Group Long-Term Care

1. Group Long-Term Care

2. CategoryPage Long Term-Care Services / Definitions 3-5 Plan Highlights / Description of Benefits 6-18 New York Partnership Plan 19-20 Portability 21 Qualifying for Benefits 22 Eligibility / Who Can Enroll 23-25 Premium 26-28 Administration 29-34 Claims 35-36 Contacts / Customer Service 37-39 CNA Long-Term CareContents Overview

3. What is Long-Term Care? • Long-Term Care is a variety of services available to individuals who are unable to care for themselves • Services can be provided on a temporary or permanent basis • Services can range from simple help with meal preparation, to assistance with dressing or bathing, to complete 24 - hour monitored care

4. Where are Long-Term Care Services Provided? • Institutions • Nursing Home Facility • Alternate Care Facility • Hospice Care Facility • Community-Based Services • Home Health Care • Adult Day Care / Adult Foster Care • Home Hospice Care • Assisted Living Facilities

5. Assisted Living Facility • Eligible expenses for needed services that exceed standard charges for basic housing • Home-like environment, i.e. apartment complex or residential community • Insured allowed to make decisions and have control over life • Facility provides a combination of housing, personal support services and health care • Paid at community-based care benefit level

6. The Research Foundation Plan Highlights • Daily Nursing Home Benefits • Community-Based Care Benefit • Lifetime Maximum Benefit • Caregiver Training Benefit • Temporary Bed Holding Benefit • Emergency Alert Benefit • Care Assist Benefit

7. The Research Foundation Plan Highlights • Inflation Protection • Standard • Guaranteed Benefit Increase • Optional • Lifetime Automatic Benefit Increase • Waiting Period • Waiver of Premium

8. Daily Benefit Amounts • Daily Nursing Home Benefit • $100, $150, $180, $250 • Community-Based Care Benefit • 60% of daily nursing home benefit selected • $60, $90, $108, $150

9. Lifetime Maximum Benefit • Pool of available funds for eligible long-term care expenses • Based on the daily nursing home benefit selected and Lifetime Maximum Option chosen • Three Options Available • 1095 times the daily nursing home benefit(3 year) • 1825 times the daily nursing home benefit(5 year) • 5000 times the daily nursing home benefit(13.5 year)

10. Lifetime Maximum Benefit • 1095X (3 year) Lifetime Maximum $100 = $109,500 $180 = $197,100 $150 = $164,250 $250 = $273,750 • 1825X (5 year) Lifetime Maximum $100 = $182,500 $180 = $328,500 $150 = $273,750 $250 = $456,250 • 5000X (13.5 year) Lifetime Maximum $100 = $500,000 $180 = $900,000 $150 = $750,000 $250 = $1,250,000

11. Caregiver Training Benefit • Training for an informal caregiver to provide care for insured • Pays actual cost up to 3 times the community-based care daily benefit amount: Example: $60 x 3 = $180

12. Temporary Bed Holding • Pays up to the daily nursing home benefit for fees charged by a nursing home when insured leaves due to a temporary absence (i.e., hospitalization) • The payment is required by the nursing home • Benefits available up to 21 days per year Example: $100 x 21 = $2,100

13. Emergency Alert • Pays for the rental of home emergency alert system • Reimburses actual monthly cost up to community-based care daily benefit: Example: $60/month

14. Care Assist Benefit • Provides benefits to allow informal caregiver the opportunity to take time away from responsibilities • No waiting period applies • Daily maximum is available up to 21 days per year • Another informal caregiver may assist in the care of the insured

15. Waiting Period &Waiver of Premium Waiting Period • 90 calendar days following the date claimant is certified as chronically ill by Licensed Health Care Practitioner Waiver of Premium • Waives premiums which become due while receiving benefits • Begins after completion of the 90 day waiting period • If long term care services are no longer required, premiums will be waived for an additional 6 months

16. Inflation Protection Guaranteed Benefit Increase • Opportunity to purchase additional amounts of coverage • Timing of offers determined by The Research Foundation and CNA • Additional coverage guaranteed issue (GI) during “buy-up” periods only • Premium for additional benefit amount based on age when purchased • Premium for original benefit amount is not affected

17. Inflation Protection Example: 6/1/2003 — Age at entry = 40 Purchased 5 year(1825x) plan with $100 daily benefit Bi-weekly premium = $6.34 6/1/2006 — Now 43 years old - Accepts CNA offer to purchase additional coverage of $20. Bi-weekly cost for additional $20 = $1.52 • New daily benefit = $120 • New Bi-weekly premium = $7.86 • Note - Premium lower than someone just entering plan with same age and daily benefit amount (ex: New participant Age 43 Daily Benefit - $120 Bi-weekly Prem. $9.11)

18. Inflation Protection Optional Benefit Lifetime Automatic Benefit Increase • All benefit amounts will automatically increase on each anniversary date of the insured’s coverage • Benefits will increase each year at a rate of 5% of the prior year’s amount • Compared to the Standard Plan, premiums will be two to three times greater, based on the insured’s age at time of purchase

19. New York Partnership Plan • Conforms to Basic Plan design in accordance with the New York Partnership for Long-Term Care • Provides asset protection when/if Long-Term Care benefits are exhausted • Must be a resident of New York(or return to NY) to receive the Medicaid Extended Coverage portion • Does not include many of the features included in The Research Foundation’s standard plans • Emergency Alert, Caregiver Training, Care Assist • Lower Community based care benefit percentage

20. New York Partnership Plan • Basic Plan Design • Maximum Daily Benefit for Nursing Home • $163(2003 minimum), $250 • Community Based Care • 50% of nursing home benefit • Lifetime Maximum • 1095X(3 year) times the Daily Nursing Home Benefit • 100 day waiting period before benefits begin • 14 day respite benefit • Similar to care assist except respite care must be provided by a formal(licensed) caregiver • Lifetime Automatic Benefit Increase is included • Required for the NY Partnership Plan

21. Portability • Continuation of Coverage • No change in benefits / rates • No action necessary by Insured • Receives a bill directly from CNA • quarterly, semi-annually or annually • monthly - electronic funds transfer

22. Qualifying for Benefits • Must have a qualifying impairment • Unable to perform, without substantial assistance, 2 of 6 Activities of Daily Living Bathing Transferring Dressing Continence Toileting Eating • Cognitive Impairment requiring substantial supervision ( ex. Alzheimer’s Disease) • Impairment certified by licensed health care practitioner (i.e. physician) • Satisfy 90 calendar day waiting period

23. Who Is Eligible For Coverage? • Employees eligible for coverage • actively at work at least half time on a regular salaried schedule • 6 months of employment • On payroll at the time of application • When to enroll with Guaranteed Issue • During Special Open Enrollment 4/1/03-4/30/03 • Newly eligible for coverage - within 60 days following completion of 6 months of employment • Late Entrant Employees • If enrolling at any other time, must provide evidence of insurability and coverage is not guaranteed

24. Who Is Eligible For Coverage? Certain family members • Spouse / Domestic Partner of eligible employee • may apply at any time via a short form application • coverage isnot guaranteed • must provide evidence of insurability and be approved

25. Who Is Eligible For Coverage? • Retirees and their spouses • Parents, Parents-in-law • Grandparents, Grandparents-in-law • may apply for coverage at anytime via a long form application • coverage isnot guaranteed • must provide evidence of insurability and be approved

26. What Determines Your Premium • Premiums are per individual • Coverage selected • Daily Benefit, Lifetime Maximum, Optional Lifetime Automatic Benefit Increase • Age as of coverage effective date • Effective date • Employees enrolling between April 1, 2003 through April 30, 2003….effective date is June 1, 2002 • Others - First of the month following underwriting approval of coverage

27. Level Premiums • Premiums are based on age on effective date of coverage • Do not increase as you get older • increases only if additional coverage is purchased or if • CNA requests increase in rates for all insureds

28. Payment of Premium • Payroll deduction • Eligible Employees • Their Spouses / Domestic Partners • Premiums deducted on an after-tax basis • Direct bill • Retirees and their spouses, Parents, Grandparents (in-laws) • Payment options available • quarterly, semi-annually or annually • monthly-electronic funds transfer

29. Administration • Leave of Absence • Not eligible for coverage until return to actively-at-work status • eligible for GI if done within eligibility timeframe (60 days following return to work) • Late Entrants • Apply at anytime • Coverage is not guaranteed • Must complete short form application and be approved

30. Administration • Changes / cancellations / decreases in coverage allowed throughout the year • Employees must call CNA Group Long-Term Care Customer Service • CNA will make appropriate changes once notified by telephone or written request • Will notify The Research Foundation via monthly payroll update / billing to discontinue payroll deductions

31. Administration Effective Date of Coverage • CNA sets effective dates for all insureds • Effective dates are always the 1st of the month • Effective dates based on • when enrollment forms / applications are received and coverage approved • Cut-off date for next monthly payroll / billing file

32. Administration • Billing • (Central Office Responsibility) • CNA sends monthly payroll update / billing file to The Research Foundation • statement will reflect payroll deduction amount (Bi-Weekly) for each employee or spouse / domestic partner insured • shows deduction amount to be taken per pay period • Pass changes in payroll deductions • Codes N=new D=delete C=change

33. Administration • Billing • (Central Office Responsibility) • CNA will send a “short pay” statement to individual insureds if: • premium shortages occur • no payroll deduction dollars received • CNA will direct bill participants due to • leave of absence • termination (offer continuation of coverage) • after 90 days if no payroll deduction premium received

34. Administration Claims • Notify CNA by calling 800 number • Claim Specialist discusses • contract provisions • claim process • requests completion of authorization form - medical records • schedule appointment w/Care Manager

35. Administration Claims • Care Manager • conducts telephone assessment interview • gathers information about functional and cognitive impairments • identifies qualifying impairment • Plan of Care is developed

36. CNA Contacts for The Research Foundation • Account Management-Corporate Steve March, National Account Manager 407-919-1951 (fax 407-919-1882) steven.march@cna.com • Account Management-Sales and Service Roxanne Price, Account Service Representative 585-249-7925 (fax 585-249-7905) roxanne.price@cna.com • Day-to-day Administration Rosemary Buchelli, Account Service Manager 407-919-1920 (fax 407-919-1880) rbuchelli@ltcg.com

37. Employee Questions? CNA CUSTOMER SERVICE: 1-877-777-9072 HOURS OF OPERATION: Monday thru Friday 8:00 a.m. to 6:00 p.m. (ET) CNA Web Site for The Research Foundation www.ltcbenefits.com password: trfsunygltc

38. Mailing Address PO BOX CNA GLTC P O Box 946760 Maitland, FL 32794-9776 STREET ADDRESS/OVERNIGHT CNA GLTC 65 Keller Road Orlando, FL 32810