Actuarial Value Consumer Research in Massachusetts Health Insurance Exchanges Objectives Gain Insight into Consumer Perceptions of AV and Medal Categories Better Understand Role of AV Categories in Purchasing Behavior Identify Potential Consumer Segmentation in Purchasing by AV Inform Consumer Outreach and Communication Share Information with Health Plans Methodology Qualitative 4 Focus Groups; 47 Individual, Non-Group Consumers Timing February 2007 1

Actuarial Value Consumer Research in Massachusetts Health Insurance Exchanges Highlights AV Confusing; “Technical;” Requires Examples Medal Categories Helpful “Directionally” Created Perception of Value (Price to Coverage Benefits) Incomplete – Other Needs (e.g. network, price, reputation) Importance of Decision Support Tools “What Are My Real Costs” Value (“What Plan is Right for Me?”) Initial Segmentation “Hand-Holders;” “Independents;” “Analyzers” Communication Preferences Easy & Simple Explanations with Examples On-Line w/ Video Explanation & Call Center Support 2 Company Confidential

Actuarial Value Application to Health Plans Insurance Exchanges Gold – Base Line AV – 92% Benefits Prescribed to Health Plans Silver – 75% - 83% Bronze – 60% - 65% Established Plan Design Flexibility – Silver & Bronze Design Flexibility within AV Range 2 Silver Plans; 1 Bronze Plan 27 Plan Designs (including Young Adult Plans) Influence on Decision to Standardize Benefit Plans Member Complaints About Confusion with Choices Plan Flexibility within Tiers Added to Perceived Complexity Qualitative/Quantitative Research Suggested Benefits of Standardization 27 Plan Designs → 9 (including YAP) 3 Company Confidential