REAL CHOICES INTRODUCTION Assurant Health 1. 2 Overview New group insurance products and tools that will outfit you to sell small group medical insurance

REAL CHOICESREAL CHOICES

INTRODUCTIOINTRODUCTIONN

Assurant Assurant HealthHealth

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OverviewOverviewNew group insurance products and tools that will outfit you to sellsmall group medical insurance

Assurant Health makes health insurance benefits available to working Americans

•ChoiceChoice– Real Choices I, II and III – Real Choices HRAs and HSAs

•EfficiencyEfficiency– Online tools for agents and employers– Underwriting

•Responsiveness Responsiveness – Administration – Commissions and Agent incentives

Agent Outfitters

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REAL CHOICESREAL CHOICESSMSM

Assurant Health’s New Small Group Portfolio

WA

OR

CA COUT

WY

ND

NM

KS

NE

SD

IA

MN

TX

WI

AR

MI

OHINIL

FL

GAALMS

TN

WV

SC

NC

VT

NYNH

ME

CT RI

MD

WA

OR

CA

MT

ID

NV

COUT

WY

ND

NMAZ OK

KS

NE

SD

IA

MN

TX LA

AR

MO

MI

OHINIL

FL

GAALMS

TN

KY

PA

WV VA

SC

NC

VT

NY

ME

CT

MD

NJ

MANH

DC

WI

DE

For internal use only.Assurant Health is the brand name for products underwritten and issued by Time Insurance Company.J-60031 (4/2008)

Real Choices - as of 5/1/2009 effective date

AK

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87% of insureds have claims < $3,000



Assurant Health’s most popular plans typically include an office visit copay and prescription drug copay so there are less charges being applied to the deductible and coinsurance. Consequently, with a typical Assurant Health plan, fewer insureds reach a higher deductible. A provider discount was also factored in to these statistics.

Consumer ChoiceConsumer Choice

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MarketsMarkets•Tampa

•Orlando

•Melbourne

•Naples

•Using Great West network

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Real ChoicesReal Choices

A virtual warehouse of product enables agents to meet the varied needs of small employer groups!

Real Choices

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Real Choices I • Well-established businesses

• Employers who want top-of-the-line benefits

Real Choices II• Cost-conscious employers

• Employers who value flexibility

Real Choices III• Uninsured groups

• New businesses with limited budgets

Real Choices HRA Plans Real Choices HSA Plans

• Employers who want tax advantages and more control of their cash flow

• Employers who want premium savings of HDHP

Real ChoicesReal Choices Products ProductsPROSPECTS

Real Choices

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Real Choices IReal Choices I

Premier Plan that Offers the Most Extensive Coverage•Preventive care including $750 first-

dollar benefit

•$500 first-dollar diagnostic imaging and lab benefit

•Prescription drug coverage including $0 generic co-pay option

•Physician office visit co-pay option that includes co-pays for ER and urgent care

•Can increase lifetime maximum from $5 million to $10 million

Real Choices I

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Real Choices I Real Choices I – Most Extensive Coverage

• On copay plans, $100 emergency room copay, then 100% thereafter

• Unlimited ground and air ambulance after deductible and coinsurance

• Affiliated provider benefit

• Extensive transplant network

• World-wide emergency coverage

Real Choices I

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Not all combinations of deductible, benefit percentage and out-of-pocket maximum are available.

Deductible$0, $500, $1,000, $1,500, $2,000, $2,500, $3,500, $5,000, or $10,000

Family Deductible Types

Individual/Family or One Deductible

Benefit Percentages 100%, 90%, 80%, 70%, 50% (60% in GA)

Coinsurance Out-of-PocketMaximums

$0, $500, $1,000, $1,500, $2,000, $2,500, $3,500, $5,000, or $10,000


BENEFIT

Real Choices I

REAL CHOICES I

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Physician Office Visit Co-pays – Optional (Primary Care Provider / Specialist)

$20/$40, $25/$40, $35/$50, $50/$50

Emergency Room• Subject to deductible and coinsurance

• On copay plans, $100 copay, then 100%

Urgent Care• Subject to deductible and coinsurance

• On copay plans, $50 copay, then 100%

Allergy Shots• Subject to deductible and coinsurance

• On copay plans, 100% coverage


REAL CHOICES IBENEFIT

Real Choices I

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Outpatient Physical Medicine

• Deductible and coinsurance

• Covered to a maximum benefit paid of $5,000 per year

Home Health Care • Deductible and coinsurance

• Maximum benefit of 50 visits per year

Hospice Care 100% - deductible waived

Outpatient BehavioralHealth & Substance Abuse

• Deductible and 50% coinsurance

• Maximum annual benefit of $3,000

Inpatient Behavioral Health & Substance Abuse

Covered up to 28 days per year



Real Choices I

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Maternity Care Services

• Complications only (included), or

• Deductible and coinsurance, or

• Separate $7,500 maternity deductible, then 100%

Preventive Care $750 (included) or $1,250 (optional)

Accident Medical Expense

- Optional$500 or $1,000 first-dollar benefit


Real Choices I Real Choices I – Most Extensive CoverageFeatures and Optional Benefits

Real Choices I

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Real Choices I Real Choices I – Prescription Drugs

Options:

• $0/$25/$50 (generic/preferred brand name/ nonpreferred brand)

• $15/$25/ $50

• $15/$45/$60

• $15/$50/$75

• Deductible and coinsurance plus Preferred Pricing Card

• None - Preferred Pricing Card only

Popular Features:

• Save 10% on copays (copay is 2.7 times the selected copay amount) for any three-month drug supply by mail order

• Birth control pills covered at retail pharmacy or mail order

Real Choices I

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Real Choices IIReal Choices II

Popular Plans that Offer the Most Choices

•Many deductibles and benefit percentage choices

•A variety of copay choices

•Preventive care including $300 in first-dollar benefits with the option to increase to $800

•$2 million lifetime maximum with option to increase to $5 million

•Priced 6% lower than Real Choices I

Real Choices II

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Deductibles$0, $500, $1,000, $1,500, $2,500, $3,500, $5,000, or $10,000



Benefit Percentages100%, 90%, 80%, 70%, 50% (60% in GA)

Coinsurance Out-of-PocketMaximums

$0 (on 100% plans only), ($500 - in Michigan only) $1,000, $1,500, $2,000, $2,500, $3,500, $5,000, or $10,000

REAL CHOICES IIBENEFIT

Real Choices II Real Choices II – Most Choices

Real Choices II

Not all combinations of deductible, benefit percentage and out-of-pocket maximum are available.

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Office Visit Copay Options

Primary Care Physician /

Specialist Copays

•Unlimited PCP/Specialist visit option, OR

•Four visit copay per person, per year to network providers, OR

•Copay applies to unlimited visits to network PCP only – specialist is subject to deductible and coinsurance

PCP - $20, $25, $35 or $50 Specialist - $50

Emergency Room

• Deductible and coinsurance or

• If office visit copay is selected, option to select $250 copay and then covered at

100%

Outpatient BehavioralHealth & Substance

Abuse

Deductible and 50% coinsurance to an annual limit maximum benefit paid of $1,500

Allergy Shots• Subject to deductible and coinsurance

• On copay plans, covered at 100% with no copay

BENEFIT

Real Choices II Real Choices II – Most Choices

Real Choices II

REAL CHOICES II

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Maternity Care Services

• Complications only (included), or • Deductible and coinsurance, or• Separate $7,500 maternity deductible, then 100%

Preventive Care$300 included with option for $800 (premium increase is 1.5% for upgrade)

Outpatient Diagnostic Imaging and Lab

Deductible and coinsurance OR $200 first-dollar coverage, then deductible and coinsurance

Optional Accident Medical Expense

$500 or $1,000 first-dollar benefit

REAL CHOICES IIBENEFIT

Real Choices II Real Choices II – Most ChoicesFeatures and Optional Benefits

Real Choices II

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• $0/$50/$75 with $500 brand name deductible*

• $15/$25/$50

• $15/$25/$50 with a $250 brand name deductible

• $15/$45/$60

• $20/$50/$75

• Subject to medical plan’s deductible and coinsurance

• Preferred Pricing Card only

Popular Features

• Save 10% on copays for a three-month supply by mail order

• Birth control pills are covered – retail and mail order

* Deductible is for preferred and non-preferred brand name prescriptions

Real Choices II

Real Choices II Real Choices II – Outpatient Prescription Drugs

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Real Choices IIIReal Choices III

Streamlined Plans with the Most Affordable Coverage•Access point to health insurance market

•Priced 15-20% below Real Choices II

•Preventive care including $200 in first-dollar benefits

•$2 million lifetime maximum

Real Choices III

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Deductible $0, $1,000 or $2,000

Benefit Percentage 80% or 50% (60% in GA)

Coinsurance Out-of-Pocket Maximums

$3,000 or $4,000

Lifetime Maximum $2 million

Calendar Year Maximums

• $100,000 with $5,000 outpatient maximum

• $250,000 with $10,000 outpatient maximum, with optional buy-up to $25,000 outpatient maximum

REAL CHOICES IIIBENEFIT

Real Choices III Real Choices III – Most Affordable Coverage

Real Choices III

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Office Visit/Urgent Care

Covered

If the Office Visit Maximum Benefit Option is selected, a $40 first-dollar benefit is provided.

Emergency Room$100 access fee, then deductible/coinsurance (fee is waived if admitted)

Outpatient Physical Medicine

Covered up to the plan outpatient annual maximum selected

Allergy Shots


• On office visit max benefit plans,

$40 first-dollar benefit



Real Choices III

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Outpatient Prescription Drugs

$15/$50/$75 with a $250 deductible for all brand name drugs. Benefit is subject to $5,000, $10,000 or $25,000 calendar year maximum, depending on plan selected

Preventive Medical Services

$200 first-dollar benefit then subject to deductible and coinsurance. Also an option to buy up to $500 first-dollar benefit. (additional $300)

Outpatient Diagnostic Imaging and Lab

Deductible and coinsurance up to the plan’s selected outpatient calendar year maximum



Real Choices III

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Real Choices HRA and HSAReal Choices HRA and HSA

Consumer-driven health care plans which will appeal to many Small Business Owners because they offer premium savings and tax savings

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Health Reimbursement Health Reimbursement ArrangementsArrangementsHRAs are a creative means of financing

insurance.

Assurant Health’s HRA program offers many advantages:

•More choices in designing a plan•Greater control over cash flow•More opportunities for tax deductions•Ability to retain ownership of funds•HRA admin services at no additional cost

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Real Choices HRA I and II Real Choices HRA I and II – Payment Structures

100% 0%$500, $1,000, $1,500, $2,500, $3,500, $5,000, $10,000

90% 10%$500, $1,000, $1,500, $2,000, $2,500, $3,500, $5,000, $10,000

80% 20%$500, $1,000, $1,500, $2,000, $2,500, $3,500, $5,000, $10,000

70% 30%$500, $1,000, $1,500, $2,000, $2,500, $3,500, $5,000, $10,000

50% 50%$0, $500, $1,000, $1,500, $2,000, $2,500, $3,500, $5,000, $10,000

COINSURANCE PERCENTAGE

CORRESPONDING DEDUCTIBLE CHOICESBENEFIT

PERCENTAGE

Real Choices HRA I and II

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CoinsuranceOut-of-Pocket Maximums

$0 (on 100% plans only), $500, $1,000, $1,500, $2,000, $2,500, $3,500, $5,000, $10,000

$0 (on 100% plans only), $1,000, $1,500, $2,000, $2,500, $3,500, $5,000, $10,000

Lifetime Maximum$5 million included or

option for $10 million

$2 million included or

option for $5 million

Preventive Medical Services

$750 included or option for $1,250

$300 included or option for $800

Physician Office Visit Copay Option

Copays for PCP/Specialist:

$20/$40, $25/$40,

$35/$50, $50/$50

• Unlimited PCP/Specialist visits, OR

• Four visit copay per person, per year to network providers, OR

• Unlimited visits to network PCP

only – specialist is subject to deductible and coinsurance

PCP copays: $20, $25, $35 or $50

Specialist copay: $50

Accident Medical

Expense Option$500 or $1,000 first-dollar benefit

$500 or $1,000 first-dollar benefit

REAL CHOICES HRA I REAL CHOICES HRA IIBENEFIT


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Prescription Drugs • Copay of $0/$25/$50

• Copay of $15/$25/$50

• Copay of $15/$45/$60

• Copay of $15/$50/$75

• Subject to medical plan deductible and coinsurance

• Preferred Pricing Card


• $15/$25/$50


• $15/$45/$60

• $20/$50/$75


• Preferred Pricing Card

REAL CHOICES HRA I REAL CHOICES HRA IIBENEFIT

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Real Choices HSA I and HSA IIReal Choices HSA I and HSA II

Health insurance with tax-favored consumer choice options

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HSA - Health Savings AccountsHSA - Health Savings Accounts

Choose an HSA if saving money is your priority.

An HSA program combines major medical insurance with

a tax-favored savings account.

• With Assurant Health’s HSA Program, employers can

• Save on premium with a high deductible health plan

• Save on income taxes by making tax-free account contributions which can be used to pay for medical expense

• Save for future needs by rolling over year-end balances

• Save on separate account fees with HSA Tools

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HSA ToolsHSA Tools

HSA Tools is Assurant Health’s comprehensive account

services program. It is available at no additional cost

and includes:

• Efficient online claims payment and account tracking services

• A VISA debit card for easy withdrawals• Tax-free interest on HSA funds• A line of credit option• An investment option• Online access to medical and prescription

information

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Deductible$1,500, $2,000, $2,500, $3,000, $3,500, $5,000



Benefit Percentages 100%, 90%, 80%, 70%, 50%

Coinsurance Out-of-Pocket Maximums

$0, $1,500, $2,000, $2,500, $3,500

BENEFIT

Real Choices HSA I and II Real Choices HSA I and II – Payment Structures

Real Choices HSA I and II

REAL CHOICES HSA I AND HSA II

HSA plans have a 24-month rate guarantee available!Not all combinations of deductible, benefit percentage and out-of-pocket maximum are available.

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Real Choices HSA I and II Real Choices HSA I and II – Payment Structures

Real Choices HSA I and II

Lifetime Maximum$5 million (included) or

$10 million (optional)

$2 million (included) or

$5 million (optional)

First-Dollar Preventive Services

$750 (included) or

$1,250 (optional)

$300 (included) or

$800 (optional)

Office visits, imaging and lab, emergency room, hospital, equipment

Deductible and coinsuranceDeductible and coinsurance

Outpatient Physical Medicine Treatment

Deductible and coinsurance to $5,000 limit

Deductible and coinsurance to $3,000 limit

Prescription Drugs

Deductible and coinsurance or

No coverage

Preferred Pricing Card included on all HSA plans

Deductible and coinsurance or

No coverage

Preferred Pricing Card included on all HSA plans

REAL CHOICES HSA I REAL CHOICES HSA IIBENEFIT

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Real Choices HRA and HSA

Account/Administration Services at No Additional Cost

HSA Contact/Questions:1-866-899-6200 Monday thru FridayFrom 8:00 a.m. – 5:00 p.m. Central Time

HRA Contact/Questions:1-866-HRA-7779 orwww.ebcflex.com

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Premium Only Plans (POP)

Premium Only Plans (POP) allow eligibleinsurance premiums to run through theemployer’s payroll pre-tax

Immediate tax savings for both the Employer and employee!

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Premium Only Plans (POP)

Free!!Free!!

Administered through MHM Resources, Inc: •Dedicated Employer services toll-free number 800-280-5065, weekdays, 8 a.m. – 5 p.m., Central time or, email at [email protected]

mailto:[email protected]

Real Choices

Out-of-Network Reimbursement Options

Usual, Customary, and Reasonable (UCR)

Scheduled Network (SCH)

•Uses established, traditionalreimbursement schedule

•Payment is typically at the 70th percentile

•Uses network fee schedule for out-of-network charges

•Covered, negotiated charge will be lower than UCR fee

•This option can lower premium 2% to 9%

Real Choices

Out-of-Network Claim ExampleTonsillectomy with no complications. Out-of-network charge:

$2,000.

Scheduled Network (SCH)

Usual and Customary (UCR)

Premium savings when selecting SCH is 2% to 9%. On a 10-person group, premium savings range from $640 to $2,880 per year.Two valuable sales tips:

1. Sell Scheduled Network option to make employer happy!

2. Tell employees to USE THE NETWORK PROVIDERS!

•Negotiated network rate is $1,200

•Insured’s responsibility is $800

•UCR charge is $1,400 (70th percentile)

•Insured’s responsibility is $600

If insured uses network services, responsibility is $0.

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3-Year Benefit Packages3-Year Benefit Packages

• HSA Example: Ded Coin

CoinOOP

Rate

Year 1 2,000 100% 0 $X

Year 2 2,500 100% 0 $X

Year 3 3,500 100% 0 $X

• Rate stays the same for 3 years• 5 Options available for Real Choices States • Additional form to fill out verify selection

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• Online Agent Self-Service

• Online Employer Self-Service

• Online Employee Self-Service

EfficiencyOutfitting agents and employers with electronic, timesaving tools

Agent Outfitters


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Online Agent CapabilitiesOnline Agent Capabilities

• Single sign-on through sales site: www.assuranthealthsales.com

• MyAccount

– www.answersbyassurant.com

Agent Outfitters - Efficiency

http://www.assuranthealthsales.com/

http://www.assuranthealthsales.com/

http://www.answersbyassurant.com/

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Employer Self-Employer Self-ServiceService

Employers can electronically:

• Update contact information

• Add or remove employees

• Add or remove dependents

• Order ID cards for employees

• Access group insurance information 24/7

• Submit questions to Customer Service Department 24/7

• Compare HSAs with other plans using online calculator

Online tools at myaccount site on www.answersbyassurant.com

Agent Outfitters - Efficiency



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Committed to helping agents succeed

Underwriting

Agent Outfitters - Underwriting

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UnderwritingUnderwriting

• Attestation form instead of wage and tax information

– 1-3 life groups require wage and tax

• Group status available through EASE

• Choice of waiting periods: 0, 30, 60, 90 and 180 days


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• Includes the following common medical conditions in base premium

– Acne, Acid Reflux, Allergies, AD&D, High Cholesterol, High Blood Pressure and Mild Depression

• Limited Questionaires

• Simplified Employer Application


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UW By Plan Design (all except MI and OK)UW By Plan Design (all except MI and OK)

PlanAverage Group

Rate

Today’s Average

UW $ Future UW $$ 0 Ded $68,092 $12,000 $15,240$ 500 Ded $60,256 $12,000 $13,560

$1,000 Ded $53,322 $12,000 $12,720

$1,500 Ded $48,000 $12,000 $12,000

$2,000 Ded $44,598 $12,000 $11,362

$2,500 Ded $41,424 $12,000 $10,767

$3,500 Ded $36,280 $12,000 $9,803

$5,000 Ded $31,350 $12,000 $8,640

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• Employee choice (Plan choice) minimum of 3 employees with minimum of 2 in one plan (except employer HSA) – 15% differential only allowed

• Network Choice

• 1099 employees

• Participation requirements- 3 lives and under 100%- 4+ lives 75%

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New BusinessNew Business

• Quoting is in the middle of the band +/-15% after underwriting

• 1-2 Life groups quoted in Home Office only

• [email protected]

• [email protected]

• Underwriting Fax 414-299-1061

• Employer, Employee, Quote, last bill, check for submission



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Agent Compensation

ResponsiveResponsive

Assurant Health is committed to promptly respond to the varied needs of employers and agents

OUR OUR

COMMITMENT.

COMMITMENT.

Your Success.Your Success.

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Producing Agent Commission Producing Agent Commission ScheduleSchedule

Allowed Tiers

Schedule Option

Option A

Option B

Option C

Option D Option E

Premium Band

First $35,000

7.0 % FY4 % Ren.

7.5 % FY 5 % Ren.

8.5 % FY 6 % Ren.

9.5 % FY 7 % Ren.

10.5 % FY 8 % Ren.

Next $65,0005 % FY

4 % Ren.

6 % FY5 % Ren.

7 % FY6 % Ren.

8 % FY7 % Ren.

9 % FY8 % Ren.

Next $100,000

5 % FY4 %

Ren.

5 % FY5 % Ren.

6 % FY5 % Ren.

7 % FY6 % Ren.

8 % FY6 % Ren.

Above $200,000

3 % FY4 % Ren.

5 % FY5 % Ren.

6 % FY5 % Ren.

6 % FY6 % Ren.

6 % FY6 % Ren.

Tier 1-5 Tier 1-5 Tier 2-5 Tier 3-5 Tier 4-5

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Production Milestone BonusMilestone Bonus

Starting Compensation

Level

Group Production Milestone Bonus

Level 1 $100,000 $1,000Level 2 $500,000 $10,000Level 3 $1 million $25,000Level 4 $5 million $25,000

Qualifications for Milestone Bonus:

• Only Real Choices business qualifies

• Agent must reach the group production milestone shown in middle column

• Agent can earn bonus only once for each compensation level

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Commission GuidelinesCommission Guidelines

• Agent’s commission level tier setting is calculated every January and is based on previous year’s production

• Commission schedule tier is effective for the next 12 months

• Weekly EFT commissions available

• 1- 2 life groups 1% total commission paid to writing agent (no overrides)

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2009 Sales Incentive2009 Sales Incentive

Earn $1,000 for every 3 cases sold in 2009Earn $1,000 for every 3 cases sold in 2009• Earn $250 for your first Small Group case issues in 2009• Sell another 2 cases• Earn an additional $750 for a total of $1,000 for every 3 cases sold

Earn $1,000 each time you issue three cases, up to $30,000 Earn $1,000 each time you issue three cases, up to $30,000 max payoutmax payout

PLUS – earn an extra $100.00 for every high PLUS – earn an extra $100.00 for every high deductible deductible plan soldplan sold

1- 2 life groups do not count for campaign

OUR OUR

COMMITMENT.

COMMITMENT.

Your Success.Your Success.

Documents

REAL CHOICES INTRODUCTION Assurant Health 1. 2 Overview New group insurance products and tools that will outfit you to sell small group medical insurance