Poliwogg Indexes

Disease-Specific Indexes

The disease-specific Poliwogg Indexes ("Index" or the "Indexes") are monthly calculations of the annual U.S. per patient average cost of a disease or condition, i.e., a "spot price" or a "Unit of Care".

  • Designed to underlie financial instruments like swaps, forward and futures contracts, options, exchange traded funds, and other structured products
  • Indexes are created using unique and comprehensive paid claims data
  • Each Index will be published by an independent calculation agent
  • The Type 2 Diabetes Index is the first of a series with additional releases throughout 2017

Participants

The Poliwogg Indexes may be licensed to create financial products for both healthcare industry participants and financial institutions. Banks, mutual funds and asset managers could create both general and custom financial products.

Large Natural Constituencies on Both Sides of the Market Exist:

Payers (Buyers)

  • Insurance Companies
  • Self-insured corporations
  • Pension Funds
  • Governments

Suppliers (Sellers)

  • Pharma-Biotech
  • Hospitals
  • Physicians and Medical Professionals
  • Device Manufactures
  • Labs and other service providers

The Poliwogg Type 2 Diabetes Index

The Poliwogg Diabetes Index is available for license January 2017. The Poliwogg Type 2 Diabetes Index has been back-tested for the past five years - it shows:

  • Cost CAGR of 5.7% over the period
  • Implied annual volatility of 4%

Total Allowed Amount for Type 2 Diabetics

Healthcare and Diabetes Facts

  • National Health Expenditure was $3.0 trillion in 2014 and accounted for 17.5% of the United States gross domestic product (GDP)1
  • 27.9 million Americans have Type 2 Diabetes; 86 million Americans have prediabetes2
  • The average medical expenditures among people with diagnosed diabetes were 2.3 times higher than what expenditures would be in the absence of diabetes3
  • The total costs of diagnosed diabetes in 2012 was $245 billion, which increased 41% over the 2007-2012-time period ($174 billion in 2007)3
  • More than $1 in every $10 healthcare dollars is attributed to diabetes3
  • Type 2 diabetes has an active new drug pipeline. Globally, there are 761 active programs being completed by 245 companies, of which 145 of these companies are based in the United States4
  • In 2012, diabetes treatment cost MORE than all the oil consumed in the United States in 2015.2,5 Oil has a suite of financial tools, futures and options, diabetes and healthcare have none.

Health Care Cost Spiral and Potential Market-Based Solutions

by Kenneth Grant, Poliwogg Director of New Product Development

As is widely known, the management of Health Care costs – both in the United States and around the world – is among the single biggest challenges facing both the domestic and global capital economy. An enormous body of statistics support this assertion, and, as a point of introductory contextualization, consider the following graphics…

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SOURCES

1 "National Health Expenditure Fact Sheet." Centers for Medicare and Medicaid Services. Web. 30 Nov. 16: www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-reports/nationalhealthexpenddata/nhe-fact-sheet.html

2 "Statistics About Diabetes." American Diabetes Association. Web. 30 Nov. 2016: www.diabetes.org/diabetes-basics/statistics/

3 "Economic Costs of Diabetes in the U.S. in 2012." American Diabetes Association. Web. 30 Nov 2016: care.diabetesjournals.org/content/36/4/1033.full?loc=dorg_statistics

4 "Programs in Type 2 Diabetes." BioPharm Insight. Web. 30 Nov 16: www.biopharm-insight.com/biopharm/AccessPoint.aspx?action=InfinataFrame.DisplayFrame&random_x=0.03484719740863218#

5 U.S. Energy Information Administration; March 17, 2016: www.eia.gov/tools/faqs/faq.cfm?id=33&t=6

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