New Care Choices Products Put Employers, Employees in the Health Care Driver’s Seat

Consumer-directed health plans provide more financial flexibility and control

FARMINGTON HILLS, Mich., Sept. 21, 2005—Care Choices is offering twelve new, high-deductible HMO plans that are compatible with Health Savings Accounts (HSAs). These are also referred to as Consumer-Directed Health Plans, or CDHPs. This is the second new product announcement this year from Care Choices. The health care organization introduced Care Choices PPO in August.

An HSA is an account with a financial institution in which funds accumulate to pay for qualified medical expenses. High-deductible HMOs, combined with HSAs offer numerous tax advantages to both employers and employees, as they are “triple tax-free.” That is, contributions, growth and spending related to these accounts are not subject to state or federal taxes.

For employers, some of the benefits include:

Ease of administration—Care Choices handles all the claims processing, customer service and web tools.

Premiums—the employer usually pays a lower premium.

Employee investment—by offering this arrangement, employers help employees take more responsibility for their health care decisions and take a personal financial stake in controlling health care costs.

For employees, some of the benefits include:

100 percent coverage on preventive care—there are no copayments or deductibles to meet for annual physical exams, well baby/child exams and immunizations.

Anyone in the family can contribute to the account.

HSA funds earn interest and can be rolled-over from year-to-year, allowing employees the opportunity to accumulate funds for future use.

A health care spending card to use when paying for qualified medical expenses.

“Care Choices understands that no two customers are alike, and wants each of them to have more options in choosing health care coverage that meets their unique needs,” said Jelka Petrovic, Chief
Marketing Officer at Care Choices. “For the right businesses and employees, these high-deductible plans when paired with HSAs, offer a level of control over health and financial issues that is truly liberating for many people. They decide how their health care dollars are managed—and we provide the support to help them do it.”

Care Choices has partnered with Mellon Financial Corporation, Pittsburgh, Pennsylvania (Mellon) and Affiliated Computer Services, Inc. (ACS) to provide the financial services needed to set-up and manage the HSA accounts. ACS offers integrated health care funding solutions for health plans, employers and employees in partnership with Mellon Financial Corporation. ACS markets and distributes the Mellon HSA Solution and is responsible for customer service and client relationship management. Mellon is responsible for custodian services, recordkeeping, reporting, technology, and asset management.

Care Choices will provide all CDHP members with access to their accounts online. Once logged into the secure site, members will have access to tools such as:

Claims forms

Account transactions

On-line claims payment

Employers and employees will also benefit from Care Choices proven clinical quality in its comprehensive medical and disease management programs. “This is important with these plans, since consumers will be motivated to save money,” said Petrovic. “One way to do this is by staying healthier. Medical and disease management programs help people do so, by giving them access to high-quality advice, information and tools to make managing their personal health needs easier.”

Care Choices HMO has received the highest rating of “Excellent” from the National Committee for Quality Assurance, and for the past two years has been recognized as first in Michigan for clinical excellence.¹ For three years running, Care Choices HMO has also been rated the number one health plan in Southeast Michigan^1,2 for member satisfaction, according to the national Consumer Assessment of Health Plans Survey.

Care Choices is a health benefits management company and a subsidiary of Trinity Health, one of the nation’s leading providers of health care services. Since 1986, Care Choices has been providing quality health care coverage to thousands of members throughout Michigan. The Care Choices suite of products includes Care Choices HMO, Care Choices PPO and Preferred Choices PPO. Care Choices offers a broad, fully integrated network of physicians, hospitals and other health care professionals all sharing a strong commitment to improving the health status of the communities it serves by delivering effective and affordable health care. Care Choices HMO maintains the highest rating available of Excellent by the National Committee for Quality Assurance (NCQA).

¹ The source for data contained in this publication is Quality Compassâ 2004 and is used with the permission of the National Committee for Quality Assurance (NCQA). Any analysis, interpretation, or conclusion based on these data is solely that of the authors, and NCQA specifically disclaims responsibility for any such analysis, interpretation, or conclusion. Quality Compass is a registered trademark of NCQA.

² Of the five health plans with the largest enrollment in the five county metro area, including Wayne, Oakland, Macomb, Washtenaw and Livingston counties.