Clover Health Investor Day Presentation Deck
Step 3: Improved Decision-Making Yields Enhanced
Outcomes And Unit Economics
93.8%
89.2%
Returning Member MCRs
FY2019
93.0%
82.0%
Q1 2020
With Non-Clover Assistant Physician
With Clover Assistant Physician
Illustrative w/ Clover Assistant Physician (at 4.0 Stars and Competitor Plan Design)
(1,2)
The Clover Assistant has helped to drive an 1,100 bp
differential in Q1 2020 MCR
Our Q1 2020 Clover Assistant MCR of 82% supports our ability
to offer a 3.0 Star PPO product at lower than HMO costs
Our platform is still in its early innings. Since launch in July
2018, we have released new features on average every three
weeks and are onboarding new physicians year-round
We believe there is meaningful incremental reduction in MCR
beyond even Star ratings improvements
Note: MCR is not a direct equivalent of the federal MLR. CMS does not regulate MCR, but does put an 85% minimum threshold on MLR. Unlike MCR, MLR takes into account, in its numerator, quality
improvement expenditures, which would include Clover's investment in technology for clinical care capabilities.
(1) Theoretical minimum MCR for this Star rating. In practice, Clover will cede some margin back to members in the form of more obvious plan designs, consistent with our growth strategy.
(2) Based on company analysis of plan design differential, including out-of-pocket cost differential and cost differential of offering an HMO vs. a PPO.
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