Guardian Industries Connecting Incentives to Biometric Results

1. Guardian Industries Connecting Incentives to Biometric Results

2. About Guardian Headquartered Auburn Hills, Michigan • About 20,000 covered lives in health care • 60 major manufacturing locations in 21 countries, on five continents • 3 main businesses • Flat Glass/Auto Glass • SRG Global (auto trim) • Guardian Building Products • Unique culture • Entrepreneurial and de-centralized • “A Hatred of Bureaucracy” • Accountability extends to personal health • Significant leadership support, leverage competition and winning 18,000Employees Worldwide 8,000U.S. Employees

5. HealthGuard Timeline • HDMS – began data warehouse • ActiveHealth – began care considerations • HFC – nurse screenings and health risk assessments in U.S. plant locations • ActiveHealth – began condition management • Added Nutritionist/Dietician services for: • Diabetes • Obesity • Eating disorders • HealthGuard • Best practice elements defined • Audit format introduced • 45 global plants audited • All Guardian U.S. property tobacco-free • $0 copayfor tobacco cessation drugs  • 2006 • 2007 • 2008

6. HealthGuard Timeline • VBID – Half-priced prescriptions when indicated for condition management and engaged with ActiveHealth coach • All Guardian global plantstobacco-free • Required screenings/physicals with HRA or face penalty • Redesigned Winner’s Circle exercise program: • Simplified cash rewards • Added weight loss incentives • $5 routine physicals and cancer screens in all U.S. plans • Required screenings/physicals with HRA to include spouses in the U.S. • Quit for Life tobacco cessation added in all U.S. locations • $5 colonoscopy and polyp removal added • 2009 • 2010 • 2011 6

7. HealthGuard Expectations for 2012 • Establish link between health behaviors and health benefit outcomes • Employee and spouse need to complete a health screening and the online Health Risk Assessment (HRA) • Employee and spouse need to complete Quit For Life or pay surcharge if using tobacco products • Employee and spouse need to engage with a Health Coach if contacted by ActiveHealth or pay a surcharge • Surcharges: • Can be removed for behavior change • Combined tobacco and condition management surcharges are $18/week • Applied separately to employee and spouse • Members notified of requirements well in advance

8. HealthGuard Program Structure • HealthGuard was communicated and administered as integral part of Guardian Industries Health Plan • Before the Health Risk Assessment requirement was implemented in 2010, HRA questions that could disclose any genetic information were eliminated • Guardian never receives any individual health information from HRAs, screenings, or physical exams, only aggregate, de-identified data • The $18/week maximum surcharge is less than 20% of the total cost of single coverage • The $36/week maximum surcharge (if both the employee and the spouse do not comply) is less than 20% of total cost of two-person coverage • New benefit for 2012: $0 copay for annual screening by dermatologist

9. Open Enrollment Results over 99% 21% 91% of employees (Up from 22% in 2011) 12,104 employees and spouses completed screenings or physicals with HRA’s and 15% of spouses attested to their tobacco use 860 of the 945 ActiveHealth identified employees and dependents, have successfully engaged an ActiveHealth nurse coach Created video of Guardian employee success stories

10. Guardian Strategy for 2013 – Health Measurements • Employee and spouse contributions will be based in part on compliance with four standard Health Measures • Blood Pressure • Total Cholesterol • Communicated in four separate campaigns prior to 2013 effective date • Screenings/HRAs done in U.S. plants each summer • Health Measure thresholds were deliberately set at easily attainable levels, to sweep in only the clear outliers • We don’t expect anyone to run a marathon • If you don’t meet these health measures, you probablyshould speak to your doctor • Surcharge waived if employee/spouse provides HFC with doctor’s certification that compliance with standard is unreasonably difficult or medically inadvisable and the employee/spouse is under doctor’s care for condition • Blood Glucose/Blood Sugar • Body Mass Index (BMI) or Waist Measurement

11. How Many Members will be Affected?

12. What Benefits are New for 2013? • NEW- Starting in 2013, $4 copay generic prescriptions for: • Blood Pressure • Blood Glucose/Blood Sugar • Cholesterol • The BMI / Waist Measurement standard can be satisfied by: • ActiveHealth’s Weight Management Program • If you prefer to be under your doctor’s care for weight reduction, the Plan will pay your office visits and related lab work with a $0 copay • NEW - Starting in 2013, completion of on-site Weight Watchers program

13. A Look at the Data for Potential BMI Outliers • Employees that ‘fail’ the BMI criteria based on current survey data incur 38% more claims costs than normal BMI • Trend for this group was 18% in 2011 • ER rates/1000 were 78% higher than the normal BMI Group • 12% were actively enrolled in a DM program at the end of 2011 – most were enrolled for multiple conditions including morbid obesity 13

14. How Will the Surcharges Work in 2013?

15. How Will the Surcharges Work in 2013?

16. Communication Strategies • Never condescend • Long lead times • Transparency • Spouse involvement • Brand your Program • Three times by three media • Brochure basics • Color • Bullets • Lists • Graphics • White space • Short declarative sentences • Active tense • 5th grade reading level • Tell a story, give a timeline, use examples • Close with Action Steps

17. Outcomes from HealthGuard Initiatives • Improved health leads to reduced risk and lower claims • Manufacturing environment: • 75% male, average age 43, some network consolidation, no cost-shifting in plan designs or 80/20 company/employee cost share • Competitive advantage: HR acting as a strategic partner

18. Guardian Active Health Cost vs. Trend Linear

19. Lessons Learned • Make it matter • Leverage the culture • Anticipate adverse reactions • Change the vocabulary • Remove road blocks • Provide choices • Explain WHY • Build in phases • Manage the 2% • Integrate data • Make health a visible part of company culture

20. HealthGuard Benefits Work Flow HR/EBAsEnter new hires, status changes, terms into payroll Payroll Systems Eye Med CYBORGGlass/SRG Medical Carriers INFINIUMGBP HMSA, EAP BCBSM Medco Retiree Updates Wednesdays Fridays Mondays THUR. WED. MON. Wellness Vendors AON HEWITT MON. Health FitnessCorp Delta BOS(COBRA) HDMS ActiveHealth MMO EmployeesEnroll and Make Changes Terminated Employees Quit for Life

21. Questions?