1. Copyright © 2010 Health Care Service Corporation, a Mutual Legal Reserve Company, an Independent Licensee of the Blue Cross and Blue Shield Association. All rights reserved. Paul B. Handel, M.D. Senior Vice President and Chief Medical Officer, HCSC November 3, 2010 Why Wellness? The Cost of Doing Nothing

2. 2 Source: IFTF and Center for Disease Control and Prevention, Health and Healthcare 2010, January 2000 How can we encourage and support Behavior Change ? What Drives Health Status and Health Care Costs?

3. 3 Economic Health and Burden of Chronic Disease (in billions of dollars) a 2000, b 2002, c 2003. Categories may overlap. Source: Centers for Disease Control and Prevention, 2004 What Does it Actually Cost? Total Cost Diabetes $132 b Heart Disease and Stroke $351.8 c Cancer $171.6 b Tobacco $150 Obesity – Physical Inactivity – Nutrition $117 a

4. 4 50 million patients + 527 kcal/day 200 million overweight Obesity Rare 2.5 million years Environmental Change and Metabolic Syndrome 1950s2007 3X 2X 3X 68 million patients Metabolic Syndrome

5. 5 Leading By Example 20052006

6. 6 Unhealthy Lifestyles Cause Rapid Rise in Chronic Conditions The diagnosis of type 2 diabetes among members increased by about 14% and charges for services increased by 34%, from about $22,000 to $29,000 The diagnosis of atherosclerosis among members increased by about 17% and charges for services increased by 29% from about $51,000 to $65,000

7. 7 Our Mission To promote the health and wellness of our members and communities through accessible, cost effective, quality health care Why we do what we do