Batesville Tool & Die, Inc.

Batesville, IndianaAutomotive Metal

Stamping350 (255) Employees

BTD Health Plan Cost per Employee

$7,718

$6,547

$10,375

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2004 2005 2006 2007 2008 Est.

+58%

+18%

-26%

BTD Health Plan• Self-Insured Health Plan• Associates to pay 20% of Plan Expenses• Plan 1 or Plan 2 • $20, $40, $60 or $6, $12, $24 per Week• $20 or $25 Office Co-Payment• $1,000 or $1,500 Deductible• 80%/20% or 70%/30%• Rx - $10, 30%, 30%+$15• All Lab Work goes to Deductible• $5 No Tobacco Discount (2006) $260/year

– Sign Agreement– Pass Nicotine Test (random testing)

Disposable Income?

• Clothes• Food• Shelter• Utilities• Automobile• Gasoline• Insurance• Cell Phones

• Cigarettes• Beer• Entertainment• Hobbies• Dr Office Co-Pay• Lab Work• Rx Co-Pay• Baby Aspirin

2006 BTD Associates• 52% Smokers • Poor Eating Habits• Limited or No Physical Exercise• Over Weight or Obese• High Blood Pressure• High Cholesterol• High Alcohol Consumption• High Anxiety &/or Depression • Tired all the time• Poor Life Style Behavior

BTD Wellness Programs• Brown Bag Lunches - 70 participants• # of smoking cessation programs failed• Weight Watchers meetings fizzled• Health Fairs (blood pressure, BMI, etc.)• Toll Free Phone Health Coaching - 23 • Walking program (free pedometers)

– only 9 started logging daily steps - 3 finished• $150 in HRA for Health Risk Assessment• $150 in HRA for Physical (100% paid)• Total $300 - only 70 participants

Can we afford health care?

• BTD profits constantly being squeezed• Wellness programs not hitting target• Continued poor life style behavior • Co-payments & deductibles keeping some

associates from seeking medical care• Rx costs keeping some associates from

taking maintenance medications• Endless series of “train wrecks”• Considered flat dollar amount per associate

Novia Concept

• Invest in associates wellbeing

• Free treatment, lab work & prescriptions

• No waiting at appointments

• 20 minute appointments so doctors have time to get to the “real” cause of symptoms

Novia Concept

• BTD pays wholesale versus retail

• Get associates attention with easy to read and understand colored charts

• Doctor explain risks associated with associate’s life style behavior

• Nurse coaching to support efforts to change

Novia Concept• Associates schedule own appointments• Electronic records constantly updated with latest

lab results, treatments, and drugs• Associates can view lab results• Records accessible via internet or fax any time

and any where in the world• Complete confidentiality with password

protection for each patient

• Company only sees group summary data

BTD Novia Clinic

• All associates and dependents covered by BTD Health Plan are eligible to use clinic

• No office co-payments• No deductible• No prescription co-payments• Free diagnosis & treatment• Free lab work• Free generic drugs• 20 minute appointment• No waiting

Invest in Associates Wellbeing

• Medical Equipment - $4,008

• Computer Equipment - $2,446

• Initial order of Rx - $3,791

• Total Equipment & Rx - $10,245

• Burdick 12 lead EKG - $2,500

• Total invested - $12,745

• Renovate House - $23,324

Novia Clinic• Opened February 13, 2007

– T, W, Th – 6:00 a.m. to 8:00 a.m.– F – 1:00 p.m. to 4:00 p.m. (9 hours)– Th – 2:00 p.m. to 6:00 p.m. (13 hours)– Th -9:00 a.m. to 10:00 a.m.

• Lab work &/or Rx refills (1 hour) – M – 11:20 a.m. to 12:20 p.m.

• Lab work &/or Rx refills (2 hours)– M – 12:20 p.m. to 4:00 p.m. (16.6 hours)– W – 8:00 a.m. – 12:00 p.m. (20.6 hours)– F – 4:00 p.m. to 5:00 p.m. (21.6 hours)

• Added M – 8:00 a.m. – 10:00 p.m. (23.6 hours)• Added F – 3:30 p.m. to 5:30 p.m. (25.6 hours)• YTD utilization 95.6%

Novia Clinic• Current Doctor Hours

– T, W, Th – 6:00 a.m. to 8:00 a.m. - Male MD– F – 1:00 p.m. to 5:00 p.m. - Male MD– Th – 2:00 p.m. to 5:00 p.m. - Female MD– M – 12:20 p.m. to 4:00 p.m. - NP– T – 3:00 p.m. to 6:00 p.m. - Female Pediatrician– W – 8:00 a.m. – 12:00 p.m. (23.6 hours)

• Lab Hours– M – 11:20 a.m. to 12:20 p.m. - Nurse

• Lab work &/or Rx refills– Th -9:00 a.m. to 10:00 a.m. - Nurse

• Lab work &/or Rx refills (2 hours)• YTD utilization 76.1%

Does it really work?• Pre-Opening Health Fair (blood draw) 189 people• 11 associates have quit smoking• 5 associates are alive today – PRICELESS!• Nurse coaching supporting doctor’s recommendations

– 27 trying to quit smoking– 93 trying to lose weight– 83 trying to change sedentary lifestyle– 112 trying to reduce their risk of heart disease – 109 trying to decrease risk of diabetes– 83 trying to decrease hypertension– 39 requested educational material

• Associates actually requested “healthier” selections be put in vending machines

Does it really work?• Cost per appointment

– $37.62 - Doctor & Nurse ($70.42) – $19.80 – Medications ($23.37)– $11.52 – Lab work ($13.70)– $ 1.99 – Equipment & Supplies ($2.35)– $70.93 Total ($109.84)

• Rx purchased at 34% of retail– $60 or $40 vs. $18.81 for 90 days

• Labs purchased at 20% of retail– $154 vs. $14.50

• Plan 1 - 91%, now 46% • Plan 2 - 9%, now 54%• Smokers 52%, now 49%

What does it save associates?

• Estimated saved office co-pays - $171,090• Estimated saved Rx co-pays - $439,732• Estimated saved lab work - $424,192• Estimated saved wages - $271,462 (2.5 hrs)

• Estimated Total saved - $1,306,476 • Eliminate appointment scheduling hassle• Anxiety about not being able to afford care• Waiting until critical to make appointments

Do associates like the clinic?

Yes!“Reduce my pay more, but don’t take away clinic!”

Health Plan Cost per Employee

$10,375

$6,547

$7,718

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2004 2005 2006 2007 2008 Est.

+58% -26%

+18%

What next?•ProScan

•MRI w/o contrast $525•MRI with contrast $550•CT w/o contrast $300•CT with contrast $450•Ultrasound $200•Mammogram $160•Dexa Scan $100

•Novia – Predictive Modeling

Novia CareClinics, LLC.

• Phone: 800-897-4093

• Website: www.noviacareclinics.com

• Information

• Presentation

• Market analysis

• Formal Proposal