ISNP American Health Plans Confidential Do not duplicate

ISNP & American Health Plans Confidential - Do not duplicate or distribute without written permission from American Health Plans 1

What is a Medicare Advantage Plan? “Traditional Medicare” Senior Enrolls Directly with CMS (Fee for Service) Medicare Advantage Organization CMS Delegates Responsibility to Private Health Plan 34% of all Medicare Beneficiaries Traditional Medicare Advantage/Prescription Drug Plan (MAPD) Special Needs Plans (SNP) ISNP, CSNP, DSNP Must enroll any Medicare beneficiary Ability to limit enrollment to subgroup of Medicare beneficiaries 2

What is a Medicare Advantage Special Needs Plan (SNP)? • Special Needs Plans are specifically designed to provide targeted care to individuals with unique needs under these categories: • Chronic (C-SNP) - those with severe or disabling chronic conditions as specified by CMS • Dual (D-SNP) - those eligible for both Medicare and Medicaid) • Institutional (I-SNP) - those institutionalized, or expected to be institutionalized for 90 days or longer; or residing in the community but meeting institutional level of care, as defined by the State 3

CMS SNP Requirements • Must offer both Medicare Advantage (Part C) and Prescription Drug coverage (Part D), so the Plan is a Medicare Advantage Prescription Drug (MA-PD) Plan • The Plan must comply with Original Medicare requirements and offer all Medicare benefits, as well as any supplemental benefits approved by CMS as part of the annual bid process • In addition to Medicare Advantage requirements, a SNP must also comply with: • SNP Application • Model of Care approved by National Committee Quality Assurance • Health Risk Assessment (HRA) • 100% of members with care management activities, including individualized care plan, interdisciplinary care team, transitions of care assessment • Additional STAR and HEDIS (quality) measures • Additional Part C required reporting related to HRA • State Medicaid Agency Contract (for DSNPs) 4

Benefits of ISNPs Skilled Nursing Communities Skilled Nursing Residents • On-site clinical resources that raise overall quality • Model of Care provides concierge-level attention from dedicated clinical team • Reduction of avoidable hospital admissions • Medical and emotional support through chronic condition management and advanced care planning • Access to Part A benefit without hospital admission • Promotion of census stability and increased number of resident bed days • Access to supplemental benefits not offered by traditional Medicare • Payment methodologies that smooth revenue streams and reduce variability • Low premium/no premium cost • Incentivizes staff/leadership to break out of FFS mentality • Special Election Period allows for year-round enrollment 5

ISNP Market Opportunity • 850 K SNF residents are eligible for ISNP enrollment • Only 11% currently enrolled in an ISNP • 811 K ALF residents are eligible for IE-SNP • 2. 6 M dually-eligible beneficiaries (65+) in the United States • 1. 2 M dually-eligible beneficiaries utilize SNF services • US census figures report 65+ population will increase from 56 M in 2020 to 73 M in 2030 and 81 M in 2040 6

ISNP market continues to grow 14. 5% CAGR in ISNP membership growth Provider-owned ISNPs have >30% market share 7

American Health Plans • Comprehensive team of executives with a 20 -year history of developing, operating and growing Medicare Advantage Plans • Managed 100, 000 Part C member lives and 240, 000 PDP lives • Covered 5 states with over $1 billion in premiums • Multiple product lines, e. g. , MA-PD, D-SNP, C-SNP • Includes first provider owned ISNP • Currently operating/developing ISNPs in 12 states • Division of American Health Partners, a senior-care organization delivering a continuum of services 8

Key benefits of AHP ISNP partnership Top of the Food Chain • Receive first-dollar reimbursement from CMS with opportunity to retain shared-savings • Complete transparency of revenue & medical expense • Negotiate terms with hospitals & physicians Provider Owned • Aligns incentives and gives providers access to shared savings & equity value • Allows you to participate in designing benefits for your residents • Diversification of risk & collaboration of best practices with partner providers Enhanced Clinical Outcomes • Facilities and members receive increased clinical resources • Proven track-record of performance and support • Reduction of risk due to avoidance of unnecessary hospitalizations Enhanced Facility Revenue • Pre-payment of Part A revenue and assistance in stewardship • Increased bed days and revenue associated to reduction in unnecessary hospitalizations • Shared-savings: the better you perform the more revenue you earn 9

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