ABCs Portfolio Enhancements Central Region Kickoff Meeting

1. ABCs Portfolio Enhancements Central Region Kickoff Meeting 2012 ABCs/PPMR - Blue 6 Local Group Market Presenters: Dawn Bramwell, IT/Business PM John Lee Massaro, Product Ops Lead Elizabeth Duncan, KY/OH Product Lead Kathy Schlemmer, IN/MO/WI Product Lead April 23, 2012

2. Agenda Welcome to all Attendees John Lee Project Status Dawn Project Approach John Lee Overview of the Organization Tracks John Lee Executive Summary/Benefits/Costs/Milestones Dawn Defining Product Req Questionnaire John Lee ABC 2012 Details and Q&A Product Manager/John Lee Next Steps Dawn

3. Discovery sessions held March 1 & 2, 2012 Pursuing Scheduling approval on April 27, 2012 PM assigned Dawn Bramwell, Business & IT PM 2012 FACETS ABC project (PV# 20241) will continue in parallel of 2011’s 2012 ABCs team will assume some tasks to complete implementation and launch DFHRA, and Blue Priority Project Status 2012 ABC - FACETS (PV# 0022149)

4. Approach Engage the ABC team resources to implement for 8/1 & 10/1 Planning activities for Project Tracks Project Management Leads assigned ABC team to start engaging Bus Analyst to generate BTRDs We have benefit changes and most likely rate changes Business stake holders engaged to review requirements On-going discussions with Contracts, Provider, Specialty Confirm if there will be IT changes based on previous work Project Approach

5. Approach (continued) Confirm if IT changes based on previous work Changes to eBusiness portals (Provider, ER, Mbr, Bkr) Train Sales, Provider, E&B, Customer Service, etc Provide the Defining Product Requirements Questionnaire States portfolio changes summarized PBRDs identify new plans, products and benefit features Project Tracks weekly meetings Separate 1 hr weekly Track specific meetings Track Lead volunteers Project Approach

6. Project Organization Product Implementation Tracks

7. Central Region 2012 Project Organization Plan Sponsor: Prod VP - Michele Manowitz; Product Managers – Kathy Schlemmer, Elizabeth Duncan Executive Sponsor Mark Isett Executive Team Team Lead:Product Management Ops-John Lee Massaro Program Management Product Filing /ComPli/EOCs Lead: Pam Kroger Marketing/Sales/Underwriting/ Pricing/ Quoting/Training Lead: Bus PM or Mkg Program Management / Integration planning Kelly Holiday Facets Config & Ops: Claims & CS, E&B, CHS Lead: Bus PM IT/E-Business Lead: IT PM Project Tracks/Leads Business Project Manager Dawn Bramwell CORE Team Lead: Bus PM Financial & Budget TBD IT Project Manager Dawn Bramwell • CHS Lites • Product Lumenos • PE&C Pharmacy • IT ESI • Provider Database • ComPli • WellQuote • eQuote • Broker • Medical Mgmt • Contract • eBusiness • Compliance • Operations • Facets Config • Sales • Underwriting • Marketing • Marketing Comm • Legal .

8. Track Meeting Schedules • Mondays 10 AM • Mondays 11 AM 1PM • Mondays 1 PM 11 AM • Wednesdays 3 PM 12 PM • Thursdays 11 AM - TBC Product Filing/ComPli/EOC IT/e-Business Facets Configuration/Claims/ Customer Service, E&B/CHS Marketing/Sales/Underwriting/ Pricing/Quoting/Training CORE TEAM Draft All meetings are EST time zone and all are scheduled for 1 Hour. Requests will be sent out on all meetings after the Kick-off. Meetings begin week of May 7th and go through target warranty period November 30, 2012.

9. Standard Processes A standard Agenda and Meeting Notes document will be used for each meeting SharePoint Site to be used for communicating all project documentation, such as i.e. work plans, issues, etc. • To Be Determined by PM Use this link until a business project manager is assigned and creates a 2012 ABC site • CRPMD share point site -

10. Provide project team leadership and structure Schedule and facilitate project meetings Create meeting agendas and minutes Facilitate the development of BTRD and FDD documentation Develop and maintain project planning, schedule, WBT, and documents Overall responsibility for issue, risk, and change management Manage project SharePoint site and PlanView reporting Provide weekly project status updates Track and manage key milestones, critical path, dependencies and identify project risks Role of Project Managers – Dawn(IT and Business)

11. Lead Kick Off Meeting (Project introduction, Goals, Requirements) Assure Assignment of Project Team Leads Identify Key Milestones (Quote, Filing, Effective dates) and Critical Dates and Dependencies Participate in Weekly Track, Sponsors, and 1:1 Track Leads meetings Provide Overall Direction & “Go/No Go” Approval Escalate Issues/Eliminate Road Blocks Product Subject Matter Expert Details for PBRDs, DPRQ, BRDs, BTRDs, FDDs, and as needed. Role of Product Team Lead - John Lee(Product Mgmt Ops)

12. Objectives Improve risk profile by modifying benefits and cost shares Offset PMPM increase due to HCR and Trend Lower Cost of Care through benefit design and steerage Optimize administrative efficiency Dependencies Federal Health Care Reform updates Specific rules may cause direction changes Resources may be redirected to address reform initiatives Three Tier project restarting Executive Summary (1 of 3):Objectives and Dependencies

13. Summary of Recommendation Fill option gap between Blue Access PPO/POS and low cost plans Introduce new deductible/coinsurance to address competitive gap Reduce options based on targets and future HCR MLR impacts Align SG and LG options (benefit strings) in MO and WI New products in WI WI Core and Lumenos plans offered on Blue Priority network Blue HSAs offered on PPO, POS, Priority POS & 100+ Benefit & Rx modifications address cost and utilization opportunities Executive Summary (2 of 3): Summary of Recommendations

14. Benefits The ABCs on FACETS initiative is expected to provide the following benefits: Cost of Care savings at $37.8M over 3 years starting 2012 Additional intangible savings from Rx enhancements Implementing identified requirements will have an estimated IT cost of $559k(10,002 hours) Business Hours – 10,424 hours IT Hours – include vendor and off-shore contractors Executive Summary (3 of 3):Benefits

15. FACETS: Detailed IT Costs The total IT Spend for this initiative is $559,594. $ sample to be finalized

16. Detailed Business Costs $ sample to be finalized

17. FACETS: Detailed Benefits $ sample to be finalized

18. FACETS: Milestones Effective dates: August and October 1, 2012

19. FACETS: Risks and Issues

20. CR 2012 ABCs State specific details:Questionnaire and PBRDs States/Product Managers IN/WI – Kathy Schlemmer KY/OH – Elizabeth Duncan MO – David Braselton Project Lead – John Lee Massaro

21. 2012 Defining Product RequirementsQuestionnaire Snapshot

22. 2012 Decisions - Indiana

23. 2012 Decisions - Kentucky

24. 2012 Decisions - Missouri

25. 2012 Decisions - Ohio

26. 2012 Decisions - Wisconsin

27. Key Documents for 2012

28. Next Steps All Track Meetings will start the week of May 17th • 5 Track Groups • Finalizing area representative commitments • Product PBRDs top priority – due May 14th • BRTD meetings begin week of May 17th • Meeting invites to be sent next week • Workplan submitted to areas for updates • Follow-up Kickoff meeting is May 17 at 12 PM EST • Questions and Answers