1. 1 AARP Dental Insurance Plan Serving the individual dental insurance needs of the 50+ population Dr. Lowell Daun

2. 2 Available dental programs for individuals Dental Discount Plans –Not insurance –Percentage discount for specific dental treatments HMO –Capitation plan –Pre-assigned provider office PPO –Fee-for-Service program –Extensive provider network with providers agreeing to pre- negotiated reduced rates –The ability to see an out-of-network dentist at a higher out-of- pocket cost

3. 3 AARP Program Accessibility Available in 49 states plus DC and Virgin Islands

4. 4 Where is the plan most successful? California Florida New York Pennsylvania Texas

5. 5 AARP Program Benefit Design Choice of two benefit designs Premium rates range from $38 - $51 monthly for a single person 2-year rate guarantee 4 payment options 12-month waiting period for major restorations, periodontics and prosthodontics PPO program

6. 6 AARP Program Benefit Summary * Benefit level available only when visiting a Delta Dental PPO dentist. ** No deductible required for diagnostic or preventive services under Plan A.

7. 7 Who purchases this plan? Individuals 50 and over, such as: – Retirees without dental benefits – Working adults without employer-sponsored benefits Typical psychographics: –Affluent in terms of household income and net worth –Well-educated –Aged 60-75 –Female –Married –Financially savvy, like to shop, technically savvy, live the fine life

8. 8 What makes this population different? Lack of availability to true private dental insurance –Less than two out of every ten older Americans are covered by private dental insurance (DHHS “Oral Health in America – 2003) –No more than 20% of Americans 75 years of age and over have dental insurance (Centers for Disease Control and Prevention – 2005) –Oral Health America gave the nation on average a final grade of a “D” for private dental coverage in a special grading report on “The oral health of Older Americans” (Oral Health in America – September 2003)

9. 9 Comparable dental programs Only one other individual/voluntary program is available to this population: TRICARE Retiree Dental Program –Department of Defense contract for retired military and their eligible dependents, administered by Delta Dental –Very similar to AARP Dental Insurance Plan’s benefit structure with comprehensive coverage –100% voluntary, premiums paid by the enrollee

10. 10 Key elements of a successful dental plan Understanding the needs of the senior market –Comprehensive coverage –Affordable price –Network size –Quality of network dentists

11. 11 Marketing channels Direct Mail – to current AARP members Print Advertising – in AARP publications Online Advertising – aarp.org and other sites of interest to seniors

12. 12 What else do they want? Third cleaning Implants No waiting periods Increased maximums

13. 13 Program Administration Administrative Requirements –More complex than with the traditional commercial client Call volume Regulatory requirements Enrollment Rollout –Original forecasts assumed all states approved by September 2004 –Many key states (including CA, FL, NJ, NV, & WA) were not available until early 2005 –As of June 2007, the only remaining state is MA

14. 14 Program Utilization The first members to join the plan were the most costly members Once the demand was met, the experience and needs were more favorable Maximum Utilization –First year members rarely reach their annual maximum –Once full benefits are reached, the number of members reaching their maximum increase towards normative levels –Utilization is remaining higher than expected overall Procedures being used are closely resembling Delta Dental’s Commercial experience with this demographic

15. 15 AARP Program Results to Date As of June 2007 – 182,222 total members Most successful product launch among AARP Healthcare Option (HCO) products Highest requested product among HCO products in 2005—2006

16. 16 Innovations Plan designed with the senior market in mind –Periodontal maintenance cleanings and denture repair 1 st year benefits Expanded benefits under consideration –Third cleaning –Implants

17. 17 AARP Dental Insurance Plan Contact Information Toll free: 1- 866-583-2085 Web site: www.deltadentalins.com/aarp