Q Review August 16, 2016

Agenda Mehlville School District Update Delta Dental Update Second Quarter 2016 Performance Key Statistics Next Steps

Mehlville School District Update

Corporate Update Delta Dental of Missouri Awards $1 Million for Statewide Sealant Program for Children Enhanced Delta Dental Mobile App

5 Delta Dental of Missouri announces agreement to: o Invest $1 million to help fund a new Missouri Dental Sealant Program, administered by the Department of Health and Senior Services (DHSS)  Funding underscores our commitment to the oral health needs of children in our communities  Addresses concerns surrounding Missouri’s void in statewide, school-based sealant programming  Includes $200,000 per year with first three years guaranteed – years four and five are subject to program performance Delta Dental Awards $1M Grant for Statewide Sealant Program for Kids

6 Delta Dental Awards $1M Grant for Statewide Sealant Program for Kids According to the Centers for Disease Control and Prevention, tooth decay is one of the most common chronic diseases among children: o An estimated 51 million hours of school time are lost every year due to tooth-related problems o Some children are at particular risk – 80% of all cavities are said to be concentrated in 25% of school-aged children who:  Come from low-income families  Live in rural areas, or  Don’t have dental insurance

7 Delta Dental Awards $1M Grant for Statewide Sealant Program for Kids New Missouri Dental Sealant Program will: o Roll out in early 2017 o Reach up to 15,000 high-need children at as many as 268 public schools throughout the state

8 Enhanced Delta Dental Mobile App New features and functionality: o Welcome dashboard with ID card and dates of subscriber’s most recent exam, cleaning and x-rays o LifeSmile Score risk assessment tool o Options to:  Enable Touch ID to login  Save ID card to Google Wallet/Apple Passbook  Save dependents and preferred dentist to app

9 Enhanced Delta Dental Mobile App App also includes: Dental Care Cost Estimator Find a Dentist My Claims My Coverage Toothbrush Timer

10 Enhanced Delta Dental Mobile App Free mobile app is optimized for iOS and Android devices o Smartphones o Tablets Available for download in: o Apple Store for Apple devices o Google Play Store for Android devices Visit app store and search for “Delta Dental”

11 Enhanced Delta Dental Mobile App Free mobile app is optimized for iOS and Android devices o Smartphones o Tablets Available for download in: o Apple Store for Apple devices o Google Play Store for Android devices Visit app store and search for “Delta Dental”

Community Benefits Update Delta Dental High School All-Star Game and Tobacco-Free Nation Project

13 Delta Dental High School All-Star Game and Tobacco-Free Nation Project Blue and Green Teams in Busch Stadium – June 6, 2016

14 Sixth annual All-Star Game in Busch Stadium on June 6 Part of our sponsorship with the St. Louis Cardinals and platform for our Tobacco-Free Nation Project Coaches from St. Louis City and County public high schools were invited to nominate a senior player 36 All-Star athletes pledged to be tobacco-free Delta Dental High School All-Star Game and Tobacco-Free Nation Project

15 Delta Dental High School All-Star Game and Tobacco-Free Nation Project Cardinals ace pitcher Adam Wainwright is spokesperson for our Tobacco-Free Nation Project Raises awareness of dangers of tobacco use Promotes tobacco-free lifestyle choices to Missouri youth o Free anti-tobacco posters targeting teens provided to participating schools o More resources available at TobaccoFreeNation.org

Performance Highlights

17 Performance Highlights Enrollment Employee (subscriber) enrollment declined slightly with approximately 1,629 employees covered under the plan (-1.62% from 2Q2015) Total Covered Lives (employees + dependents) declined proportionately with approximately 2,443 members Utilization # of Services has increased slightly (+4.62%) over the same period prior year, while the overall distribution of services (Preventive, Basic, Major, and Orthodontia) changed insignificantly Utilization of services on a PEPM basis increased 6.35% The distribution of paid claims per benefit category was consistent with the prior year (Preventive = 57.4%, Basic = 25.2%, Major = 15.5%, and Orthodontia = 1.9%), and is fairly consistent with our BOB, with the exception of Preventive services at 6% higher than our BOB. 17

18 Performance Highlights Network Network Utilization continues to be very high at 99.2% of paid claims, which was significantly above DDMO’s BOB of 94.5% Delta Dental’s Networks saved Mehlville SD’s Plan $205,722 or $21.05 PEPM (BOB = $20.52) PPO Network Savings were 30.10% or $15.54 PEPM (PPO BOB = $14.49) Premier Network savings were 14.83% or $5.19 PEPM (Premier BOB = $5.06) Claims Cost Submitted Charges were $866,565 On PEPM basis, Submitted Charges increased 9.2% to $88.67 Paid Claims were $424,652 On a PEPM basis, Paid Claims increased 8.4% to $43.45 PEPM (BOB = $45 - $55) Member Liability Mehlville SD’s plan design includes components for which members are responsible, such as Deductible, Coinsurance, and Over Maximum Amounts In aggregate, members contributed $158,741 toward the total claim costs or $16.24 PEPM 18

19 Key Statistics January – June, 2016 Claims & Cost ContainmentCurrent YTDPrior YTD% of Change Average Monthly Employees1,6291, % Average Members Per Employees % Total Network Savings$205,722$176, % Delta Dental PPO Network Savings$151,871$124, % Delta Dental Premier Network Savings$50,728$49, % Enrollment - Exposure Period9,7739, % Network Savings + Non-Billable PEPM$21.05$ % Total Savings (Plan Design, Clms Mgmt, Cost Contain & Network)$526,082$473, % Total Savings PEPM$53.83$ % Overall Utilization - # of Services6,1085, % % of Members Reaching Annual Max0.23%0.22%7.54% Services PEPM % Diagnostic & Preventive - # of Services5,0214, % Diagnostic & Preventive Services PEPM % Submitted Charges$866,565$803, % Submitted Charges PEPM$88.67$ % Paid Claims$424,652$398, %

20 Key Statistics January – June, 2016 Claims & Cost ContainmentCurrent YTDPrior YTD% of Change Delta Dental BOB Paid Claims PEPM$45 - $55$43.45$ % Benefit Category % of Paid Diagnostic & Preventive51.04%57.38%58.43%-1.05% Basic Services28.51%25.20%21.43%3.77% Major Services15.29%15.53%18.11%-2.58% Orthodontic Services5.16%1.89%2.03%-0.14% Network Utilization % of Paid Delta Dental PPO Network49.10%55.01%51.14%3.87% Delta Dental Premier Network45.44%44.17%47.61%-3.44% Out-of-Network5.46%0.82%1.26%-0.43% TotaI In-Network94.54%99.18%98.74%0.43% Network Savings % of Submitted Delta Dental PPO Network30.57%30.10%29.20%0.90% Delta Dental Premier Network14.28%14.83%13.85%0.98%

21 Delta Dental’s Unique Dual Network vs. Single Network 0%10%20%30%40%50%70%80%60%100% Delta Dental Premier Network Delta Dental PPO Network PPO Network Out-of-Network No Cost Protection 90% Traditional PPO Delta Dental PPO plus Premier Delta Dental Network utilization averages 80%-95% Out-of-Network utilization assumptions: Typical PPO - 55% - 80% Delta Dental - 5% - 15% Mehlville SD Utilization PPO – 55% Premier – 44% Total Protection – 99% Out of Network

Annual Maximum & Preventive Visits

23 Annual Maximum Report Annual Maximum Amount 2Q 2016 Percent of Unique Claimants 2Q 2015 Percent of Unique Claimants $1,2009.4%6.2% $1,000 - $1,1992.6%2.8% $750 - $9996.2%4.2% $500 - $ %16.3% Less than $ %70.5% Total Claimants19.1% of members20.2% of members

24 Preventive Visits Members with preventive visits during the period January – June, 2016:  1 visit: 1,419  2 visits: 97  3 visits: 4 Total Members with Preventive visits:1,520 (represents 62.2% of total membership)

Service Performance

26 Service Performance Customer Service Average speed of answer – 5.9 seconds Average tenure of our Customer Service team – Over 15 years Claims Processing 2,672 Mehlville School District claims processed in the first half of 2016 Average processing time – 2.95 calendar days

Wrap Up & Next Steps

28 Next Steps / Action Items 1._____________________________________ 2._____________________________________ 3._____________________________________ 4._____________________________________ 5._____________________________________ 6._____________________________________ 7._____________________________________ 28

Thank you for your partnership! 29

30 Good Health Starts Here.® Delta Dental of Missouri DeltaDentalMO.com | Oral Health Information Facebook.com/DeltaDentalMO Twitter.com/DeltaDentalMO