Delivering Great Results Year In and Year Out – MedCost Is a Partner You Can Count On   The past few years have been full of change and economic uncertainty for many, but one constant remains year after year—MedCost’s commitment to helping our customers effectively manage their health care costs. We understand that the success of our programs directly impacts your bottom line, so we are proud to share some of the outstanding results MedCost delivered to our customers in 2009.   2009 Highlights   MedCost Preferred Network Through contract renegotiations and rate neutralization: Delivered an additional $37 million in savings to our customers Held physician reimbursement flat, using 2008 RBRVS as comparative baseline Added 508 medical practices and 28 facilities to the MedCost Preferred network Realized a 72 to 1 return on investment for our customers Claims Processing On average, repriced claims within 1.1 days, with 99.9% repriced within 2 days Repriced claims with 99% procedural and financial accuracy Increased electronic transactions to 98% of all inbound claims and 84% of all outbound claims Health Management Inpatient Utilization Management: 174 days of care per 1,000 lives with 97% patient satisfaction Outpatient Utilization Management: 5 to 1 return on investment with 5.8% of all procedures not approved, including 9% of MRI, 8.7% of CT, and 2.8% of PET procedures Catastrophic Case Management: 7 to 1 return on investment with 100% patient satisfaction SmartStarts Maternity Management: 18 to 1 return on investment with 97% patient satisfaction In the years ahead, our industry likely will face many more changes as government health reform plans are finalized and implemented. Whatever the future holds, however, MedCost remains committed to improving our products and services and the value we bring to our customers through the following objectives: Delivering competitive network pricing with aggressive provider contracting strategies Offering fully integrated, best-in-class health management programs that are abreast of market trends and continually refined to meet the needs of our customers Capturing and analyzing data to deliver meaningful and actionable information to payers, employers, and providers Providing excellent customer service and account management We appreciate your business and the trust you place in us as your health plan partner.