CIGNA Consumer-Driven Health Care

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CIGNA Consumer-Driven Health Care HSA-qualified
HDHP Program Overview For employers with 50 or
fewer employees
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Todays Discussion

• Growth of Consumer-Driven Health Plans
• The CIGNA Approach To Consumer-Driven Health Care
• HSA Overview
• Engagement and Advocacy
• Service Experience and Employee Education

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Consumer-Driven Health Momentum Has Reached All
Segments
Optional Slide
Currently Offer Offer by 2007
All employers (gt1,000) 16 38
Large employers 20 - 25 50
Mid-size employers 5 8 33
Small employers Under 3 33
end of 2004 Forrester Research. Employers
Sound Off on CDHPs, May 2005.
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Approach To Consumer-Driven Health Care
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What We Stand For
Optional Slide
Improve health. Its our single focus. It means
we stand for care that is effective and personal
choices that matter. It means we connect the
health of your employees to the health of your
business.
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Our Approach

• Improve Health Control Costs
• Consumerism personal choices that matter
• Enabling informed healthcare decisions
• Health Advocacy care thats effective
• Delivering integrated care for superior clinical
  outcomes
• Actionable Information connecting employee
  health to the health of your business
• Providing consumers with the tools they need to
  make informed decisions about their health

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HSA Overview
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Definitions

• Health Savings Account
• A tax-exempt trust or custodial account created
  exclusively to pay for the qualified medical
  expenses of the account holder and his or her
  spouse or dependents.
• Covers all medical expenses listed in IRC section
  213(d)
• Can be used only in conjunction with a qualified
  high-deductible health plan
• Funded with actual dollars
• Remains the property of the account holder no
  use it or lose it rules
• High-Deductible Health Plan
• A medical plan that meets certain criteria set by
  the federal government

Minimum Deductible 1,100 single / 2,200 family
Out-of-Pocket Maximum 5,500 single / 11,000 family
These are 2007 limits. Limits for future years
will be set by the IRS.
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Working Together
A high deductible health plan (HDHP) is required
for an HSA

• Minimum Deductible
• 1,100 Single / 2,200 Family
• Maximum Out of Pocket
• 5,500 Single / 11,000 Family
• Deductible and covered expenses apply to
  out-of-pocket maximum
• 100 Preventive coverage recommended
• One deductible amount for Medical and Pharmacy
• 2007 Federal Limits

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HSA Overview
Funding Employer and/or Employee Maximum Lesser of in-network deductible or annual limit set by IRS (For 2007, 2,850 for individuals/5,650 for families)
Tax Advantages Account balances Investment earnings grow tax-free Withdrawals for qualified expenses are tax-free
Account Ownership Employee
Flexibility Employee chooses to use or save
Portability Yes. Employee owns the fund
Annual Rollover Yes
Qualifying Expenses 213(d) medical expenses not covered by HDHP, long-term care, COBRA

• CIGNA Advantages
• HSA banking option powered by JPMorgan Chase
• Industry-leading consumer decision support tools,
  including WebMD suite of tools
• Leading clinical resources
• Helping create more engaged consumers and lower
  medical costs.

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CIGNA Plan Design Options
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Tax Advantages of an HSA

• Tax-Free Contributions
• Employee contributions income tax-free
• Employer contributions (optional) Deductible for
  employer not taxable for employee
• Tax-Free Interest and Investment Gains
• Interest and gains accrue tax free while they
  remain in the HSA
• Tax-Free Withdrawals
• Withdrawals for a qualified medical expense are
  not taxed
• Other withdrawals incur income taxes plus 10
  penalty (lt65)

In Alabama, California, New Jersey, and
Wisconsin, contributions are prior to federal
taxes but after state income taxes. Employer
contributions, earned interest and investment
income are taxable as gross income for state
income tax purposes.
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Engagement and Advocacy
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CIGNA Resources Address the
Continuum of Consumer Health Needs
Help ? Assess ? Target
Health advocacy services to engage, navigate and
facilitate services across the continuum of care
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Consumers, Armed With
The Right Information, Can Take Action
Criteria Diagnostic Lab Drug Outpatient Surgery
Opportunity to plan MRI Prozac Arthroscopic Joint surgery
Price variation Hospital vs. Stand-alone imaging centers Brand vs. Generic Retail vs. Mail Hospital vs. Stand-alone surgery center
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The Key myCIGNA.com

• Review benefit coverage levels
• Track account balance, claims and payments
• Support important health decisions
• Cost and quality information
• Read personalized messages

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Health Risk Assessment

• 15-minute questionnaire helps determine accurate
  personal health status
• Employs 5,000 calculations that screen for over
  21 clinical risk factors
• Results are integrated with CIGNAs Disease
  Management Programs

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Procedure Pricing Tool
Saint Hospital
Community Hospital
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Prescription Pricing Tool

• Members select pharmacy and drug
• Receive actual price theyll pay

LOCAL PHARMACY 123 MAIN STREETHOMETOWN, ST
00000(555) 123-4567
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Hospital Quality Information
Saint Hospital
123 Main StreetHometown, ST 00000(123) 555-1234
Community Central Hospital
123 Center StreetHometown, ST 00000(123)
555-5678
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Hospital Quality Information

• Hospital information tool allows members to
  compare hospitals based on data for 164 surgical
  and medical procedures
• Personalized with In/Out of Network indicators to
  help members understand financial implications of
  decisions
• Physician Surgical Volume results will be
  included in limited areas

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Service Experience and Employee Education
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CIGNA HSA-qualified HDHPwhen powered by JPMorgan
Chase
We have capitalized on the strengths of both
organizations to deliver an empowered HSA

• CIGNA
• HDHP claim adjudication
• JD Power certified customer service
• Large National Network
• Medical management
• Decision support tools
• Enrollment and communication support

• JPMorgan Chase
• Debit card/checkbook processing
• Financial service specialists
• Interest crediting
• Scheduled and unscheduled deposits
• Investment options

CIGNA Advantages

• Consumer
• One toll-free member services number
• Combined web experience via myCIGNA.com and link
  to JPMC
• Online bank application and signature
• 100 Preventive Care coverage

• Employer
• An affordable alternative to health care
• Provides employees with savings opportunity
• Potential for reduced claim costs

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Two Ways to Access HSA Dollarsif account is
established through JPMorgan Chase

• HSA Debit Card
• Visa branded, issued by Chase
• Can be used at ATM as well
• Checkbook
• Two Ways to Track Utilization
• if account is established through JPMorgan Chase
• myCIGNA.com
• Access to claim transactions and history
• Link to JPMC member website
• JPMorgan Chase Member Website
• Access to Health Savings Account transaction and
  balance information
• General Information (including investment
  options) available

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Improve Health The CIGNA Advantage
A more aware health care consumer
Member Education
Open Enrollment
Personalized Media
Provider Outreach
Member activities
myCIGNA.com, WebMD, 800.CIGNA24 Education

• Outreach triggers
• Health risk assessment
• Predictive model
• Integrated data
• Referrals

• Clinical Programs
• Health promotion
• Disease Management
• Care Management

CIGNA activities
CIGNA Health Advocacy Clinical Resources
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Simplifying Your Communication Needs

• Access to communication materials
• Newsletters
• Business activities

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Using Communications
To Build Active, Engaged Members
POST-ENROLLMENT
ENROLLMENT
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Awards And Recognition Demonstrate CIGNAs
Commitment To The Consumer
Optional Slide
CIGNA has catapulted itself into the top ranks
- Consumer Driven Market Report, September
2004 1 in Health Sector IT - 2006
InformationWeek 500
Americas Best Health Plans NCQA

• Best Technology Communications Introduced by a
  Health Plan Organization for Employee/Consumer
  Choice
• 2005 Consumer Directed Health Care Conference
  Expo

• 2005 CIGNA Plans Recognized

NCQA Highest Effectiveness of Care Measures 5
years in a row (2001 2005)