Exhibit 3.

Expected Inpatient And Skilled Nursing Facility Out-Of-Pocket Expenses ($) For Medicare Advantage Members, By Premium Level And Receipt Of Subsidies, 2011

SOURCE Authors’ analysis of Medicare Advantage (MA) and Medicare enrollment records. NOTES Zero-premium plan members pay the Part B premium amount but pay no additional MA premiums. Added-premium plan members pay the Part B premium and an extra premium to the MA plan. Traditional Medicare beneficiaries may have additional Part B expenses for physician services while hospitalized. People with coinsurance as their primary form of cost sharing for inpatient or skilled nursing facility (SNF) services are excluded. Inpt. is inpatient. ^aMembers with subsidies for only the Part B premium or Part D coverage. Plans with a large share of members with subsidies are identified as follows: within each premium amount range, plans in the top quartile for percentage of members receiving subsidies for Part B premium or Part D coverage.