1. Offered Exclusively Through Seniors Choice is the premier group retiree medical plan for employees and retirees age 65+ which originates where Medicare ends.

2. The Basics  Employer Options  Underwritten by Guarantee Trust Life in Glenview, IL  Administered by MBA  MBA, Inc. owner/distributor

3.  SC Benefit Design  Optional Benefits  “How Deductibles Work”  SC Part D  Eligibility  TEFRA  Prospects  Enrollment Today’s Discussion

4. The Seniors Choice Plan Design Basic Plan F Design  Base Plan Benefits No Lifetime Maximum Part A & B Deductible Coverage Coverage for Excess Charges Included Skilled Nursing up to 100 Days Foreign Travel included

5. The Seniors Choice Plan Design Cont.  $10 – Office Visit, Lab and X-ray Co-pay  $10- Durable Medical Equipment  $20 – All other outpatient services  $100 – Emergency Room Co-pay (waived if admitted)  Excess charges are covered (up to 15% above MAC)  No Co-pay plan is also available

6. Deductible Options  Multiple Deductible Options ◦ From $0 to $4,000  All deductible options include the Medicare Part B deductible ($147)  Sponsor can choose one or as many deductibles as desired  Non-traditional Deductible

7. Example Deductible Enrolled in SC $500 deductible plan option Member incurs $1,000 in physician services Member Out of Pocket Calculation Physicians Services$1,000 Subtract Medicare Part B Deductible($147) Balance after Part B Deductible$853 Subtract 80% of Claim Paid by Medicare($682.40) Remainder Owed (Member pays this amount)$170.60 Part B Deductible (Member pays this amount)$147 Member Total Out-of-Pocket$317.60 Remaining Annual Deductible Calculation Seniors Choice Annual Plan Deductible$500 Subtract Out-of-Pocket amount paid by member which includes the Medicare Part B Deductible ($317.60) Remaining Annual Plan Deductible$182.40

8. Optional Benefits  Comprehensive Wellness Benefit ◦ Up to $250 per calendar year  Private Duty Nursing Benefit ◦ $100 per 8 hour shift; 30 shifts per calendar year.  At Home Recovery Benefit ◦ Certified by a doctor ◦ Approved by Medicare  Additional Skilled Nursing Coverage ◦ From 101 days to 365 days

9. Enhanced Benefits EPIC Hearing Service Plan  Included with all plans  National network of local ear physicians and audiologists  Testing, evaluations and hearing aid fittings by licensed audiologists  Savings of 35% to 65% on brand name hearing aids  Toll free telephone support  No Administrative forms or paperwork

10. Enhanced Benefits Outlook Vision Services  Outlook Vision Services ◦ Included with all plans ◦ Discounts on eye exams at approved locations ◦ Up to 50% off eyewear ◦ Up to 50% discount on mail order contact lens replacement ◦ Providers within a 15 minute drive for 85% of the U.S. population

12. Part D Late Enrollment Penalty A Penalty will be assessed to anyone who: 1. Did not join a Medicare drug plan when they were first eligible for Part A and/or Part B OR 2. Went without creditable prescription drug coverage for 63 days or more Penalty will be for ALL fully uncovered months Calculate number of fully uncovered months: Example: Uncovered from 5/16/06 - 12/31/08 = 31 months Penalty is 1% for each number of fully uncovered months: Example: 31 months x 1% = 31% Multiply penalty percent by current national base beneficiary premium* Example: (2012): $31.00 x 31% = $9.61 Cost of Standard Part D plan premium + $9.61 (late enrollment penalty) = Part D total monthly premium The penalty will be added to the standard premium of any Part D plan for which the member enrolls. The member will have to pay the penalty each month as long as he/she has the Medicare prescription drug coverage. *The current national base beneficiary premium is set by CMMS (Medicare) and is subject to change each calendar year. Previous Years: [2011: $32.34] [2010: $31.94] [2009: $30.36] [2008: $27.93] [2007: $27.35] [2006: $32.20]

13. Plan Highlights  Always Guaranteed Acceptance  Full takeover of pre-existing conditions  Enhanced Benefits  Optional Benefits  Part D Coverage Gap coverage

14. Eligibility for Seniors Choice Group Retiree Medical Plans  Enrollee Qualification ◦ Currently Age 65 or over ◦ Enrolled in Medicare Parts A & B ◦ SC grandfathers any individual who has been employed by the sponsoring entity

15. Group Sponsorship Requirement  A group of 1 life may sponsor SC – Sole proprietors such as : Lawyers Dentists Doctors Insurance Agents Real Estate Agents

16. Tax Equity and Fiscal Responsibility Act (TEFRA)  Employers with 20 or more FT/PT employees  20 or more weeks in the current or preceding year  The 20 weeks do not have to be consecutive  The requirements are based on the number of employees, not the number of individuals covered under the medical plan.

17. Seniors Choice Prospects  Groups of Under 20 employees ◦ Age 65 and over FT Employees  TEFRA does not apply thus Medicare is primary  Premiums are generally higher for employees age 65 and over  Can raise the average age of group

18. Seniors Choice Prospects Continued  Groups with 20 or More Employees ◦ Must comply with TEFRA regulations ◦ Employees eligible for the employer sponsored group plan are ineligible for SC ◦ Employees not eligible for the employer sponsored group plan are eligible for SC

19. Why Choose SC over a Traditional Medicare Supplement or MA Plan?  Tax benefits for premium contribution  SC is always guaranteed issue  Section 125 POP eligible  Portable  Extensive Part D Plan  Open Enrollment Every December  Enhanced Benefits Included

20. Example Number EES10 Number of EES 65+1 Group Premium w/65$5,500 Group Premium w/o/65$4,000 Seniors Choice Premium w/Rx for 65 yr. old $4,000 + $450 =$4,450 Monthly Savings = $1,050

21. How To Enroll In Seniors Choice Sponsoring Employers Must: – Complete Employer Trust Participation Agreement – Employer may sponsor one or as many deductibles as they desire If voluntary, the Optional Prescription Drug Benefit is elected by the enrollee Enrollee and/or Spouse Must: – Complete Enrollment Form – Make check or money order payable to “Seniors Choice” – Make copy of Medicare I.D. card and Medical I.D. card, if applicable

22. Remember...  This is Group Retiree Medical Insurance  All Agents and Brokers must be appropriately licensed where the employer is domiciled  Any and all Marketing Materials utilized in connection with SC must first be approved in writing by Merchants Benefit Administration, Inc. prior to use