An Employer’s Wellness & Preventive Medicine Program

April 2013

A Culture of Health

110811CAM

About ParkerThe Global Leader in Motion & Control Technologies (NYSE:PH)

• $12.3 Billion in Revenue

• 58,000 Employees

• 47 Countries

• World’s leading diversified manufacturer of motion and control technologies and systems

• Broad technology platform encompassing nine technologies:• Hydraulics, electromechanical, filtration, aerospace, climate control, fluid

and gas handling, pneumatics, sealing and shielding

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Our Focus: Promote Wellness

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Promoting Our Wellness Goals

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Our objectives include globalizing Health and Wellness as an evolving initiative with continued goals for 2013:

• Improve overall health and quality of life• Create and sustain a culture of health for all employees• Continue a leading edge approach to the benefits offered

to employees • Reduce absenteeism • Link Wellness to Safety!

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Resources & StrategyA Culture of Health

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• Culture of health driven by top leadership• Robust educational programs focused on health and

well being • Monthly Wellness communications encompassing

health topics and themes that trend with the National Health observances

• Monthly Health and Wellness Webcasts focus on program materials and benefit updates

• New positions created to drive healthy lifestyles• Monthly Noon Time Learning sessions• Wellness Toolkits

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Health and Wellness Integration Continues – U.S. Programs & Health Plan Suppliers

Preventive Health Benefits

Healthy Pregnancy & Future Mom’s

program

Disease Management

Wellness & Preventive Medicine Program

(CAM Benefits)

Health and Wellness Strategy

An Integrated Platform of Services

Medical Plan Choices

+ Consumer Driven Plans24/7

Nurseline & On-line Resources

EAP Services and Behavioral

Health

Parker Health and Wellness

Promotions

Lifestyle Intervention Programs

Parker Total Rewards

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Why Offer Wellness & Prevention?

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• A key component of our Health & Wellness Culture• Services provide a holistic approach to lifestyle

modification and prevention• Program provides expanded choice and treatment

options including Complementary and Alternative Medicine (CAM) and less invasive therapies to treat illness, disease, stress, and more

• Wellness & Preventive Medicine promotes healing of the body using nutrition and exercise to stimulate and improve immunity while repairing functions of the body

Parker provides a Wellness and Preventive Medicine Benefit and pays for services at 80%

Wellness and Preventive Medicine ProgramComplementary Alternative Medicine

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General Overview to Complementary and Alternative Medicine (CAM)  Complementary and Alternative Medicine (CAM) are approaches to healthcare that are used in place of conventional medicine as they have not gained wide acceptance in the traditional medical community to be considered standard medical treatment. CAM benefits generally offer a variety of non-conventional, holistic services and alternative therapies. The eligibility and benefits for CAM are determined based on the terms of the specific benefit plan.  The National Center for Complementary and Alternative Medicine (NCCAM) defines CAM as a group of diverse medical and health care systems, practices, and products that are not presently considered to be part of conventional

medicine.  

Complementary (in combination with traditional treatment)

Alternative (replacing traditional treatment)

Our Wellness & Preventive Medicine Benefit – U.S. Plans Parker pays for covered services where

appropriate – must be enrolled with Medical• The medical plan deductible and out of pocket

maximum are not applied• 100% for all in-network nutritional and smoking

cessation counseling• 80% of all other eligible in-network services• 60% for all out-of-network services• A $100 CAP on member coinsurance for the initial

Office Visit each CY with full health assessment & lab

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All Services and Benefits Administered by NGS CoreSource – Parker’s Plan Administrator

Includes an Integrative Online Member Portal with online tools

Wellness & Preventive Medicine National Contracted Partners

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National Partners include:

Wellness and Preventive Medicine Program Types of Covered Services

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Acupuncture Allergy Elimination Technique/Immunology Anti Aging Longevity Therapy Biofeedback Bio Identical Hormone Therapy Detox Therapy (Ionic Foot Bath) Chelation Therapy Weight Watchers Essential Oil Therapy Tobacco Cessation Consultation Hyperbaric Oxygen Treatment IV Therapy

Hypnotherapy Massage Therapy

Reflexology Craniosacral

Medical Nutrition Polarity Therapy Reiki Therapy Yoga Therapy Rolfing Laser Therapy (low

level/cold) Prolotherapy Supplements

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Wellness and Preventive Medicine ProgramParker Benefits

Most Covered services are paid unlimited Non-contracted are paid at the INN benefit level while in

credentialing Pre-Certification is not required but strongly recommended

Benefits Network Provider Out-Of-Network Provider

Annual Deductible and Out-Of-Pocket Maximum Does not apply Does not apply

Medical Nutrition and Smoking Cessation Consultation Plan Pays 100% Plan Pays 60%

You Pay 40%

All Remaining Treatment for Allowable Conditions and Symptoms

Plan Pays 80% You Pay 20%

Plan Pays 60% You Pay 40%

• Annual Visits – 75 per CY• Services are subject to Fee Schedule of $123.96

per 60 minutes• Allowed charges are paid at 80%• Parker’s number one utilized service • Allowable visits may be for:

General Wellness / Therapeutic Stress and Relaxation Treatment of Conditions

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Wellness and Preventive Medicine Program Massage Therapy Benefits

Wellness and Preventive Medicine Program Program Utilization – US - Corporation

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Parker Services tracked through NGSUtilization Update includes running total commencing April 2012

# Average of unique users (all members): 7,857 Total paid claims: $9,940,250 In-Network % utilization 91% (OON 9%)

Top 3 Utilized services through NGS represent 68% of paid claims 36% massage 16% acupuncture 16% supplements

Wellness and Preventive Health NetworkThe Wellness and Preventive Health Network

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6

12 6

32

9

425

32 8

82740

7

45

277

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3

35

7

66

22

56

77 39

12

68

125

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2

1

10

2425

1,583 Providers Added Between April 2012 and

March 2013

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Phase 1 - Complete370 Providers533 Unique Members

Phase 2 - August - Now

Recruit key providers With focused efforts:• OON providers w/paid

claims• Employee nominations• Plant Locations

nominations• Large locations >100

Phase 3 – January - NowRecruit through associations and specialized organizations with MDs, DOs NDs, other holistic practitioners and specialty providers such as those in the field of Oncology.Detailed action plan with revised credentialing process in place

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Wellness and Preventive Health Network Network Development Strategy

12 to 18 Mos. Timeline

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• Parker’s program is not about reducing costs but offering the employee flexibility and choice.

• We believe that over the long-term, offering Integrative Medicine can lower employee and employer healthcare costs .

• Lifestyle Management programs can bring savings to companies and life-saving interventions to employees

• Reflects our recognition of wellness as a key to a healthy and productive workforce.

Parker’s Perspective

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We are one of only a few companies to offer a very unique Integrative Medicine Program

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From The TopLeadership Commitment

“We’re offering these benefits for our employees because we want them to be healthier. We want them to be happy and have a healthy and productive life…and we are giving them the best opportunity to experience that.”

Don WashkewiczChairman, CEO and President

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QUESTIONS…. ???

Thank you..

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