Retiree Choices

1. Retiree Choices

2. What we’ll cover today • What is changing and why? • How this affects you • Introducing Extend Health • Medicare marketplace • Going forward • Questions & answers

3. What’s changing? • Retiree health care coverage options are changing • Retirees & spouses age 65 and older are eligible

4. Why This Approach? • Allows retirees to have more choice and the ability to customize their health care coverage. • More than 75 leading insurance companies in the Medicare supplement market, including national carriers such as UnitedHealthcare®, AARP®, Aetna and Humana. • Extend Health specializes in helping retirees across the U.S. choose the individual Medicare plan that meets their needs and budget.

5. How This Affects You What you pay • May change – depending on what coverage you choose. • You will work with Extend Health to enroll in a plan that meets your medical and prescription needs. We will also help you establish your Health Reimbursement Account. • Extend Health Advisors will help you understand the costs associated with your coverage – premiums, co-payments, deductibles and all other costs. How you enroll Your support

6. Introducing Extend HealthThe Industry’s Largest Medicare Exchange

7. Who is Extend Health? • Independent company • Partner with 75+ health plan carriers • Objective and Trusted US based benefit advisors • Focused on helping each participant make an informed and confident decision

8. Why Extend Health • We are experienced in helping people just • like you • Our services are at no cost to you

10. Plans & Partners • All Medicare Plan Types • Medicare Advantage • Medigap (supplement) • Prescription Drug (Part D) Select Carriers

11. The Process

12. EducationGetting Started Guide • Gather information • (e.g. prescriptions) • Pre-existing conditions will not limit your plan selection* • Give us a call 855-663-4225 • www.ExtendHealth.com/transamerica * except end-stage renal disease

13. EducationEnrollment Guide • Prepare you for enrollment discussion • Review Medicare basics • Appointment confirmation letter

14. Decision Support Tools • Help Me Choose • Prescription Profiler

15. Evaluate and Enroll Licensed Benefit Advisor • 100% domestic workforce • Objective advocacy • Neutral compensation • Extend University • Licensed, certified, appointed • Average age 43 Hours of Operation Monday – Friday 8 a.m. – 9 p.m. Eastern Time

16. Enrollment Process Benefit Advisors can discuss coverage options with anyone – need to speak to the participant to complete the enrollment. Once you have made a coverage selection, enrollment is conducted via telephone. 100% of calls are recorded.

17. Medicare and You

18. Your Future Coverage • Primary Coverage • Medicare A & B • Additional Coverage (Your Choice) • Medicare Advantage with Prescription Drug (MAPD) • Medigap + Prescription Drug

21. Medicare Prescription Drug Coverage

22. Plan Example Medicare Advantage Plan • $0 per month • Network: PPO • Deductible: $0 • Doctor co-pay: $15 Specialist co-pay: $25 • Hospital: $850 co-pay per hospital stay • Emergency Room: $65 co-pay if not admitted • Rx: $7/$43/$85/33% • Mail order: (90 day)

23. Plan Example Medigap Plan F and PDP – 75 year old male • Medical/Rx $215 ($175 - $40) • Network: Any doctor that accepts Medicare • Deductible: $0 • Doctor co-pay: $0 Specialist co-pay: $0 • Hospital: $0 • Emergency Room: $0 co-pay • Rx: $0 deductible $7/$43/$85/33% • Mail order: (90 day)

24. What are Popular Coverage Options and What Do They Cost (costs assume a male, 75-year-old retiree)

25. HRA Information • You may meet the eligibility requirements to qualify for a Company subsidy • The following information pertains to those who qualify for the subsidy amount • Please call Extend Health at 855-633-4225 to find out if you quality for a Health Reimbursement Account subsidy

26. Auto-Reimbursement How the Process Works Health Reimbursement Arrangement

27. What Is An HRA? • Tax-advantaged account used to reimburse you for eligible health care expenses • You must meet the Plan’s eligibility requirements to qualify for HRA • Your HRA funds will be available January 1, 2013

28. Health Reimbursement Arrangement: How It Works Eligible participants receive annual HRA subsidy Participant is reimbursed for healthcare expenses using HRA benefit dollars Participant HRA AccountAdministered by Extend Health Participant works through Extend Health to enroll in individual coverage

29. How to File a Paper Claim

30. Extend HealthHRA Claim Form

31. How Auto-Reimbursement Works

32. What is Auto-Reimbursement? • Auto-Reimbursement (AR) is a service offered by Extend Health • Auto-reimbursement applies only to premiums paid, not expenses • Auto-reimbursement is NOT available on all plans • Due to the timing of Auto-Reimbursement, it is usually not the fastest way to be reimbursed • Forms and instructions provided in the HRA Welcome Kit

33. Next Steps

34. Next Steps

35. Advocacy and support services Toll-free number to contact Extend Health representative Direct support for claims issues, appeals and network questions Renewal process – ability to pick new coverage for future years – not locked into this year’s choice Ongoing enrollment services Post Enrollment Customer Service

36. Questions

37. Frequently Asked Questions Q:Do you offer plans that cover me in multiple states-I am a snowbird? A: Medigap plans are accepted by every Medicare-participating provider in the U.S., with some emergency benefits worldwide. If you travel frequently or live part of the year out-of-state, these plans may be right for you. Part D plans provide nationwide coverage from participating pharmacies. Medicare Advantage plans cover urgent and emergency services nationwide, but some may not provide nationwide coverage for non-emergency services. If you live part of the year out-of-state, these plans may not be right for you. Q:How often will I be billed? By whom? Can I pay by check? A: When you enroll in a new plan, you will need to begin making premium payments to the insurance company in order to maintain your coverage. Some insurance companies may require the first month’s premium payment during the application process. In this case, you should expect to make a payment within a few days of your enrollment. Please have your billing information ready when you make your enrollment call to Extend Health. Most insurance companies give you several billing options for ongoing payments: direct billing, paid by check each month, Electronic Funds Transfer from your checking account, or automatic deduction from your social security check. You can choose to pay monthly, quarterly, or yearly.

38. Frequently Asked Questions Q: If I don’t like the plan that I enrolled in, when can I change? A: Every year you will have an Annual Medicare Enrollment Period during which you can investigate other medical and drug plans and potentially enroll in a different plan. However, during future Medicare Annual Enrollment Period your current medical conditions may limit the plans available to you. You will receive notification from Extend Health of the Annual Medicare Enrollment Period (October 15-December 7), we encourage you to contact us should you have any questions. Q: Will I be refused coverage due to a pre-existing condition? Will I pay more? Can my policy be cancelled once I am enrolled because of my condition? Can my rate be raised for that reason? A: If you enroll in a Medigap plan when you first transition from group coverage, and you wish to change to another Medigap in the future, you will go through Medical underwriting. You will not necessarily be denied, but your monthly premiums could be higher. Your policy cannot be cancelled once you are enrolled unless you do not pay your premiums and your rate will not be raised for medical reasons. If you wish to enroll in a Medicare Advantage plan, they are always guaranteed issue.

39. Frequently Asked Questions Q: What if I have the option for other coverage (spouse, military) – if I don’t enroll with Extend for 2013 can I enroll later? A: No. You must enroll through Extend Health. You will need to enroll into Medical and Prescription coverage to be eligible for the HRA funding if applicable. Q: Will my premium rates increase every year? If so, by how much? A: In general, insurance premiums do increase every year. The increase in plan cost year-to-year can vary widely. We advise our enrollees to contact us and compare other plans if you experience rate increases in the 10-15% range. The national average is 3-4%. Q: Are there plans that will cover me when I travel domestically or internationally? A: Medigap plans are accepted by every Medicare-participating provider in the U.S., with some emergency benefits worldwide. If you travel frequently or live part of the year out-of-state, these plans may be right for you. A few Medicare Advantage plans also have world wide emergency coverage.

40. Frequently Asked Questions Q: How does Extend Health make its money? Will our services be free next year? A: On a high level, Extend Health, Inc. is paid just as any agent would be, by the carrier, not your company. Our services are always free to you. Q: Can I obtain Medical and Rx from one carrier or will I need separate plans for each? A: Some Medicare Advantage plans have limited provisions for all of these needs. If you enroll in a Medigap plan, you will need to enroll in each option separately. Your Benefit Advisor can help you find the best combination for you.