National Health Access Citizens Health Care Working Group

1. National Health AccessCitizens Health Care Working Group May 12, 2005 Presented by: Kenneth L. Sperling CIGNA HealthCare

2. Background • The HR Policy Association • Represents the senior HR leadership of Fortune 500 companies • Over 240 member companies; cross-section of American industry • Entry into health care at 2003 annual meeting; formed Health Care Policy Roundtable • Identified the uninsured as principal focus

3. Health Care Policy Roundtable • J. Randall MacDonaldIBM Corporation, Chairman, Health Care Policy Roundtable • Timothy HughesCox Enterprises, Inc., Chairman, Public Policy Directions • Greg LeeSears Roebuck & Co., Chairman, Affordable Health Care Solutions Coalition • John ButlerTextron Inc., Chairman, Regional Health Care Quality Reform Initiatives • Sid BanwartCaterpillar, Inc., Chairman, Direct Pharmaceutical Purchasing Coalition

4. ACS ALCOA Aerojet Allstate Insurance Company Amerada Hess Anheuser-Busch Avon Caterpillar Inc. Circuit City Stores, Inc. Cox Enterprises, Inc. DTE Energy Company Eaton Corporation Edward D. Jones & Company, LP EMC Corporation Emerson Electric Company Episcopal Church Medical Trust Federal-Mogul Corporation FedEx Ground First Data Corporation Ford Motor Corporation FPL Group Inc. Gap, Inc. General Dynamics General Electric Company General Mills General Motors Hilton Hotels Honeywell The Home Depot IBM Corporation Intel International Paper Johnson Controls, Inc. Kelly Services, Inc. Limited Brands Lockheed Martin Corporation Maersk Manpower Incorporated Marathon Ashland Petroleum Marathon Oil Corporation Marriott McDonald's Corporation Motorola, Incorporated Parker Hannifin Corporation Payless ShoeSource, Inc. Pitney Bowes Prudential Financial Sears Roebuck & Company Sprint Standard Parking Starbucks Corporation Starwood Hotels & Resorts SYSCO Target Textron Inc. Toys "R" Us, Inc. United Parcel Service United Technologies Verizon Communications Verizon Wireless Charter Coalition Members • Initial population – 1.3 million • Employees, independent contractors, pre-65 retirees • 3 million including dependents

5. Affordable Health Care Solutions Coalition • Concept • Address the issue of the “working uninsured” by aggregating large groups of employees not receiving a health care benefit subsidy from a broad cross-section of American industry • Create more viable individual health care market • Promote dissemination of provider efficiency and effectiveness data • Focus on uninsured populations in large corporations, specifically— • Full-time, part-time, temps without coverage • Contract workers, independent agents, consultants • Pre-Medicare retirees

6. Affordable Health Care Solutions Coalition • Goals • Fully insured • No required direct employer subsidy • Guaranteed issue (i.e., no medical questions or underwriting) • National solution • Range of options and price points significantly better than current individual health insurance market, including comprehensive major medical coverage • Provider cost and quality transparency

7. National Health Access Offering for Fall 2005 Level VI Major Medical—$1,100 Deductible (HSA)1 Level V Major Medical—$2,000 Deductible (HSA)1 Level IV Scheduled Inpatient & Outpatient Benefits Scheduled Outpatient Benefit Level III Level II Wellness Benefit Discounted Network Level I Guarantee Issue (with waiting periods) Guaranteed Issue (no waiting periods) 1Depending on location, individual products may be offered that do include individual underwriting

8. States with Major Medical Offerings Current configuration leads to Major Medical options in 32 states representing 87% of the eligible population

9. Challenges • Adverse selection concerns on major medical coverage led to a fragmented state-by-state solution • Could not cover franchisees or small employers • Need to build front-end infrastructure for eligibility, enrollment, billing, and service • Lack of industry consensus on provider quality measurement and reporting