Pre-Existing Condition Insurance Plan Washington State (PCIP-WA) June 2013 Financial Review

Pre-Existing Condition Insurance Plan Washington State (PCIP-WA) June 2013 Financial Review 1. Financial Statements June 2013 U Sheet Due to the timing of the HHS reimbursement receipts, there is no available cash on hand at the end of June 2013. Cash position is discussed further in the Budgeted Cash Flow section below. As of June 2013, the receivable for unbilled HHS reimbursements is $10.1 M. This amount represents an offset of liabilities, including IBNR, which will be invoiced and funded by HHS before the end of the program. The total IBNR of $8.4 M increased $106 K or 1.3% as compared to the prior month. The medical portion decreased $228 K or 3.1% and pharmacy increased $334 K or 36.5% from May 2013. U Statement Total member months for June 2013 YTD are 1,723 member months higher or 37.4% higher than June 2012 YTD. months are measured as the cumulative monthly member count (PMPM) over a period of time. The total incurred claim loss for June 2013 YTD is $5.7 M or 30.4% higher than June 2012 YTD. Incurred claim loss represents the total medical and pharmacy claims expense in addition to the change in unpaid losses (IBNR) and accrued loss adjustment for the period. For June 2013 YTD, the medical claims portion is $2.3 M or 16.1% higher than June 2012 YTD. Also, for June 2013 YTD, the pharmacy claims portion is $3.4 M or 74.2% higher than June 2012 YTD. The total incurred claim loss PMPM for June 2013 YTD is $3,877 as compared to the budgeted amount of $4,314. June 2013 YTD administrative expenses are $182 K or 35.6% higher than June 2012 YTD. The ratio of administrative expenses as a percentage of total cost is 2.7% for June 2013 YTD as compared to 2.6% for June 2012 YTD. Total cost is calculated as total incurred claim loss less pharmacy rebates plus administrative expenses. June 2013 YTD HHS Reimbursement is $4.4 M or 27.0% higher than the June 2012 YTD amount. 07/30/2013 1

2. Budgeted Cash Flow June 2013 The Budgeted Cash Flow document contains the budget (upper portion) as revised in May 2013 and the actual (lower portion) cash flow results year-to-date. The Program Summary (discussed below) is a dynamic report and therefore changes as better financial information is obtained. At the end of June 2013 there is no available cash balance. Total net cash receipts for June 2013 are $2.6 M or 9.3% unfavorable to budget primarily due to lower than anticipated reimbursements from HHS. Total June YTD expenses are $478 K or 1.7% favorable to budget. Total medical and pharmacy claims expenses combined are $505 K or 1.9% favorable to budget, and administrative variances discussed further below are $27 K or 4.2% unfavorable to budget. 3. Administrative Expense Budget June 2013 For June 2013, administrative expenses are $27 K or 4.2% unfavorable to budget (cash basis). 4. PCIP-WA Program Summary June 2013 The program summary is a blended cash flow forecast tool that tracks the federally allotted funds throughout the life of the program. Actual claims, premiums and administrative expense data is input as incurred, while data for future months is based on the original budget. The summary shows the projected remaining balance at the end of each year as well as at the end of the program. The summary also compares the original budget figures to the blended forecast figures and calculates the blended administrative cost percentage (yearly and in total). PCIP-WA submitted a revised forecast in May 2013 and those re-forecasted figures were updated in the May packet. The re-forecast reflected reduced enrollment, premium and claims projections resulting from the suspension of new enrollment as mandated by HHS. Actual results are illustrated through July 2013. As of July 2013, membership was transitioned to the federally ran PCIP pool and therefore PCIP-WA no longer has any active membership. In July 2013, PCIP-WA began to process run-out for claims incurred prior to July 1, 2013. As of July 2013, PCIP-WA has used up 69.0% of the current funding and is projected to have enough funds to cover costs through the remainder of 2013 and beyond. PCIP-WA and HHS will continue to monitor available funds and projections on a quarterly basis with new funds to be awarded as necessary. Administrative costs as a percent of total costs is 3.6% since inception of the program and, by the end of the program, that percentage is projected to be 5.9%. 07/30/2013 2

PCIP-WA Unaudited Sheet as of June 30 Total Enrollment : 1,044 Assets: 2013 2012 Cash $ - $ 16,401 Premiums Receivable 59,677 33,666 HHS Receivable - - Unbilled Payments from HHS 10,138,837 10,620,115 Prepaid Expense 12,650 15,350 Total Assets $ 10,211,165 $ 10,685,531 Liabilities and Unassigned Surplus: Reserve for Unpaid Losses - Medical $ 7,137,000 $ 8,620,000 Reserve for Unpaid Losses - Pharmacy 1,249,000 738,000 Accrued Loss Adjustment 219,000 244,000 Premiums Received in Advance 257,276 989,266 Checks Written in Excess of Cash (1) 1,244,158 - Due to WSHIP - - Abandoned Claim Reserve 4,440 - Accrued Expenses 100,290 94,266 Total Liabilities $ 10,211,165 $ 10,685,531 Unassigned Surplus - - Total Liabilities and Unassigned Surplus $ 10,211,165 $ 10,685,531 (1) Checks Written in Excess of Cash are claim checks written prior to the receipt of HHS reimbursements. These checks are not distributed until the proper funding is received. 07/30/2013 3

2013 2012 Total 6,330 4,607 Premium Earned $ 4,505,740 $ 3,028,374 Pharmacy Rebate 52,031 19,347 Incurred Claim Loss - Medical 16,506,524 14,212,036 Incurred Claim Loss - Pharmacy 8,037,417 4,612,709 Total Incurred Claim Loss 24,543,940 18,824,745 Operating Expenses: PCIP-WA Unaudited Statement of Operations January 1 to June 30 Administrative Expense $ 320,764 $ 263,535 Variable Administrative Expense 140,976 76,415 Salary and Benefit Expense 116,903 88,706 Contracted Outreach Fees 24,670 12,169 Miscellaneous Expense 18,139 24,914 Professional Fee Expense 71,037 44,768 Start-Up Expenses - - Total Operating Expenses $ 692,489 $ 510,507 Underwriting Gain (Loss) $ (20,678,658) $ (16,287,531) HHS Reimbursement 20,678,658 16,287,531 Investment - - Other - - Changes in Unassigned Surplus $ - $ - 07/30/2013 4

PCIP WA 2013 Budgeted Cash Flow Budget - 2013 (revised May 2013) JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JUNE YTD TOTAL Enrollment Count 976 1,035 1,106 1,058 1,013 969 - - - - - - 6,157 6,157 Cash BEGINNING OF MONTH - - - - - - - - - - - - Receipts Premium Receipts 721,759 764,287 820,422 781,598 747,989 715,826 - - - - - - 4,551,881 4,551,881 HHS Reimbursement 4,850,640 2,865,656 3,186,202 3,952,612 4,044,587 4,278,689 4,592,118 1,500,188 769,811 527,172 232,062 251,621 23,178,387 31,051,359 Pharmacy Rebate - - - - - - - - - - - - - - Claim Refunds Receipts - - - - - - - - - - - - - - Investment - - - - - - - - - - - - - - Abandoned Claims - - - - - - - - - - - - - - Other - - - - - - - - - - - - - - Total Receipts 5,572,399 3,629,943 4,006,624 4,734,210 4,792,576 4,994,515 4,592,118 1,500,188 769,811 527,172 232,062 251,621 27,730,268 35,603,240 Refunds Premium Refunds - - - - - - - - - - - - - - Total Refunds - - - - - - - - - - - - - - Expenses Medical Claim Expense 5,470,163 3,526,235 3,890,769 4,628,558 4,684,251 4,887,616 4,421,260 1,398,010 683,856 449,051 153,651 179,620 27,087,592 34,373,041 Pharmacy Claim Expense - - - - - - - - - - - - - - Administrative Expense 45,797 47,269 49,016 46,831 48,600 47,174 113,087 44,408 28,185 22,851 16,140 16,730 284,687 526,090 Variable Administrative Expense 10,500 10,500 10,500 10,500 10,500 10,500 - - - - - - 63,000 63,000 Salary and Benefits Expense 17,250 17,250 17,250 17,250 17,250 17,250 20,000 20,000 20,000 20,000 20,000 20,000 103,500 223,500 Contracted Outreach Fees 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 24,870 49,740 Prescription Administrative Expense 1,333 1,333 1,333 1,333 1,333 1,333 - - - - - - 8,000 8,000 Miscellaneous Expense 14,378 14,378 14,378 15,559 14,630 14,630 22,417 22,417 22,417 19,917 19,917 19,917 87,952 214,954 Professional Fees 8,833 8,833 19,233 10,033 11,867 11,867 11,208 11,208 11,208 11,208 18,208 11,208 70,667 144,915 Start-Up Expense - - - - - - - - - - - - - - Total Expense 5,572,399 3,629,943 4,006,624 4,734,210 4,792,576 4,994,515 4,592,118 1,500,188 769,811 527,172 232,062 251,621 27,730,268 35,603,240 Cash Month End $ - $ - $ - - $ - $ - $ - $ - $ - $ - $ - $ - Actual JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL YTD Enrollment Count 966 1,034 1,106 1,106 1,074 1,044 6,330 Cash BEGINNING OF MONTH 867,231 (190,378) (438,323) (437,307) (582,046) (1,642,883) Receipts Premium Receipts 622,585 348,267 670,196 1,491,618 314,587 282,509 3,729,762 HHS Reimbursement 3,424,018 3,019,262 3,361,862 2,604,689 4,245,292 4,644,385 21,299,508 Pharmacy Rebate - - - 22,455-29,576 52,031 Claim Refunds Receipts 12,719 74,020 8,913 138,391 3,681 66,092 303,816 Investment - - - - - - - Abandoned Claims - - - - - - - Other - - - - - - - Total Receipts 4,059,321 3,441,549 4,040,971 4,257,154 4,563,561 5,022,561 - - - - - - 25,385,116 Refunds Premium Refunds 39,210 38,704 14,854 36,095 15,876 99,253 243,992 Total Refunds 39,210 38,704 14,854 36,095 15,876 99,253 - - - - - - 243,992 Expenses Medical Claim Expense 3,841,725 2,472,719 2,866,118 3,056,226 3,595,116 3,041,807 18,873,711 Pharmacy Claim Expense 1,149,981 1,064,532 1,042,516 1,157,100 1,920,175 1,374,742 7,709,045 Administrative Expense 49,951 52,913 50,179 55,419 61,311 48,813 318,585 Variable Administrative Expense 11,906 22,597 16,402 37,876 10,538 23,388 122,706 Salary and Benefits Expense 7,102 18,798 28,886 30,582 8,254 17,935 111,557 Contracted Outreach Fees - 4,145 4,145 4,145 4,145 8,290 24,870 Prescription Administrative Expense 10,621 1,264 2,285 1,372 1,406 4,237 21,185 Miscellaneous Expense 4,881 4,822 1,985 5,284 3,375 2,294 22,643 Professional Fees 1,554 9,001 12,585 17,793 4,201 3,077 48,212 Start-Up Expense - - - - - - - Total Expense 5,077,720 3,650,790 4,025,101 4,365,798 5,608,522 4,524,583 - - - - - - 27,252,514 Cash (190,378) (438,323) (437,307) (582,046) (1,642,883) (1,244,158) - - - - - - Checks written in excess of Cash 190,378 438,323 437,307 582,046 1,642,883 1,244,158 Inc(Dec) in Abandoned Property Reserve Available Cash - - - - - - - - - - - - 07/30/2013 5

PCIP WA 2013 Budgeted Cash Flow Variance to Original Budget Favorable/(Unfavorable) JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL YTD Enrollment Count (10) (1) - 48 61 75 173 Receipts Premium Receipts (99,174) (416,020) (150,226) 710,020 (433,402) (433,317) (822,119) HHS Reimbursement (1,426,622) 153,606 175,660 (1,347,923) 200,705 365,695 (1,878,879) Pharmacy Rebate - - - 22,455-29,576 52,031 Claim Refunds Receipts 12,719 74,020 8,913 138,391 3,681 66,092 303,816 Investment - - - - - - - Abandoned Claims - - - - - - - Other - - - - - - - Total Receipts (1,513,078) (188,394) 34,346 (477,056) (229,016) 28,045 (2,345,152) Refunds Premium Refunds (39,210) (38,704) (14,854) (36,095) (15,876) (99,253) (243,992) Total Refunds (39,210) (38,704) (14,854) (36,095) (15,876) (99,253) (243,992) Expenses Medical Claim Expense 1,628,438 1,053,516 1,024,651 1,572,332 1,089,135 1,845,809 8,213,881 Pharmacy Claim Expense (1,149,981) (1,064,532) (1,042,516) (1,157,100) (1,920,175) (1,374,742) (7,709,045) Administrative Expense (4,154) (5,643) (1,162) (8,588) (12,711) (1,639) (33,897) Variable Administrative Expense (1,406) (12,097) (5,902) (27,376) (38) (12,888) (59,706) Salary and Benefits Expense 10,148 (1,548) (11,636) (13,332) 8,996 (685) (8,057) Contracted Outreach Fees 4,145 - (0) (0) (0) (4,145) (0) Prescription Administrative Expense (9,288) 69 (952) (39) (73) (2,903) (13,185) Miscellaneous Expense 9,496 9,555 12,392 10,275 11,255 12,336 65,309 Professional Fees 7,280 (168) 6,649 (7,760) 7,666 8,790 22,456 Start-Up Expense - - - - - - - Total Expense 494,678 (20,847) (18,476) 368,412 (815,946) 469,932 477,754 Inc(Dec) in Abandoned Property Reserve - - - - - - - - - - - - Cash (190,378) (438,323) (437,307) (582,046) (1,642,883) (1,244,158) - - - - - - Checks written in excess of Cash 190,378 438,323 437,307 582,046 1,642,883 1,244,158 - - - - - - Available Cash - - - - - - - - - - - - (1) Assumes an annual claims expense trend of 15%. (2) Assumes a premium rate level of 100% of the standard risk rate. (3) Assumes a 10% rate increase in January of each year. (4) Assumes increases in enrollment until March when HHS requires suspension of new enrollees. After March, assumes an enrollment attrition rate of 4% per month. 07/30/2013 6

PCIP-WA 2013 Administrative Expense Budget Variance Analysis Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total ship (1) 976 1,035 1,106 1,058 1,013 969 - - - - - - 6,157 Administrative Expense (2) 45,797 47,269 49,016 46,831 48,600 47,174 113,087 44,408 28,185 22,851 16,140 16,730 526,090 Variable Administrative Expense (3) 10,500 10,500 10,500 10,500 10,500 10,500 - - - - - - 63,000 Salary and Benefits Expense (4) 17,250 17,250 17,250 17,250 17,250 17,250 20,000 20,000 20,000 20,000 20,000 20,000 223,500 Contracted Outreach Fees (5) 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 49,740 RX Benefit Management Fees (6) 1,333 1,333 1,333 1,333 1,333 1,333 - - - - - - 8,000 Miscellaneous Expense (7) 14,378 14,378 14,378 15,559 14,630 14,630 22,417 22,417 22,417 19,917 19,917 19,917 214,954 Professional Fees (8) 8,833 8,833 19,233 10,033 11,867 11,867 11,208 11,208 11,208 11,208 18,208 11,208 144,915 Start Up Costs (9) - - - - - - - - - - - - - Total Budget Operating Expenses 102,236 103,708 115,855 105,652 108,325 106,899 170,857 102,178 85,955 78,121 78,410 72,000 1,230,199 Actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Total ship (1) 966 1,034 1,106 1,106 1,074 1,044 6,330 Administrative Expense (2) 49,951 52,913 50,179 55,419 61,311 48,813 318,585 Variable Administrative Expense (3) 11,906 22,597 16,402 37,876 10,538 23,388 122,706 Salary and Benefits Expense (4) 7,102 18,798 28,886 30,582 8,254 17,935 111,557 Contracted Outreach Fees (5) - 4,145 4,145 4,145 4,145 8,290 24,870 RX Benefit Management Fees (6) 10,621 1,264 2,285 1,372 1,406 4,237 21,185 Miscellaneous Expense (7) 4,881 4,822 1,985 5,284 3,375 2,294 22,643 Professional Fees (8) 1,554 9,001 12,585 17,793 4,201 3,077 48,212 Start Up Costs (9) - Total Actual Operating Expenses 86,015 113,540 116,467 152,471 93,230 108,034 - - - - - - 669,758 Variance Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Total ship (1) (10) (1) - 48 61 75 173 Administrative Expense (2) (4,154) (5,643) (1,162) (8,588) (12,711) (1,639) (33,897) Variable Administrative Expense (3) (1,406) (12,097) (5,902) (27,376) (38) (12,888) (59,706) Salary and Benefits Expense (4) 10,148 (1,548) (11,636) (13,332) 8,996 (685) (8,057) Contracted Outreach Fees (5) 4,145 - (0) (0) (0) (4,145) (0) RX Benefit Management Fees (6) (9,288) 69 (952) (39) (73) (2,903) (13,185) Miscellaneous Expense (7) 9,496 9,555 12,392 10,275 11,255 12,336 65,309 Professional Fees (8) 7,280 (168) 6,649 (7,760) 7,666 8,790 22,456 Start Up Costs (9) - - - - - - - Total Variance Expenses 16,221 (9,831) (612) (46,820) 15,095 (1,135) - - - - - - (27,082) Notes: (1) ship is projected to increase through March at which point new enrollment is suspended. Enrollment then decreases due to attrition. ship budget developed by Leif and Assoc in May of 2013. (2) Administrative Expense reflects fixed contractual TPA fees as well as contractual and performance bonuses per member for TPA, Utilization Management fees and Network services. (3) Variable Administrative Expense includes Case Management & Care Coaching, special mailings, and misc. system programming. (4) Salary and Benefits Expense reflect the combined amounts of the Executive Director, Deputy Executive Director, Executive Assistant and Program Coordinator. PCIP-WA reimburses WSHIP for 50% of salary and benefit costs and these figures reflect those reimbursements. (5) Contracted Outreach Fees is the outreach expenses billed from the Washington Office of Insurance Commissioner. (6) Prescription Administrative Expense is the administrative fees charged by the PBM. (7) Miscellaneous expense includes Board expenses, conference travel, insurance, agent commissions, phone/internet charges, and office expenses. PCIP-WA reimburses WSHIP for 50% of miscellaneous costs and these figures reflect those reimbursements. (8) Professional fees include legal fees, auditing fees, actuarial fees, and consulting. 07/30/2013 7

Pre existing Condition Insurance Pool PCIP WA Program Expense and Funding Summary (Highlighted cells represent actual data) Projected Budget Variance Claims less Refunds Claims PMPM Net Premiums Calculated Drawdowns 2011 Funding % of 2011 Funding Used Total Program 29,218,573 Carry forward 86,415,472 2011 January 179 181 1.1% 531,845 2,938 138,257 393,588 70,282 463,870 28,754,703 1.6% 85,951,602 February 224 226 0.9% 632,702 2,800 164,753 467,949 66,521 534,470 28,220,233 3.4% 85,417,132 March 301 304 1.0% 1,461,569 4,808 302,714 1,158,855 120,912 1,279,767 26,940,466 7.8% 84,137,365 April 336 341 1.5% 1,341,681 3,935 185,556 1,156,125 79,114 1,235,239 25,705,227 12.0% 82,902,126 May 406 410 1.0% 1,217,756 2,970 197,713 1,020,043 89,865 1,109,908 24,595,319 15.8% 81,792,218 June 442 446 0.9% 1,795,218 4,025 495,411 1,299,807 81,719 1,381,526 23,213,793 20.6% 80,410,692 July 487 496 1.8% 1,216,882 2,453 201,438 1,015,444 36,539 1,051,983 22,161,810 24.2% 79,358,709 August 525 531 1.1% 1,730,552 3,259 202,019 1,528,533 144,275 1,672,808 20,489,002 29.9% 77,685,901 September 576 586 1.7% 1,552,438 2,649 247,316 1,305,122 61,438 1,366,560 19,122,442 34.6% 76,319,341 October 621 625 0.6% 2,287,994 3,661 653,699 1,634,295 108,656 1,742,951 17,379,491 40.5% 74,576,390 November 652 659 1.1% 2,203,600 3,344 217,938 1,985,661 65,031 2,050,692 15,328,798 47.5% 72,525,697 December 690 708 2.6% 2,105,353 2,974 806,471 1,298,882 88,898 1,387,780 13,941,019 52.3% 71,137,917 2011 Totals 5,439 5,513 18,077,590 3,279 3,813,285 14,264,304 1,013,249 15,277,554 Contract Adjustment 246,028 Revised 2011 Budget (May 2013) 18,065,567 3,321 3,152,411 14,913,156 1,061,052 15,974,208 2011 Budget Variance F/(U) (12,023) 660,874 648,852 47,803 942,682 Projected Remaining 71,137,917 2011 Admin % of Total Costs 5.3% Includes $29,101,463 available for 2011 plus $117,110 carryover from 2010. (Note: Even though the August 2011 reforecast reduced the 2011 contract amount, HHS had put $29,101,463 on the PMS based on the June 2011 reforecast. That amount remained on PMS and any excess will carry forward to 2012. "Total Program " column is populated with the most current projections which were submitted to HHS for approval in May 2013. 07/30/2013 9

Pre existing Condition Insurance Pool PCIP WA Program Expense and Funding Summary (Highlighted cells represent actual data) Projected Budget Variance Claims less Refunds Claims PMPM Net Premiums Calculated Drawdowns 2012 Funding % of 2012 Funding Used Total Program 75,137,918 Carry forward 71,137,917 2012 January 675 688 1.9% 1,878,781 2,731 376,866 1,501,914 88,360 1,590,274 73,547,644 2.2% 69,547,643 February 717 725 1.1% 1,985,778 2,739 236,966 1,748,812 79,859 1,828,671 71,718,973 4.6% 67,718,972 March 761 765 0.5% 2,457,915 3,213 951,800 1,506,114 107,412 1,613,527 70,105,446 6.8% 66,105,445 April 766 782 2.1% 3,270,512 4,182 321,274 2,949,238 94,225 3,043,463 67,061,983 11.0% 63,061,982 May 797 805 1.0% 4,250,759 5,280 298,455 3,952,304 76,697 4,029,001 63,032,982 16.5% 59,032,981 June 837 842 0.6% 2,782,652 3,305 1,046,198 1,736,454 78,658 1,815,112 61,217,870 18.9% 57,217,869 July 859 867 0.9% 3,329,890 3,841 368,041 2,961,850 91,791 3,053,640 58,164,230 23.1% 54,164,229 August 876 872 0.5% 3,327,890 3,816 297,264 3,030,626 80,460 3,111,087 55,053,143 27.3% 51,053,142 September 918 926 0.9% 3,509,876 3,790 1,073,773 2,436,103 79,824 2,515,928 52,537,216 30.7% 48,537,215 October 943 947 0.4% 3,547,164 3,746 485,780 3,061,383 106,114 3,167,497 49,369,719 35.0% 45,369,718 November 957 960 0.3% 4,502,069 4,690 376,635 4,125,433 103,258 4,228,691 45,141,028 40.8% 41,141,027 December 1,005 1,013 0.8% 4,814,638 4,753 1,338,133 3,476,505 116,060 3,592,564 41,548,464 45.7% 37,548,462 2012 Totals 10,111 10,192 39,657,925 3,891 7,171,188 32,486,737 1,102,717 33,589,454 Revised 2012 Budget (May 2013) 39,438,847 3,901 6,725,302 32,713,545 1,102,719 33,816,264 2012 Budget Variance F/(U) (219,078) 445,886 226,808 2 226,810 Projected Remaining 37,548,462 2012 Admin % of Total Costs 2.7% "Total Program " column is populated with the most current projections which were submitted to HHS for approval in February 2013. Includes $61,196,899 available for 2012 plus $13,941,019 carryover from 2011. $68,196,899 is the 2012 projected drawdowns based on the latest actuarial forecast submitted to HHS. HHS estimated a $7,000,000 carry forward from 2011, so the current contract admendment only shows $61,196,899 awarded for 2012. 07/30/2013 10

Pre existing Condition Insurance Pool PCIP WA Program Expense and Funding Summary (Highlighted cells represent actual data) Projected Budget Variance Claims less Refunds Claims PMPM Net Premiums Calculated Drawdowns 2013 Funding % of 2013 Funding Used Total Program 37,548,462 Carry forward 37,548,462 2013 January 976 966 1.0% 4,978,987 5,154 583,374 4,395,612 86,015 4,481,627 33,066,835 11.9% 33,066,835 February 1,035 1,034 0.1% 3,463,230 3,349 309,563 3,153,666 113,540 3,267,206 29,799,629 20.6% 29,799,629 March 1,106 1,106 0.0% 3,899,721 3,526 655,342 3,244,379 116,467 3,360,846 26,438,782 29.6% 26,438,783 April 1,058 1,106 4.5% 4,052,480 3,664 1,455,523 2,596,957 152,471 2,749,428 23,689,354 36.9% 23,689,354 May 1,013 1,074 6.0% 5,511,610 5,132 298,712 5,212,899 93,230 5,306,129 18,383,225 51.0% 18,383,225 June 969 1,044 7.7% 4,320,882 4,139 183,255 4,137,626 108,034 4,245,660 14,137,565 62.3% 14,137,565 July 2,395,114 13,584 2,381,530 107,793 2,489,323 11,648,242 69.0% 11,648,242 August 3,807,307 3,807,307 102,178 3,909,485 7,738,757 79.4% 7,738,757 September 683,856 683,856 85,955 769,811 6,968,945 81.4% 6,968,946 October 449,051 449,051 78,121 527,172 6,441,773 82.8% 6,441,773 November 153,651 153,651 78,410 232,062 6,209,711 83.5% 6,209,712 December 179,620 179,620 72,000 251,621 5,958,091 84.1% 5,958,091 2013 Totals 6,157 6,330 33,895,509 4,143 3,499,353 30,396,155 1,194,216 31,590,372 Revised 2013 Budget (May 2013) 34,813,710 5,654 4,517,023 30,296,687 1,230,199 31,526,886 2013 Budget Variance F/(U) 918,201 (1,017,670) (99,468) 35,983 (63,486) Projected Remaining 5,958,091 Inception to Date Actual Claims Claims PMPM Net Premiums 2013 Admin % of Total Costs 3.4% 2010 Totals 305 1,005,816 3,298 251,511 754,305 404,498 2011 Totals 5,513 18,077,590 3,279 3,813,285 14,264,304 1,013,249 2012 Totals 10,192 39,657,925 3,891 7,171,188 32,486,737 1,102,716 2013 YTD Totals 6,330 28,622,023 4,143 3,499,353 25,122,669 777,551 Inception to Date 22,340 87,363,353 3,911 14,735,338 72,628,016 3,298,014 ITD Admin % of Total Costs 3.6% This amount includes excess funds carried forward from 2012 in the amount of $41,548,464 minus $4,000,000 of funds which were deobligated in June of 2013. "Total Program " column is populated with the most current projections which were submitted to HHS for approval in May 2013. 07/30/2013 11

Pre existing Condition Insurance Pool PCIP WA Program Expense and Funding Summary (Highlighted cells represent actual data) Projected Budget Variance Claims less Refunds Claims PMPM Net Premiums Calculated Drawdowns 2014 Funding % of 2014 Funding Used Total Program 5,958,091 Carry forward 5,958,091 2014 January 202,344 202,344 68,117 270,460 5,687,630 4.5% 5,687,631 February 141,749 141,749 66,740 208,489 5,479,142 8.0% 5,479,142 March 115,779 115,779 66,150 181,930 5,297,212 11.1% 5,297,212 April 100,631 100,631 65,806 166,437 5,130,775 13.9% 5,130,775 May 40,036 40,036 64,429 104,465 5,026,310 15.6% 5,026,310 June 116,862 116,862 66,305 183,166 4,843,144 18.7% 4,843,144 July 59,375 59,375 4,783,769 19.7% 4,783,769 August 59,375 59,375 4,724,394 20.7% 4,724,394 September 59,375 59,375 4,665,019 21.7% 4,665,019 October 59,375 59,375 4,605,644 22.7% 4,605,644 November 59,375 59,375 4,546,269 23.7% 4,546,269 December 59,375 59,375 4,486,894 24.7% 4,486,894 2014 Totals 717,400 717,400 753,797 1,471,197 Revised 2014 Budget (May 2013) 717,400 717,400 753,797 1,471,197 2014 Budget Variance F/(U) 0 0 (0) 0 Projected Remaining 4,486,894 2014 Admin % of Total Costs 51.2% Projected s Actual s Budget Variance Claims Claims PMPM Net Premiums Calculated Drawdowns 2015 Funding % of 2015 Funding Used Total Program 2015 and Beyond 4,486,894 From 2014 Ending 4,486,894 Revised 2015 Budget (May 2013) 1,373,007 1,373,007 3,113,887 30.6% Projected Remaining 3,113,887 Claims less Refunds Net Premiums 2010 Totals 1,005,816 251,511 754,305 404,498 2011 Totals 18,077,590 3,813,285 14,264,304 1,013,249 2012 Totals 39,657,925 7,171,188 32,486,737 1,102,717 2013 Totals 33,895,509 3,499,353 30,396,155 1,194,216 2014 Totals 717,400 717,400 753,797 2015 & Beyond 1,373,007 Summary Blended Summary (Includes Actual data with Forecasted Amounts) 93,354,239 14,735,338 78,618,901 5,841,484 Admin % of Total Costs 5.9% 07/30/2013 12