Overview Covered California and IFP Portfolios for 2015

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Overview Covered California and IFP Portfolios for 2015 Karen Boyd Health Net Presentation for IFP Brokers Presentation by Health Net of California, Inc. and Health Net Life Insurance Company (Health Net)

What s New for 2015 Introduce a new tailored network for Covered California and IFP: PureCare One EPO (Exclusive Provider Organization): o Offered to consumers in Northern California. PureCare HSP (Health care service plan): o Offered to consumers in Southern California. Discontinue PPO products, Covered California only. Please note: Throughout this presentation, Individual & family Plans (IFP) refers to plans purchased directly from Health Net, not through Covered California (CovCA), including mirrored-platform Covered California plans. 2

What s New for 2015 (Continued) Comply with Federal Mental Health Parity Final Rule: Applies to all nongrandfathered and grandfathered IFP plans. Update portfolio with Covered California 2015 Standard Plan Designs: Rename benefit plans to comply with Covered California s naming convention. Embed Pediatric Dental within the medical plan. 3

2015 CovCA and IFP Plans Supplemental Coverage Pediatric Vision (included in every plan): Medically necessary vision services and supplies are covered for children up to age 19 as described below. Routine eye exams (separate office visit) limit: 1 per year (exam and hardware). Lenses limit: 1 pair per year. Provider selected frames limit: 1 per year. Contact lenses limit: 1 per year in lieu of eyeglasses coverage for medically necessary glasses. Pediatric Dental (optional buy up) 100/50/50/50: Pediatric Dental Services for children up to the age of 19 are covered. 1 exam every six (6 ) months. Diagnostic & Preventive Services. Basic Services Dental deductible applies. Major Services Dental deductible applies. Medically Necessary Orthodontics Dental deductible applies. Adult Dental/Vision: No changes to benefits; offering will remain the same. Only one offering each of Adult Dental and Adult Vision. These plans would cover adults 19 and older only. The adult buy-up dental/ vision rates will be reflected separately. Adult buy-up dental plans will not cross-accumulate to the OOPM. 4

S u tter PPO: HSP/EPO Service Area Coverage Map 2014/2015 PPO Network 2015 HSP/EPO Network Del Norte Siskiyou Modoc Trinity Shasta Lassen Humboldt Tehama Mendocino Glenn Colusa Lake Butte Plumas Sierra Nevada Placer Sonoma Marin Contra Costa San Francisco San Mateo Santa Cruz Yolo Solano Santa Sacramento San Joaquin Clara El Dorado Merced Alpine Tuolumne Mariposa Madera Mono San Benito Fresno Inyo Monterey Kings Tulare San Luis Obispo Kern Full County Partial County Exiting - No License Santa Barbara Ventura Los Angeles San Bernardino Riverside San Diego Imperial 5

Health Net Portfolio for Covered California HMO Available in Southern California region. Partial coverage in Riverside and San Bernardino counties. Standard plans in Platinum-, Gold- and Silver-level metal tiers. HSP (Health care service plan) Available in Southern California region. Partial coverage in Riverside and San Bernardino counties. Standard plans in Bronze and Catastrophic levels. EPO Available in Northern California region. Partial coverage in Kern County. Standard plans in all metal levels (Platinum Catastrophic). 6

Health Net Portfolio for IFP HMO Available in Southern California region. Partial coverage in Riverside and San Bernardino counties. Standard plans in Platinum-, Gold- and Silver-level metal tiers. HSP Available in Southern California region. Partial coverage in Riverside and San Bernardino counties. Standard plans in all metal levels (Platinum Catastrophic). EPO Available in Northern California region. Partial coverage in Kern County. Standard plans in all metal levels (Platinum Catastrophic). PPO Available in Northern and Southern California regions. Standard plans in all metal levels (Platinum Catastrophic). 7

2015 Portfolio Summary Market Product CovCA / IFP HMO CovCA HSP IFP HSP CovCA / IFP EPO IFP PPO Network Regulator CommunityCare DMHC PureCare DMHC PureCare DMHC PureCare One CDI PPO CDI Std. Plan Offered Region / County Platinum Gold Silver Bronze Catastrophic Platinum Gold Silver Bronze Catastrophic Platinum Gold Silver Bronze Catastrophic Platinum Gold Silver Bronze Catastrophic 2 Marin, Napa, Solano, Sonoma 4 San Francisco 5 Contra Costa 7 Santa Clara 8 San Mateo 9 Santa Cruz 10 Merced, San Joaquin, Stanislaus, Tulare 14 Kern 1 Plus: 9 Monterey, San Benito 10 Mariposa 15 Los Angeles East 16 Los Angeles West 17 Riverside 1, San Bernardino 1 18 Orange 19 San Diego Total Counties 5 5 5 14 22 1 Partial counties for EPO, HSP, HMO. PPO network does not have any partial counties. 8

Portfolio Details HMO / PPO CommunityCare HMO PPO Regulated by: DMHC CDI Service area: Standard Medical Benefit Plan Design: Metal levels offered: Los Angeles, Orange, Riverside, San Bernardino, San Diego Copay CovCA Platinum, Gold, Silver IFP Platinum, Gold, Silver Contra Costa, Kern, Marin, Merced, Napa, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Tulare Mariposa, Monterey, San Benito Coinsurance IFP All metal levels Primary care physician: PCP required PCP not required Pediatric Dental Plan / Standard Plan Design: IFP Only (N/A with CovCA) Adult Dental & Vision Buy Up Option (not sold separately): Pediatric Vision Acupuncture (chiropractic is not covered) Pediatric DHMO / Copay design DHMO Adult Dental & Vision Buy Up Administered by EyeMed Administered by ASH Pediatric DPPO / Coinsurance design Includes out-of-network benefits DPPO Adult Dental & Vision Buy Up Administered by EyeMed PPO specialists 9

Portfolio Details HSP/EPO PureCare HSP PureCare One EPO Regulated by: DMHC CDI Service area: Standard Medical Benefit Plan Design: Metal levels offered: Primary care physician: Pediatric Dental Plan / Standard Plan Design: IFP Only (N/A with CovCA) Adult Dental & Vision Buy Up Option (not sold separately) Pediatric Vision Acupuncture (chiropractic is not covered) Los Angeles, Orange, Riverside, San Bernardino, San Diego Coinsurance CovCA Bronze & Catastrophic IFP All metal levels PCP required Allowed to self refer to specialists Pediatric DHMO / Copay design DHMO Adult Dental & Vision Buy Up Administered by EyeMed Administered by ASH Contra Costa, Kern, Marin, Merced, Napa, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Tulare Coinsurance All metal levels, CovCA and IFP PCP not required Pediatric DPPO / Coinsurance design Includes out-of-network benefits DPPO Adult Dental & Vision Buy Up Administered by EyeMed PPO specialists 10

Terminology and Definitions Terminology Active Renewal Passive Renewal Open Enrollment Special Enrollment Redetermination Definition When a member accesses the Health Insurance Marketplace (Covered California) and selects renew. May involve plan or other change(s). Enrolled member does nothing. Covered California automatically sends renewal file enrolling member into same or crosswalked/mapped plan. Defined period of time when an individual is not previously enrolled through Covered California and may enroll for coverage. Previously enrolled members may also make changes at this time. Enrollment opportunity for consumers who have had a qualifying event (e.g., job loss, birth of child, life change such as divorce). For renewals, Covered California will call out to IRS and HHS systems to verify income and citizenship/immigration status to determine eligibility for subsidies. Consumers must provide consent for redetermination. If a subsidized consumer did not provide consent prior to renewal, the individual will be auto-renewed into a Silver plan without subsidy. Consumer Impacted Current/existing member enrolled in 2014 plan Current/existing member enrolled in 2014 plan New consumers and/or currently enrolled members in 2014 plan New consumers and/or currently enrolled members in 2014 plan Subsidized and consumers who did not receive a premium subsidy in 2014 11

Active and Passive Renewals (2014 to 2015) Health Net CovCA PPO 2014 (discontinued for 2015) Active Renewal Health Net IFP PPO 2014 Health Net HMO IFP and CovCA 2014 Passive Renewal 12

Renewal and Open Enrollment Timeline October November December January February Active Renewal Begins 10/13 OE Starts 11/15 Active Renewal Ends 12/15 OE Ends 2/15 Passive Renewal Start 11/15 13

Open Enrollment Submissions and Cancellations Open enrollment runs from November 15, 2014, through February 15, 2015. Effective dates for enrollment received during this time will be based on the date the enrollment is submitted. Submission date Effective date Payment due date Cancel for nonpayment of binder 11/15/2014 12/15/2014 12/16/2014 1/15/2015 1/16 /2015 2/15/2015 1/1/2015 12/31/14 1/15/2015 2/1/2015 1/27/2015 2/15/2015 3/1/2015 2/24/2015 3/15/2015 14

Redetermination Timing Covered California will be unable to provide 2015 Advanced Premium Tax Credit (APTC) and Cost-Share Reduction (CSR) redetermination amounts until AFTER close of open enrollment on December 15, 2014. To allow adequate time for billing and payment prior to January 1, 2015, billing statements must run no later than December 20, 2014. IMPACT Health Net will not be able to include or apply 2015 APTC/CSR amounts on the January 1, 2015, invoices. SOLUTION January 1, 2015, premium invoices will reflect 2014 APTC/CSR subsidy amounts. For the February 1, 2015, invoice, the bill will reflect the premium less subsidy plus any remaining balance or credit due from the January 1, 2015, statement. 15

APTC Member Experience and Redetermination Our messages to members Now to 12/15 As of Jan 1 Potential tax implications: Member gives CovCA authorization to review 2014 tax data Passively renews (does not contact CovCA) Keeps 2014 APTC Update your info through Covered California to be sure you and your family get the correct premium assistance and avoid the 2015 tax implications. Actively renews (contacts CovCA) 2015 APTC updated You re good to go! Member does nothing Passively renews Will receive new APTC on Jan 1 16

What Is Covered California? Covered California is a Health Insurance Marketplace run by the California Health and Human Services Agency (CHHS) and introduced as: Covered California (for individual and family coverage). Small Business Health Options Program (SHOP). Allows individuals, families and small groups to compare health plans based on price, benefits and value. Helps consumers offset plan costs by understanding which subsidies they are eligible for. Assist with enrollment. 17

Covered California Overview Who is Eligible Most people will be eligible for health coverage through Covered California. To be eligible for health coverage a person must: Live in the United States. Be a U.S. citizen or national (or be lawfully present). Not be currently incarcerated. Open Enrollment Periods 2014 Open Enrollment: CLOSED 2015 Open Enrollment: November 15, 2014 February 15, 2015 2015 coverage begins: January 1, 2015 Special Enrollment Triggered by specific events (loss of coverage, family status change, etc.) Individual can add/change coverage. Lasts 60 days from qualifying event. Individual Subsidies Individuals who meet specific income requirements (generally between 100 to 250 percent of the federal poverty level) will be eligible for federal subsidies to help them purchase coverage. A calculator posted on the Covered California website helps individuals determine the cost of coverage after subsidies. 18

Essential Health Benefits (EHB) What Is Covered? Every health insurance plan sold in the Marketplace will offer 10 essential health benefits. These Essential Health Benefits (EHB) include at least the following: 1. Outpatient care The kind you get without being admitted to a hospital. 2. Trips to the emergency room. 3. Treatment in the hospital for inpatient care. 4. Care before and after your baby is born. 5. Mental health and substance use disorder services This includes behavioral health treatment, counseling and psychotherapy. 6. Your prescription drugs. 7. Services and devices to help you recover if you are injured, or have a disability or chronic condition. This includes physical and occupational therapy, speechlanguage pathology, psychiatric rehabilitation, and more. 8. Your lab tests. 9. Preventive services Including counseling, screenings and vaccines to keep you healthy and care for managing a chronic disease. 10. Pediatric services This includes dental care and vision care for kids. 19

2015 EHB Benefit Impact Minimum Categories Considerations/Impact Including Benchmark Plan Ambulatory Patient Services TMJ diagnosis and treatment. Hearing aids: one hearing aid per ear, per year. Chiropractic limit increase to 20 visits on HMO; remain unlimited on PPO. Nutritional evaluation and counseling for diagnosed chronic disease/condition. Emergency Services No change. Hospitalization Bariatric Surgery (when provided at Centers of Excellence). Organ Transplant Travel Services: $10,000 travel benefit (exception: cornea transplants). Maternity/Newborn Care New for IFP PPO in 2014. Mental Health/Behavioral Autism/ABA. Health Mental Health Parity applies to all plans and segments. Substance Use Disorder Inpatient / Outpatient Substance Abuse diagnosis, care and treatment. Services Voluntary and court-ordered Residential substance abuse treatment. Prescription Drugs New Essential Rx Drug Lists. Preventive Pharmacy Medication based on USPTSF A and B recommendation provided at no charge. Smoking Cessation Medication. No program participation required. Includes OTC with no script. Rehabilitative/Habilitative Habilitative Services and Devices refers to medically necessary health care services and devices that assist an individual in partially or fully acquiring or improving skills and functioning and that are necessary to address a health condition, to the maximum extent practical. These services address the skills and abilities needed for functioning in interaction with an individual s environment. Laboratory Services Preventive/Wellness Services/Chronic Disease Management Preventive Pediatric Vision and Dental Care 60-day limit for Rehabilitation and 60-day limit for Habilitation. DME annual limits removed. Considered an EHB today. Does not include wellness incentive programs and/or value added benefits. Dental $100 deductible. The Dental Services Deductible does not apply to Diagnostic Services and/or Preventive Services. 20