Universal American ACOs Led by Primary Care Physicians Saved $97 Million for Medicare Program and Generated $40 Million of Shared Savings Revenue

Continued Improvements in Quality and Cost of Healthcare

WHITE PLAINS, N.Y.–(BUSINESS WIRE)–Collaborative Health Systems (CHS), a Universal American company
(NYSE:UAM), announced today that 10 Accountable Care Organizations
(ACOs) formed in partnership with primary care physicians earned $40
million in shared savings as part of the Medicare Shared Savings Program
(MSSP) for program year 2015. The amount of shared savings represents a
48% increase over last year. Revenue to CHS increased 37% to $28.6

Quality scores improved for all of our ACOs with start dates prior to
2015, indicating an improvement in healthcare management resulting from
enhanced physician engagement. For example, 88% of our ACOs had an
increase in primary care services utilization and visits to providers
within 30-days of hospital discharge. 79% of our ACOs had a reduction in
hospitalizations per thousand beneficiaries, comparing results for 2015
to the year before the ACOs’ start date.

The 10 ACOs that qualified for shared savings payments for program year
2015 met quality standards and savings thresholds established by
Medicare. In addition to the 10 ACOs that will receive shared savings,
eight other ACOs achieved savings but did not exceed the minimum savings
threshold in order to qualify for a shared savings payment. Together
these 18 ACOs generated $97 million in total savings for the Medicare

Richard A. Barasch, CEO of Universal American, commented: “Our core
strength is partnering with primary care physicians to improve health
outcomes while reducing costs in the Medicare population. Over the past
15 years, we have built a platform that combines efficient use of data
and care management protocols with the critical work of establishing
trust with our physician partners. We now have more than 350,000
Medicare beneficiaries on this platform in Medicare Advantage, Medicare
Shared Savings ACOs and Next Generation ACOs. The 2015 MSSP results
further reflect the remarkable efforts of our physician partners as they
move toward a system in which they are appropriately rewarded for
positively impacting the quality and cost of healthcare for their
Medicare patients. We are also gratified by the ongoing commitment of
the Centers for Medicare & Medicaid Services (CMS) to the ACO program as
shown by CMS’ continued improvements to the program, including the
introduction of the Next Generation ACO model.”

Jeffery Spight, President of Collaborative Health Systems, noted the
company’s performance across the wide range of healthcare settings of
its physician partners. “CHS ACOs represented 6% of the ACOs but
generated 17% of the net savings to the Medicare program in 2015. The
savings and quality of care results that our diverse ACOs have achieved
this year is proof that the value-based program can work across many
different care settings when physicians are given the tools to be
successful. We are proud of the physicians in our ACOs who have taken on
the challenge of value-based care because they know it’s the right thing
to do for their Medicare beneficiaries.”

About Collaborative Health Systems

Collaborative Health Systems (CHS), a Universal American company (NYSE:
UAM), is a management services organization that partners with primary
care physicians as they move to value-based payment systems. Our core
belief is that primary care physicians are in the best position to
influence the quality and cost of healthcare. CHS provides comprehensive
support for its physician partners by providing actionable data to help
coordinate care and helping practices change behavior to meet the new
quality requirements of the value-based payment system. CHS currently
manages one Next Generation Model ACO, and 22 MSSP ACOs, with
approximately 5,000 providers, mostly primary care physicians, covering
239,000 Medicare beneficiaries. For more information, visit http://www.CollaborativeHealthSystems.com.

About Universal American Corp.

Universal American (NYSE: UAM), through our family of healthcare
companies, provides health benefits to people covered by Medicare. We
are dedicated to working collaboratively with healthcare professionals,
especially primary care physicians, in order to improve the health and
well-being of those we serve and reduce healthcare costs. For more
information on Universal American, please visit our website at www.UniversalAmerican.com.


Collaborative Health Systems:
Sarah Bell, 914-597-2908
Relations Counsel:
The Equity Group Inc.
Fred Buonocore,
Latman, 212-836-9609

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