1. LOCKTON COMPANIES BIOMETRIC STANDARD REPORT UNIVERSITY OF ALASKA

2. 2014 VS 2015 BIOMETRIC REPORT

3. 2 Data Specifications Additional Restrictions Reporting Period This report is intended to provide information you need in order to help better manage your group health plan and its related wellness activities. Although this report is not intended to contain any individually identifiable health information, it is possible that some of the information might be considered protected health information under federal or state privacy laws. As such, you are strictly limited in your ability to use this information for anything other than plan administrative functions as described in your health plan document and HIPAA privacy and security policies, as applicable. Report Criteria  Year 2: July 2014 through June 2015  Year 1: July 2013 through June 2014  Medical and Rx claims are reported by paid date.  Biometric screening data is reported by most recent screening date in Year 2, and first available screening date in Year 1.  Includes current, active members only.  Includes only members who have completed all biometric screenings for defined risk factors. InfoLock ® contains paid claims from July 1, 2012 through June 30, 2015.

4. 3 2014 vs 2015 Analysis Population Adults are employees, spouses, and dependents >=18 as of the end of the cycle period. Total Adults Currently Enrolled Biometric Screening Participants Analysis Population Year 1 & Year 2 Biometric Screening Participants Biometric Screening Eligible Total Adults Currently Enrolled Biometric Screening Participants Biometric Screening Eligible

5. 4 2014 vs 2015 Participation Overview Based on members with at least 13 months’ enrollment PARTICIPATION BY CLAIMS BASED RISK Claims Based RiskEmployeeSpouse Overall (All Claimants)32%26% Low Risk ($0 - $5,000)31%25% Moderate Risk ($5,000 - $10,000)36%27% High Risk ($10,000 - $50,000)31%25% High Cost Claimants ($50,000 +)31%32% RRS: a score based on each individual’s number and severity of conditions relative to the average person RCGI: measures compliance for care management relative to the Lockton book of business norm Best in class participation results: >70% employee engagement Best in class participants results: >60% spouse engagement Non-participants have 9% lower risk burden (RRS) and 15% higher gaps in care (RCGI) than participants Biometric screening participants represented 33% of paid claims

6. 5 Metabolic Syndrome Risk Factors Source: National Heart Lung and Blood Institute and National Institutes of Health WOMEN HDL Cholesterol Less Than 50 Triglycerides Greater Than or Equal to 150 Waist Circumference Greater Than or Equal to 35 inches or BMI Greater Than or Equal to 25 Blood Pressure Greater Than or Equal to 130/85 Fasting Glucose Greater Than or Equal to 100 MEN HDL Cholesterol Less Than 40 Triglycerides Greater Than or Equal to 150 Waist Circumference Greater Than or Equal to 40 inches or BMI Greater Than or Equal to 25 Blood Pressure Greater Than or Equal to 130/85 Fasting Glucose Greater Than or Equal to 100

7. 6 % OF PARTICIPANTS WITH BIOMETRIC RISK FACTOR Biometric Risk Factors – 2014 vs 2015

8. 7 % OF PARTICIPANTS BY NUMBER OF BIOMETRIC RISK FACTORS Biometric Risk Factors Per Member Metabolic Syndrome Percent Change Year over Year -4% 3% 6% -8% 5% 16% Year 1 34.1% Year 1 26.2% Year 1 17.9% Year 1 13.9% Year 1 6.5% Year 1 1.8% Year 2 32.8% Year 2 26.9% Year 2 19.0% Year 2 12.8% Year 2 6.8% Year 2 2.1% 0 Risk Factors 1 Risk Factor 2 Risk Factors 3 Risk Factors 4 Risk Factors 5 Risk Factors

9. 8 % TOTAL COHORT PARTICIPANTS WITH 0-2 RISK FACTORS Members with 0-2 Risk Factors in 2014 KEY OBSERVATION The percent of the total cohort population with low metabolic risk increased by 0.5% 93% of the “Healthy” population remained “Healthy”

10. 9 % TOTAL COHORT PARTICIPANTS WITH METABOLIC SYNDROME Members with Metabolic Syndrome in 2014 DxCG Model 18 KEY OBSERVATION The percent of the total cohort population with Metabolic Syndrome decreased by 1.8% 30% of those with Metabolic Syndrome in 2014 did not have Metabolic Syndrome in 2015

11. 2015 BIOMETRIC REPORT

12. 11 2015 Analysis Population Adults are Employees, Spouses, and Dependents >=18 as of the end of the cycle period Total Adults Currently Enrolled Biometric Screening Eligible Analysis Population Current Year Biometric Screening Participants

13. 12 Participation Overview PARTICIPATION BY CLAIMS BASED RISK Claims Based RiskEmployeeSpouse Overall (All Claimants)40%33% Low Risk ($0 - $5,000)39%33% Moderate Risk ($5,000 - $10,000)46%36% High Risk ($10,000 - $50,000)39%32% High Cost Claimants ($50,000 +)36%42% RRS: a score based on each individual’s number and severity of conditions relative to the average person RCGI: measures compliance for care management relative to the Lockton book of business norm Best in class participation results: >70% employee engagement Best in class participants results: >60% spouse engagement Non-participants have 5% lower risk burden (RRS) and 17% higher gaps in care (RCGI) than participants Biometric screening participants represented 40% of paid claims

14. 13 % OF BIOMETRIC SCREENING PARTICIPANTS WITH BIOMETRIC RISK FACTOR Biometric Screening Overview 31%* 21%* 35%* 31%* * National average with biometric risk factor University of Alaska is below the national norm in 2 biometric risk categories

15. 14 PLAN PAID PMPY NUMBER OF BIOMETRIC RISK FACTORS PER MEMBER Biometric Risk Factors Per Member Metabolic syndrome is a name for a group of biometric risk factors that occur together and increase the risk for coronary artery disease, stroke, and type 2 diabetes. In this report, metabolic syndrome is defined as members with three or more biometric risk factors. Metabolic Syndrome METABOLIC SYNDROME 20.47% National Norm is 23% – 26% 41.43% higher paid claims

16. 15 CLAIMS-BASED RISK CATEGORIES BY NUMBER OF BIOMETRIC RISK FACTORS PER MEMBER Biometric Risk Factors and Claims-Based Risk Per Member 1. 3. 2. 1.225 members have metabolic syndrome, but have been identified as low risk from claims. Target this population with preventive care and pre- diabetes programs/weight management programs. 2.This group has both low metabolic risk and low claims risk. 236 members have two metabolic risks and may potentially migrate to metabolic syndrome without some targeted intervention. Last year, 23% of those with 2 risk factors migrated to Metabolic Syndrome. 3.Coordination with disease or case management to ensure proper focus on care is occurring. Consider second opinion claims management program

17. 16 CHRONIC CONDITION PREVALENCE BY NUMBER OF BIOMETRIC RISK FACTORS PER MEMBER Chronic Conditions and Metabolic Syndrome In Focus: Metabolic Syndrome The prevalence of established chronic illness for members with metabolic syndrome is generally higher than the chronic illness prevalence for members without metabolic syndrome. In addition, a member with metabolic syndrome is twice as likely to develop heart disease and five times as likely to develop diabetes as a member without metabolic syndrome. Without intervention, the prevalence of chronic conditions is likely to increase in the population with metabolic syndrome. Source: National Institutes of Health http://www.nhlbi.nih.gov/health/health-topics/topics/ms/ (Accessed September 2013) 700% increased likelihood 120% increased likelihood 178% increased likelihood 43% increased likelihood 33% increased likelihood

18. 17 BMI Categorizations Utilization is provided on an incurred basis and lagged three months. Paid amounts include high cost claimants. Some members included in this report may have recorded waist circumference in lieu of BMI. Includes only members with BMI data available.

19. 18 PARTICIPANTS WITH HDL RISK FACTOR Health Risks & Chronic Conditions PARTICIPANTS WITH BLOOD PRESSURE RISK FACTOR PARTICIPANTS WITH GLUCOSE RISK FACTOR

20. 19 Health Risks and Chronic Conditions PLAN PAID PMPY FOR PARTICIPANTS WITH HDL RISK FACTOR Those with MetS have a 120% higher likelihood of developing high cholesterol compared to those without MetS (slide 16) 228 of 401 have MetS but have not developed hyperlipidemia & are at risk for future cholesterol related claims & cardiovascular disease PAID PMPY FOR PARTICIPANTS WITH GLUCOSE RISK FACTOR Those with MetS have a 700% higher likelihood of developing diabetes compared to those without MetS (slide 16) 178 of 300 have MetS but have not developed diabetes & are at risk for future diabetes related claims & cardiovascular disease PAID PMPY FOR PARTICIPANTS WITH BLOOD PRESSURE RISK FACTOR Those with MetS have a 178% higher likelihood of developing high blood pressure compared to those without MetS (slide 16) 203 of 520 have MetS but have not developed hypertension & are at risk for future BP related claims & cardiovascular disease

21. 20 Recommendations  Provide Weight Management programs and classes  Retrofit  Communicate Tobacco cessation programs & cessation drugs covered at 100%  Communication on EAP  Managing Stress  Increase FY 2017 Employee and Spouse Non-Participation Surcharge  Current - $600 for Employee & $600 for Spouse

22. APPENDIX

23. 22 Claims-Based Risk Definitions Claims-Based Risk Low Risk - Predicted costs of less than $5,000 using DxCG Model 18 Relative Risk Score, excluding high cost claimants. Moderate Risk - Predicted costs between $5,000 and $9,999 using DxCG Model 18 Relative Risk Score, excluding high cost claimants. High Risk - Predicted costs of greater than $10,000 using DxCG Model 18 Relative Risk Score, excluding high cost claimants. High Cost Claimants - Claimants with plan payment of $50,000 or more during either the current or previous 12 months.

24. 23 Norm from Lockton InfoLock ® Book of Business Biometric Report Overview

25. 24 PLAN PAID PMPY BY BIOMETRIC SCREENING AND CLAIMS-BASED RISK Overall Low Risk Moderate Risk High Risk High Cost Claimants Biometric Screenings and Claims-Based Risk High Cost Claimants not to scale

26. 25 % OF PARTICIPANTS WITHIN CLAIMS-BASED RISK CATEGORY THAT HAVE BIOMETRIC RISK FACTOR Low Risk Moderate Risk High Risk High Cost Claimants Biometric Risk Compared to Claims-Based Risk KEY FACT Generally higher claims- based risk correlates with higher biometric risk. Members who have high biometric risk, but low claims risk, may be avoiding care.

27. 26 PLAN PAID PMPY RANGE BY NUMBER OF BIOMETRIC RISK FACTORS PER MEMBER Biometric Risk Factors and Paid Range Per Member

28. 27 BMI Risk Factor and Chronic Conditions Some members included in this report may have recorded waist circumference in lieu of BMI. This exhibit includes only members with BMI data available. Paid amounts include high cost claimants.

29. 28 NUMBER OF BIOMETRIC RISK FACTORS COMPARED TO BMI CATEGORIES BMI and Biometric Risk Factors Some members included in this report may have recorded waist circumference in lieu of BMI – therefore it is possible that some members listed as obese do not have the BMI risk factor if their waist circumference is within range. Includes only members with BMI data available. KEY OBSERVATION

30. 29 Norm from Lockton InfoLock ® Book of Business Year over Year Biometric Report Overview

31. 30 YEAR 2 PLAN PAID PMPY BY YEAR OVER YEAR SCREENING STATUS AND CLAIMS-BASED RISK Overall Low Risk Moderate Risk High Risk High Cost Claimants Year over Year Biometric Screenings & Claims- Based Risk Based on members with at least 13 months’ enrollment. High Cost Claimants not to scale

32. 31 PLAN PAID PMPY BY NUMBER OF BIOMETRIC RISK FACTORS Plan Paid PMPY by Biometric Risk Factors Per Member Paid amounts exclude high cost claimants.

33. 32 PLAN PAID PMPY BY NUMBER OF RISK FACTORS IN YEAR 1 COMPARED TO YEAR 2 Plan Paid PMPY by Change in Biometric Risk Factors per Member Exhibit excludes high cost claimants. Metabolic Syndrome in Year 1 0-2 Risk Factors in Year 1

34. 33 % OF PARTICIPANTS WITH CHANGES IN RISK FACTORS Members with 0-2 Risk Factors in Year 1 RISK FACTOR MOVEMENT Increased, maintained, and decreased refers to the percent change where members added to, subtracted from, or maintained their number of risk factors from year 1 to year 2.

35. 34 Members with Metabolic Syndrome in Year 1 % OF PARTICIPANTS WITH CHANGES IN RISK FACTORS RISK FACTOR MOVEMENT Increased, maintained, and decreased refers to the percent change where members added to, subtracted from, or maintained their number of risk factors from year 1 to year 2.

36. 35 % OF PARTICIPANTS WITH CHANGES IN TOTAL CHOLESTEROL CATEGORY % OF PARTICIPANTS WITHIN EACH TOTAL CHOLESTEROL CATEGORY Total Cholesterol Year Over Year Total Cholesterol Categorizations Normal< 200 Borderline200 – 239 High≥ 240 Change is based movement from one total cholesterol category to another.

37. 36 % OF PARTICIPANTS WITH CHANGES IN GLUCOSE CATEGORY % OF PARTICIPANTS WITHIN EACH GLUCOSE CATEGORY Glucose Year Over Year Glucose Categorizations Normal< 100 Borderline100 – 124 High≥ 125 Change is based movement from one glucose category to another.

38. 37 % OF PARTICIPANTS WITH 10% CHANGE IN WEIGHT % OF PARTICIPANTS WITHIN EACH BMI CATEGORY BMI Year Over Year BMI Categorizations Underweight< 18.5 Normal18.5 – 24.9 Overweight25 – 29.9 Obese≥ 30 Change is based on a 10% difference in weight. Includes only members with BMI data available. Some members included in this report may have recorded waist circumference in lieu of BMI.

39. 38 % OF PARTICIPANTS WITH CHANGES IN BLOOD PRESSURE CATEGORY % OF PARTICIPANTS WITHIN EACH BLOOD PRESSURE CATEGORY Blood Pressure Year Over Year Blood Pressure Categories NormalSystolic < 120 and diastolic < 80 BorderlineSystolic between 120 – 140 and diastolic between 80 – 90 HighSystolic > 140 or diastolic > 90 Change is based movement from one blood pressure category to another.

40. 39 HDL Risk Factor and Hyperlipidemia Paid amounts include high cost claimants. 45 individuals with an HDL risk haven’t received any medical care in the past 12 months. 91 individuals with hyperlipidemia are not managing their HDL levels. 75% are obese (>30 BMI).

41. 40 Glucose Risk Factor and Diabetes Paid amounts include high cost claimants. GLUCOSE RISK FACTOR AND OBESITY Source: “Effect of BMI on Lifetime Risk for Diabetes in the U.S.” – Diabetes Care, 2007

42. 41 Blood Pressure Risk Factor and Hypertension Paid amounts include high cost claimants 71 individuals with hypertension haven’t received any medical care in the past 12 months. 147 individuals with hypertension are not managing their blood pressure. 67% are obese (>30 BMI).

43. 42 Chronic Condition Reference Asthma Asthma is quite common. It can be triggered by environmental triggers such as allergies to pets or pollens, infections, cold temperatures, stress, and sometimes exercise. It is a common reason for emergency room visits and sometimes hospital admissions. It is best managed by avoidance of triggers when possible and regular use of medication. The number one reason for poor asthma control is lack of adherence to a medication regimen that includes an inhaled steroid in addition to a bronchodilator. Educating patients about the triggers and the importance of medication compliance are key to controlling this condition. Back Pain and Neck Pain Back injury prevention programs and core strengthening programs are effective in preventing injury and getting individuals back to work. In the workplace, attention to ergonomics of workstations is important in reducing back and neck pain. Monitoring the trend in high cost radiology for back pain and surgery for herniated discs is important to establish the need for low back pain condition management programs and pre-certification programs in high cost radiology. Evaluation along with proper treatment of back pain and neck pain should limit the early use of high cost radiology, including MRI and CT scans, and early back surgery for herniated discs and other back ailments. Preventive practices in postural alignment, availability of therapeutic alternative treatments,such as PT, acupuncture, pain treatment, and steroid injections, help promote lower cost, higher efficacy solutions. Chronic Obstructive Pulmonary Disease (COPD) The most common cause of COPD is smoking. Unfortunately about 23% of American adults still smoke. COPD commonly includes chronic emphysema and bronchitis. The condition is associated with significant lost work time and high health costs. It is progressive and remains the fourth leading cause of death in the U.S. There is no cure. Treatment is aimed at managing exacerbations of the disease. The most important step in treatment is to encourage those who are still smoking to stop. This can be aided by implementing a smoking cessation program that combines behavioral modification with medication. Coronary Artery Disease (CAD) This the most common type of chronic heart disease. It is caused by the build up of plaque in the arteries supplying oxygen and nutrients to the heart muscle. Plaque consists of a number of substances, including cholesterol, other fats, and calcium. CAD can result in chest pain (angina), heart attacks, abnormal heart rhythms, and congestive heart failure. It can be minimized or ameliorated by implementing healthy lifestyle habits that include regular exercise, a healthy diet, and successful work- life balance. Medications also play a significant role, so compliance with a medication regimen is important. Depression Depression is common, whether it is mild, moderate, or severe. It is often associated with other chronic conditions, such as heart disease, diabetes, and chronic pain. It is most commonly managed with medication. These drugs are expensive so employees should be aware of several good generic antidepressants that are now available. Several studies indicate that regular sleep and exercise, combined with a strong social network, can reduce the incidence and severity of depression and also reduce the need for medication.

44. 43 Chronic Condition Reference (continued) Diabetes Type 2 diabetes continues to increase in the U.S. The prevalence is a direct result of poor lifestyle choices, including inactivity and poor dietary choices that result in obesity and diabetes. This a particularly serious chronic disease because it affects so many different body systems, including the heart, the eyes, the kidneys, and the blood vessels. Poorly controlled diabetes results in accelerated decline in these body systems, a decline in quality of life, and high health costs. Like many of the other chronic conditions, it is best managed by implementing healthy lifestyle habits that include regular exercise, a healthy diet, and successful work-life balance. For those with established type 2 diabetes, it is very important that regular monitoring of the condition is done in order to avoid some of the serious complications. Hyperlipidemia An abnormally elevated lipid profile is a risk factor for heart disease. The lipid profile includes measurement of cholesterol, triglycerides, and LDL and HLD cholesterol. There is a genetic component to lipid levels that can make it more challenging for some individuals to control their lipid levels. But for most people lipid levels can be managed by implementing healthy lifestyle habits that include regular exercise, a healthy diet, and successful work-life balance. But many people now are prescribed medication to help control lipids. These medications are called “statins” and a variety of medication options are available. Hypertension High blood pressure is very common. Sometimes there is an increased risk for an individual due to genetic makeup. For most people blood pressure gradually rises with age. Hypertension is a significant risk factor for heart attack, stroke, impaired vision, kidney damage, and congestive heart failure. Hypertension can be ameliorated by implementing healthy lifestyle habits that include regular exercise, a healthy diet, and successful work-life balance. Also for many, a diet low in sodium is helpful. There are many medications that can help control blood pressure. As with any treatment for chronic disease, compliance is essential for effective management. Osteoarthritis About 21 million Americans have osteoarthritis. The incidence increases with age. It is associated with a breakdown of cartilage in joints and can occur in almost any joint in the body. It most commonly occurs in the weight bearing joints of the hips, knees, and spine. Factors associated with its onset include obesity, injury, joint overuse, and heredity. Osteoarthritis generates a lot of medical expense due to the cost of pain medications, diagnostic imaging, and surgical procedures (especially of the hip and lower back). Exercise and physical therapy are important restorative and preventive measures. Weight management and good nutrition are often helpful as well.

45. 44 Glossary  Age Gender Factor  A comparison of population age and gender to the Lockton Book of Business Norm. The difference between the age gender factor and 1.00 (the norm) is the expected difference in costs based on the population’s age and gender alone.  Allowed Amount  Total cost, including both the employee and employer paid amount.  Chronic Conditions  Chronic conditions included are Asthma, Atrial Fibrillation, Back Pain, Bipolar Disorder, Cerebrovascular Disease, Chronic Obstructive Pulmonary Disease, Chronic Pancreatitis, Chronic Renal Failure, Cirrhosis, Coagulopathy, Congenital Anomalies, Congestive Heart Failure, Coronary Artery Disease (incl. MI), Cystic Fibrosis, Demyelinating Diseases, Depression, Diabetes, Eating Disorders, Headache, High Risk Pregnancy, Hyperlipidemia, Hypertension, Immune Disorders, Inflammatory Bowel Diseases, Neck Pain, Osteoarthritis, Osteomyelitis, Osteoporosis, Parkinson's Disease, Rheumatoid Arthritis, Schizophrenia, Sickle Cell Anemia, Tuberculosis  Comorbidities  A medical condition that exists simultaneously with, and usually independently of, another medical condition.  Compliant Members  Members with a Care Gap Index of 4 or less.  Current Members  Individuals who are eligible with the plan as of the end of the reporting period.  Employee Paid  Employee paid consists of copays, coinsurances, and deductibles paid by an enrollee, the spouses, and their dependents.  Employer Paid (Plan Paid)  Employer paid includes total paid by the plan for enrollee, the spouses, and their dependents.  Emergency Room Visit  Distinct service dates for members with claims that have HCFA (Health Care Financing Administration) Place of Service code of 23.  Emergency Room Visits, Potential Non Emergent  Potential nonemergent ER visits are visits that, based on the diagnoses, potentially should have been treated in a physician’s office. These include visits for general symptoms, sinusitis, influenza, general medical examinations, etc.

46. 45 Glossary (continued)  Full Cycle  Time period that corresponds to date range of data included in the data warehouse (typically 36 months).  High Cost Claimants (HCC)  Claimants with plan payment of $50,000 or more during either the current or previous 12 months.  High Risk Claimants  Claimants with plan payment of less than $50,000 during the most recent 12 months and Relative Risk Scores predicted costs greater than $10,000.  Incurred Basis  Claim expenses reported based on the service date.  Inpatient  All claims paid for hospital inpatient services base on HCFA Place of Service code 21, 51, and 61.  Low Risk Claimants  Claimants with plan payment of less than $50,000 during the most recent 12 months and Relative Risk Scores predicted costs less than $5,000.  MDC  Major diagnostic category.  Member Months  Total number of members eligible for the time period.  Moderate Risk Claimants  Claimants with plan payment of less than $50,000 during the most recent 12 months and Relative Risk Scores predicted costs between $5,000-$9,999.  Noncompliant Members  Members with a Care Gap Index of 5 or more.  Norm  Norms from the Lockton InfoLock Book of Business are derived from claims paid for the 12 months ending 12/31/2012 from Lockton’s Normative Database, composed of 2 million member lives from self-insured, commercial plans.  Office Visit  Distinct service dates for members with claims that have HCFA Place of Service code of 11.

47. 46 Glossary (continued)  Outpatient  Services that take place outside of an inpatient place of service are defined as outpatient.  Paid Basis  Claim expenses reported based on the date the claim was paid.  PEPM  Per employee per month.  High Cost Script  A prescription with a plan paid amount of $1,000 or more.  Homegrown Codes  Non-standard codes found in the dataset being reported.  PMPM  Per member per month.  PMPY  Per member per year.  Plan Payment  Plan payment includes total paid by the plan for enrollee, the spouses, and their dependents. Also referred to as Employer Paid.  Quality and Risk Measures  The Quality and Risk measures are designed to identify potential gaps in care and care management opportunities.  Relative Care Gap Index (RCGI)  The Care Gap Index (CGI) is used to determine compliance for care management. A numeric score assigned to each individual is calculated by summing the weights assigned to each care gap present. Care gaps are derived from evidence-based guidelines, the primary medical literature, standard medical practice, and the Verisk Health Medical Advisory Board. The Relative Care Gap Index is the Care Gap Index divided by the Lockton Book of Business norm.

48. 47 Glossary (continued)  Relative Risk Score (RRS), DxCG Model 18 (concurrent)  A Relative Risk Score (RRS) is a measure of resource use, in total cost or count of outcomes events, relative to an average person. A relative risk score of 1.00 means that the person's risk burden (and predicted cost) is equal to the mean (average) in the development sample. Predictions in the DxCG main output file are relative to an average person in the datasets used to develop the models. For example, using a commercial risk adjustment model, a person with an RRS of 1.50 is predicted to spend 50% more in resources compared to the average person in the Thomson Reuters® MarketScan based benchmark sample. Similarly, an RRS of 1.50 in an event model predicts the member will incur 50% more such events (such as hospitalizations) as the average. All DxCG risk models predict one year of risk.  Relative Risk Score (RRS), DxCG Model 56 (prospective)  A Relative Risk Score (RRS) is a measure of resource use, in total cost or count of outcomes events, relative to an average person. A relative risk score of 1.00 means that the person's risk burden (and predicted cost) is equal to the mean (average) in the development sample. Predictions in the DxCG main output file are relative to an average person in the datasets used to develop the models. For example, using a commercial risk adjustment model, a person with an RRS of 1.50 is predicted to spend 50% more in resources compared to the average person in the Thomson Reuters® MarketScan based benchmark sample. Similarly, an RRS of 1.50 in an event model predicts the member will incur 50% more such events (such as hospitalizations) as the average. All DxCG risk models predict one year of risk.  Therapeutic Class  Grouping of drugs into categories defined by the American Hospital Formulary Service (AHFS). The AHFS Pharmacologic-Therapeutic Classification was developed and is maintained by the American Society of Health-System Pharmacists.  Total Members  Number of unique members in the time period.  Units per 1,000  The average number of units (days, members, emergency room visits, etc.) per 1,000 members per year.

49. 48 Our Mission To be the worldwide value and service leader in insurance brokerage, employee benefits, and risk management Our Goal To be the best place to do business and to work www.lockton.com © 2013 Lockton, Inc. All rights reserved. Images © 2013 Thinkstock. All rights reserved. 48 Our Mission To be the worldwide value and service leader in insurance brokerage, employee benefits, and risk management Our Goal To be the best place to do business and to work www.lockton.com © 2015 Lockton, Inc. All rights reserved. Images © 2015 Thinkstock. All rights reserved. This document contains the proprietary work product of Lockton Companies, LLC, and is provided on a confidential basis. Any reproduction, disclosure or distribution to any third party without first securing written permission from Lockton Companies, LLC is expressly prohibited.