1. The Power of Blue Individual & Family Health Plans

2. Blue Cross One of California’s largest Individual healthcare coverage providers Has served three generations Has plans to protect your client’s health & financial futures Parent Company was named #1 on Fortune magazine’s Most Admired Health Care Company List for an unprecedented 5th consecutive year

3. Individual & Family Health Plans Portfolio effective 3/1/04

4. Pricing Features Younger Spouse rating for couples and families. Five-year age bands for 30 to 64 year-old rates. 9 Rating Areas more precisely match premiums to various regional medical costs.

5. Price & Benefit Guarantee A full six-months from the client’s original effective date

6. Greater Share of Cost for Member = Lower Premium Greater Share of Cost for BCC = Higher Premium & Richer Benefits We offer clients choices!

7. 22% 18% 15% 7% 5% Drugs, Medical Devices & Medical Advances (22%) General Economic Inflation (18%) Rising Provider Expenses (18%) Government Mandates & Regulation (15%) Increased Consumer Deman (15%)d Litigation & Risk Management (7%) Other (5%) Factors Driving Rising Premium Costs 2001-2002 Source: PricewaterhouseCoopers, The Factors Fueling Rising Health Care Costs, April 2002

8. Individual & Family Plans from Blue Cross Basic (Hospital) PPO: 2500 or1000 PPO Saver PPO Share: 5000, 2500,1500,1000 or 500 RightPlan PPO 40 HMO or HMO Saver

9. Expanded Eligibility Domestic Partner Coverage –Declaration of Domestic Partnership filed with the California Secretary of State is required to enroll –Submit with Individual Enrollment Application

10. PPO Features First dollar coverage on –Office visits, generic drugs, preventive care, the most used benefits –Acupuncture visits on the PPO Share and RightPlans –All except Basic (Hospital) PPO Plans Choice of coverage and providers –Cost savings through network providers

11. PPO Features, Continued No pre-authorization for most covered services Annual out-of-pocket maximum –$3,500-$7,500 depending upon plan –Combined In- and Out-of-Network –Once met, plan pays 100% of eligible in-network medical costs Lifetime maximum up to $5 million

12. Annual Out-of-Pocket Maximum In & Out-of-network Charges Combined Plan Per Member (2-member maximum) Basic PPO 1000$3,500 Basic PPO 2500$5,000 PPO Saver$5,000 PPO Share 5000$7,500 PPO Share 2500$7,500 RightPlan PPO 40$7,500 PPO Share 1500$6,000 PPO Share 1000$5,000 PPO Share 500$5,000 HMO Saver and Individual HMO$3,000 100% coverage of eligible medical costs in-network above the annual maximum out-of-pocket

13. Share of Cost Definitions Share of Cost = in-network amount member pays In-network cost is based on a negotiated fee rate. Deductible = Unless otherwise indicated, this is the amount the member pays before the Share of Cost. For a family contract, only 2 members must satisfy their individual deductibles.

14. Basic (Hospital) PPO 2500/1000 Share of Costs Deductible = $2500 or $1000 Hospital = 20% (Preferred Participating) Professional Services (lab, x-ray, anesthesia, surgeon, etc.) = 20% hospital only until out-of- pocket maximum is met. Office visits = no coverage until out-of-pocket maximum is met No Maternity Available with or without $1000 Term Life

15. PPO Saver Share of Costs Deductibles = $500 in-hospital; $5000 other covered services Hospital = 20% after $500 deductible Professional Services = –20% after $500 deductible for in- and out-patient or Ambulatory Surgical Center services; –20% after $5000 deductible for all other covered services. –Provider discounts apply while member is meeting deductible. Office visits = First 4 child/2 adult visits @ $30 copay (deductible waived) No Maternity Available with or without $1000 Term Life

16. PPO Share 5000/2500/1500/1000/500 Plans Share of Costs Deductible = $5000, $2500, $1500, $1000 or $500 depending on plan Hospital = 30% (Preferred Participating) Professional Services = 30% Office Visits = 30% (deductible waived) Maternity = 30%

17. RightPlan PPOs Share of Costs Deductible = None Office Visit = $40 copay Hospital = 40% of negotiated fee plus $400 copay per day/4-day maximum copay per admission Professional Services = 40% No Maternity

18. RightPlans Special Features Single Policy Coverage –No couple or family contracts –Each family member gets their own policy 3 Pharmacy Options –None (Lowest Price) –Generic Only (Lower Price) –Full Pharmacy (Low Price) No Maternity

19. HMO and HMO Saver Share of Cost Deductible = –None for HMO –HMO Saver has $1500 deductible for inpatient hospital services & outpatient ambulatory surgical centers only Office Visit = $10 Copay Professional Services Out of hospital= $10 Professional Services In-hospital –No charge on HMO –HMO Saver subject to $1,500 deductible

20. Formulary Drug Share of Cost Retail or Mail Order (30-day supply) Generic - $10 copay Brand - $30 copay ($35 on PPO Share 5000) Subject to following Brand Deductibles: Deductible $250 $500 $750 Plans PPO Share 1500/1000/500 and HMOs PPO Saver, PPO Share 2500, RightPlan PPO Share 5000

21. Non-Formulary Drug Share of Cost Generic 50% of drug cost Brand Drugs with Generic Equivalent Generic Copay + Cost Difference between Brand & Generic after Brand Name Deductible is met Brand Drugs without Generic Equivalent 50% of drug cost after Brand Name Deductible is met

22. Emergency Room Copay Emergency Services Defined –Appropriate treatments for a sudden, serious and unexpected acute illness, injury, psychiatric or medical condition. If not admitted to hospital –Copay required in addition to the coinsurance Right Plan PPO 40 = $30 copay All Other Plans = $100 copay Coinsurance amount is the same as what the plan pays for Professional Services

23. Preventive Care Share of Cost PPO Plans (Deductible Waived) –Routine mammogram, Pap, PSA tests ordered by a physician = 30% (20% on PPO Saver) –Well Baby/Well Child = 40% (50% on PPO Saver) Not covered on PPO Basic 1000 Plan –HealthyCheck Center $25 or $75 for Basic Screenings HMO Plans –$10 Copay

24. We Offer FamilyElect Based on needs, each family member can choose his or her own plan (including RightPlan PPO 40) Family submits an application with one check for all premiums Once approved for coverage, the family can pay for everyone on one bill

25. Value-Added Programs for all members Blue Cross Healthy Extensions : Discounts on a wide range of alternative health care and wellness products and services through independent vendors. Blue Cross MedCall: For reliable health care information from a registered nurse or one of 200 educational audio tapes 24-hours a day. Blue Cross BabyConnection : Promotes early and regular prenatal care. SM

26. More Value-Added Programs PPO Members: BlueCard Program is there for clients who travel to provide network savings with more than 70% of doctors and 80% of hospitals in America. HMO Members: With DirectAccess providers, client can self refer to a Participating Specialty Service Provider without a Primary Care Physician’s authorization With SpeedyReferral providers, clients get immediate referral for certain specialty consultations without prior authorization from the medical groups management committee

27. Payment & Billing Initial Premium Payment Methods –Checking Account Deduction –Credit Card ( Visa, MasterCard or Discover) –Check Ongoing Premium Payments –Monthly Checking Account Deduction Credit Card –Bi-monthly or Quarterly Billing

28. Tips to Speed Up Submissions Always ask client to return application to you –Verify it is complete Fax in your complete application –To (800) 327-9255 as listed on the application –Using any other Fax # will cause a delay

29. Tips to Speed Up Submissions Advise client to use an automatic payment method vs. a check. Provide clients with the opportunity to submit online via the Agent Connect link located on your web site. –More information is available at Agent Services at bluecrossca.com

30. Exclusions & Limitations This ends our summary of medical benefits. For more information about out-of- network coverage and what the plans do not cover, please refer to the plan- specific Evidence of Coverage booklet.

31. Individual Dental Products

32. Dental Coverage Offered Choice of affordable dental plans Access to broad networks of dentists including specialists Three Dental Health Maintenance Organization (DHMO) Plans One Dental Preferred Provider Organization (PPO) Plan

33. Blue Cross Individual Dental HMO Features Must use the services of a network provider Options by premium and plan design –Low: Blue Cross Individual Dental Saver SelectHMO –Medium: Blue Cross Individual Dental SelectHMO –High: Blue Cross Individual Dental Premier SelectHMO No deductibles Unlimited maximum benefit

34. Blue Cross Individual Dental HMO Plan Share of Costs $5 office visit for preventive care (includes two cleanings per member per year) Diagnostic services, no charge for oral exam and x- rays; consultations $46 per session. No annual maximums or waiting periods for most services All services (including specialty) covered for a fixed copay amount Orthodontia coverage included

35. BC Life & Health Dental PPO Features Choice of any dentist Save more if you go to a network dentist $50 annual deductible per person Maximum three deductibles per family Maximum $1,000 coverage per person, per year

36. Individual Dental PPO Plan Share of Costs Preventive and diagnostic care (includes two cleanings and exams per member, per year Basic care (including filling) covered after three months. All services (including specialty) covered for a fixed copay amount Major care (including root canal) covered after 12 months Plan pays specified amount or amount of dentist charges, whichever is lower

37. Affordable Term Life Insurance for Individuals

38. BC Life & Health Term Life Insurance for Individuals Anyone who qualifies for one of our Level 1 or Level 1 + 20 medical plans can purchase –Up to $50,000 if over age 19 –Up to $30,000 (age 1-19)

39. BC Life & Health Term Life Insurance for Individuals Easy to apply –Applicant completes brief section in the Individual Enrollment Application (IU2036) –No initial premium is required for life insurance submissions BC Life & Health Insurance Company is rated “A” in excellence by AM Best and “A” in strength by Standard & Poor’s

40. Thank You for Selling Blue Cross!