Claros Analytics Overview

Predictive Analytics that Optimize the Future WHAT COULD YOU DO FOR YOUR CLIENTS if you knew all potential outcomes for their health benefit plans? This is analytics evolved. Health Benefits Consulting Suite

Claros uses the data you have At every step, to project the future. more. you will deliver More insight, intelligence, and value to your clients. Claims Experience Review Where other tools seek to analyze past performance of your plans, Claros uses the data you have to project the future. You’ll see potential outcomes and the driving factors behind those outcomes. Claros Analytics, the health benefits industry’s premier Manual Evaluation actuarial software firm, is the partner that brokers need to deliver more insight, intelligence, and value to their clients. With the Claros Analytics Health Benefits Consulting Suite, you can: Stop-Loss Analysis Save Time The Claros solution gives you the ability to expedite processes that would take weeks or months through a third party. Plan/Network/Group Make Yourself Invaluable Evaluation No more spreadsheeting – shopping rates without the data to back it up. Deliver insights your partners and clients need. Elevate Partners; Enlighten Clients Projected Cost Impact Bring clarity and confidence to every recommendation with the most precise consulting application in the industry. Enrollment Projection Health Benefits Consulting Suite Budget Rate Actuarial Risk Decision Experience Development Assistant Support & Migration Simulate expected Identify a risk- Predictive changes and appropriate self- Set optimal budget calculate precise funded structure. rates and model SUCCESS! claim rates. impact of forecasted enrollment.

Health Benefits Consulting Suite Actuarial Assistant Compare, Evaluate, Analyze & Customize Plan Options for Your Clients By comparing two plans side by side and allowing for SOLVED with customization, Actuarial Assistant will provide instant Actuarial Assistant: answers allowing you to seamlessly evaluate: • Plans and potential changes Manual Evaluation • The dollar impact of each decision [illustrated in real time] • Details on drivers of change Plan/Network/Group Evaluation Projected Cost Impact

Health Benefits Consulting Suite Risk Decision Support Illustrate the Best Risk Structure for your Clients Risk Decision Support (RD) enables users to evaluate whether SOLVED with or not a group should move from fully insured to a self-funded Risk Decision plan. If the group is currently self-funded, different risk Support: structures within self-funding can also be explored. • Evaluate the fully insured • Illustrate the relative to self-funded decision differences in expected Stop-Loss Analysis • Locate the risk structure return and capital at risk that meets a group’s risk • Test multiple stop loss tolerance level scenarios to find the • Graphically display and optimal outcome score current or proposed risk scenarios

Health Benefits Consulting Suite Experience & Migration Predictive Put Predictive Modeling to Work for Your Clients Experience & Migration Predictive normalizes data for large SOLVED with claims and adjusts annually for changes in demographics, plan Experience & design and other factors enabling users to predict future claims Migration Predictive: through experience projections and budget rate developments. • Utilizes up to three years of • Creates budget/funding past claims to develop the rates for the following year’s Claims Experience Review expected medical and Rx plans costs for a plan • Demonstrates scenarios • Adjusts each year for where a change of plan may Enrollment Projection demographics and plan cost more than expected changes • Forecasts the employee migration for up to six Budget Rate Development current plans for the next year

Claros By the Numbers CLIENT RENEWAL RATE % 90 + Client renewal rate 90%+ based on our value, service and support OVER 500 LICENSES 100+ clients across the US, This is analytics evolved. holding over 500 licenses 34 MEDICAL SERVICE CATEGORIES Claim curves incorporating 34 medical Contact us today to take the service, 8 Rx, and 200+ claim size categories Claros solution for a test drive. Kathy True Vice President of Sales t: 609.779.2700 c: 203.247.1781 e: [email protected] 10M+ LIVES $100B+ [email protected] | 609.275.6550 Core data set 10M+ lives; clarosanalytics.com $100 billion+ dollars in insurance claims 777 Alexander Road | Suite 201 | Princeton, NJ 08540

Deliver more to both prospects & clients. More insight. More intelligence. More value. This is Analytics Evolved. With the Claros Analytics solution, you are empowered to more effectively: • Evaluate the fully insured to • Calculate COBRA rates self-funded decision • Validate carrier quotes; • Compare risk/reward at effectively negotiate with different stop-loss levels carriers • Analyze aggregate claim • Illustrate Reference-Based probability Pricing (RBP) suitability • Model any size group with • Access regional benchmarks any funding option for average discounts/ • Calculate actuarial values for utilization plans and potential changes • Stay up-to-date with the • Predict future claims and newest self-funded risk budget rate developments metrics • Forecast employee • Generate plan sponsor/CFO migration summary reports

As the health benefit industry’s premier actuarial software firm, Claros Analytics is the partner that brokers need to deliver more insight, intelligence, and value to their clients. With the Claros Analytics Health Benefits Consulting Suite, you can: . Save Time The Claros solution gives you the ability to expedite processes that would take weeks or months through a third party. Make Yourself Invaluable No more spreadsheeting – shopping rates without the data to back it up. Deliver insights your partners and clients need. Elevate Partners; Enlighten Clients Bring clarity and confidence to every recommendation with the most precise consulting application in the industry. Health Benefits Consulting Suite Actuarial Risk Decision Experience Assistant Support & Migration Simulate expected Identify a risk- Predictive changes and appropriate self- Set optimal budget calculate precise funded structure. rates and model claim rates. impact of forecasted enrollment. [email protected] | 609.275.6550 clarosanalytics.com

Enhanced Analytics: RDS Fully Insured to Self-Funded Analysis Company Name: Dewey, Countem, & Howe Plan Effective Date: 1/1/2020 Fully Insured vs Self-Funded Probability of Outperforming FI Fully Insured Rate (FI) SL Structure 1 SL Structure 2 76% 75.5% Fully Insured Premium $2,700,000 $2,700,000 75% 75% Self-Funding SL Structure 1 SL Structure 2 75% Specific Deductible 50,000 75,000 74.8% Aggregate Margin 125% 125% 75% Expected Cost to Self Insure $2,576,323 $2,543,816 75% Expected Savings/(Expense) vs. FI $123,677 $156,184 Probability of Outperforming FI 74.8% 75.5% 74% SL Structure 1 SL Structure 2 Aggregate Attachment Point $2,077,368 $2,256,577 Probability of Reaching Max. Cost Maximum Cost* $2,973,822 $2,975,606 Probability of Reaching Maximum Cost 1.7% 2.9% 3.5% * Maximum Cost is the Aggregate Attachment Point plus Expenses 3.0% 2.9% 2.5% 2.0% 1.7% Expected Cost to Self Insure SL Structure 1 SL Structure 2 1.5% Estimated Claims Payable by the Plan $1,712,323 $1,847,816 1.0% Stop Loss Premium $756,000 $588,000 Administration Expenses $108,000 $108,000 0.5% Total Expected Cost to Self Insure $2,576,323 $2,543,816 0.0% SL Structure 1 SL Structure 2 1

Enhanced Analysis: Experience-Based Claims Projection Company Name: 1/1/2020 Claims: Projected and Historical Projection date 1/1/2020 Projected claims below pooling point - per capita per month 354.52 Projected claims below pooling point - Total 1,626,812 Claims Experience Historical Claims and Enrollment Period (12 months beginning) 1/1/2019 1/1/2018 1/1/2017 1,800,000 200 Avg. Enrollment 198 190 181 1,600,000 Medical Claims 1,287,698 1,189,232 1,251,242 1,400,000 195 Rx Claims 272,925 255,770 284,588 1,200,000 190 t en s m Total Claims 1,560,623 1,445,002 1,535,829 l m1,000,000 l i 185 o a r 800,000 n Cl E . Claims Per Capita/Month* 341.58 320.12 462.12 600,000 180 g Experience Year Weight 50.0% 33.3% 16.7% 400,000 Av 200,000 175 Composite Per Capita Claim Cost 354.52 0 170 *normalized, and trended to projection date based on adult equivalents. 1/1/2019 1/1/2018 1/1/2017 Medical Claims Rx Claims Avg Enrollment Large Claims Incurred Large Claims Period (12 months beginning) 1/1/2019 1/1/2018 1/1/2017 500,000 83,576 54,861 66,854 450,000 141,553 268,346 53,248 ed400,000 r r350,000 u 98,634 175,634 c n300,000 I s250,000 47,319 m i a l200,000 C e g150,000 r a L100,000 50,000 0 1/1/2019 1/1/2018 1/1/2017 1 Powered By Claros Analytics

Enhanced Analytics: AA Actuarial Assistant Company Name: Dewey, Countem, & Howe Plan Effective Date: 1/1/20 Plan Comparison Current Plan Design Proposed Plan Design Current vs. Proposed In Network Out of Network In Network Out of Network In Network Out of Network Deductibles Individual 2,000 4,000 4,000 8,000 2,000 4,000 Family 6,000 12,000 12,000 16,000 6,000 4,000 Coinsurance 90.0% 60.0% 90.0% 60.0% 0.0% 0.0% Max. Out of Pocket Individual 5,500 11,000 5,500 11,000 0 0 Family 11,000 22,000 11,000 22,000 0 0 Copays Emergency Room 250 250 0 0 Urgent Care 50 50 0 0 Physician - Primary Care 20 20 0 0 Physician - Specialist 40 40 0 0 Rx Retail Mail Order Retail Mail Order Retail Mail Order Generic 10 20 10 20 0 0 Brand - Formulary 25 50 25 50 0 0 Brand - Non-Formulary 50 100 50 100 0 0 Specialty 200 400 200 400 0 0 Projected Impact Difference % Change Expected Annual Plan Cost 1,917,346 1,644,931 -272,414.81 -14.2% Plan Cost Share* (%) 77.1% 72.9% -4.2% -5.4% Participants' Cost Share* (%) 22.9% 27.1% 4.2% 18.2% Participants' Cost Share* ($) 1,215 1,302 87.43 7.2% * Deductible + Coinsurance + Copays; does not include employee contributions 1 Powered by Claros Analytics