MotivHealth Company Overview

COMPANY OVERVIEW

The content of this presentation is proprietary and confidential information of MotivHealth Insurance Company.

It is not intended to be distributed to any third party without the written consent of MotivHealth.

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MotivHealth is an insurance company focused on engaging members to get the right care at the right price, resulting in more affordable health insurance.

“If you define the problem correctly, then you almost have the solution.”

STEVE JOBS

Solving the Right Problem: Flight

Samuel Langley

The Wright Brothers

•

World Renowned astrophysicist

•

Bicycle shop owners

•

Raised a significant amount of money

•

Self funded their work

•

Had all of the “experts” on his team

•

Used scientific method to gather data

PROBLEM HE WAS SOLVING: PROPULSION

PROBLEM THEY WERE SOLVING: CONTROL

Solving the Right Problem: Flight

Samuel Langley

The Wright Brothers

•

•

Failed miserably

Credited with solving the problem of flight

What is the right problem to focus on for healthcare?

Healthcare Spending UNITED STATES

$10,224

SWITZERLAND

$8,009

GERMANY

$5,728

SWEDEN

$5,511

AUSTRIA

$5,440

NETHERLANDS

$5,386

COUNTRIES AVERAGE

$5,280

FRANCE

$4,902

CANADA

$4,826

BELGIUM

$4,774

JAPAN

$4,717

AUSTRALIA

$4,543

UNITED KINGDOM

On average, other wealthy countries spend about half as much per person on health than the U.S. spends.

$4,246

Health consumption expenditures per capita, U.S. dollars, PPP adjusted, 2017

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What is driving cost?

• HOSPITALS - charge too much for their services with little to no pricing transparency.

• PHARMACEUTICALS - companies hide the true cost of prescription drugs from consumers.

• LACK OF CONSUMER ENGAGEMENT - there is little incentive to care about the cost of care.

MotivHealth has been able to reduce claims cost by 15% - 20%, resulting in lower premiums and lower increases at renewal; The average increase in annual premiums has been less than 1%.

THE INDUSTRY AVERAGE IS AN 8% INCREASE ANNUALLY.

Addressing Hospital Related Costs Illustrative

$400

$900

$3,000

AVERAGE PRICE

$5,000

$13,000

$28,000

AVERAGE PRICE

$15,000

$35,000

$50,000

AVERAGE PRICE

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Employees have little incentive to care about cost Employees have not had the information or the incentive to put pressure on the system to lower prices.

$1,500 Deductible / $3,000 Out of Pocket Max

Member Responsibility:

$15,000

$35,000

$50,000

$3,000

$3,000

$3,000

Employee pays the same regardless of the cost.

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Educating and rewarding the right decisions Exposing price variation and incentivizing consumers drives consumers to engage resulting in lower cost of care.

$1,500 Deductible / $3,000 Out of Pocket Max

Member Responsibility: PAID INCENTIVE FOR RIGHT CARE AT THE RIGHT PRICE:

Out of Pocket Cost:

$15,000

$35,000

$50,000

$3,000

$3,000

$3,000

$2,000

$0

$0

$3,000

$3,000

65% of members select best price for eligible procedures – resulting in approximately

5% IN CLAIM SAVINGS Copyright © 2020 MotivHealth Insurance Company. All Rights Reserved

We Reduce Prescription Drug Costs Prescription Assistance Ability to get drugs directly from manufacturer ‌ for free.

Co-Pay Adjustment Only allowing member cost to apply to deductible.

Diabetic Program Members order directly from Canadian Insulin.

The Impact

10% savings in claims cost.

Covered 100% Saves $10k / diabetic / year

3x

$3,700

Seamless user experience

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The Member App FIND CARE

VIEW INSURANCE INFO

ENGAGE IN INCENTIVE PROGRAMS

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Member Education LEARN AND EARN Our members can earn $50 deposited into their HSA by completely all of the courses.

Members become more educated about how MotivHealth can better help them save and spend their healthcare dollars.

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Member Portal Seamless User Experience

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Employer Portal Actionable Data

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24/7/365 Support $80

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Currently Executing: Key Performance Metrics Average Speed of Answer

22 seconds

First Call Resolution

91%

Customer Satisfaction

Retention

2.85

98%

out of 3.0

Copyright Š 2020 MotivHealth Insurance Company. All Rights Reserved

The Team and Company •

DAVE HALL ::

– Dave was a co-founder of HealthEquity (NASDQ: HQY), the largest HSA Administration in the country with a market cap as high as $6B. Dave served as

President of HealthEquity for the first 5 years. He was instrumental in forming the strategy, implementing business processes, and executing on the business in the early stages. After a private equity investment, Dave assumed a role in business development and was responsible for signing up over 50 health plan partners which was key in positioning the company to go public.

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•

•

RUSSELL TRUJILLO ::

Russell has 20+years of experience in the health insurance industry. Spending time at Regence BCBS, Altius Health Plan, and the Department of Insurance for the State of Utah. Russell currently manages the risk of the business with include: Underwriting, Reinsurance, Networks, and Cost Containment programs. In addition, Russell is the past President of Utah Health Insurance Association(UHIA).

• Based in Salt Lake City, UT

KEN ACKER ::

• Over 30,000 members

As a CPA focused on healthcare and insurance, Ken has over 20+years of Statutory Accounting Experience and has led the finance function at multiple entities. Ken’s expertise is managing and Auditing both international and domestic agreements with business partner companies and contracts for compliance and risk management as well as relationships with state and federal regulatory agencies.

JOHN ANDERSON ::

John has a 20+year history of facilitating healthcare companies to launch, fund, evolve, merge and grow. Initiating the affiliation between Texas Oncology and US Oncology, facilitating the launch and branding of Huntsman Cancer Institute, the expansion of Las Vegas Skin & Cancer to the largest of it’s kind in the US, the in-market growth of Altius Health Plans, among other company successes, John is now focused solely on the expansion of MotivHealth, bringing a passion and a drive to move the business forward.

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• Began Operations January 2016

• 110 employees • $100M annualize billings • Profitable since year 2 of operations • Proprietary API based HSA platform – seamless user experience • Proprietary price comparison tool

Discussion

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