Innovative Health Programs that Build Connections with Consumers Scott Spencer, SVP, Insurance & Financial Services, NRECA HIT Summit Session 2.03 Friday, 1:30 PM

What is NRECA? Membership Association of more than 1,000 Rural Electric Cooperatives Collectively electric cooperatives serve over 36 Million Consumers in 47 states 60 Years of Service to Rural America NRECA Represents the Largest Energy Network, Covering Over 80% of the Country Here is some background about NRECA and who we are An Association with over 1,000 participating rural electric cooperatives who serve 35 million consumers Have been in business for the past 60 years Although small in terms of customers NRECA’s electric cooperatives serve a very large area (over 80% of the country)

Products and Services Medical Plans PPO and Indemnity Plans Prescription Drug Plan Vision Plans Dental Plans Customized plan designs NRECA’s I&FS Division provides benefits to the employees of the participating cooperatives These benefits include medical (Group Insurance) benefits as well as Retirement (Defined Benefit Plan), 401(k) (Defined Contribution Plan) benefits The group insurance plan benefits offered to cooperatives includes PPO and Indemnity Plans for Medical / Hospitalization A prescription drug plan Vision plan Dental plan

Medical Plan Overview 125,000 Lives in 47 States $400 Million in Premiums in 2003 691 Co-Ops Participating We provide medical plan coverages to: About 125,000 covered lives who reside in 47 states Generate about $ 400 in premiums during 2003 Service 691 electric cooperatives participate in our medical programs (the remainder of cooperatives either purchase benefits through other providers (for example, Blue Cross, Anthem, and others)

The Health Care Continuum The beginnings (genesis) of our Health Care Program came from several reviews and analysis. If you begin by looking at the current health care costs . .People run the full range of health conditions. . For some, like maternity, cost money once in a while. . for others their conditions require some type of hospitalization and other conditions do not. This is your health care cost continuum . . At one end are the heaviest users, the top 1% of participants who account for 1/4th of the total costs (for example, people needing transplants / open heart surgery). The top 5% of participants will account for ½ of the total costs (for example, people with chronic conditions requiring many doctors or specialists visits, multiple drug prescriptions, and repetitive laboratory testing) At the other end of the continuum are 40% of participants who incur a small proportion of total costs (for example relatively healthy people who don’t even incur costs of $500 per year) If you are serious about managing health care costs you can’t focus on only one area along the continuum you must include efforts along this entire continuum.

In order to empower you employee (participants) you need to surround then with the right tools for a variety of needs to answer their questions That means tools, links and articles that run the full range of your needs, including - help for finding the right doctor assistance in researching and understanding medical symptoms and conditions help determining which hospital gives you the best outcomes for the types of procedure that is being recommended information on assessing your health risks and what you can do to address them Access to a personal health coach to help you manage your chronic medical conditions tools to help you determine the best treatment specifically for you on, cancer, lung, or heart conditions questions or issues that you should discuss with your doctor about your condition Information to help you understand the medications you are taking, including over the counter drugs and whether there may be harmful interactions with other medications We have worked to build a program that surrounds participants with the tools and information that they need to make them more informed health care consumers. Armed with information participants can then make sound decisions about their health.

MyHealth Website Demonstration Entry via “Cooperative.com” Website Secure Access - individuals registered and authenticated Customization – information displayed is specific to individual and his or her co-op.

MyHealth Web Site (Illustrative Case Study) Female Age 55 Healthy Lives in Northern VA Participates in Health Screenings

Summary - Questions & Answers