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Vital SavingsVital Savingsby Aetnaby Aetna®®
August 2006
2
Marketplace Overview
The demand for discount cards is growing…
Tens of millions of people have little or no dental, health, or LTC
insurance
– No medical insurance – 44 million (Oct 2003 US Census)
– No dental insurance – 135.8 million (Sept 2003 NADP
Report)
Note: Sources of insurance statistics include: 2003 US Census data, Commonwealth, and National Association of Dental Plans data
3
Marketplace Overview
Factors driving the continued growth of discount cards
Cost shifting – As with medical, dental cost shifting to employees
continues, with employees paying 42% of costs in 2002, up from
38.2% two years before*
Employers scaling back - Certain segments of the population are
losing their dental coverage entirely – e.g., retirees
Early retirees – not eligible for Medicare Rx plan and living on fixed
incomes.
*Employee Benefit Adviser – Jan/Feb 2004
4
Marketplace Overview
2006 Internet key word searches:
– Over 200,000 searches on the term “Discount Dental” since
March 1st*.
2006 Visitors to www.VitalSavings.com
– 135,000 referrals to Vital Savings from Aetna.com
– 1,400 cards sold from those visitors
* Source: Google Analytics
5
Marketplace Overview
Stretching Dollars Further Today and In the Future
Stretching Dollars Further Today and In the Future
Consumer / Cardholder
Reduced Exposure to Consumer Bad Debt
Reduced Exposure to Consumer Bad Debt
Physicians/Dentists
Affordable Choice, Superior Quality and Service
Affordable Choice, Superior Quality and Service
Sponsor
Flexible, affordable alternative when health insurance is not an option
Attract and retain workers
Simple and easy to administer
Outstanding choice, value for the money and service
Get the care you need when you need it
Convenient – no claims to file to access discounts.
New Patients
New Revenue Stream
Payment at Point of Service
No claims to file
6
Aetna’s Response
Services Dental PharmacyLong Term
Care
Vital
SavingsSM
On Health
Physician / Specialist X
Pharmacy (including mail order pharmacy) X X
Long Term Care X
Dental X
Hospital**
Vision X X X X
Fitness X X X X
Alternative Health Care* X X X X
Discounts on Oral Health Care Supplies X X X X
Hearing X X
Informed Health® Line X
Durable Medical Equipment X
Life Assistance Program X
7
Aetna’s Response
Oct
200
3
Intro Vital
Savings Group Dental
July
200
4
Intro Voluntary Group and Consumer
Dental Cards
Sep
t 200
6
Intro Consumer
Rx and LTC
Discount Cards
Janu
ary
2006
Added Fitness and Alternative Healthcare discounts
Apr
il 2
005
Intro Group Health
Discount Prepaid
Debit Card
8
Aetna’s Presence
Currently sell Vital Savings in 49 states plus D.C and Puerto
Rico.
– Dental (All states except Montana)
– Rx (All states except FL, OK, UT, Montana)
– LTC (All states except FL, OK, UT, Montana)
– Health (Piloting currently in CO, FL, NC and NJ)
9
Aetna’s Presence
Card Sales by State
CA9% FL
8%
NY10%
PA13%
TX10%
All Others50%
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What Aetna Brings
• 68,000 + dental practice locations nationwide(discounts range 15-50%)
• 35,000 pharmacies including CVS/pharmacy®,
Rite Aid, and Longs Drug store. (Discounts range from 10-40%)
• 4,700 Long Term Care Facilities(discounts range from 5-30%)
• 13,000 Vision Care Centers
• National network of providers• Respected Aetna brand name• Same Services and tools available to All Aetna members• Substantial discounts (same level as PPO plans)
Networks
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What Aetna Brings
Additional
Services
Access to many of the same tools and services as Aetna Insured Dental/Pharmacy/medical members
These include: • DocFind – locate a network dental provider• InteliHealth - comprehensive consumer health
information website• Estimate the Cost of Care tool• Aetna Navigator – online member self-service
website
Brand and
Reputation• Strong, positive brand recognition
• Trusted company for over 150 years
• High and increasing provider and member
satisfaction
12
Conclusion
Discount plans important to consumers
Regulation and enforcement of ‘Bad Actors’
Keep regulation and administrative costs to a
minimum
Thank you!
