Rajni Aneja MD Strategic Executive, Clinical Transformation leader Humana Inc.

The Future of Health Care In America Tel Aviv October 7,2013

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Humana background

• Fortune 100 company

• Founded in 1961

• Headquartered in Louisville

• $39 billion in annual revenues

• 49,000 associates

• 12 million medical members, 8 million specialty members

• Our dream: To help people achieve lifelong well-being

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Health care costs are burdening society

Structure is flawed

People are unhealthier

People are getting older

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$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000

19-34 35-44 45-54 55-64 65-74 75+

Doing nothing doesn’t work Medical costs by age and risks

Low risk

Medium risk High risk

Non participant

Annual medical costs

Age range

Source: Edington, Zero Trends, 2009

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Consumers are empowered

Desire customization

Connect to many

Demand easy

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Demand easy:

Quick, uncomplicated and no hassles

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Connect to many:

Enabled by technology

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Desire customization:

Tailored to their desires

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Leading companies evolve from transactions to experience

Why can’t health care?

Fee For Service

Employer / Government-Based Purchasing

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Health care is evolving from sick care to health

Quality / Cost Reimbursement Models

Consumer Choice

Industry Evolves from Sick Care to Health

11 Source: Presentation by Dr. David Lawrence at Clinical Care Forum 8/13

The building blocks

Intake Triage Navigate

Dx Rx Maintain Rehab Palliate

Environment Behaviors Prevention Genetics

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Personalized quantitative disease progression

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Convergence of mobile, social, devices and analytics

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Social Mobile Mobile

Consumer Analytics Personal Devices

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The future is now Medicare Advantage is a successful integrated care delivery model

Source: April 22, 2010 Letter from the CMS Office of the Actuary (total expected enrollments); Kaiser Family Foundation (MAPD Penetration)

More seniors are choosing Medicare Advantage

5 million to 15 million

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Humana’s Integrated Care Delivery Model

• Primary care doctors with risk relationship to Humana – 4,200 affiliated/joint venture – 3,700 contracted – 270 employer-based worksite and occupational medicine sites

• Extended care capabilities (Humana Cares, American Eldercare)

– 9,000 dedicated doctors and nurses – 212,000 members in chronic care program

• Fourth-largest Pharmacy Benefits Manager – 240 million prescriptions processed – 20 million prescriptions dispensed

• Motivating/measuring wellness – 2.7 million HumanaVitality members

Building capabilities

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Simplicity that’s sustainable Win-win partnerships

Providers Integrated Care Delivery

Government Quality and Cost Improvement

Employers Productivity

Members Engaged in their health

Thank You

• MyHumana App – Member health and well-being management

• HumanaFit App – Fitness and activity tracking

• Caregiver App (“Betty”) – Workflow optimization and enhanced communication

efficiency across caregivers, clients and their family support network

• SMS – Medication Adherence & Prescription Re-fill

Reminders, Account Balances, Health & Wellness Tips

• Telehealth – Pilot project aimed at better care for members with

congestive heart failure • Bluetooth-enabled scales and blood pressure monitors,

linked to a cellular modem and Interactive Voice Response Technology

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Humana mHealth / Current Capabilities MyHumana

HumanaFit

Betty Caregiver App