Inovalon Clients Realize Over 3x Increase in CMS Star Ratings Compared to National Average

Advanced Analytics and Data-Driven Intervention Capabilities Powered by the Inovalon ONE™ Platform Support Meaningful Quality Outcomes Improvements

BOWIE, Md. – October 30, 2017Inovalon (NASDAQ: INOV), a leading technology company providing advanced, cloud-based platforms empowering a data-driven transformation from volume-based to value-based models across the healthcare ecosystem, today announced that clients utilizing Inovalon’s clinical quality data aggregation, analysis, reporting and improvement capabilities of the Inovalon ONE™ Platform realized a material positive increase in their Centers for Medicare & Medicaid Services (CMS) Five-Star Quality Ratings when compared to organizations not utilizing Inovalon’s Platform.

In aggregate, Inovalon clients saw a material increase in their raw score yielding an average increase of one half star in their overall 2018 Star Rating. This is in comparison to data released on all health plans by CMS on October 11, 2017, which revealed that health plans on average realized no material increase in their raw score from 2017 to 2018 Star Ratings. The achievement of higher Star Ratings reflects a more superior delivery of care by health plans, benefitting their members, and resulting in significant financial incentive payments to the health plan organizations when specific hurdles are met or exceeded.

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 11, 2017, revealed that on a year-over-year basis, Star Ratings scores increased by less than 1% for the average Medicare Advantage health plan on an enrollment-weighted basis, while to the contrary, health plans engaged with Inovalon’s quality data aggregation, analysis, reporting and improvement solution increased by nearly 4%, representing an improvement greater than three times the rate of the broader market.

Inovalon’s clinical quality data aggregation, analysis, reporting and improvement solution, enabled through Components of the Inovalon ONE™ Platform, provide health plans with highly advanced ability to not only gain highly granular, timely insight into clinical quality details, but also improve upon their scores during the relevant date of service period by providing health plans with platform-based tools to implement highly detailed, data-driven initiatives – resulting in improved quality for patients and scores for health plans. Able to analyze patient-level, provider-level, and facility-level data to achieve greater insight and improvement in clinical outcomes measures, Inovalon’s solution is the nation’s most widely used healthcare quality data analysis and improvement Platform. The quality measures addressed are utilized by federal and state programs to determine quality scoring and associated incentives and penalties for such programs as CMS’ Medicare Advantage Five-Star Quality Rating System, the U.S. Department of Health and Human Services’ (HHS) Quality Ratings System (QRS) for Affordable Care Act (ACA) plans, and state-based Managed Medicaid measurement programs. Additionally, Inovalon solutions support physician-based measurement programs such as those created under the Medicare Access and CHIP Reauthorization Act’s (MACRA) Quality Payment Program, Accountable Care Organization (ACO) initiatives, and other quality outcomes-based incentive programs.

“A comprehensive approach to quality improvement requires a year-round strategy, and health plans are increasingly investing in data-driven initiatives to better understand and engage with their patient population to address potential gaps in care to drive meaningful improvements in health outcomes and quality performance,” said Angel Oddo, senior vice president of quality products and solutions at Inovalon. “We are extremely pleased to see our clients recognized for their commitment to quality improvement initiatives and the positive impact in their overall 2018 quality performance.”

About the Inovalon ONE™ Platform

The Inovalon ONE™ Platform is an integrated cloud-based platform of more than 80 individual proprietary technology toolsets able to be rapidly configured to empower the operationalization of large-scale data-driven and value-based healthcare initiatives. The Platform brings to the marketplace a highly extensible, national-scale capability to interconnect with the healthcare ecosystem, aggregate and analyze data in petabyte volumes, arrive at sophisticated insights in real time, drive meaningful impact wherever it is analytically identified best to intervene, and intuitively visualize data and information to inform business strategy and execution.

About Inovalon

Inovalon is a leading technology company providing cloud-based platforms empowering a data-driven transformation from volume-based to value-based models throughout the healthcare industry. Through the Inovalon ONE™ Platform, Inovalon brings to the marketplace a national-scale capability to interconnect with the healthcare ecosystem, aggregate and analyze data in petabyte volumes to arrive at sophisticated insights in real-time, drive impact wherever it is analytically identified best to intervene, and intuitively visualize data and information to inform business strategy and execution. Leveraging its platform, unparalleled proprietary data sets, and industry-leading subject matter expertise, Inovalon enables the assessment and improvement of clinical and quality outcomes and financial performance across the healthcare ecosystem. From health plans and provider organizations, to pharmaceutical, medical device, and diagnostics companies, Inovalon's unique achievement of value is delivered through the effective progression of “Turning Data into Insight, and Insight into Action®.” Providing technology that supports nearly 500 healthcare organizations, Inovalon's platforms are informed by data pertaining to more than 858,000 physicians, 377,000 clinical facilities, and more than 230 million Americans. For more information, visit www.inovalon.com.

Contact:

Kim Collins
kcollins@inovalon.com
Phone: (301) 809-4000 x1473

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