PAGE 19 LHD RFP Response 1. How would you prefer to be compensated? (i.e., direct fee, commissions, retainer, etc.) 2. Does your firm accept contingent commission payments or bonuses from insurers with which you place business? 6. Does your firm employ data mining tools to analyze clinical data to project future risks and costs over time? Explain your process and provide examples LHD’s proposed compensation structure is fee plus commission. Clients can elect to pay monthly fees directly to LHD or convert to a per employee per month amount and added to carrier charges with the carrier(s) remitting payment to LHD. Within the scope of our transparent compensation model, we accept and report contingent commissions / bonuses when they are a standard part of a carrier program. We do not manage a carrier panel limiting access to carriers that pay contingent commissions. We do not negotiate for contingent commissions / bonuses, and we do not position our block of business to maximize them. Recognizing the opportunity for increased data analysis capabilities, especially for our self- funded clients, LHD developed proprietary technology for data analytics and in 2001, and founded Vital Incite. Our team partners closely with Vital Incite’s team to deliver population health data analytics and consulting. Vital Incite gathers medical, Rx, Lab, and on-site physical data, then partners with John’s Hopkins to leverage proprietary prospective risk analytics to identify new or emerging risks, gaps in care, poor risk coordination, and targeted opportunities. LHD employs internal and external resources including employee facing coaches and other advocates to address opportunities identified by technology. Our dataset is also helpful when monitoring the velocity of claims, and the projected cost of a given condition. Read more in Section D, Question one. E. Compensation