SUMMARY OF BENEFITS AND COVERAGE Toolkit for employers June, 2012

CIGNA’S TOOLKIT WILL HELP YOU PREPARE Overview of the SBC requirements and timing for Human Resources Additional slides at the end to incorporate into your enrollment meeting presentations Information you can include in an employee newsletter, or enrollment materials 2 Although there is no requirement to notify employees they will be receiving SBCs, Cigna has developed this toolkit to help you understand the requirements and communicate key messages to your employees 2 © 2012 Cigna Toolkit Contents

OVERVIEW: SUMMARY OF BENEFITS AND COVERAGE Provide individuals with HHS-defined standard information to compare plans and make decisions  Required for insured and self- insured medical plans  Not required for retiree-only, Medicare, stand-alone dental/vision 3 Glossary Customer Service # and Website Coverage Examples Four-Page Benefit Summaries & Intent: Impact: For enrollment periods beginning on or after September 23, 2012 For new hires or special enrollments beginning in the first plan year starting on or after September 23, 2012 Effective: $1,000 per enrollee per violation for “willful” non-compliance Allowance made for first year for “good faith” efforts Penalty:

FINAL RULE ISSUED FEBRUARY 9, FeatureFinal Rule VersionsSBC required for each plan One SBC can show all coverage tiers Appearance12 point – no font specified Must use template, but “best efforts” allowed for plan terms that can’t easily be described consistent with the instructions (e.g., wellness) ContentPremium not required 2 standard coverage examples (birth of a baby and type 2 diabetes management) Must include carved out benefits such as prescription drugs or mental health DeliveryElectronic delivery permitted in accordance with ERISA electronic document rules Acknowledgement not required Combining with other MaterialsMay be combined with other materials, but must be prominent © 2012 Cigna

WHEN SBCs MUST BE PROVIDED TO EMPLOYEES 5 SituationTriggerTiming Requirements Annual enrollment Enrollment periods beginning on or after September 23, 2012 Active enrollment/Manual renewal: With open enrollment materials Passive enrollment/Automatic renewal: 30 days prior to first day of plan year Mid-year benefit changes Benefit changes made during the year 60 days before the change is effective if the change impacts the SBC information New employeeMid-year enrollmentWith enrollment materials Special enrollment HIPAA special enrollment eventWithin 90 days after enrollment Employee request Any time an employee requests an SBC Within 7 business days © 2012 Cigna

6 Plan Year: New or Renewal Open Enrollment (OE) Period SBC during OE? SBC for New Hire/ Special Enrollment 11/1/12 1/1/13 or later 9/1/12 to 9/25/12 10/1/12 to 10/25/12 No Yes 10/1/128/1/12 to 8/25/12No 10/1/12 or later 11/1/12 or later 1/1/13 or later 6 9/1/128/15/12 to 8/31/12No 9/1/13 or later COMPLIANCE/LOGISTICS: DISTRIBUTION EXAMPLES Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 Cigna

WHAT IF YOU MAKE A BENEFIT CHANGE AFTER YOU HAVE ALREADY PROVIDED THE SBC? 7 Modified before first day of plan year SBC had been provided with OE Reissue SBC by the date coverage is effective Modified before first day of plan year SBC had been provided with OE © 2012 Cigna

ROLES AND RESPONSIBILITIES 8 Fully insured employers Self-insured employers Cigna will produce and provide SBCs to you for delivery to your employees as required You are responsible for producing and distributing SBCs Cigna can help you develop your SBCs © 2012 Cigna

OVERVIEW: MANDATORY SBC TEMPLATE – PAGE © 2012 Cigna

OVERVIEW: MANDATORY SBC TEMPLATE, PAGE © 2012 Cigna

Slides for Enrollment Meeting Presentations The following slides are designed to introduce SBCs to employees during your enrollment meetings

SUMMARY OF BENEFITS AND COVERAGE (SBC) Required by Health Care Reform Standard information about medical plans that all employers must provide to employees during benefits enrollment Designed to help employees understand benefits and compare plans Updated anytime there is a significant benefit change 12

FOUR REQUIRED COMPONENTS OF THE SBC REGULATIONS 1.Summary of Benefits and Coverage –Chart that shows how the plan covers various services such as office visits, hospitalization and prescription drugs 2.Coverage Examples –Illustration of how the plan might pay under these medical scenarios: having a baby and treating type 2 diabetes 3.Customer Service –Phone number and website 4.Glossary of Health Coverage and Medical Terms –Definitions for common health insurance terms such as deductible and co- insurance –Available on your own intranet and/or on

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EMPLOYEE ANNOUNCEMENT – BOILERPLATE COPY The attached Word document contains sample language that you can use in an employee , benefit newsletter article or enrollment materials – both in English and in Spanish. Employee Messaging - English Employee Messaging - Spanish

Visit InformedOnReform.com You’ll find many tools, facts and information on our award-winning website to help you understand and comply with health care reform

"Cigna" is a registered service mark, and the "Tree of Life" logo and “ GO YOU ” are service marks, of Cigna Intellectual Property, Inc., licensed for use by Cigna Corporation and its operating subsidiaries. All products and services are provided by or through such operating subsidiaries and not by Cigna Corporation. Such operating subsidiaries include Connecticut General Life Insurance Company (CGLIC), Cigna Health and Life Insurance Company (CHLIC), and HMO or service company subsidiaries of Cigna Health Corporation and Cigna Dental Health, Inc. In Arizona, HMO plans are offered by Cigna HealthCare of Arizona, Inc. In California, HMO and Network plans are offered by Cigna HealthCare of California, Inc. In Connecticut, HMO plans are offered by Cigna HealthCare of Connecticut, Inc. In North Carolina, HMO plans are offered by Cigna HealthCare of North Carolina, Inc. All other medical plans in these states are insured or administered by CGLIC or CHLIC /12 © 2012 Cigna. Some content provided under license.