Actuarial Value Consumer Research in Massachusetts 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 Health Insurance Exchanges

Actuarial Value Consumer Research in Massachusetts 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 Health Insurance Exchanges Company Confidential

Actuarial Value Application to Health Plans 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 Health Insurance Exchanges Company Confidential