Copyright © 2010 Health Care Service Corporation, a Mutual Legal Reserve Company, an Independent Licensee of the Blue Cross and Blue Shield Association. All rights reserved.

Paul B. Handel, M.D.Senior Vice President and Chief Medical Officer, HCSCNovember 3, 2010

Why Wellness?The Cost of Doing Nothing

2

Source: IFTF and Center for Disease Control and Prevention, Health and Healthcare 2010, January 2000

10%

20% 20%

50%

Access to Care Genetics Environment Behavior

How can we encourage and support

Behavior Change?

What Drives Health Status andHealth Care Costs?

3

Economic Health and Burden of Chronic Disease (in billions of dollars)

a2000, b2002, c2003. Categories may overlap.

Source: Centers for Disease Control and Prevention, 2004

What Does it Actually Cost?

Total Cost

Diabetes $132b

Heart Disease and Stroke $351.8c

Cancer $171.6b

Tobacco $150

Obesity – Physical Inactivity – Nutrition $117a

4

50 million patients

+527 kcal/day

200 million overweightObesity Rare

2.5 million years

Environmental Change and Metabolic Syndrome

1950s 2007

3X

2X

3X

68 million patients

Metabolic Syndrome

5

Leading By Example

2005 2006

6

Unhealthy Lifestyles Cause Rapid Rise in Chronic Conditions

• The diagnosis of type 2 diabetes among members increased by about 14% and charges for services increased by 34%, from about $22,000 to $29,000

• The diagnosis of atherosclerosis among members increased by about 17% and charges for services increased by 29% from about $51,000 to $65,000

7

Our Mission

To promote the health and wellness of our members and communities through accessible, cost effective, quality health care

Why we do what we do