Inovalon Clients Outperform Market in Year Over Year Improvement

Advanced Analytics and Data-Driven Intervention Platforms Support Meaningful Quality Outcomes Improvements

BOWIE, Md. – November 8, 2016 – Inovalon (NASDAQ: INOV), a leading technology company providing advanced, cloud-based analytics and data-driven intervention platforms to the healthcare industry, today announced that clients utilizing Inovalon’s integrated quality measurement and improvement platform, Quality Spectrum™, realized a material positive increase in their Centers for Medicare & Medicaid Services (CMS) Five-Star Quality Ratings when compared to organizations not utilizing Inovalon technologies. In aggregate, Inovalon clients utilizing the Quality Spectrum™ platform saw an increase in their raw score of 0.16 over their 2016 Star Ratings, yielding an average increase of one half star in their overall 2017 Star Rating. This is in comparison to the data released on all health plans by CMS on October 12, 2016 which revealed that health plans on average decreased in their raw score by 0.02 from 2016 to 2017 Star Ratings.

The national Star Ratings performance program, instituted by CMS, measures and reports on a wide range of clinical and quality outcomes pertaining to members and health plans across the United States. An analysis of the data released by CMS on October 12 revealed that on a year-over-year basis, Star Ratings scores decreased by 0.5% for the average Medicare Advantage health plan on an enrollment weighted basis, while to the contrary, health plans engaged with Inovalon’s Quality Spectrum™ platform increased by more than 4.4%.

Inovalon’s Quality Spectrum™ platform provides health plans with highly advanced quality measurement, analysis, and improvement capabilities. Able to analyze patient-level, provider-level, and facility-level data to achieve greater insight and improvement in outcomes measures, Quality Spectrum™ is the nation’s most widely used healthcare quality analytics and data-driven intervention platform. The quality measures addressed by Quality Spectrum™ are utilized by federal and state programs to determine quality scoring and associated incentives for such programs as CMS’ Medicare Advantage Five-Star Quality Rating System, HHS’ Quality Ratings System (QRS) for Affordable Care Act (ACA) plans, and state-based Managed Medicaid measurement programs. Additionally, the same platform supports physician-based measurement programs such as those created under the Medicare Access and CHIP Reauthorization Act (MACRA).

“As the healthcare industry continues its shift to value-based care, quality improvement remains an extremely important focus for health plans—one that is often challenging given the myriad of complex performance measures and quality outcomes incentive programs,” said Mike Burgin, Executive Vice President of Products and Services at Inovalon. “Health plans are increasingly investing in advanced analytics to drive meaningful improvements in their quality score performance. We are extremely pleased to see our clients recognized for their quality improvement efforts and the impact in their overall quality performance.”

About Inovalon

Inovalon is a leading technology company that combines advanced, cloud-based data analytics, and data-driven intervention platforms to achieve meaningful insight and impact in clinical and quality outcomes, utilization, and financial performance across the healthcare landscape. Inovalon's unique achievement of value is delivered through the effective progression of Turning Data into Insight, and Insight into Action®. Large proprietary datasets, advanced integration technologies, sophisticated predictive analytics, data-driven intervention platforms, and deep subject matter expertise deliver a seamless, end-to-end capability that brings the benefits of big data and large-scale analytics to the point of care. Driven by data, Inovalon uniquely identifies gaps in care, quality, data integrity, and financial performance – while bringing to bear the unique capabilities to resolve them. Providing technology that supports hundreds of healthcare organizations in 98.7 percent of U.S. counties and Puerto Rico, Inovalon's cloud-based analytical and data-driven intervention platforms are informed by data pertaining to more than 837,000 physicians, 354,000 clinical facilities, and more than 139 million Americans. Through these capabilities, Inovalon is able to drive high-value impact, improving quality and economics for health plans, ACOs, hospitals, physicians, consumers and pharma/life-sciences researchers. For more information, visit www.inovalon.com.

Contact:

Inovalon
Kim E. Collins
Phone: 301-809-4000 x1473
kcollins@inovalon.com

George Price (Investors)
Phone: 301-809-4000 x1190
gprice@inovalon.com