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Welcome

Learn from the best. An in-depth look at best-in-class incentives.

Wellness on the Run May 17, 2017

The content in this presentation is a case study in best-in-class benefit design and incentives. Not all programs mentioned in this presentation are available for purchase.

Anthem’s Total Rewards

My Company

Our organizational

culture respects,

welcomes, and supports your

contributions to our company

and our communities

We offer many ways for you to grow, no matter what your current career stage

We offer you market-

competitive base pay, plus opportunities

for you to earn additional rewards

Our comprehensive

package of benefits offers something for everyone, with programs to protect your

physical, financial, and overall well-

being

We offer a variety of

programs to help you keep your work and personal life in

balance

My Development My Pay My Benefits My Time Away

3 The content in this presentation is a case study in best-in-class benefit design and incentives. Not all programs mentioned in this presentation are available for purchase.

Our approach

Anthem provides many benefits, tools and resources to help associates and their family stay well.

Wellness & wellbeing • Onsite fitness facilities • Lifestyle programs • Wellness support programs • Financial wellbeing • Flexible work arrangements • EAP/work-life programs • New parent transition week • EAP/stress management • Health club reimbursement • Flexible work arrangements • Weight and stress programs • Adoption assistance program • Nursing mothers' facilities

Varied incentives • Wellness credit program • Future Moms incentive • Castlight Rewards • Healthy Lifestyles prizes

Medical plan design • CDHPs and cost-efficient HMOs • Dental and vision • Consumer centricity & engagement • Networks • Health management • Cost & quality tools

4


Who we are: Anthem Inc.’s workforce

• Average age 45; 36% over age 50

• Average tenure 9 years

• 76% female

• 42% racially diverse

• Associates in 50 states

• 40% work from home all the time

• 47% hourly / 53% salaried

• 87% enroll in medical / 13% waive

Growing both through acquisition and organically: Key demographics:

Num

ber o

f Ass

ocia

tes

2012 2013 2014 2015 2016 2017

60,000

50,000

40,000

30,000

20,000

10,000

0

36,6

00

37,3

00 51

,750

51,0

00

51,7

50

5

42,8

00

47,9

00

52,8

95

53,0

18


Medical Plan Overview

6

Anthem provides many benefits, tools and resources to help associates and their family stay well.

Benefits • Gold HRA, Gold

and Silver HSA Plans

• PreventiveRx

Networks • 5 AltNets

• Blue Distinction Total Care

• Blue Distinction Centers of Excellence Tiered Benefits for transplant, bariatric and orthopedics

Integrated Health Management • Integrated Health

Model (IHM)

• AIM Radiology and Sleep Management

• Behavioral Health

Consumer Centricity & Engagement • Anthem Health

Guide

• Castlight: Cost, Quality and Rewards

• LiveHealth Online

Wellness Programs • Healthy Lifestyles

• Outcomes-based wellness credit

• Anthem EAP and MyStrength

Medical plan strategy


Rewarded accountability

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Incentives for accountable behavior

Outcome-based wellness credit

Future Moms maternity program

Castlight Rewards

Healthy Lifestyles

Continuing on the path to informed and motivated members with expanded support, tools and consumer education

Anthem Health Guide

Cancer Care Quality Program Healthy Lifestyles

Castlight Rewards PreventiveRx


Wellness overview

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Wellness Programs

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Your health matters to you, your family and to Anthem. That’s why we offer all kinds of support healthy living. Here’s how you can get started today:

• Use Quit for Life to quit using tobacco • Get involved in wellness events at your location • Join Weight Watchers • Take advantage of healthy dining offerings • Go to the gym, either onsite or with the help of health club reimbursement • Get a free flu shot • Listen to a monthly wellness audio cast • Take advantage of our WorkLife services through Anthem EAP


Wellness Credit program

WELLNESS CREDIT:

$200 per associate

WELLNESS CREDIT:

$400/400 per associate / spouse or partner

WELLNESS CREDIT:


for completing Know Your Numbers and health assessment

for completing Know Your Numbers and health assessment

for blood pressureof <140/90

for blood pressureof <140/90

for completing an eligible wellness program

for BMI of <30 or demonstrating improvement

for BMI of <30 or demonstrating improvement

for being tobacco free or completing Quit for Life



Reasonable Alternatives to all outcomes based standards were made available in 2013 to comply with the HIPAA Wellness Incentive regulations issued in June 2013.

$200 $200 $200

$200

for flu vaccine $100

$100 $200

$200

$100 $200

$200

WELLNESS CREDIT:


AWARENESS 2010 - Year 1

PARTICIPATION 2011 - Year 2

RESULTS 2012 & 2013 - Years 3 & 4

RESULTS 2014-2017– Years 5 & 6


100%

75%

50%

25%

0% 2011 2012 2013 2014 2015

Associate Spouse/Domestic Partner

80% 87% 90% 91%

46%

56% 63%

73%

2016 90% increase (Associate participation since 2010)

67% increase (Spouse and domestic partner participation since 2011)

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2016

96%

70%

97%

77%

Wellness Credit Engagement


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Strong engagement and continuity of care 50% increase in LHO registrations for house account and $122K in cost of care savings

* $201 saved for every medical visit that occurs on LiveHealth Online. Results based on internal LIveHealth Online study during 2014 and Q1 of 2015

• Eligible Population: 15,287

• Total Enrolled: 6,254 (41%)

• Completed 3 visits with an

RD: 2,094 (33%)

Population

• 607 medical visits (10%

utilization)

• Cost of care savings =

$122, 007

Some found medical

• 36 behavioral health visits

• Anecdotally: RDs stated some participants dealing with eating disorders were provided info on accessing LHO Psychology

Some found therapy

LHO Weight Management at a Glance



15

Visit Totals 2017 ytd 3,686

2016 2,650 Total 6,336

• 63 % utilized mobile options for

visits to LiveHealth Online

• 113 completed their 3 visits

through phone only

• 4.8 out of 5 in satisfaction rating

of the online care system

• 4.9 out of 5 in satisfaction rating

of the provider seen in the

process

Consumer Insights



Wellness outcomes: Observations

GOAL: Assess impact of wellness programs on member behavior and member health plan costs

Population • 25,197 associates

• 3-year continuous enrollment

• Represents 49% of total associates

Methodology • Low accountable: no participation in

wellness program in 2014

• Moderately accountable: participation in only one wellness program in 2014

• Highly accountable: participation in Know Your Numbers and at least one other wellness program in 2014

• Evaluated risk scores and cost

• Insights are from observational data; causality should not be inferred


Observation 1: Health Cost and Risk compared to accountability

Lower Health Care Trends: Highly Accountable had a lower percentage one year change in cost, +2.7%. While Moderately Accountable reflected a +9.5% change in cost and Non Accountable reflected a +22% change in cost.

Healthier Profiles: Highly Accountable members risk scores remained constant indicating maintaining health. Moderately Accountable risk scores increased indicating more health risk, but increased at a lower rate than Non Accountable population.

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Association Type Count 2014 Risk Score

Change in Risk Score

Change in Cost

Highly Accountable 9,366 1.6 0.4% 2.7%

Moderately Accountable 9,828 1.59 8.2% 9.5%

Not Accountable 5,970 1.84 15.2% 22%


Preliminary analysis of Healthy Lifestyles participants: Change in risk score between 2013 and 2014 is directionally proportional to the level of participation Members earning most points in 2014 had biggest drop in risk score

Members earning least points had biggest increase in risk score

Healthy Lifestyles points compared

to change in risk score

Observation 2: Lower risk for members earning more Healthy Lifestyles points

Healthy Lifestyles points compared to change in risk score

Risk score 8.8% 5.1%

2.4%

Healthy Lifestyles points earned Less than 1,000 1,000 1,0001 - 5,000 5,000+

-3.9%


Observation 3: Lower risk for members participating in multiple wellness programs

Lower Health Care Cost: Health Risk is lower based on the participation in multiple wellness programs.

The progression to a higher risk is less based on the number of wellness programs a member participates in.

Tota

l Wel

lnes

s Pr

ogra

ms

0 0.5 1 1.5 2 2.5

4-7

3

2

1

0

1.57

1.61

1.75

2.17

1.6

1.59

1.6

1.6

1.84

1.6

19 Health Risk

2013 2014 The content in this presentation is a case study in best-in-class benefit design and incentives. Not all programs mentioned in this presentation are available for purchase.

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Communications

Communication approach: Story telling

•Find intrinsic motivators: What will make people want to stick with it?

•Use warm, genuine, human tone and highlight why health is important

•Tell associate stories – or better yet, let them tell them. Humanizes wellness, encourages grassroots support and makes results seem achievable. If she can do it, I can, too.

Use a variety of vehicles: •Screensavers •Video •eCards/emails •Posters • Intranet articles •Spouse/domestic partner microsite

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Wellness communications

Healthy Lifestyles WBA Challenge

Food subsidy

New Total Rewards site launch Know Your Numbers

Food subsidy Maintain not gain

National Walk at Lunch Day

New Total Rewards mobile

app launch

Food subsidy Food subsidy

Stress awareness Steps Challenge Healthy

Lifestyles

Q1 Q2 Q3 Q4


Wellness communications

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Next Webinar: The engagement challenge. How to reach hard-to-reach segments.

Date: Wednesday, June 21, 2017 Time: 2:00 PM Eastern Daylight Time

Register on Time Well Spent today!

Time Well Spent Learn Wellness on the Run Webinars

• July 19: Addressing the opioid epidemic. Strategies for prevention and treatment. • August 23: Kick the habit. Reducing tobacco in the workplace. • Sept 20: The stress factor: how to manage stress and depression in the workplace.

Upcoming Wellness on the Run Webinars

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2017 DocTalks

2 COMPANY CONFIDENTIAL | FOR INTERNAL USE ONLY | DO NOT COPY

June 13, 2017 12:00 pm. & 3:00 p.m. EDT

Zika: Everything You Need to Know Michael Eleff, MD Regional Vice President and Medical Director

August 8, 2017 12:00 pm. & 3:00 p.m. EDT

The Sandwich Generation – Caring for others. Caring for you. Antonio Linares, M.D. Regional Vice President and Medical Director

September 12, 2017 12:00 pm. & 3:00 p.m. EDT

Heart Health Sanjay Lall M.D., F.A.C.C. Medical Director

October 10, 2017 12:00 pm. & 3:00 p.m. EDT

Diet, Nutrition and Weight Loss Presenter: Richard M. Lachiver, MD, MPH, FACPM Regional Vice President and Medical Director

December 12, 2017 12:00 pm. & 3:00 p.m. EDT

LiveHealth Online: Telehealth on The Cutting Edge Presenter: Sharon S. Boose, Sales Director, LiveHealth Online, Anthem, Inc.

Your employees can get health tips with our free DocTalk webinars! DoctTalk webinars are available to all members and their spouses.

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Q&A

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