HealthScore - An Entrepreneurial Venture focused on Incentivizing Employee Welfare through Metrics-based Healthcare plans

1. HealthScore The Credit Score for your Life

2. Our Team: Chris Holmblad Gabe Polk Matt Nishiguchi Anatoly Shcherbatko Brandon Segura

3. Some Alarming Statistics Rates of chronic disease are higher in the U.S. than in any other country—nearly half (45%) of Americans suffer from at least one chronic disease1

4. Some Alarming Statistics.. Chronic diseases, such as heart disease, diabetes, pulmonary disease, and cancer, are among the most costly and preventable diseases in the United States2,3

5. Chronic Disease Quadrangle

6. Some Alarming Statistics… Three out of every four health care dollars are spent treating chronic disease and seven out of ten deaths are caused by chronic disease4 ~75%

7. Some Alarming Statistics.… At least one third of deaths in the United States are attributable to a handful of unhealthy behaviors: smoking, poor nutrition, and lack of physical activity.5

8. Some Alarming Statistics.…. A study by the Milken Institute found that, if the U.S. can make modest improvements in prevention and management of disease by 2023, we could avoid 40 million cases of chronic disease and save $218 billion annually in treatment costs6

9. Avoidable Treatment Costs and Productivity Losses, 2023

12. Opportunity

13. Workers The recession has caused a lot of stress for workers, and some have seen their healthy habits go right out the window as a result. A recent survey from ZoneDiet.com found that 25 percent of Americans are turning to comfort food more because of the economy.

14. Survey A survey of about 500 human resources and benefit executives by professional services firm Towers Perrin found: 50 percent of companies have or will introduce or increase investments in wellness and health promotion in 2009 and 2010. 32 percent have or will introduce or increase financial incentives, such as bonuses or premium discounts, for wellness or health promotion activities in 2009 and 2010. Another 30 percent are considering this action. 45 percent say they are considering introducing or increasing penalties for nonparticipation in wellness or health promotion activities.

15. Case Study Financial services firm USAA has been running a wellness program for five years. “We think 50 to 80 percent of our medical costs are related to people who are overweight,” says Dr. Peter Wald, enterprise medical director for the firm, which has 20,000 employees.

16. Employee Opportunity Direct Benefit = Discount Healthier employees are happier Happier Employees are more productive Cutting down on the huge amounts of unproductive workers

17. Company Opportunity The median health care expense per employee last year was $7,173, according to a recent survey by Watson Wyatt and the National Business Group on Health. But companies save from $1.49 to $4.91 in health-related expenses for every dollar spent on wellness programs, according to the U.S. Department of Health and Human Services. Healthier employees are more productive Company pays collectively less for more healthier employees

18. Insurance Company Healthier clients equates to lower liability Saves money in the long run by decreasing probability of chronic diseases Companies are rapidly losing customers as prices increase

19. How it all works: Continual Employee Health Improvement

20. How it all works: Lab Testing BMI, Blood, and Urine Website: Personal score & main reasons why Overall company health score (if they allow it)

21. 2 Data Sets Individual Healthscore (1-100) – disclosed only to the individual and health insurer 85+ means a 20% discount 70-85 means a 15% discount 60-70 means a 10% discount 60 or below means a 5% discount Non-identifying Overall Company Info % of Smokers, % of Obese, Etc. If improvement, less overall insurance rate

22. Product Promise Align individual health with financial incentives Motivate good, healthy behavior Immediate deterrents to unhealthy lifestyle choices Saves everyone money

23. How We’re Disruptive Standardization Consistent scoring no matter the insurer or company More in-depth & accurate Based on individual as opposed to the company pool Based on results rather than enrollment Creating awareness

25. Target Consumer

26. Costs

27. Generating Income

28. Competition Analysis

30. Companies

31. Target User

32. Companies

33. Consumer

35. Charging a flat fee

36. Annual charge

37. Main Costs

38. Accreditation

39. Website

41. Possible Competitors

42. bioIQ

43. Ingenix

44. Safeway

46. Who bears the initial costs?

47. Do they gain any benefits?

49. Legal Issues & Regulation Unforeseen legal hurdles Staggered provisions, government mandates Healthcare industry regulation is in state of flux Difficult to anticipate future regulation that could harm business Data Privacy/Sensitivity Moral and legal issues regarding client data

50. Testing Consistency: Tests for one person cannot differ from clinic to clinic Accuracy: There is a correlation between BMI and overall health however… Accessibility: Not enough testing facilities Fraud: People cheating test(s)

51. Courting Health Insurers Health Insurers might not be onboard Resist disruption/standardization

52. Questions?

53. References [1] Kott A, Fruh D, Cameron L, Greger C, Klein K, Lethert C, et al. “2009 Almanac of Chronic Disease: Impact of Chronic Disease on U.S. Health and Prosperity: A Collection of Statistics and Commentary.” Partnership to Fight Chronic Disease. 2009. Available at: http://www.fightchronicdisease.org/pdfs/2009_PFCDAlmanac.pdf [2] Centers for Disease Control. “Chronic Disease Overview” [Fact Sheet]. March 2008. Available at: http://www.cdc.gov/nccdphp/overview.htm [3] Woolf, SH. “The Big Answer: Rediscovering Prevention at a Time of Crisis in Health Care.” Harvard Health Policy Review, 7(2): 5-20. Fall 2006. [4] Kott A, Fruh D, Cameron L, Greger C, Klein K, Lethert C, et al. “2009 Almanac of Chronic Disease: Impact of Chronic Disease on U.S. Health and Prosperity: A Collection of Statistics and Commentary.” Partnership to Fight Chronic Disease. 2009. Available at: http://www.fightchronicdisease.org/pdfs/2009_PFCDAlmanac.pdf [5] Mokdad AH, Marks JS, Stroup DF, and Gerberding JL. “Actual Causes of Death in the United States, 2000,” JAMA, 291: 1238-1245. 2004. [6] DeVol R, Bedroussian A, et al. “An Unhealthy America: The Economic Burden of Chronic Disease.” Santa Monica, CA: The Milken Institute. October 2007. Available at: http://www.milkeninstitute.org/pdf/ES_ResearchFindings.pdf