Slide 1: Deal Recap – Cigna and Express Scripts: A Compelling Combination
Deal Recap –Cigna and Express Scripts …A COMPELLING COMBINATION
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTSInformation included or incorporated by reference in this communication, and information which may be contained in other filings with the Securities and Exchange Commission (the “SEC”) and press releases or other public statements, contains or may contain forward-looking st
Slide 3: Important Information About the Transaction and Where to Find It
IMPORTANT INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND ITThis communication does not constitute an offer to buy or solicitation of an offer to sell any securities. In connection with the proposed transaction, the newly formed company which will become the holding company following the transac
Slide 4: Healthcare costs are growing at unsustainable levels
Healthcare costs are growing at unsustainable levels Healthcare spending is projected to grow 5.6% per year, on average, over the period 2016 – 2025 – a more rapid rate than growth in GDP – and increase to 19.9% of GDP by 2025 (1)At the same time, the health conditions of Americans are deteriorating
Slide 5: Combined company – Value creation: We Can and Will Do Better
Combined company – Value creation 5 We Can and Will Do Better Unmanaged Care Managed Care Health Services Cigna 9 – 12% Medical trend 7 – 8% Medical trend ~5 – 6% Medical trend ~4% Medical trend Other Health Services Companies Cigna / Express Goal TBD Medical and Pharmacy Trend ≤ CPI Base Healthcare
Slide 6: Express Scripts has market-leading PBM capabilities
Express Scripts has market-leading PBM capabilities (e.g., formulary management, claims processing, mail order pharmacy, retail pharmacy network management and specialty pharmacy) that have delivered superior resultsAchieved 1.5% pharmacy trend in 2017 – the lowest in its history; 44% of clients spe
Slide 7: Cigna delivers market-leading and integrated health services
Cigna delivers market-leading and integrated health services (medical, innovative decision support and navigation tools, health engagement (wellness), behavioral, disease management, medical management, disability management, pharmacy) that have delivered superior resultsDouble-digit top-line and bo
Slide 8: Together, the combined company will seek to transform healthcare
Together, the combined company will seek to transform healthcare:From episodic to holisticFrom disconnected to connectedFrom complicated to simpleThrough its (1) commitment to the individual consumer, (2) drive toward value-based care and (3) investments in innovation (the combined company will have
Slide 9: The value of Cigna's and Express Scripts' PBM models
The value of Cigna’s PBM is driven through its ability to fully integrate with Cigna’s medical offering – this enables Cigna’s PBM to leverage Cigna’s medical data and other health service offerings to lower costs by driving toward a comprehensive treatment plan that returns individuals to health mo
Slide 10: Cigna operates most competitively in its targeted "Go Deeper" states
Cigna operates most competitively in its targeted “Go Deeper” statesToday, Cigna’s ability to expand its integrated medical offering beyond its “Go Deeper” states is highly dependent upon its ability to establish relevance with physicians and hospitals in new locations in order to create competitive
Slide 11: Both companies put the customer front and center
Both companies put the customer front and center Cigna was the first in its space to embrace a customer-centric culture and measure and reward NPS globallyExpress Scripts also drives a culture of customer-centricity and designs its programs to drive high customer satisfaction – as measured by its NP
Slide 12: Benefits of the combination: Accelerates the strategies of both companies
Strategic Goal: Through the power of alignment we will be the company to grow and nurture patients and physician relationships… Benefits of the combination 12 1. Accelerates the Strategies of Both Companies by Driving Deeper Alignment Across Critical Elements of the Healthcare System and Positioning
Slide 13: Benefits of the combination (cont'd): Achieve Accelerated Growth
Benefits of the combination (cont’d) 13 2. Achieve Accelerated Growth U.S. Integrated Medical Targeting Cigna’s “Go Deeper” geographies DescriptionCigna legacy medical offeringOperates as a separate vertical and contracts services from the Integrated Services PlatformGrowth OpportunitiesCross-sell o
Slide 14: Benefits of the combination (cont'd): Differentiated Financial Results and Shareholder Value
Benefits of the combination (cont’d) 14 3. Delivers Differentiated Financial Results and Shareholder Value Delivers Immediate and Longer-Term Cost Savings Greater than $600 million of retained synergies, primarily administrativeBillions of savings for customers and clients fuels further growth Maint
Slide 15: The impact of a combined organization: Illustrative Customer Stories
The impact of a combined organization 15 Illustrative Stories of our Customer Experiences Together, We Will Transform Healthcare:From episodic to holisticFrom disconnected to connectedFrom complicated to simpleIn the following, we provide a view of what the combined organization would be able to do
Slide 16: 1: Chronic condition – Crohn's Disease
Example 1: Chronic condition – Crohn’s Disease 16 SARAHA 50-year-old womanSecretary at a trucking companyTwo active childrenLives outside town in a small community Sarah’s Issue: Sarah has been diagnosed with Crohn’s disease, which causes inflammation of the digestive tract, leading to severe abdomi
Slide 17: 1: Chronic condition – Crohn's Disease (cont'd): Combined Solution
Example 1: Chronic condition – Crohn’s Disease (cont’d) 17 Combined Solution: Our specialty management program led to engaging Sarah about her condition. Sarah can receive medication treatment by our nurse from the Inflammatory Conditions Therapeutic Resource Center in the privacy and convenience of
Slide 18: 1: Chronic condition – Crohn's Disease (cont'd): Better Outcomes
Example 1: Chronic condition – Crohn’s Disease (cont’d) 18 Better quality of lifeConsistency in therapySaves time and moneyConvenient and safe Significant cost savings from home administration Benefits from having Sarah at work more reliably Assurance of care qualityAdherence leads to better outcome
Slide 19: 2: A new diagnosis
Example 2: A new diagnosis 19 SANDYA 36-year-old womanPart-time bookkeeperMother of three small active childrenBusy and engaged with her children and communityVery little time for herself, or for exercise Sandy’s Issue: At a routine checkup, Sandy’s doctor alerted her to her elevated cholesterol lev
Slide 20: 2: A new diagnosis (cont'd): Combined Solution
Example 2: A new diagnosis (cont’d) 20 Combined Solution: Upon electronically prescribing Sandy’s lipid-lowering medication, her doctor is informed of medication options covered by Sandy’s plan, via a real-time electronic health record platform, connected directly to us. Using the mobile app, Sandy
Slide 21: 2: A new diagnosis (cont'd): Better Outcomes
Example 2: A new diagnosis (cont’d) 21 Improved healthEase of use for Rx benefitsSavings from cost comparison transparency tools Savings from use of cost comparison toolsImproved health of dependent plan member, reducing risk of hospitalizationAvoidance of high-cost future care due to adherence Impr
Slide 22: 3: Complex chronic condition patient – Noncompliant with medication
Example 3: Complex chronic condition patient – Noncompliant with medication 22 SALLYA 55-year-old womanAccountantSingle mother of two childrenNoncompliant with her care Sally’s Issue: She did not take her medications regularly. When her diabetes got out of control, she experienced symptoms that led
Slide 23: 3: Complex chronic condition patient (cont'd): Combined Solution
Example 3: Complex chronic condition patient – Noncompliant with medication (cont’d) 23 Combined Solution: We connected Sally with a primary care physician that was part of our Collaborative Accountable Care organization. As Sally went to fill her prescriptions, our drug utilization review system id
Slide 24: 3: Complex chronic condition patient (cont'd): Better Outcomes
Example 3: Complex chronic condition patient – Noncompliant with medication (cont’d) 24 Reduced cost of medications with trend guaranteeCare oversight – controlled blood sugarsAll drugs, (OTC and FDA) monitored for interactions and safety Lower total medical costs by reduced hospital riskDisability