1. 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

2. 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

3. 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