Medicare Part D Prescription Drug Plans CIGNATURE Rx Solutions

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Medicare Part DPrescription Drug
PlansCIGNATURE Rx Solutions
Connecticut General Life Insurance Company
contracts with the federal government. CIGNATURE
Rx is insured by Connecticut General Life
Insurance Company. CIGNA HealthCare and CIGNA
refer to various operating subsidiaries of CIGNA
Corporation including Connecticut General Life
Insurance Company. Products and services are
provided by these subsidiaries and not by CIGNA
Corporation.
CMS Approval 11/06 S5617_5978
805978
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Agenda

• Medicare Overview
• Medicare Part D Who is eligible?
• Selecting a plan What to consider?
• Costs Savings
• Coverage
• Convenience
• Comfort
• CIGNATURE Rx Which plan is right for you?
• How to enroll

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Medicare Overview
Part B
Part A

• Medical Insurance
• Doctors services
• Outpatient care
• Diagnostic tests
• Laboratory services
• Durable medical equipment

• Hospital Insurance
• Hospital stays
• Skilled nursing facility care
• Home health care
• Hospice care

Part D
Part C

• Prescription Drug Coverage
• Insurance that helps with
• drug costs
• Implemented January 1, 2006
• Penalties for those who dont
• enroll during initial enrollment period

• Medicare Advantage
• Insurance from private insurer
• Covers both Part A Part B
• Commonly compared to an HMO
• May or may not have Rx coverage

A B
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Medicare Overview
Part D

• Prescription Drug Coverage
• Insurance that helps with drug costs
• Implemented January 1, 2006
• Penalties for those who dont
• enroll during initial enrollment
• period (1 per month penalty)
• Its a voluntary program so you must
• enroll to participate

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Medicare Part D

• You are eligible to join a CIGNATURE Rx
  Prescription Drug plan if

• You are entitled to Medicare Part A or
• You are enrolled in Medicare Part B and
• You reside in a CIGNATURE Rx service area.
• CIGNATURE Rx is available in all 50
• states and the District of Columbia.

You can only be enrolled in one Part D plan at a
time.
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Enrolling in Part D

• Initial Enrollment Period (IEP) The IEP is the
  7-month period that begins 3 months before an
  individual meets eligibility requirements
  (generally, your 65th birthday) and ends 3 months
  after the month of eligibility.
• Annual Election Period (AEP) The AEP occurs
  November 15th through December 31st every year.
  During this period, beneficiaries can
• Enroll for the first time or
• Switch plans if dissatisfied with their current
  plan.
• There is one AEP enrollment/disenrollment
  choice available for use during this period. Once
  that choice is effective, the individual has
  exhausted the AEP.

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Whats Your Prescription Drug Coverage Situation?

• You currently have coverage through one of the
  following
• Your (or your spouses) current or former
  employer or union
• A Medicare Advantage Plan or other Medicare
  Health Plan
• A Medigap (Supplemental Insurance) policy
• TRICARE, The Department of Veterans Affairs, or
  FEHB
• Your state Medicaid Program
• You currently do not have coverage and
• Your health care comes from the Original Medicare
  Plan with or without a Medigap policy.
• Your health care comes from a Medicare Advantage
  Plan.

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I have prescription drug coverage from a current
or former employer or union

• If your coverage is creditable
• You can keep it as long as it is still offered
  and
• You wont have to pay a penalty if your employer
  or union stops offering coverage as long as you
  join a plan within 63 days.
• If your coverage is not creditable, you must join
  a plan during your initial enrollment period to
  avoid a penalty.

• For example
• Grace is retired.
• Her former
• employer notifies
• her that her coverage
• is creditable.
• She elects to keep her coverage. She can later
  choose to get prescription drug coverage if her
  current plan is no longer creditable, and wont
  have to pay a penalty if she joins within 63 days
  of losing coverage.

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I have prescription drug coveragethrough a
Medicare Advantage Plan

• You will receive a notice from your Medicare
  Advantage Plan about your prescription drug
  coverage choices.
• Read any materials you get from your plan
  carefully to understand your options.

• For example
• Esther joined a Medicare
• HMO.
• She gets all of her health
• care from the plan,
• including some prescription
• drug coverage.
• Her Medicare HMO provides her
• with prescription drug coverage
• that is better than Medicares
• standard. She decides to stay with
• her HMO.

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I have prescription drug coverage through a
Medigap (supplemental insurance) policy

• For example
• Regina has received
• a notice from her
• Medigap insurer
• that her drug coverage
• is NOT creditable.
• She buys a Medigap policy
• that doesnt have drug
• coverage. She also joins a
• Medicare Part D Prescription
• Drug Plan to save money.
• She now pays monthly
• premiums for her Medicare
• Part B, Part D and Medigap.

• Most prescription drug
• coverage offered by Medigap is
• NOT creditable.
• To have Medicare help pay for
• your drugs, you must join a new
• plan that provides Medicare
• prescription drug coverage.
• Contact your Medigap
• insurance company before you
• make any changes to your
• prescription drug coverage.

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I have creditable prescription drug coverage
through TRICARE, Veterans Affairs or FEHB

• It may be to your advantage to keep your current
  coverage.
• As long as you still qualify, your TRICARE, VA,
  or FEHB prescription drug coverage is not
  changing.
• If you lose your TRICARE, VA or FEHB coverage and
  you join a Medicare drug plan after 5/15/2006, in
  most cases, you wont have to pay a penalty as
  long as you join within 63 days of losing
  TRICARE, VA or FEHB coverage .

• For example
• Sam retired from
• the military and has
• TRICARE, and it
• pays for his prescription
• drugs, so he elects to keep
• his creditable coverage.
• Douglas is a veteran and gets
• his prescription drugs from
• the VA, so he elects to keep
• his creditable coverage.

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I have prescription drug coverage through my
state Medicaid program

• Medicare, not Medicaid, began paying for your
  prescription drugs on January 1, 2006.
• In most cases you will pay only a small amount
  out of your own pocket.
• If you decide you want another plan, you can
  switch to another plan at any time. Coverage
  will begin on an effective date determined by the
  government in a manner that will avoid a gap in
  coverage to the extent possible.

• For example
• Linda has full coverage from
• Medicaid, and received a letter
• telling her she could join a Medicare
• Part D Plan.
• Since she didnt select a plan,
• she was enrolled in a Part D
• plan in her area to ensure she
• wouldnt miss coverage.
• If Linda feels the plan she was
• enrolled in isnt meeting her
• needs, she can switch.
• Specific details and guidelines on
• Enrollment eligibility and timeframes are
• available at www.medicare.gov.

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I do not have prescription drug coverage and my
health care coverage comes from Original
Medicare without a Medigap policy

• To have Medicare help pay for your drugs, you
  must join a plan.
• Even if you do not use a lot of prescription
  drugs now, joining before the initial enrollment
  period will ensure you avoid any penalty.

• For example
• Martin has only
• Original Medicare
• and he enrolls in a
• Medicare Part D Plan.
• He chooses a plan that covers the
• drugs he is taking and includes
• the pharmacy he uses.
• His Original Medicare plan service
• continues unchanged.

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Help for People with Limited Income

• Financial assistance, if you qualify, is
  available for monthly premiums, yearly
  deductibles and prescription copayments.
• The amount of extra help you receive is based on
  your income and resources.
• Contact Social Security at 1-800-772-1213.
  TTY/TDD users can call 1-800-325-0778. Or visit
  www.ssa.gov on the web.

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Medicare Part D Reasons to enroll now

• A recent Medicare Today study showed how
  beneficiaries spending as little as 381 per year
  could realize savings.
• Even if you dont use prescription drugs now, it
  may protect you from paying more for
  prescriptions that you will need in the future.
• Penalties for those who dont enroll during the
  initial enrollment period.
• 1 per month (for example, if you wait 12 months
  to enroll, you will pay an additional 12 to your
  premium when you do enroll).

Medicare Today, Net Financial Benefit of
Medicare Part D to Medicare Beneficiaries with
Very Low Drug Costs, May 10, 2006.
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COSTS SAVINGS What will you pay and
save? CONVENIENCE Where will you get your
prescriptions? COVERAGE Will you get the
prescriptions you need? COMFORT Will you feel
taken care of?
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Costs and Savings

• There are three cost elements to consider
• Premiums You pay a monthly premium to your
  prescription drug plan for your prescription drug
  coverage. CIGNATURE Rx offers three simple,
  affordable plans for you to choose from.
• Co-payments You pay a set amount each time you
  purchase a prescription. With a CIGNATURE Rx
  plan, youll always know what youre going to pay
  for your Tier 1 to Tier 3 prescriptions at the
  pharmacy no surprises! Tier 4 uses
  co-insurance.
• Deductible You pay up to a certain amount
  before your prescription drug plan begins to pay.
  Two of the three CIGNATURE Rx plans offer
  immediate coverage no deductible.

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Convenience

• Pharmacy Network. CIGNATURE Rx members have
  access to the national network of more than
  55,000 retail participating pharmacies.
• Mail Order Prescriptions. CIGNATURE Rx members
  can also save on co-payments by using CIGNAs
  Tel-Drug Home Delivery Pharmacy Program.
  Co-payments for a 90-day fill at the Tel-Drug
  mail-order pharmacy are 2.5 times the retail
  pharmacy 30-day supply cost.
• For example, at prescription with a 60 co-pay
  for a 30-day supply would cost 150 for a 90-day
  supply at the Tel-Drug mail-order pharmacy.

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Coverage

• Drug List/Formulary. A list of prescription drugs
  that a Medicare drug plan will cover subject to
  limits and conditions.
• Four-Tier Formulary. The level of coverage
  depends on the tier in which your prescription is
  listed
• Generic
• Preferred brands
• Non-preferred brands or
• Specialty drugs.

CIGNATURE Rx covers nearly all Medicare Part D
prescription medications within its four-tier
formulary. Coverage is subject to limitations
and exclusions. Some prescriptions may require
prior approval. Coverage excludes non-Medicare
prescription drug plan medications.
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Comfort

• Personalized Customer Service
• Highly trained representatives
• No interactive voice response you can talk
  directly to a representative and talk as long as
  you need to
• From CIGNA HealthCare, a leading health care
  benefits provider with more than 80 years of
  experience

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Standard Benefit, 2007
5 Steps of Coverage
Benefit Spending
Plus any premium paid
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Overview of 2007 CIGNATURE Rx Plans
CIGNATURE Rx offers three simple, affordable
solutions.
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Value Plan

• Monthly Premium XX.XX
• Deductible 265.00 (brand drugs
  only)
• In-network Copay
• Coverage Gap 100 of discounted drug costs
• Catastrophic Coverage The greater of 2.15 for a
  generic or a preferred brand that is a
  multi-source drug, and 5.35 for all other
  drugs, or 5 coinsurance

90 Day Supply at CIGNA Tel-Drug Mail Order
Pharmacy
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Plus Plan

• Monthly Premium XX.XX
• Deductible 0.00 (Coverage starts
  immediately)
• In-network Copay
• Coverage Gap 100 of discounted drug costs
• Catastrophic Coverage The greater of 2.15 for a
  generic or a preferred brand that is a
  multi-source drug, and 5.35 for all other
  drugs, or 5 coinsurance

90 Day Supply at CIGNA Tel-Drug Mail Order
Pharmacy
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Complete Plan

• Monthly Premium XX.XX
• Deductible 0.00 (Coverage starts
  immediately)
• In-network Copay
• Coverage Gap 4 copay for generic drugs, 100
  of
• 
  discounted drug cost for brands
• Catastrophic Coverage The greater of 2.15 for a
  generic or a preferred brand that is a
  multi-source drug, and 5.35 for all other
  drugs, or 5 coinsurance

90 Day Supply at CIGNA Tel-Drug Mail Order
Pharmacy
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A Savings IllustrationAre You Like Paul?
1 Premiums will be different based on the state
in which you live. 2 Your circumstance may be
different from this example.
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Benefits of CIGNATURE Rx

• Cost. Three Simple and Affordable Plans
• Value
• Plus
• Complete
• Convenience. Extensive National Pharmacy Network
• More than 55,000 retail pharmacies, including
  major chains coast-to-coast
• Coverage. Four-tier, Open Formulary
• Includes nearly all prescription medications
• Comfort. Personalized Customer Service
• Knowledgeable representatives available to assist
  you
• A health care provider with more than 80 years of
  experience

Coverage is subject to limitations and
exclusions. Some prescriptions may require prior
approval. Coverage excludes non-Medicare
prescription drug plan medications.
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How to Enroll

• Enroll Today!
• Call 1-800-XXX-XXXX
• Online through your broker
• Mail your enrollment form to
• CIGNATURE Rx, P.O. Box 269005, Weston, FL
  33326
• Fax your completed form to 1-800-XXX-XXXX

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Resources

• CIGNA Member Service
• 1-800-222-6700 (TTY/TTD users call 1-800-322-1451
  )
• 8 a.m.- 8 p.m., local time, 7 days
• www.cignature-rx.com
• Medicare
• 1-800-MEDICARE
• www.medicare.gov
• Social Security Administration
• 1-800-772-1213 for Extra Help (TTY/TDD users call
  1-800-325-0778)
• www.ssa.gov

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Thank you for your interest in CIGNATURE
RxMedicare Prescription Drug Plans