The document discusses how managed care organizations (MCOs) need to partner with millennials as baby boomers age into retirement. It notes that millennials will influence boomers' healthcare choices and that MCOs will need to appeal to both generations through virtual services, a multi-channel marketing approach, and member services tailored for each group. The document also examines how MCOs may need to work with providers to develop new virtualized services for boomers and tighten compliance and utilization management with the influence of millennials.

1. Prepared by: Jay Chang June 11, 2011 The “Millennial Effect” on Boomers & MCOs *Millenials are the children of Boomers

2. Executive Summary MCO’s need to partner with Millennials as the Boomers move through a virtualized healthcare system Key Impact Change Function MCO’s need to defend itself from Millennials Legal & Regulatory Millennials are working to virtualize services Provider Contracting E-Services for Millennials will facilitate decision making for Boomers Member Services MCO’s need to demonstrate value to Boomers & Millennials Sales & Marketing Boomers will be influenced by Millennials to weigh cost vs. choice Healthcare Consumerism

3. Healthcare Consumerism Wealth Choice MA Private FFS 3% MA HMO 17% 1 1 Less affluent Boomers will move toward MA HMO and sacrifice choice of providers ~ 87% < $50k annual income at retirement Cannot rely on Millenials for financial support. Higher debt generation ~ $23k vs. $333 avg college debt 2 Affluent Boomers will move toward FFS w/Medigap or MA Private FFS to maintain choice Boomers currently prefer choice: 21% HMO vs. 58% PPO Medicare FFS 75% MA PPO 5% 2 2 Sources: NY Times Boomers will be influenced by Millennials to weigh cost vs. choice

5. Member Services 75% of Millennial women enter the workforce Pressure on MCO’s Email for their parents Text messages for urgent notifications Portals to view lab and test results Benefits & eligibility to estimate costs MCO’s need e-services to partner with Millennials & Boomers for care Prescription mail ordering 60% of Millennials expected to coordinate care for Boomers 51% of Millennials live greater than 30 miles away from parents decision making

8. Questions? Thank you!