Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — JP Morgan Healthcare Conference (January 2021)
18 slides from Clover Health Investments's conference presentation, January 2021
Slide 1: Clover Health Overview
Clover Health Overview January 2021
Slide 2: Our Ethos
Our Ethos Our mission is to improve every life Our strategy is centered around deploying the Clover Assistant to physicians to improve and reduce variability in clinical decision-making Our thesis is that Clover Assistant-powered physicians drive incremental clinical and economic value, supporting o
Slide 3: Why Medicare Advantage As Clover's First Market
Why Medicare Advantage As Clover's First Market Meaningful Impact as a Largest, Undisrupted Market Medicare Advantage Insurer in Healthcare $1.25tn TAM “Own” and Leverage the Data Stack Overall Medicare 14% CAGR Opportunity for Economic Alignment $590bn $270bn Medicare Medicare Advantage Create Bett
Slide 4: Our Virtuous Growth Cycle
Our Virtuous Growth Cycle 1. Capture and synthesize data 2. Apply machine 5. Drive strong, market- learning to provide leading organic data-driven, membership growth personalized insights at the point of care via the Clover Assistant 4. Share superior 3. Improve clinical economics with decision-maki
Slide 5: Designing "Obvious" Plans
Designing “Obvious” Plans Five Burning Questions Upending the Trade-off: Access vs Cost Is my PCP in the network? Open Is my hospital in the network? Typical PPOs Access Is my specialist in the network? Incumbents Are drugs covered? Narrow Typical HMOs Low Annual Cost High What is the plan going to
Slide 6: Providing Better Care At A Lower Cost
Providing Better Care At A Lower Cost Illustrative Out of Pocket Costs(1) Competitor Savings Medicare PCP $5 $0 $5 $21(3) Copay (100%) Specialist $20 - $40 $5 -$20 $25 - $45 $30(3) Copay (80%-89%) Drug $150 - $200(5) $200 - $240 $0 - $90 $651(2) Deductible (0% - 38%) OTC $346 $25 -- $0 Allowance Avg
Slide 7: We Leverage Our Expert System To Surface Actionable Data
We Leverage Our Expert System To Surface Actionable Data At The Point Of Care Our data and focus on actionability… …Allow us to drive value via the Clover Assistant Combining Rich Data With Action Evidence-Based Protocols Maps personalized clinical data to evidence-based protocols. Value: Incrementa
Slide 8: How We Deploy Engaging Software
How We Deploy Engaging Software Useful Clinical Content + Software Engagement At Scale Streamlined Workflow Providers leverage CA as a standalone platform % of Members That See A PCP outside of low-NPS electronic health record (EHR) Contracted on the Clover Assistant systems 70%+ 59% 61% Providers a
Slide 9: Data Aggregation And Machine Learning At The Point Of Care
Data Aggregation And Machine Learning At The Point Of Care PCP Charts Actionable Data (at the point of care) Clover Assistant Specialist Charts • Evidence-Based Protocols EHR Data • Potential Comorbidities Pharmacy Data • Cancer Screening Reminders Lab Data • Medication Adherence • Annual Flu Shot S
Slide 10: Physicians Value The Clover Assistant
Physicians Value The Clover Assistant In ~2 years since product launch, we’ve built a broad base of engaged physicians. Given our software-driven approach, we believe we can scale these results rapidly within existing and new markets. 92% +59 3 weeks 68% Broad Physician feedback Onboarded PCPs used
Slide 11: Improved Decision-Making Yields Enhanced Outcomes And Unit Economics
Improved Decision-Making Yields Enhanced Outcomes And Unit Economics Returning Member MCRs The Clover Assistant has helped to drive an 1,100 bp differential in Q1 2020 MCR 93.8% 93.0% 89.2% 82.0% Our Q1 2020 Clover Assistant MCR of 82% supports our ability to offer a 3.0 Star PPO product at lower th
Slide 12: Consumers Are Choosing Clover
Consumers Are Choosing Clover Clover was the Fastest Growing Medicare Advantage Plan with at Least 50,000 Members over the 2018 to 2020 AEP / OEP Periods(1) Top 3 3-Year AEP / OEP Member Growth CAGR Market share position in all established markets(2) >50% Average take rate in 27.0% established marke
Slide 13: We've Achieved Significant Market Share
We’ve Achieved Significant Market Share Our take rate has translated into significant market share gains in our established markets, even when competing against large incumbents. Market Share In Clover’s Established Markets(1) 60% 50% 40% 30% 20% 10% -- 2013 2014 2015 2016 2017 2018 2019 2020 Clover
Slide 14: Our Virtuous Growth Cycle Extends Beyond MA
Our Virtuous Growth Cycle Extends Beyond MA Organic MA Growth The Clover Assistant helps enable us to underwrite best-in-class plans, supporting our nation-leading growth among MA plans with over 50k members. Partnerships Our ethos and technology have earned us partnership opportunities that can fur
Slide 15: Direct Contracting Platform Opportunity
Direct Contracting Platform Opportunity Clover has applied to be a risk-bearing Direct Contracting Entity Illustrative Provider Medicare Panel (DCE) under Global Risk as part of the upcoming Direct Contracting (DC) program scheduled to launch April 2021 Designed to support outcomes improvement in an
Slide 16: Go To Market Strategy
Go To Market Strategy Medicare B2B B2C Lives managed require Advantage Contract with physicians to adopt the Clover Assistant platform & Acquire Medicare Advantage members through direct to both B2B and B2C consumer channels acquisition B2B B2C Lives managed largely Direct Claims alignment automatic
Slide 17: Go To Market Strategy (Cont'd)
Go To Market Strategy (Cont’d) In under a year of preparing for Direct Contracting, we contracted with PCPs to use the Clover Assistant for a significant number of lives under management in 2021, with expected opportunity for high growth in the future. 10 months >50% 200k 8 Expected total lives in O
Slide 18: Geographic Expansion Synergistic Across Products
Geographic Expansion Synergistic Across Products 1 Launch Direct 2 Develop Network 3 Launch Obvious 4 Expand Provider Contracting Adequacy for MA Plans Networks Medicare Advantage Identify markets with Identify markets with limited Continuously add strong significant Medicare $0 premiums & low/no co
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