Health Net of Arizona Individual

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Health Net of ArizonaIndividual Family
PlanPlan Year Kick Off
September 2005
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Agenda

• Welcome
• Introductions
• Accolades Service Improvements
• Product Portfolio
• Renewal Information
• Broker Contest

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Plan Year Kick Off
Welcome Introductions Glen Padula
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Introductions

• Health Net Senior Management
• Roger Greaves, chairman of the board
• Mark El-Tawil, president, Health Net of Arizona,
  Inc.

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Introductions

• Individual Family Plan Sales Team
• Chris Porterfield, manager
• Account Executives
• Jim Walsh, Phoenix
• Griselle Signorelli, Phoenix
• Audrey English, Phoenix
• Chris Keel, Tucson
• Broker Support
• Emely Ortiz
• Leslie Williams
• Trish Farkas
• Gail Sedgewick
• Patti Houle
• Tobi Perham

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Introductions

• Individual Family Plan Underwriting Team
• Nancy Fugiel, manager
• Underwriters
• Cheryl Balhorn
• Sorinela Dima
• Leticia Torres
• Steve Macias, director of sales Medicare

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Plan Year Kick Off
Health Net National Perspective Roger Greaves
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Plan Year Kick Off
Health Net of Arizona Financial Snapshot Mark
El-Tawil
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HNAZ Financial Snapshot

• HNAZ has made significant operational
  improvements driving Net income improvements by
  over 2.0 million for the same period last year
• YTD Net Income June 30, 2005 3,176,616
• Prior Year To Date 1,048,545
• Reported Net Premium Income rose to 211 million
  vs. 208 million for the same period last year
• YTD MCR including Medicare Advantage improved
  slightly to 87.1 vs. 87.9 for the same period
• Health Net of Arizona is financial strong with
  Capital of over 400 of the Risk-Based need

• Note All numbers are presented on statutory
  basis and reflect the Arizona company business
  only and do no reflect Health Net Life members or
  products managed by Health Net of Arizona.

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Plan Year Kick Off
Accolades Service Improvements Mark El-Tawil
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Accolades Service Improvements

• Announcing Excellent Accreditation by NCQA
• NCQAs Excellent Accreditation status is
  reserved for the best health plans in the nation.
  It is only awarded to those plans that meet or
  exceed NCQAs rigorous requirements for consumer
  protection and quality improvement and deliver
  excellent clinical care. Margaret E. OKane,
  president

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Accolades Service Improvements

• Ranking Arizona
• Ranked 1 HMO in Arizona by Ranking Arizona
  Magazine

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Accolades Service Improvements

• Top tier claims payer
• Health Net of Arizona was ranked in the top three
  claims payers in Arizona
• Arizona Hospital and Healthcare Association
  Survey
• Ranked by percentage of claims paid within 60 days

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Accolades Service Improvements

• Average speed of answer 20
• Average number of seconds it takes to answer an
  incoming call
• Abandonment rate 1
• Number of callers who voluntarily hang up before
  answer
• Financial claim quality 99.57
• Percentage of incorrect payments or claim denials
  that result in financial errors
• Payment (claims) quality 98.58
• Percentage found by subtracting the number of
  claims with a payment error from the total number
  of reviewed claims

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Plan Year Kick Off
November Renewal Chris Porterfield
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November Renewal

• No Benefit Changes
• Rate changes effective November 1, 2005
• All in-force membership

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November Renewal

• HMO Average Increase
• In-force prior to 6/1/05
• 14.75
• New 6/1/05 to present
• 6.75

• PPO Average Increase
• In-force prior to 6/1/05
• 14.75
• New 6/1/05 to present
• 6.75

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Plan Year Kick Off
Product Portfolio Chris Porterfield
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Product Portfolio

• HMO and PPO 90 Plans
• Membership in 90 plans has been frozen as of
  November 1, 2005
• Current members can continue this coverage
• Current members will not be forced into another
  plan

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Product Portfolio

• Introducing Health Savings Accounts
• Now Selling for November 1, 2005 effective dates
• Health Nets HSA Compatible, High-Deductible PPO
  Plans offer advantages and choice
• Convenience of automated reimbursement to the
  member
• Option to save
• Advantage of one of the largest and most stable
  banking partners, Wells Fargo

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Product Portfolio

• High-Deductible HSA Plan Designs
• Three plan designs at the individual level and
  three at the family level
• Individual
• Individual plan 1 - 1,750, 100/50
• Individual plan 2 - 2,600, 100/50
• Individual plan 3 - 2,600, 80/50 Rx
• Family
• Family plan 1 - 3, 500, 100/50
• Family plan 2 - 5,150, 100/50
• Family plan 3 - 5,150, 80/50 Rx

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Product Portfolio

• Marketing Materials for HSA
• HSA Brochure
• Describes how the Health Net High-Deductible PPO
  plan works in conjunction with the Wells Fargo
  Health Savings Account
• Goes into the overall plan brochure in the back
  pocket

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Product Portfolio

• Marketing Materials
• Plan Brochure
• Pocket folder
• High-Deductible PPO plans are shown in the
  brochure

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Product Portfolio

• Marketing Materials
• Application
• The new plans are found in a third column where
  the applicant selects the type of coverage for
  which they are applying

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Product Portfolio

• Marketing Materials
• Overview
• This folded brochure shows each of the Health Net
  plan designs side-by-side
• This brochure will be included with renewal
  packets
• Marketing the Health Net HSA programs
• Health Net U
• Classes scheduled

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Plan Year Kick Off
Underwriting Enhancements Nancy Fugiel
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Underwriting Enhancements

• Rate Ups
• Rate ups are available for November 1, 2005
  effective dates for the following conditions
• Hypercholesterolmia
• Depression
• Anxiety/Panic Attacks
• Hypertension
• Irritable Bowel Syndrome
• Pancreatitis
• Psoriasis
• Chiropractic Maintenance Care
• Multiple exclusion riders available for November
  1, 2005 business

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Plan Year Kick Off
Medicare Producer Programs Steve Macias
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Medicare Producer Programs

• Placeholder

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Plan Year Kick Off
Producer Rewards Chris Porterfield
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Producer Rewards

• Bonus Opportunity
• 50 per approved application
• November, December January effectives
• Introducing new broker commissions
• Progressive commission structure
• Based on producers total Health Net book
• 10 - 1-99 new and in-force contracts
• 11 - 100 199 new and in-force contracts
• 12 - 200 299 new and in-force contracts
• 13 - 300 new and in-force contracts
• Bonus payments will be based on quarterly book
  review in January, April, June and October

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Contest

• Announcing the Race for Cabo Contest
• Individual and Family Plan production can be
  combined with Medicare production
• Top Seven producers with at least 150 new members
• Effective dates September 1, 2005 thru February
  1, 2006
• Casa Del Mar, Cabo San Lucas, Mexico