6.Business Model 7.Manage or Contract Out

11. California Health Benefit Exchange 10 Plan and Benefit Designs: Major Decisions 1.Benefit Designs 2.Plan Selection and Performance Standards 3.Reinsurance, Risk Adjustment, Risk Assessment and Consistency of Offering Rules 4.Plan selection and contracting standards to promote enrollment, effective delivery of needed care, reduction in disparities and affordability 5.Building blocks for delivery system reform 6.Plan assessment fee structure See “Stakeholder Questions: Developing Qualified Health Plan, Benefit Design and Delivery System Reform” at www.hbex.ca.gov.www.hbex.ca.gov

12. California Health Benefit Exchange 11 Plan, Benefit Design and Delivery Reform Landscape Sessions Panel 1: Overview of the California Market, Regulatory Structure and Major Purchasing Strategies Marian Mulkey, California HealthCare Foundation Deborah Kelch, Consultant/CHCF James Robinson, UC Berkeley Panel 2: Purchasing In Action: Examples of Major Purchasing Strategies and Consumer Reactor Suzanne Delbanco, Catalyst for Payment Reform Anne Boynton, CalPERS Betsy Gilbertson, Hotel Employees and Restaurant Employees International Union (HEREIU) Welfare Fund Jon Kingsdale, Wakely Consulting (former Director Mass. Connector) Elizabeth Abbott, Health Access Panel 3: Plan, Provider and Consumer Reactors Charles Baachi, California Association of Health Plans Duane Dauner, California Hospital Association Dustin Corcoran, California Medical Association Donald Crane, California Association of Physician Groups John Arensmeyer, Small Business Majority Ellen Wu, California Pan-Ethnic Health Network Public Comment

13. California Health Benefit Exchange 12 For More Information: Visit our website at http://www.hbex.ca.gov And join our listserv