Quality health plans & benefits Healthier living Financial well-being Intelligent solutions Finding the path to a healthier plan choice Aetna Medicare Advantage Plans City of Marietta Transition to the Aetna Medicare Advantage Plan Scott Weber October (09/14)

2 Some common Medicare Advantage myths Healthcare reform is eliminating Medicare Advantage plans. Medicare Advantage is just another supplemental plan like the one you already have. If you enroll in Medicare Advantage, you lose your Original Medicare coverage. FALSE FALSE FALSE None of these statements are true FALSE You can’t get more coverage for less money. It’s too good to be true.

Is Medicare Advantage a smart choice? 3 Millions of retirees think so. More than 17.3 million retirees have chosen Medicare Advantage Plans 1 Patients enrolled in a Medicare Advantage plan had better health outcomes than retirees enrolled in traditional Medicare 2 1 CMS February 2015 Medicare Advantage enrollment data. 2 Boston Consulting Group, “Alternative Payer Models Show Improved Health-Care Value.” BCG.Perspectives by the Boston Consulting Group. May 14, Available at

Original Medicare Medicare Advantage plan (HMO or PPO) The “parts” of Medicare and types of coverage Part C Combines Part A, Part B and often includes Part D OR Part D Prescription drug plan (PDP) Part B Medical Insurance Separate plan that supplements or coordinates with Original Medicare Part B Medical insurance Part A Hospital insurance Employer’s Traditional Drug Plan 4

Traditional vs Medicare Advantage Model Separate, traditional prescription drug plan Separate Medicare “wraparound” indemnity plan that pays secondary Medicare Parts A and B that pay primary Traditional group retiree plan An uncoordinated, siloed approach Aetna Medicare Advantage plan Bringing care management and cost control together INTEGRATES Medicare prescription drug coverage INCLUDES important benefits beyond Medicare Parts A and B INCLUDES Medicare Parts A and B benefits Includes care management  Enhanced preventive benefits beyond original Medicare  Coordinated, integrated approach to care and benefits  Care management that improves care and lowers costs 5

Traditional Medicare Part A Deductible $1,260 per benefit period Days 1 – 60: $0 copayment after deductible Days 61-90: $315 per day after deductible Days 91 and beyond: $630 per day after deductible Part B Deductible $147 per year After deductible – 20% of Medicare Costs * Supplemental plans help cover these costs. Medicare Advantage plans also cover these costs. 6

Examples of Supplemental plans vs. MAPD Balance $500 Balance 800 Balance $400 Balance $320 Plan $1,090 Retiree $10 Medicare $600 Medicare $600 Plan $500 Retiree pays $100 Deductible Retiree pays $80 Coinsurance 100% Coordination Exclusion Medicare Advantage Total Expense $1,100 Medicare Pays $600 Plan Pays $500 Medicare Pays $600 Retiree Pays $10 Specialist Copay Balance $500 Balance $1,090 Plan pays $320 Plan $320 Retiree $180 Balance $200 Plan Design: $100 Deductible 80% Coinsurance Plan Pays $1,090

Aetna Medicare plan (PPO — extended service area) Value Use in-network or out-of-network providers but only pay lower in-network cost sharing Simplicity No referrals No need to choose primary doctor One single ID card Faster payments for the providers Freedom See any doctor (eligible for Medicare payment) 8 Highlights Allows access to providers nationally that accept Medicare

9 Current Plan Aetna Medicare Advantage PPO  You pay  Plan deductible $0 Annual Max OOP Limit $2,400 Lifetime Max Plan Coverage Unlimited Primary Care Doctor Visit $10 copay$5 copay Specialist Care Doctor Visit $20 copay$10 copay Inpatient Hospital $500 copay$250 copay Emergency Room Visit $65 copay Urgent Care Visit $35 copay Outpatient Surgery $250 copay$100 copay Part B Drugs 20% Coinsurance$0 copay Durable Medical Equipment 20% Coinsurance$0 copay Medicare plan comparisons

10 Prescription Drug Cost Phases Current PlanAetna Prescription Drug Plan  You pay  Phase I: Deductible $0 Phase II: Initial Coverage Limit (ICL) Generic - $10 copay Preferred Brand - $25 copay Non-Preferred Brand - $40 copay Specialty - $40 copay Generic - $10 copay Preferred Brand - $25 copay Non-Preferred Brand - $40 copay Specialty - $40 copay Phase III: Medicare Coverage Gap (Donut Hole) Generic - $10 copay Preferred Brand - $25 copay Non-Preferred Brand - $40 copay Specialty - $40 copay Generic - $10 copay Preferred Brand - $25 copay Non-Preferred Brand - $40 copay Specialty - $40 copay Phase IV: Catastrophic Coverage Greater of $2.65 or 5% for covered generic drugs Greater of $6.60 or 5% for all other covered drugs Greater of $2.95 or 5% for covered generic drugs Greater of $7.40 or 5% for all other covered drugs Your Aetna Part D (PDP) phases and cost level comparison

So what is different about this plan? Medical You have access to providers across the nation that accepts Medicare. In the Atlanta Metro Area, you have access Emory, Piedmont, Grady, Wellstar and those facilities not in the Aetna network. Veteran Affairs Medical and Medicare Advantage – The government does not allow for two Federal programs to bill each other. You might be responsible for copays while you are on the Medicare Advantage plan. Tricare for Life and Medicare Advantage – You can continue to use Tricare for Life and will continue to be your secondary coverage after the Aetna Medicare Advantage Plan. You will not need to use your Medicare card after 1/1/2016. The Aetna Medicare Advantage card is the only card you will need for medical and pharmacy services. 11

So what is different about this plan? Pharmacy On the Aetna plan, you can get a 90 day supply of generic drugs for $20 at your local retail pharmacy or through mail order. You will receive an Explanation of Benefits for Pharmacy that will show the different levels. Your copays will be the same through all the Part D Phases except when you reach the Catastrophic phase. Extras The plan includes a no cost fitness membership with SilverSneakers. For gyms in your location, call member services at (TTY: 711), Monday through Friday, 8 a.m. to 8 p.m. EST. 12

Here’s what to expect During Enrollment Period Plan Acknowledgement Letter Aetna ID card Owner’s Manual Evidence of Coverage RX Abridged Formulary Guide After Enrollment Period Health Risk Assessment Telephonic Outreach You’ll get everything you need to use to your plan: Aetna ID Card Evidence of Coverage Owner’s Manual Abridged Formulary

We’ll be here for you every step of the way. If you have any questions about your coverage during this transition period, you can contact Aetna representatives at: (800) Monday through Friday 8:00 a.m. to 6:00 p.m.

Thank you

This is an advertisement. Aetna Medicare is an HMO/PPO/PDP plan with a Medicare contract. Enrollment in Aetna Medicare depends on contract renewal. The benefit information provided is a brief summary, not a complete description of benefits. For more information, contact the plan. Limitations, copayments, and restrictions may apply. Benefits, formulary, pharmacy network, provider network, premium and/or copayments/coinsurance may change on January 1 of each year. Plans are offered by Aetna Health Inc., Aetna Health of California Inc., and/or Aetna Life Insurance Company (Aetna). Not all health services are covered. See Evidence of Coverage for a complete description of benefits, exclusions, limitations and conditions of coverage. Plan features and availability may vary by location. Participating physicians, hospitals and other health care providers are independent contractors and are neither agents nor employees of Aetna. The availability of any particular provider cannot be guaranteed, and provider network composition is subject to change. You must continue to pay your Medicare Part B premium. Health ® is a U.S.-registered trademark of Aetna Inc. Aetna SM is a trademark of Aetna Inc. and is protected throughout the world by trademark registrations and treaties. Informed Health nurses do not diagnose, prescribe or give members medical advice. GRP_0000_177 ©2014 Aetna Inc (09/14) 16