Plan year ‘08/09 benefits presentation

1. WELCOME! Benefits begin July 1, 2008 By Paul Bogumill, Director of Benefits, Montana University System (406) 444 - 0329 Plan year ‘08/09 benefits presentation

2. How’d That Happen……………………..

3. 1) Our Plan Projectoryhad sharply increased. • We attacked the problem by identifying cost drivers and implementing • more aggressive risk management activities.

6. MUS Medical Plan “Choices” Traditional Managed Care Plan A Plan B New West Allegiance MC PEAK Blue Choice Deductible Co-insurance Co-payment Co-insurance Max No Change All Plans “Managed” by MUS Pg 5

7. Traditional Plan Changes • Plan B Broadest / Most Inclusive Network • Plan A “Steerage” For Elective Services • Billings – St. Vincent • Missoula – St. Patrick • Bozeman – Bozeman Deaconess • Out of State – travel network • Plan A - Elective services to Out of Network Facilities/Provider • - 35% co-insurance (in network is 25%) • - separate deductible • - separate ACM • - subject yourself to “Balance Billing” • Well Child Care through age 7* (was through age 2) • Immunization Benefit $500* (was $250 for ages 8-18/$75 for ages 19+, and $50 pneumonia/flu) • *Best “benefit” for “Prevention Care” services, is in our Managed Care Plans Pg 7-12

8. Managed Care Plan Changes • Continue to perform “Well” • Large movement into managed care last year • 6,682 Traditional Plan Policy Holders • 3,153 shift to Managed Care Last Year • Good outcomes / satisfaction • Prenatal $0 co-pay if enrolled in StarBaby Program • Clarification of $15 Office Visit • Professional services only • Labs / x-ray / apply to deductible and coinsurance • Preventative Labs through Well Checks Pg 7-12

9. New West Health Services THE choice for the Montana University System Employees • In state customer service to give you personal attention • Expanded Network – Facilities and Providers • High Quality Healthcare • Preventive Care • Local Nurse Case Managers • Consistently competitive rates year after year • Out-of-State Network

10. Locally based and owned • Full service health plan with proven record • Extensive provider participation • Self referral to any PEAK provider • Extended statewide and national network with referral by any PEAK physician • NEW! Healthy AIM health improvement assistance services

11. Allegiance Means Value Access to a broad provider network that serves all MUS campuses & affiliated centers. Access to superior national provider network & centers of excellence Access to knowledgeable medical staff to help you manage your health care. • Allegiance • Means • Service • A Customer Service Team dedicated to the needs of MUS. • Quick and accurate claims turnaround. • Responsive customer service. • Claims access and Eligibility information available 24/7 via the web or IVR (phone based). • Knowledgeable & helpful professionals.

12. Why Choose Blue? An advanced degree of savings, service, and security. • We’re proud to offer you: • The lowest rates. • A comprehensive benefits package. • The second largest national provider network. • Unparalleled stability. As Montana’s oldest and largest health insurance provider, we can give you the kind of security you won’t find elsewhere. And we’re right next-door. • There’s never been a better time to go Blue.

13. MUS Dental Plans Basic Premium • Scheduled Benefit Design • You Choose the Provider Use Delta Dental providers - if you want “pre-negotiated fees” No Change All Plans “Managed” by MUS Pg 15

14. Vision Plan Changes Enhanced Out of Network Benefit for members in areas without access (50 mile radius) to a network provider. Pg 21

15. Prescription Plan No matter what Medical Plan you choose We are all on ONE Prescription Plan Administered by CVS/Caremark OLD DEDUCTIBLES NEW DEDUCTIBLES • Retail deductible was $100/$200 $100/$300 • Maximum out of pocket was $1200/person, $2400/family • $800/$1600 – excludes mail order Includes mail order costs • PPI Coverage Change Pg 13

16. Coverage Reminder Coverage for Proton Pump Inhibitors (PPI) such as Aciphex, Nexium, Prevacid, and Protonix are available under the prescription drug plan as long as they are filled at a retail pharmacy. Because of the availability of an over-the-counter alternative (Prilosec and its generic Omeprazole), PPI drugs are not available through the mail order facilities.

17. Flex Plan Changes • Two mailing notices of account • balances per year. • NO ADMIN FEE to employee. *Reminder – Flex Plan choices need to be re-elected every year Pg 26

18. MUS Wellness Program IntroducingWellAwards Reward program for those currently practicing healthy lifestyle behaviors and to encourage those who wish to improve Participants get credit for healthy activities earn a $100 cash award Available Fall 2008 – employees and spouses See May Wellness Newsletter for more details… Pg 28-29

19. The Life Connection (TLC) New as of July 1, 2008 See Page 30 In Choices Enrollment Workbook • Employee Assistance Program (EAP) – counseling services (previously APS Healthcare) • Recovering from Depression Program • Online Work-Life documents and tools • Legal Services • Financial Services Pg 30

20. Reminder Please have your change forms filled out by

21. Thank You For Coming!