Introduction to AIG Group Limited HealthCare SM

Transcription

1 Introduction to AIG Group Limited HealthCare SM Conference Information Phone number: (605) Access code:

2 Clyde Ponder Director of Sales CAREINGTON

3 Agenda About the plan Market opportunity Key features & benefits Plan options Sample rates How to start selling

4 About the Plan The AIG Group Limited it HealthCare SM Plan combines: - AIG insured accident and sickness benefits and optional group term and critical illness benefits - CAREINGTON administrative, networks and value added services The plan is part of AIG American General s Employee Benefits Solutions division

5 Best in Class Product Provides financial i assistance for predictable and unexpected medical costs Includes a national medical provider network and other resources Discounts at the point of service All applicants will be accepted as long as participation requirements are met CAREINGTON will administer the product

6 Plan Details Insured medical benefit - Physician office and emergency room visits - Diagnostic tests, hospitalization and intensive care - Accidental death and dismemberment - Prescription drugs* Value added services - Dental, vision, prescriptions, nurse and doctor line Optional benefits - Critical illness and term life insurance * Not available with all plans

7 Gary Hardeman Vice President Worksite Operations AIG Employee Benefit Solutions

8 About AIG AIG American General s insurance companies are known for their financial strength and claims-paying ability: Standard & Poor s AA+ (Very Strong) A.M. Best A++ (Superior) Moody s Aa1 (Excellent) Fitch AA+ (Very Strong)

9 Market Opportunity Of the 47 million Americans* without health insurance, our product would benefit: - Non-benefit eligible employees - Eligible employees who cannot pay for coverage - Part-time permanent employees This limited benefit product addresses the majority of claims and out-of-pocket expenses filed by an employee 85% to 90% of all claims filed are less than $2,000* *Sources: The Centers for Medicare & Medicaid Services, Office of the Actuary; Benefits Selling, July 2007

10 The Limited Benefit Market is Growing Rapidly Limited Benefit In-force Premiums ($ billions) $3.0 $ Source: Analyst Reports

11 The Target Market Employees in our target market are: - Those who may not have access to health insurance but are financially able to purchase a limited benefit plan - Have health insurance but are concerned with the out-of-pocket expenses Industries such as trucking, manufacturing, nursing homes and service industries W-2 employee Contract (1099) employees must have employer sponsorships and a common remitter; no EFT

12 Four Standard Plans*, Many Options For groups between lives, there are four options: Bronze Silver Gold Platinum For groups of 100 or more eligible employees, each plan is variable to meet the diverse needs of the market over 5,000 plan combinations! * National Plan (non-ny);

13 Bronze Silver Gold Platinum Standard Variable Standard Variable Standard Variable Standard Variable Actively at work Required Required Required Required Accident & Sickness Coverage Yes Yes Yes Yes Rate Guarantee Period 1 Year 1 Year 1 Year 1 Year Funded Relationship 100% employer 100% employer 100% employer 100% employer contributory contributory contributory contributory Partial contributory Partial contributory Partial contributory Partial contributory 100% employee pay all 100% employee pay all 100% employee pay all 100% employee pay all Non Occupational Coverage Applies Applies Applies Applies Rate Tiers Employee Employee Employee Employee Employee & Spouse Employee & Spouse Employee & Spouse Employee & Spouse Employee & Child Employee & Child Employee & Child Employee & Child Family Family Family Family NOTE: Plan benefits may vary by group size and are subject to state insurance law, and may vary due to such law. Benefits shown are for non-new York plans. Variable benefits are available for plans with 100 or more eligible employees.

14 Bronze Silver Gold Platinum Standard Variable Standard Variable Standard Variable Standard Variable Guarantee Issued Yes Yes Yes Yes Issue Age Dependent Spouse Issue Dependent Child 23 / / / / 25 Termination Retirement or 75 Retirement or 75 Retirement or 75 Retirement or 75 NOTE: Plan benefits may vary by group size and are subject to state insurance law, and may vary due to such law. Benefits shown are for non-new York plans. Variable benefits are available for plans with 100 or more eligible employees.

15 Physician Office Visits Outpatient Prescription Drug Benefit Bronze Silver Gold Platinum Standard Variable Standard Variable Standard Variable Standard Variable $50 / 5 per insured (max 10 per family) Not included Hospital Admission $250 Daily Hospital Confinement (up to 30 days) ICU Additional Benefit (up to 30 days) Outpatient Diagnostic X Ray & Laboratory Benefit (rider included) Emergency Room Accident (2 per insured per calendar year) $100 $100 $75 / 3 per insured $15 / 5 per insured $750 $500 $250 $500 Must match Hosp. Conf. $75 / 5 per insured $75 / 5 per insured (max 10 per family) Not included $500 $250 $250 $75 / 3 per insured $15 / 5 per insured $1,000 $750 $250 $500 $750 Must match Hosp. Conf. $75 / 5 per insured $75 / 5 per insured (max 10 per family) $15 / 5 per insured $750 $$500 $500 $100 / 3 per insured $20 / 5 per insured $1000 $500 $250 $750 $1,000 Must match Hosp. Conf. $100 / 5 per insured $75 / 5 per insured (max 10 per family) $15 / 5 per insured $1,000 $1,000 $1,000 $100 / 3 per insured $20 / 5 per insured $750 $500 $250 $750 $500 Must match Hosp. Conf. $100 / 5 per insured $100 $200 $200 $300 $300 $500 $500 None NOTE: Plan benefits may vary by group size and are subject to state insurance law, and may vary due to such law. Benefits shown are for non-new York plans. Variable benefits are available for plans with 100 or more eligible employees.

16 Bronze Silver Gold Platinum Standard Variable Standard Variable Standard Variable Standard Variable Emergency Room Sickness (2 per insured per calendar year) $75 $100 $75 $100 $100 $200 $100 $200 Health Screening $50 / 1 $75 / 1 $100 / 1 $100 / 1 Surgery (perschedule) Not Up to Up to Up to included $1,090 $1,090 $1,635 Up to $1,090 Up to Up to Up to $1,635 $1,635 $2,180 Anesthesia N/A 25% 25% 25% 25% 25% 25% 25% Continuous Care Benefits RoutineChild Care (first 12 months) Ambulance (2 per person) Ground Air Paralysis $50 for the lesser of the Hosp. Conf. or 30 days $100 for the lesser of the Hosp. Conf. or 30 days $200 for the lesser of the Hosp. Conf. or 30 days $250 for the lesser of the Hosp. Conf. or 30 days $50 / 4 $50 / 4 $50 / 4 $50 / 4 $100 $500 $100 $1,000 $200 $1,000 $200 $1,000 Quad $2,500 Quad $2,500 Quad $2,500 Quad $2,500 Para $1250 Para $1250 Para $1250 Para $1250 Hemi $1250 Hemi $1250 Hemi $1250 Hemi $1250 Uni $ 625 Uni $ 625 Uni $ 625 Uni $ 625 NOTE: Plan benefits may vary by group size and are subject to state insurance law, and may vary due to such law. Benefits shown are for non-new York plans. Variable benefits are available for plans with 100 or more eligible employees.

17 Bronze Silver Gold Platinum Standard Variable Standard Variable Standard Variable Standard Variable Accidental Death Spouse = 50% $10,000 $10,000 $15,000 $20,000 Children = 25% Accidental Dismemberment Spouse = 50% Children = 25% $10,000 Benefit amount for each eligible dismemberment is $10,000 with the exception of One or more fingers or toes which is $2,500 $10,000 Benefit amount for each eligible dismemberment is $10,000 with the exception of One or more fingers or toes which is $2,500 $15,000 Benefit amount for each eligible dismemberment is $15,000 with the exception of One or more fingers or toes which is $2,500 $20,000 Benefit amount for each eligible dismemberment is $20,000 with the exception of One or more fingers or toes which is $2,500 Common Carrier Death $10,000 $10,000 $15,000 $20,000 Critical Illness Rider (Employer choice) Not included , , , ,500 5,000 Not 5,000 Not 5,000 Not 5,000 7,500 included 7,500 included 7,500 included 7,500 10,000 10,000 10,000 10,000 Term Life $5000 $5000 $5000 $5000 or not (separate contract) or not included or not included or not included included $10,000 Spouse $2,500 if included $2,500 if included $2,500 if included $2,500 $5,000 Child $2,000 if included $2,000 if included $2,000 if included $2,000 $2,500 Other Benefits ADB 75% to max ADB 75% to max ADB 75% to max ADB 75% to max Continuation - yes Continuation - yes Continuation - yes Continuation - yes NOTE: Plan benefits may vary by group size and are subject to state insurance law, and may vary due to such law. Benefits shown are for non-new York plans. Variable benefits are available for plans with 100 or more eligible employees.

18 Participation Levels for voluntary cases are as follow: Between 10 and 100 eligible employees: Greater of 10 lives or 20% For 100 plus eligible employees: Greater of 20 lives or 10% For all groups with 100% Employer Contribution, 100% eligible employee participation is required

19 Greg Rudisill Vice President Strategic Partnerships CAREINGTON

20 Medical Discount Networks Alliances with two of the strongest networks in the industry - Private Healthcare Systems (PHCS) Primary network of physicians and labs Average discounts ranging from 40% to 49% - Beech Street Primary network of over 4,800 hospitals nationwide / secondary network of physicians Average discounts ranging from 20 to 30% Over 1.3 million provider locations

21 Doctor s Office Visit Example #1 No coverage Example #2 Other Mini-Med* Example #3 AIG Group Limited HealthCare Cost $150 $150 $150 Point of Service Medical Discount $0 $0 $65 (43%) Point of Service Out of Pocket $150 $150 $85 Reimbursement $0 $75 $75 After Service Medical Discount 0 $30 (20%) 0 Total to Customer $150 $45 $10 % Savings 0% 70% 93% This example is a dermatology office in FL * Discount based on Beech Street Network

22 Blood Test Example #1 No coverage Example #2 Other Mini Med* Example #3 AIG Group Limited HealthCare Cost $285 $285 $285 Point of Service Medical Discount $0 $0 $202 (71%) Point of Service Out of Pocket $285 $285 $83 Reimbursement $0 $75 $75 After Service Medical Discount $0 $114 (40%) 0 Total to Customer $285 $96 $8 % Savings 0% 66% 97% This example is a lab office in NC * Discount based on Beech Street Network

23 CAREINGTON Dental Discount Network Access to over 65,000 providers nationwide Save 20% to 60% on most dental procedures Includes orthodontics for both children and adults at a 20% savings Includes cosmetic dentistry such as bonding and veneers $500 average savings per person* *CAREINGTON member survey

24 CAREINGTON Discount Dental Example Code Description i Plan Cost Regular Cost Savings 0120 Periodic Ortho Evaluation $23 $47 51% 0274 Bitewings-Four Films $29 $59 51% 2160 Amalgam-Three Surface, $95 $197 52% Primary or Permanent 2750 Crown-Porcelain Fused $577 $ % High Noble Metal 3330 Root Canal-Molar $558 $941 41% (Excluding Final Restoration) Note: There are 13 nationwide fee schedules, above are average costs.

25 EyeMed Vision Discount Network Access to 40,000 providers nationwide including independent optometrists, ophthalmologists, opticians and leading optical retailers such as: - Pearle Vision - Sears Optical - LensCrafters - Target Optical Members save 15% to 45% off the retail price of eyewear Discounts on exams, eyeglasses and contact lenses Laser vision correction Replacement contact lenses by mail

26 Agelity Prescription Discount Network Access to discounts on prescription drugs Average saving of 20% off brand name and 55% off generic drugs All plans have access to the discount program User friendly web tools Accepted in over 53,000 pharmacies nationwide including: - Wal-Mart - Kmart - CVS - Kroger - Rite Aid - Costco - Walgreens - Publix - Albertsons - Winn Dixie - Target - Safeway

27 Top Brand and Generic Drugs Agelity Average Average Count Price Price Savings Savings Brand Drug Plavix 26 $117 $131 $14 11% Nexium 28 $141 $158 $18 11% Generic Drug Alprazolam 72 $12 $60 $47 79% (Xanax) Metformin HCL 75 $11 $35 $24 68% (Glucophage)

28 Additional Features Teledoc On demand access to health care 24 / 7 with access to a physician within 3 hours Consult with physicians i who diagnosis i medical problems and prescribe medication when appropriate No outrageous fees or unexpected charges Reduce the numbers of hours you spend away from work CareNet Nurse triage services Toll-free number 24 hours a day, 7 days a week

29 How to Start Selling Contact your CAREINGTON sales representative and request AIG contract Send the completed contract to our office - Include copies of your state license(s) for the state(s) in which you plan to sell this product

30 Requesting Quote Specific information needed to quote - Group name and addresses (all locations) - Years in business - Number of eligible employees - Type of business/sic code - Description of current group plan - Number of locations

31 Benefits Selling Expo 2008 Booth 319

32 COMING SOON! CAREINGTON Total-Care Web seminar May 08 (date to be determined)

33 Q & A

34 AIG Employee Benefit Solutions insurance products underwritten by: AIG Life Insurance Company Wilmington, Delaware American International Life Assurance Company of New York New York, New York Member companies of American International Group, Inc. This is a summary only of products and services offered. Actual offerings may vary by group size and are subject to state insurance law, and the benefits/provisions as described may vary due to such law. All products are subject to terms, conditions, limitations and exclusions of the policy. Please see policy and certificate for details. Policy form series numbers for employee benefits insurance products include: N20000, N20001, N20005, N20009, N20010, N50005, G LAD 30000, G LAD The underwriting risks, financial obligations and support functions associated with the products issued by the above listed companies are the responsibility of each issuing company. Each of the above listed companies are responsible for their own financial condition and contractual obligations. This policy contains terms and conditions under which it may be terminated or continued in force at the option of the insurer. Please see policy for details. Nothing in this document should be considered as tax advice. Any decisions regarding taxation should be made solely by you in conjunction with a personal tax adviser. To ensure compliance with requirements imposed by U.S. Treasury Regulations, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. AIG American General, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc. (AIG) Policies and riders not available in all states. AIG Life Insurance Company does not solicit business in the state of New York American International Group, Inc. All rights reserved.