1. Innovative Strategies to Reduce Healthcare Costsand other Value Added Benefits Proprietary and Confidential
2. Managing Healthcare Costs Employers continue to seek creative solutions to reduce healthcare costs, decrease absenteeism and increase productivity They have been forced to restructure their benefit plans, often reducing benefits and raising deductibles and co-pays This leaves some gaps in coverage and more exposure for employees This also leaves some strategic opportunities Proprietary and Confidential
3. Managing Healthcare Costs One creative solution that can fill in these gaps and minimize exposure for employees is the HealthPerx™ Card, which offers a range of affordable healthcare benefits. These benefits offer the entire family thousands of dollars in savings. At the same time it offers the employer those creative solutions they seek - reduced absenteeism, increased productivity and decreased overall healthcare costs. Proprietary and Confidential
4. Disclosures This plan is NOT insurance. Discount Medical Plan Organization: New Benefits, Ltd., Attn: Compliance Department, PO Box 671309, Dallas, TX. 75367-1309 This plan provides discounts at certain healthcare providers for medical services. This plan does not make payments directly to the providers of medical services. The plan member is obligated to pay for all healthcare services but will receive a discount from those healthcare providers who have contracted with the discount plan organization. This discount card program contains a 30 day cancellation period. Member shall receive a full refund of membership fees, excluding registration fee, if membership is cancelled within the first 30 days after the effective date. The range of discounts for medical or ancillary services provided under the plan will vary depending on the type of provider and medical or ancillary service received. Proprietary and Confidential
7. Individuals often leave work for minor issues which results in loss of productivity and unnecessary costs
8. Individuals overuse Urgent Care and ERs TeleHealthcan provide immediate access to healthcare to every individual wherever they are, whenever they need it, without any added cost. The most efficient and cost effective method to deliver telemedicine is by phone. Proprietary and Confidential
9. Studies Show Physician telephone consults … have been proven to replace 45%-64% of doctor office visits and 15%-35% of hospital ER visits. Source: TelaDoc 2007 Survey and Consult A Doctor Survey Results 2010 Costs can be reduced as the healthcare system moves from in-person physical exams to virtual visits. The average ER visit is $1024 and primary care office visit is $140. Source: BCBS 2007: Health Cost Estimator Patient satisfaction with telemedicine is high…due to convenience, comfort , privacy…and the security of having 24-hour access. Source: Us Department of Commerce, Office of Technology The Challenge: Most telemedicine services require a co-pay. This represents a significant barrier resulting in low usage rates. We have eliminated that barrier. Proprietary and Confidential
17. Patient calls for Consult a Doctor™ services are diagnosed and treated successfully over 94% of the time (the other 6% cannot be treated by phone) with 98% satisfaction rating.
18. 64% of callers would have gone to physician and 15% to the ER—a significant savings of time and money.Disclosures Consult A DoctorTM physicians do not prescribe controlled medications. Consult A DoctorTM is not insurance. Consult A DoctorTM does not replace your primary care physician. Proprietary and Confidential
36. Saves Employers: Can reduce absenteeism, increase productivity and decrease overall healthcare costs
37. Saves Employees: Can save thousands of dollars a yearProprietary and Confidential
38. Return on Investment Expected ROI for this program ONLY calculates the Consult A Doctor benefit. All other benefits are simply considered value-added in this example. Assumptions: Company Contribution of $7.95 PEPM Usage based on 2.4 members per family Average office visits 3.07 per person per year Average ER visits .405 per person per year Productivity value measured on employees With 20% participation: Receive $1.86 for every $1 invested With 33% participation: Receive $3.07 for every $1 invested With 50% participation: Receive $4.65 for every $1 invested Imagine if every corporation strongly encouraged a “call first” policy Disclosures: Office and ER visits taken from CDC Nat’l. Center for Health Statistics. Costs per office and ER visit based on BCBS negotiated rates. Reductions in office and ER visits based on actual survey results. Proprietary and Confidential
39. Pharmacy Savings Card The prescription drug benefit network delivers significant discounts on both brand-name and generic drugs at over 60,000 pharmacies across the United States. Members save between 15% and 75% on prescription drug purchases, with an average of 52% off the retail price of most Rx purchases. Even though employees may have a pharmacy benefit, many prescriptions aren’t covered. Ex: cosmetic drugs, appetite suppressants, smoking cessation prescriptions, prenatal vitamins or nutritional supplies, inject-able supplies, contraceptive devices, immunizations and vaccines and many more Our card covers them all. The Pharmacy Savings Card is NOT Insurance. Proprietary and Confidential
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41. Generic Navigator - find generic equivalents of a brand name drug and compare prices of the brand drug and generic equivalents available within the discount network.The Pharmacy Savings Card is NOT Insurance. Proprietary and Confidential
42. Pharmacy Savings Card Example of Generic Navigator • How it helps families save money • How it promotes consumerism Drug Selected LIPITOR 40 MG Tablet QTY 30 =$133.18 (discounted price) Generic Alternative GENERIC PRODUCT NOT AVAILABLE N/A Optional Drugs within this Therapeutic Class Speak to your Physician about a therapeutic alternative. SIMVASTATIN 40 MG Tablet QTY 30 =$10.66 PRAVASTATIN SODIUM 40 MG QTY 30 =$13.67 LOVASTATIN 40 MG Tablet QTY 30 =$26.76 LESCOL 40 MG Capsule QTY 30 =$90.81 MEVACOR 40 MG Tablet QTY 30 =$124.02 CRESTOR 40 MG Tablet QTY 30 =$127.01 Proprietary and Confidential
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44. Save on cosmetic surgery procedures, including skin resurfacing, acne scars, liposuction, and more.
45. One of the largest physician and hospital networks in the nation.
46. No age or health restrictions.Proprietary and Confidential
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48. Find the best doctors, hospitals and other providers
66. Save on specialty care, orthodontics, endodontics and periodonticswhere available.
67. No limit on number of visits*Actual costs and savings vary by provider and geographical area. ** According to the Aetna Enterprise Provider Database as of October 1, 2008. . Dental Discounts not available to Vermont residents
68. Savings Examples Service Cost* Aetna Cost Savings Adult Cleaning $96 $56 $40 42% Child Cleaning $69 $39 $30 43% Routine Checkup $49 $29 $20 41% Four Bitewing X-rays $61 $34 $27 44% Composite Filling $163 $84 $79 48% Crown $889 $597 $292 33% (porcelain fused to noble metal) Complete Upper Denture $1207 $800 $407 34% Molar Root Canal $1005 $678 $327 33% * This represents average fees for procedures done in Los Angeles, Orlando, Chicago and New York in 2009. Proprietary and Confidential
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70. Savings on eye exams and 40-50% off the national average on LASIK surgery and PRK (where available)
72. Over 12,000 locations including national chains and independent providersPearle •Sears • JC Penny •Target • LensCrafters • Sterling •EyeMasters• QualSight LASIK Vision Discounts not available to Vermont Residents
73. Vision Care Savings Example 1 - New York, NY Regular Exam (Ophthalmologist) $150.00 CTC Member pays: $120.00 Savings: $30.00 20% Conventional Lasik: $5,500.00 CTC Member Pays: $3,600.00 Savings: $1,900.00 35% Example 2 - Dallas, TX Regular Exam (Ophthalmologist) $190.00 CTC Member pays: $133.00 Savings: $57.00 30% Frames (Regular) $89.95 CTC Member Pays: $54.47 Savings: $31.48 35% Progressive / Polycarbonate $209.00 CTC Member pays: $156.75 Savings: $52.25 25% Proprietary and Confidential
77. 45-day in-home trial period and 1year factory warranty Proprietary and Confidential
78. Other Health Benefits Diagnostic Lab, X-Ray and Imaging Affordable:Deeply Discounted Rates – 40-70%. Never have to pay full price for any lab work, x-rays or imaging again. Savings are bigger than any PPO or insurance company offers. Convenient: Choose the lab location that's best for you…near home, work, or even while traveling. Quality: We use only federally and state certified clinics, including such names as LabCorp. Over 2900 radiology centers in the US. Easy Laboratory Testing: Order your tests online or call us. Have the test(s) performed at the lab and generally within 48 - 72 hours, you will be notified of your test results. It's that easy. No co-pays No deductibles Confidential: Results sent only to you. See how easy it is to order a lab test: http://hlperx.prepaidlab.com/ Proprietary and Confidential
87. $1 million total service guarantee –if you become a victim of identity theft because of a failure in their service, they will help you fix it at their expense, up to $1,000,000 Proprietary and Confidential
96. Free living will—state specificEight commonly used legal services deeply discounted, such as traffic ticket defense, name change, simple divorce, simple trust and more. Plan attorneys will either charge $125.00 per hour, or 40% off their usual and customary hourly rate, whichever is greater. Proprietary and Confidential
97. Lifestyle Benefits Tax Help Line Unlimited advice on federal taxation Free tax return preparation for forms 1040 EZ, 1040A and standard 1040 Deep discounts on numerous other tax schedules IRS audit assistance Tax planning Review of prior year's tax return Member portal with tax tips, tax law changes, member advice and much more Pet Care- Receive 25% off all services at participating vets. Free pet tag and 24/7 location service. Receive 10-30% off at participating providers on pet services, such as boarding, doggie day care, training, pet sitting and grooming. Fitness Club Discounts-International Fitness Club Network--Guaranteed lowest rates at over 8,500 quality fitness centers nationwide. Introductory Free Week Trial to all clubs. All meet ACSM guidelines. Proprietary and Confidential
101. Onsite member services call center staffed with English and Spanish speaking representatives who can help with enrollment, verify discounts and assist with customer service issues.
109. Schools, Government, AssociationsThese low cost benefits complement any insurance plan by offering innovative strategies for reducing absenteeism, increasing productivity, and decreasing overall healthcare costs for the employer while encouraging employees to take more responsibility for their healthcare costs. Proprietary and Confidential