Critical Information For Current And New CHIP Policyholders

1. Critical Information ForCurrent And NewCHIP Policyholders About The Patient Protection and Affordable Care Act

2. Introduction • The information to follow has been prepared by your CHIP Board of Directors to help facilitate seamless transition to the new federally mandated health insurance program. • It is accurate to the best of our knowledge. However, all members should take special note of the communication resources noted at the end of this presentation, as changes can always occur by legislative or regulatory directive.

3. WHAT IS PPACA? • On March 23, 2010, President Obama signed the health care reform bill, or Patient Protection and Affordable Care Act (PPACA), into law. PPACA makes sweeping changes to the U.S. health care system. PPACA’s health care reforms are primarily focused on: • Guaranteed access to health insurance regardless of physical or mental health status. No underwriting is allowed. • Elimination of maximum benefit limits for either physical or mental illness. • Premium payment subsidy based on financial need.

4. PPACA Continued • Premium rates that are basically the same for all eligible people, adjusted only by: * Geographic place of residence * Age brackets * Use or non-use of tobacco • Offering multiple levels of coverage based on desire or ability to pay out-of-pocket expenses for eligible medical services.

5. WHO IS ELIGIBLE? • Every U.S. Citizen under the age of 65 years is eligible under PPACA IN FACT All U.S. Citizens are obligated under the PPACA to purchase at least the basic level of insurance coverage offered under the law. There is a monetary penalty for not purchasing coverage.

6. WHEN DOES PPACA TAKE EFFECT? • It is expected that eligible persons can apply for a plan beginning on October 1, 2013. The plan selected will not go into effect until January 1, 2014. • We expect that the initial enrollment period will continue through March 31, 2014. • Enrollment will be conducted by certified insurance agents, online via Insurance Exchange websites, Insurance Exchange call centers, via regular mailed-in applications or on a face to face basis at Insurance Exchange locations to be placed throughout Nebraska. _____________________________________________

7. When Continued • Qualified insurance coverage purchased between: • October 1, 2013 and December 31, 2013 will take effect on January 1, 2014. • Policies purchased between January 1, 2014 and March 31, 2014 will take effect as soon as applications can be processed. NOTE • Do not cancel CHIP Coverage until you receive proof that the PPACA approved policy you selected is in effect.

8. WHAT HAPPENS TO YOUR CHIP POLICY? Assuming PPACA is not changed, your CHIP policy terminates on December 31, 2013. • You cannot remain on CHIP after December 31, 2013 • No new enrollees will be allowed after December 31, 2013 _____________________________________________ • The CHIP Administrator will process all claims incurred prior to January 1, 2014. • Customer Service calls after January 1, 2014 will be limited to claims incurred only. The remainder of the program will be closed.

9. WHAT YOU SHOULD DO. • You are strongly encouraged to select a PPACA approved insurance product that meets your needs by November 1, 2013. This will ensure that your policy will be in effect on January 1, 2014. • Do not drop your current CHIP policy until you have received confirmation of your new PPACA approved policy enrollment, and the policy is effective on January 1, 2014.

10. Further Informationcan be obtained any time at: • Nechip.com • Healthcare.gov • Doi.ne.gov • 1-800-318-2596 • TTY: 1-855-889-4325