HSA PRODUCT COMPARISON

A COMPARISON OF COMPETITIVE HSA PRODUCT OFFERINGS BETWEEN AETNA, CIGNA &

UNITED HEALTHCARE- II

AETNA-WHAT’S COMING With Aetna, it’s more like “what’s here”:

Aetna is already quoting self-funded HAS for large and middle market cases with June and after effective dates and will quote fully insured plans for July and after effective dates.

Aetna terms its product “Aetna’s Integrated HSA as part of the “Aetna HealthFund family of products.”

AETNA: WHAT’S COMING Aetna had already created HSA compatible plan

designs with the original roll out of AHF, in fact, these were offered and sold as HRA options (and will continue to be offered as HRA options) with first dollar exposure for the consumer.

These offerings have the same design specifications of the original AHF plans including features for brokers to sell the product and estimate premiums off of relativities– a unique system that helps brokers design contribution strategies for their prospect groups.

AETNA: WHAT’S COMING

Aetna’s product is part of a suite of CDHPs that are all integrated offering a seamless plan for the employer.

Aetna’s goal with the product is to create behavior modification, to offer multiple choices to consumers, and to make ees feel more comfortable taking risk.

AETNA: WHAT’S COMING “By fully integrating administration of the HAS

with a health plan and other ancillary services, Aetna will offer a number of unique advantages that will make HSAs easy to use for both employers and employees. These include single claim submission; seamless access to Aetna’s extensive provider network; integrated reporting; integrated pharmacy, dental and long term care offerings; web-based self-service tracking for all health benefits available 24 hrs a day, seven days a week; and nationwide coverage.” www.aetna.com, dec. 8, 2003

AETNA: WHAT’S COMING Product design: Work off existing AHF

platform. HSA will be paired with indemnity, PPO, POS/HMO plans for both self and fully insured. “Aetna will provide both administrative & investment management services for the HSA fund.” Funds will be invested in “short term funding agreement issued by Aetna Life Insurance Company.”

AETNA: WHAT’S COMING Facility of payment/contribution:

Contributions from employer or employee to be made electronically and via a lock box to accept employee direct contributions.

Aetna represents in its press release materials that they are “evaluating additional investment options for future enhancements”.

AETNA: WHAT’S COMING KEY ASPECTS OF NEW PRODUCT: Aetna will serve as its own custodian and it

already manages 20 billion in assets. Aetna already has an effective CDHP with

nearly 150K members and an integrated portfolio selling across all market segments.

Useful, useable on line tools Data that shows that ee behavior is modified

and trend controlled via its product Not using outside vendor or contractor-

dependent resources

AETNA: WHAT’S COMING New, Aexcel initiative introduced

to compete with Vivius as an add on for consumer and defined contribution plans.

State of the art technology and tools for ees and ers.

Aetna’s “consumer experience” is clean and the plans are simple to understand.

UNITED: WHAT’S COMING United bought Golden Rule—the leader

in the small group and individual marketplace. HSAs are very attractive to owners of conduit corporations: sub s, llc, llp, pc, pa, etc. These folks can’t benefit from an HSA, but many had or were interested in MSA. Therefore, the individual HSA and rollover MSAs are a natural (and very large market). Golden Rule has large distribution that is very different from United’s traditional middle market and large group distribution.

UNITED: WHAT’S COMING United has an existing CDHP with iPlan, that

can only become better. The design is to use internal resources Uniprise, new resources, Exante Bank, and sophisticated outside resources Bisys to create a seamless, integrated product offering.

Uniprise will manage the huge project with the following mantra: “individual control, interactive choices, internet enabled.”

UNITED: WHAT’S COMING United will offer multiple high deductible

ppo plans coupled with an employer sponsored personal benefit account or an HSA. United will offer (1/05) approx. 15 different options with plan design relativities similar to Aetna’s. These will be coupled with health information and tools as well as a consumer accounts card for reimbursements.

United is promising ees. easy access to funds via MasterCard debit/ATM cards.

UNITED: WHAT’S COMING

Contradictory kick-off dates described for “iPlan health savings account”

Latest material indicates availability for third quarter 2004.

UNITED: WHAT’S COMING COMPONENT PARTS OF NEW PLAN: Health Savings account can be er or ee funded,

rollover unused amount each year, 100% ee. vesting,

Banking services through United owned Exante Bank (looks like services will actually be provided by Bisys)

Inclusion of preventive, integrated RX and optional PPO or Choice plus

Full menu of ancillary coverages Discounting programs to encourage behavior

modification

UNITED: WHAT’S NEW COMPONENT PARTS OF NEW PLAN; Interest bearing account A la carte drug benefit until phase out Account access via debit card or check

book Fees charged against account: set up,

monthly maintenance, atm charges, Bisys brings investment sophistication and

banking sophistication that none of the other competitors seem to have at present.

CIGNA: WHAT’S NEW New branding: CIGNA Choice Fund,

CIGNATURE-Your Plan. Your Choice. Product design is to offer HRA or HSA

combined with PPO, Open access Plus or indemnity plans on a fully or self funded basis. Multiple deductible, co insurance and out of pocket maximum options with flexible plan designs and funding options, Preventive is free, funds roll over.

CIGNA: WHAT’S NEW CIGNA pushing “customized consumer

communications programs” with specialized incentive programs designed to change consumer behavior, i.e. er awarded dollars to fund and/or award points to change behavior.

Employees will be able to track transactions and balances on line, check claim status, estimate expenses, RX calculator, find a hospital and access health information

CIGNA: WHAT’S NEW Vivius-like customization options: “..employers

custom-design a health care plan by selecting options within five key areas – clinical programs, benefit plan design, network size, use of PCPs and funding type.” www.cigna.com

Plan more oriented to choice, less to plan pricing differentials and contribution strategies. Use awards to change behavior.

Medical management program and health advisors.

Use HRA or HSA alongside customized plan design via defined contribution from er.

CIGNA: WHAT’S NEW The CIGNA Choice Fund is CIGNA’s CDHP vehicle

—fund and rollover options available to employers:

Employers can set up one fund or a multiplicity of funds to effect change in ee behavior including the ability to set up separate funds for pharmacy, preventive care and to offer awards to ees.

Care Gain will be responsible for the capabilities of the Choice Fund—a specific platform of technology tools.

Ees will be able to do risk assessments, review their plans, check the status of claims and order RX on line,

CIGNA: WHAT’S NEW CIGNA will use a vendor- embedded

relationship with Care Gain to drive the customization that it promises.

Care Gain will achieve most of CIGNA’s promised features by third quarter 05.

“The CareGain platform enables many plan designs through the use of multiple account structures, portability, HealthcareIRA and 401(Health), and defined contribution retiree health benefits.” www.cigna.com/health/producer/newsletter/apr2004

CIGNA: WHAT’S NEW The CareGain platform will perform many of the

functions that United is using Bisys for. CareGain will use a MasterCard/Visa

transactional rail to do “point of service adjudication of claims” “posting and settlement against plan design” “provide support for provider’s office and pharmacy” “provide real-time account and plan information for eligibility” www.caregain.com/mpas.htm

CareGain seems to be manufacturing its capabilities and the above appear to be “goals” for its functionality.

This information is confidential and proprietary

Jeffrey J. Hogan 50 Basswood Road Farmington, CT 06032 860-424-2600