“Aging Beautifully” Senior Savings ProductMeeting the Needs of a Growing Demographic

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Overview

OptumHealth Allies meets the needs of a wide range of adults over age 50:

– Reduces out-of-pocket health spending for working adults over 50– Makes health care more affordable for pre-65 retirees– Complements Medicare and Medicare Supplement coverage for consumers 65+– Provides savings on desirable but costly “vanity” services for mature adults of all ages

OptumHealth Allies Basic and Enhanced products can be positioned to focus on those benefits that have the most appeal to senior populations:

–Dental –Long-term care services–Pharmacy

–Cosmetic surgery –Hearing–And others

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Meeting a Growing Need

Health Care Spending Facts In the 1980s, two-thirds of all companies

offered health benefits to supplement Medicare for former employees aged 65 or more. Today, only 31 percent of large businesses and only four percent of small businesses (under 200 employees) offer retiree health benefits1.

Medicare pays only about half (49.1%) of total personal health care expenditures for beneficiaries2.

Medicare households spend approximately $4,000 annually on health care. Health insurance premiums account for 52.1 percent; followed by medical services (31.3 percent), prescription drugs (13.4 percent) and medical supplies (3.2 percent) 3.

According to U.S. Census Bureau projections, in 2011, when the first baby boomers hit retirement age, the number of Americans turning 65 years of age each year will increase from 7,000 to 10,0004. By 2030, 70 million Americans will be over age 65 — almost twice as many as in 20025.

1 Kaiser Family Foundation2 What Share of Beneficiaries’ Total Health Care Costs Does Medicare Pay? Craig Caplan, AARP Public Policy Institute, September 20023 Health Care on a Budget: An Analysis of Spending by Medicare Households. Juliette Cubanski, Anthony Damico, and Tricia Neuman.

February 20094 U.S. Census Bureau5 Medicare & You 2009 (http://www.medicare.gov/Publications/Pubs/pdf/10050.pdf

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OptumHealth Allies Fills Medicare Gaps

Not covered by Medicare Parts A&B 5 Discounts available through OHA

Dental X

Long Term Care X

Pharmacy X

Cosmetic Surgery X

Hearing X

24 Hour Nurse Help Line X

Vision X

Chiropractic X

Foot Care X

Orthopedic shoes X

Laboratory tests X

Syringes and insulin X

Acupuncture X

Not covered by Medicare Part D Discounts available through OHA

Rx Coverage Gap (“Donut Hole”)aA&B X

Over-the-counter Medications X

5 Medicare & You 2009 (http://www.medicare.gov/Publications/Pubs/pdf/10050.pdf

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Appealing to the “vanity” market

In 2008, Americans spent almost $11.8 billion on cosmetic procedures, both surgical and non-surgical, and had more than 10 million procedures. 32% of all cosmetic procedures were performed on adults age 51 and older.

The most popular procedures among older adults are shown below

Age 51-64 Age 65+

Cosmetic Service Number of Procedures

Percent of Procedural Total

Number of Procedures)

Percent of Procedural Total

Blepharoplasty (cosmetic eyelid surgery)

91,806 47.1% 24,836 12.7%

Faceifts 75,920 57.3% 23,722 17.9%

Liposuction 69,479 20.4% 5,829 1.7%

Breast Augmentation 30,826 8.7% 2,316 0.7%

Abdominoplasty (tummy tuck)

25,676 17.4% 2,904 2.0%

American Society for Aesthetic Plastic Surgery (ASAPS).

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Basic Program

Dental: Save 10-35% on dental care, including general dentistry, dentures, dental implants, crowns, bridges, and much more.

Long-term Care Services: Save 5% to 30% on nursing and assisted living facilities, home health care, hospice/respite, homemaker and personal care. Discounts are available to members and their aging parents

Cosmetic Procedures – Aging beautifully is easy, with savings of 20 to 30 percent cosmetic surgery. To ensure a positive experience, representatives work with members to find a physician with whom they are comfortable and help set up their first appointment.

Hearing: Lower of 30% off MSRP or $300 off total retail price on hearing aids and ancillary products from 26 manufacturers

Vision: 5-20% savings on vision care products and services. Members pay no more than $40 for eye examinations.

Wellness: Discounts on weight management programs such as Jenny Craig, Fitness Clubs (including select locations of Curves, Gold’s Gym, etc.) smoking cessation, nutrition and more.

Alternative Care: Discounts of 20% on chiropractic care,massage therapy, acupuncture and naturopathy

50+ Working Adults Pre-65 Retirees Medicare EligiblesTarget Markets

• Complements coverage for working adults age 50+• Fills gaps in Medicare Supplement plans

Approximately 70% of older adults (65+) do not have dental coverage.

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Value-added Extras

Marketplace: Members-only discounts from dozen of brand name retailers, on fitness apparel, home medical supplies, vitamins and supplements, spa and salon services, OTC medications and much more

Tools and Resources: Personal Health Record, health assessments, symptom guide, health news and information

50+ Working Adults Pre-65 Retirees Medicare EligiblesTarget Markets

• Working adults 50+ • Pre-65 retirees• Medicare enrollees with and without MedSup plans

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Seniors Value the Discount Program*

How valuable is the discount on: Very Valuable Valuable Total

OTC drugs and personal care products 41.1% 19.0% 60.1%

Vitamins and supplements 32.0% 20.5% 52.5%

Long-term care 35.0% 17.3% 52.3%

Hearing care 30.5% 16.5% 47.0%

Alternative care 30.9% 14.1% 45.0%

Wellness programs 25.3% 17.5% 42.8%

Cosmetic dental care 31.9% 10.2% 42.1%

LASIK 29.6% 12.1% 41.7%

Healthy lifestyle products 23.0% 13.9% 36.9%

Fitness apparel 22.8% 13.0% 35.8%

*Based on a third-party survey of OptumHealth Allies retiree members conducted in October 2008Surveys were conducted via phone, and quantitative as well as qualitative data (comments) were collected.Members surveyed have access to a limited product that includes only LASIK, Cosmetic Dental, Alternative Care, Wellness, Hearing and Marketplace.

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Seniors Are Interested Health Discounts*

78.2% 77.3%

63.2%

37.5%

26.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Vision care Dental care Medicalsupplies and

home medicalequipment

Counseling Cosmeticsurgery

How interested are you in receiving discounts on:

*Based on a third-party survey of OptumHealth Allies retiree members conducted in October 2008Surveys were conducted via phone, and quantitative as well as qualitative data (comments) were collected.Members surveyed have access to a limited product that includes only LASIK, Cosmetic Dental, Alternative Care, Wellness, Hearing and Marketplace.

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Summary

Seniors age 50+ have a variety of unmet health care needs

The senior demographic is growing rapidly as Baby Boomers reach retirement age

OptumHealth Allies products meet the needs of a wide range of adults over 50

Existing products can easily be positioned to appeal to senior populations

CONTACT INFORMATION

To make the OptumHealthAllies discount program available to your employees or group members,

contact:

Lee Gerber

516-239-1332

leegerber@optonline.net

www.savings.optumhealthallies.com

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