Milliman Report Validates Computations of Cost Savings for MedAssurant's CCS Advantage(TM) Disease Management Program

MedAssurant, Inc., a leading provider of data-driven healthcare solutions, announced today that Milliman, Inc., has validated the calculations of several performance measures for MedAssurant's CCS Advantage(TM) program, and confirmed the calculated values of medical cost for Medicare patients with chronic illness in the study population. At a time of intense pressure for managed care organizations to control medical expenses, these results are supportive of MedAssurant's unique approach to disease management.

The program, launched in 2007, was designed around a highly data-driven appreciation of the individual patient in combination with a hybrid of targeted, patient-specific communications together with high-touch, in-market patient interaction. Advanced data analytics and a broad technological infrastructure empowers a highly customized approach to each patient's assessment, communication, and care plan design. Being able to identify, stratify, and respond to the uniqueness of each patient's disease and life situation enables rapid, meaningful, and measurable impacts in engagement, clinical outcome, compliance, utilization, and overall costs.

Milliman's report examined the accuracy of the calculated costs used for comparison of a specific health plan's cohort for their Medicare Advantage patients who were engaged in the CCS Advantage(TM) program in 2007 and 2008. Comparing costs for those patients for the seven months after their individual engagement to their historical costs for seven months pre-engagement, and applying the same calculations as used by MedAssurant, the Milliman report validates the accuracy of MedAssurant's calculations:

-- An overall reduction of 9.5% in per member per month (PMPM) costs for all patients engaged in the program; and

-- Reductions in line item costs, ranging from 8.8% to 12.9%, for professional costs, laboratory costs, and inpatient costs.

"Milliman has evaluated the results of MedAssurant's calculation of the metrics on Medicare Advantage data for the four CCS Advantage(TM) performance measures, and found that the calculation of the measures was substantially accurate," said Richard Kipp, MAAA, Principal, Consulting Actuary, and lead author of the report. Additional analysis showed that for the rest of the health plan's Medicare Advantage patients not engaged within the program, costs increased an average of 7.5% over the similar time period.

"Evaluating the impact of a disease management program on costs can be a complicated undertaking," said Cary Sennett, MD, PhD, MedAssurant's Chief Medical Officer. "Through achieving full accreditation for CCS Advantage(TM) from the National Committee for Quality Assurance (NCQA), achieving results certification through the Disease Management Purchasing Consortium (DMPC), and now by turning to Milliman, Inc. to report on the calculation of our cost savings results, MedAssurant has sought to demonstrate not only the performance of the CCS Advantage program, but also a corporate commitment to results transparency."

"Taking a highly data-driven approach to care management and coordination has been a core mission at MedAssurant," said Keith Dunleavy, MD, MedAssurant's President and CEO. "We believe that advanced analytics combined with a personal approach to patient-specific granularity enables a more powerful insight into what is needed and how it should be achieved. Thereafter delivering impact through a hybrid combination of informed paper and telephonic outreach, together with targeted in-market, personal contact, makes a material difference for our clients and their members. These results corroborate what other analyses have shown--that CCS Advantage(TM) materially improves outcomes - and meaningful cost savings follow."

Disclaimer: The scope of Milliman's review was the validation of calculations and not the underlying program or analysis methodology. Multiple limitations and caveats to the analysis apply, including, but not limited to, the absence of a prospective matched cohort control group for comparison. Milliman does not warrant the results or any implications of findings.

About Milliman, Inc.

Milliman is among the world's largest independent actuarial and consulting firms. Founded in Seattle in 1947 as Milliman & Robertson, the company currently has 50 offices in key locations worldwide. Milliman employs more than 2100 people, with a professional staff of more than 1100 qualified consultants and actuaries, including specialists ranging from clinicians to economists. The firm has consulting practices in healthcare, employee benefits, property and casualty insurance, life insurance, and financial services. Milliman serves the full spectrum of business, financial, government, union, education, and nonprofit organizations. For further information, visit www.milliman.com.

About CCS Advantage(TM)

MedAssurant's CCS Advantage(TM) delivers a uniquely data-driven, patient-specific solution that enables national and regional health plans and employers to deliver an unparalleled, comprehensive disease management capability with superior benefits to quality of care, clinical outcomes, results transparency, and financial performance. Unlike other solutions, MedAssurant's CCS Advantage(TM) delivers a unique, "high touch" hybrid combination of electronic, print, call-center, and clinical in-market based resources to achieve optimal communication, intervention, and coordination of care for each patient -- at patient-specific levels of stratification, prioritization, and need. With a strong concurrent industry prowess in healthcare data analytics and accuracy improvement, HEDIS quality outcomes, and managed care risk adjustment, the addressing of multiple needs which are synergistically beneficial to health plans and employers provided added advantages for clients of CCS Advantage(TM). Ultimately, the task-driven focus delivered in a highly granular fashion achieves unparalleled results with strong clinical outcome improvement and materially high ROIs achieved within six months of member engagement.

For more information about MedAssurant's disease management and chronic care solutions, visit: http://www.medassurant.com/disease-management.aspx.

About MedAssurant, Inc.

MedAssurant, Inc. is a leading healthcare solutions provider focused on the importance of healthcare data and its ability to drive dramatic, objective improvements in clinical and quality outcomes, care management, and financial performance throughout the healthcare community. Proprietary healthcare datasets, aggregation, and analysis capabilities, combined with a national infrastructure of leading-edge technology, clinical prowess, and deep human resources empowers MedAssurant's advanced generation of healthcare assessment and improvement through highly informed solutions. In partnership with many members of the healthcare community, MedAssurant provides local, regional, and nationwide health insurance plans, hospitals, pharmaceutical companies, regulatory bodies, government organizations, physician organizations, and their many coveted patients with powerful turnkey solutions to address matters of clinical outcomes analysis, quality of care, cost improvement, risk adjustment, disease management, utilization, and healthcare data verification. Driven by a mission to improve today's healthcare landscape, the employees of MedAssurant proudly apply care, ingenuity, and dedication to delivering a new approach to healthcare -- one driven by data and insight -- one resulting in meaningful action.