TONIK Health Plans March 2009 TONIK 2 3

TONIK Health Plans March 2009

TONIK 2 Æ 3 health plans Æ Targeted to 20 -something's Æ Simplified benefit and design Æ Online enrollment

Mature Mavericks 3 Æ No longer covered under a family policy Æ Not yet established in the workforce Æ Healthy, not overly preoccupied with health care Æ In the process of discovering themselves and experiencing life first-hand Æ Want to be seen as independent and responsible

Mature Mavericks 4 Æ Prefer instant gratification Æ Use internet as resource Æ Individuality and quality of life are big Æ It’s about health vs. health insurance Æ Most are healthy

What did our research uncover? Why aren’t they buying health insurance? 5 Æ Costs too much Æ It’s complicated Æ Tendency to procrastinate

What did they want in a plan? 6 Æ Comprehensive Æ Not just about a Product Service Æ Online Æ Easy to use Æ Instant decision Æ In their language

Solution = TONIK Æ An original approach to health insurance Æ Æ A new way of talking Æ Æ Æ It has it’s own website It has attitude A new way of applying Æ Æ Æ 7 TONIK talks about health coverage in a straightforward, conversational style – their style A new way of connecting Æ Æ Simplified plans with the benefits they’re looking for It’s online – because they are Easy and painless Simplified underwriting

Solution = TONIK Æ TONIK appeals to target on emotional and logical levels Æ Æ Æ Æ 8 Independent Confident Peer Irreverent Straightforward Affirming and Positive Approachable

Solution = TONIK Æ Affordability Æ Æ Æ Procrastination - Wait and see Æ Æ The 19 -29 segment can find a comprehensive plan for around $100* that even includes dental and vision We make it easy to pay by credit card, paper or electronic check, or monthly bank draft which can be automated, making it easier to prioritize the cost The combination of easy to buy and affordable coverage Confusion - Head in the sand Æ Æ Communicating in their language means they will listen, not tune out With 3 simple health plans, it’s easy *Can be more or less depending on plan, where they live and their medical history. 9

Solution = TONIK Æ 10 Reasons to buy Æ Being insured reflects independence, responsibility and maturity Æ Affirmation Æ Their parents have less to complain about, less to point out as another sign of adolescent behavior

What about the benefits? 11

TONIK Benefits Thrill Seeker Part-Time Daredevil Calculated Risk -Taker Annual Deductible $5, 000 $3, 000 $1, 500 Annual Out-of-Pocket Maximum $5, 000 $3, 000 $1, 500 $20 4 visits/year $30 4 visits/year $40 unlimited visits Benefits (in-network) Doctor Visit Copay Deductible waived Lifetime Covered Charges 12 $5, 000

TONIK Benefits Thrill Seeker Part-Time Daredevil Calculated Risk-Taker Prescription — Generic only $15 $15 Emergency Room $0 after deductible In/Outpatient Hospital $0 after deductible In/Outpatient Professional Services $0 after deductible Benefits (in-network) There is no maternity coverage on these plans. 13

TONIK Benefits Dental Æ Included in all plans Æ PPO network Æ No waiting periods! Cleanings, Exams, X-rays 14 In-Network $0, deductible waived Annual Deductible $25 Fillings 20% Annual Maximum Benefit $500

TONIK Benefits Optional Enhanced Dental Buy-Up Æ Æ Coverage for additional services like oral surgery, scaling, root canals and crowns for around $25/month In-Network PPO network Preventive/Diagnostic* 0% Basic and Adjunctive Services* 20% Major 50% (oral surgery, endodontics, periodontics, prosthodontics) Annual Maximum Benefit - $1, 000 Annual Deductible (waived for preventive/diagnostic) - $25 *In addition to coverage included with TONIK Waiting periods: 6 months for Basic/Adjunctive; 12 months for Major services 15

TONIK Benefits Vision Æ Æ Included in all plans Deductible waived Glasses, Contacts (every 24 months) Exam, Glasses, Contacts (every 12 months) 16 $100 benefit for frames or $80 for contact lenses Pay only $25 for basic eyeglass lenses $50 benefit

TONIK Benefits Optional Term Life Coverage 17 Æ Part of the TONIK application process Æ $15 K, $30 K, $50 K, $75 K or $100 K benefit choices

TONIK Rates 20 -year-old female Thrill Seeker Part-Time Daredevil Calculated Risk-Taker Annual Deductible $5, 000 $3, 000 $1, 500 Rates $70 - $104 $87 - $131 $122 - $188 Prices depend upon where your client lives, their age, their gender and their medical history 18

Agent Value 19 Æ Same commission as all plans Æ Online tool agents need to reach market Æ Online application takes about 15 minutes Æ Auto-adjudication – instant answer Æ AMAP materials available

Selling TONIK 20 Æ Send a TONIK introduction letter to your clients Æ Query a list of your likely "empty-nester" clients (adult children prospects) Æ Target Small Group overage dependents Æ Identify community-based speaking opportunities at youth-oriented events Æ Contact a medical group in your area and ask if you can put TONIK information in their facilities

Selling TONIK Æ Contact your local community college or university Æ Æ Æ Consider placing an ad in the Orange County Weekly or Los Angeles Weekly or similar paper in your area Æ 21 Would they permit a bill stuffer? Could you speak to students about how being uninsured can have a devastating financial impact on young people? Youth usually read these publications for the concert/event listings Æ Ask about placing TONIK materials, such as brochures, in surf shops, bike shops, etc. Æ Consider sponsoring a booth at a surfing event, skating event or dirt bike event

Get Connected – It’s easy! TONIK is happening online… are you? Don’t miss out on this growing opportunity 22

Agent Sales Technology Agent. Connect is the process of linking your agency’s website or URL to ours. There’s no cost to you — but lots of benefits: Æ Æ Establish a comprehensive, professional web presence without developing a custom website Get easy sales with the Plan. Finder and Apply On-line Now features for new clients Strengthen existing client relationships by providing access to Member Services and My. BCCLink Create a one-stop resource for many forms and features that are very helpful for new and existing clients To create the Agent. Connect Link: Æ Select Agent. Connect from the Technology drop-down menu Æ Click on Get Connected Now! Æ Follow the brief instructions and… …GET CONNECTED NOW! 23

Agent Online offers links to companies that Anthem Blue Cross has partnered with to provide assistance in creating a website. We have also included four downloadable web templates to help in the designing process, should you choose to build a website. 24

Get Connected 25

TONIK. Sell the plans. Sell the experience. The Tonik plans are offered by Anthem Blue Cross Life and Health Insurance Company. Anthem Blue Cross is the trade name of Blue Cross of California. Anthem Blue Cross and Anthem Blue Cross Life and Health Insurance Company are independent licensees of the Blue Cross Association. ® ANTHEM is a registered trademark. ® The Blue Cross name and symbol are registered marks of the Blue Cross Association.