isn’t it time someone created a healthier health plan? we...

Isn’t it time someone createda healthier health plan?

Lumenos® Health Savings Account

We thought so. So we did.

The person most responsible for your health? You. The plan most supportive of your health? Lumenos HSA, a consumer-driven health plan from Anthem Blue Cross and Blue Shield.

Think of “health plan” and what comes to mind? Most likely, coverage that just helps pay the cost of medical care when you’re sick or injured.

We’re out to change your thinking.

With our Lumenos Health Savings Account (HSA) Plan—an innovative consumer-driven health plan for individuals and families from Anthem Blue Cross and Blue Shield—protection against high medical expenses is only part of the story.

What makes the Lumenos HSA Plan different? Plan features specially designed to improve and maintain your health and give you enhanced control over your health care dollars. Take a look:• Preventive care covered.Whenyouuseournetworkproviders,nationallyrecommendedpreventive

careservicesarepaidforbyAnthem,atzerocosttoyou.

• A Health Savings Account that empowers you.You’llhavetheabilitytobettermanageandcontrolyourhealthcaredollars.

• Exclusive health tools and personalized services.You’llhaveaccesstoawealthofwaystoimproveandmaintainyourhealth—allatnocharge,including:

— AnonlineHealthAssessmentdesignedtohelpyoumeasureyouroverallhealth.

— APersonalHealthCoachProgram,SmokingCessationProgram,andWeightManagementProgram.

— 24-HourNurseAdviceLinewhenyouneedaquickanswertoaroutinehealthquestionoradviceonamedicalissue.

— Anonlinehealthsitewithtoolsandinformation,includingnetworkproviderlistings,hospitalqualityratings,prescriptiondrugcosts,wellnessarticles,andmuchmore.

• Built-in value through Anthem discounts.Youchooseyourowndoctorandyouneverneedreferrals—butwhenyouuseournetworkproviders,youcansavemoneybecauseyou’llreceiveAnthem’snegotiateddiscountsonservicesandprescriptions.

• Flexibility.ChoicesandoptionsareavailabletohelptailoryourLumenosHSAPlantoyourneedsandbudget—andyoucontrolaportionofyourhealthcaredollarsforevenmoreflexibility.

• Improve your health and your financial health.YourHealthSavingsAccountqualifiesfortaxadvantagesdesignedtohelpreduceyourout-of-pockethealthexpenses.

Nowwhenyouthinkof“healthplan,”thinkLumenosHSA.Becauseahealthplanyoucanfeelgoodaboutisonethathelpsyoufeelgood.

Preventivecaretomaintainyourhealth.

• 100%coveragefornationallyrecommendedpreventivecareserviceswithnodeductionfromyourHealthSavingsAccountandnoout-of-pocketcostswhenyouusenetworkproviders.

Health Savings Account to pay for medical care and prescriptions.

• Contributionsaretax-deductibleandwithdrawalsaretax-freewhenusedtopayforeligiblemedicalexpenses.

• Theaccountbalanceearnsinterestandyouhavetheopportunitytoinvestforthefuture.

• Unuseddollarsrolloverfromyeartoyearsoyouraccountcankeepgrowingtohelpmeetfuturehealthcarecosts.

• ThemoneyyouspendfromyourHealthSavingsAccountoncoveredexpensesappliestoyour

plandeductible,whichmustbesatisfiedbeforetraditionalcoveragebegins.

Then, use Traditional Health Coverage, if needed.

• IfthereisnomoneyinyourHealthSavingsAccount,youmustpayanyremainingdeductibleout-of-pocket.Thispaymentiscalleda“bridge”amountbecauseitbridgestheHSAandtraditionalhealthcoveragecomponentsoftheplan.

• Then,theplanpaysthemajorityofthecostforadditionalcoveredservices.Youareresponsibleforanyapplicablecoinsuranceamounts.

• Oncetheout-of-pocketmaximumisreached(whichincludestheplandeductibleandanycoinsurancepayments),theplanpays100%ofcoveredexpenses.

Preventive Care

Health Savings Account

Out of Pocket “Bridge” to Traditional Health Coverage

Traditional Health Coverage

How the Lumenos HSA Plan works

A closer look at our Lumenos HSA PlanOnceyou’reapprovedforhealthbenefitscoverageundertheLumenosHSAPlan,aseparateHealthSavingsAccountwillbesetupforyouwithMellonTrustofNewEngland(oryoucanchooseanotherfinancialinstitution).

Youcanmaketax-deductiblecontributions(withincertainIRSlimits)toyourHealthSavingsAccount,andwithdrawthemoneytax-freetopayforeligiblemedicalexpenses.

Thetaxadvantageshelptoloweryourout-of-pocketcosts,andthemoneyyouusefromtheaccountappliestoyour“Bridge”responsibility(theamountyoumustpayout-of-pocketbeforetraditionalhealthcoveragekicksin).

Thereareotheradvantages:Themoneyintheaccountisyourstokeep—it’sneverforfeited,evenifyouleavetheplan.Ifyoudon’tspendallthemoneyinagivenyear,theamountrollsover,soyouraccountkeepsgrowing..

Health Savings Accounts: 3-Way Tax SavingsIfyouopenaHealthSavingsAccountwithyourLumenosHSAplan,youcansaveontaxesinthreeways:

• First,thecontributionsyoumaketoyouraccountaretax-deductible(withincertainIRSlimits),whichcanreduceyouroveralltaxes.

• Second,themoneyinyouraccountcanearntax-freeinterestandyouevenhavetheopportunitytoinvestforthefuture.

• Third,withdrawalstopayforeligiblemedicalexpensesaretax-free.

YoucanalsousethemoneyinyourHealthSavingsAccounttopayformedicalexpensesthataren’tcoveredbythehealthplan,likecontactlenses,over-the-countermedications,ororthodonticbraces(however,theseamountswon’tapplytoyourdeductible).

Still more Lumenos HIA plan benefits

Save on prescription drugs—including mail orderPrescriptionmedications—eventhroughmailorder—arecoveredwhenthetraditionalhealthplancoveragekicksin(lessanyapplicablecoinsurancepayments).Butthatdoesn’tmeanyouhavetowaittosavemoney:

• Thankstoourbuyingpower,Anthemisabletonegotiatesignificantdiscountsonalltypesofprescriptionmedicines.JustshowyourAnthemIDcardatpharmaciesinournetwork—that’sover95%ofpharmaciesnationwide.YourcardletsthemknowyourprescriptionshouldreceivetheAnthemdiscountrate.

• ThecostoftheprescriptioncanbepaidfirstfromyourHealthIncentiveAccount,ifyouhavemoneyintheaccount.Ifyoudon’thavemoneyinyouraccount,youstillbenefitfromAnthem’sdiscountrate.

• Tofurtherloweryourcost,visitanthem.com(it’seasytoregisteronceyou’reapprovedintheplan)tolearnaboutgenericsorotherlow-costalternativesthatcouldsaveyoumoney.

• Youcanalsopotentiallysaveonprescriptionsbyorderinga60-or90-daysupplythroughmailorder.Onceyou’reapprovedintheplan,youcandownloadamailorderformfromwww.anthem.com.

Your Health Savings Account with Mellon BankAnthemmakesiteasytogetyouraccountstarted.We’vepartneredwithMellonTrustofNewEnglandtomakeestablishingandmanagingyourHealthSavingsAccountsimple—we’llevensetuptheaccountforyouonceyou’reapprovedforcoverage.Or,ifyouwouldratheruseanotherfinancialinstitution,that’sfinetoo.

TheLumenosHSAPlanincludesservicingforyourHealthSavingsAccountthroughMellonTrustofNewEngland.WhileyouarenotrequiredtouseMellonBankforyourHealthSavingsAccount,thefeaturesandservicesprovidedbyMellonweredesignedtomeetallofyourneeds.

Key FeaturesTheMellonHealthSavingsAccountprovidesmanyusefultoolsandservices:

• asinglecustomerservicecontactforthehealthplanandtheHealthSavingsAccount

• asingleonlinehealthsitetoaccessyourplanbenefitinformationandaccountdetails

• competitiveinterestratesandinvestmentoptionsforthefundsinyourHealthSavingsAccount

Interest and InvestmentsYouwillearninterestonyourHealthSavingsAccountfundsandwillalsohavetheopportunitytoinvestyourfundsonceyouraccountbalancereaches$3000.InvestmentoptionsincludesevenmutualfundsfromtheDreyfusfamilyofmutualfunds.Onceyouarereadytoinvest,youcanrequestaprospectusforeachfundformoredetails.

Debit Cards and CheckbooksUseyourMasterCard®debitcardoryourHealthSavingsAccountcheckbooktopayyourhealthcareproviderdirectlyforeligiblemedicalexpenses,ortoaccesscashfromyouraccount.

Deposits to your accountContributetoyourHealthSavingsAccountbysendingacheckanddepositsliptotheaddressprintedonyourcheckbook.YoucanalsosetupanelectronicfundstransferbetweenyourbankandMellonforregularaccountcontributions.

Account Activity Statements Eachmonth,youwillreceiveamonthlystatementfromMellonthatshowsallofyouraccountactivity.Youwillalsoreceivea1099formanda5498formneartaxtimesoyoucanfileyourtaxes.

Welcome KitOnceyou’reapprovedfortheLumenosHSAPlan,yourHealthSavingsAccountwithMellonwillautomaticallybeestablished—aseparateapplicationforyouraccountisnotrequired(unlessyouchooseadifferentfinancialinstitution).Soonafteryou’reapprovedfortheplan,youwillreceiveaWelcomeKitfromMellonwithallofthebankingdocumentationandinstructionsforusingyourHealthSavingsAccount.

Mellon Health Savings Account Fee and Rate ScheduleThefollowingadministrativeandbankingfeesapplytotheHealthSavingsAccountwithMellonTrust:

Administrative fees •Onetimeaccountset-upfee.......................................................................................$15

Banking fees • Monthlyaccountfee................................................................................................$2.95

• Debitcardtransactions..................................................................................... nocharge

• Checkwriting...................................................................................................... nocharge

• ATMtransactions.............................................................................................................$1

• Cardreplacementfee.....................................................................................................$5

• Checkreorder................................................................................................................$10

• Non-sufficientfunds.................................................................................................... $25

• Stopcheckservice...................................................................................................... $25

• Duplicatecheck..............................................................................................................$5

YouwillreceiveaHealthSavingsAccountDepositAgreementandDisclosuresandFeeSheetinyourMellonWelcomeKitafteryou’reapprovedfortheLumenosHSAPlan.Pleaserefertothosedocumentsforthecompletetermsandconditionsrelatedtoyouraccount.

To open a Health Savings Account, you must meet certain IRS eligibility requirements:• YoumustbecoveredbyanHSA-compatibleplan(suchastheLumenos®HSAplan).

• YoucannotbecoveredbyanyothermedicalplanthatisnotanHSA-compatiblehealthplan.

• YoumustnotbeenrolledinMedicare.

• Youmustnotbeclaimedasadependentonanotherindividual’staxreturn.

• YoumustbeaU.S.resident,andnotaresidentofPuertoRicoorAmericanSamoa.

• Ifyouareaveteran,youmaynothavereceivedveteran’sbenefitswithinthelastthreemonths.

• Youmaynotbeactivemilitary.

Deducible CoinsurancePreventiveCare

CoinsuranceOutofPocketMaximum

In-networkOut-of-

networkIn-network

Out-of-network

In-network,beforedeductible

In-networkOut-of-

network

PlansforIndividuals

LumenosHSA1500/70% $1,500 $3,000 70% 50% 100% $5,000 $10,000

LumenosHSA1500/100% $1,500 $3,000 100% 70% 100% $1,500 $4,500

LumenosHSA2500/80% $2,500 $5,000 80% 60% 100% $5,000 $10,000

LumenosHSA2500/100% $2,500 $5,000 100% 70% 100% $2,500 $7,500

LumenosHSA3000/80% $3,000 $6,000 80% 60% 100% $5,000 $10,000

LumenosHSA3000/100% $3,000 $6,000 100% 70% 100% $3,000 $9,000

LumenosHSA5000/100% $5,000 $10,000 100% 70% 100% $5,000 $15,000

PlansforFamilies

LumenosHSA3000/70% $3,000 $6,000 70% 50% 100% $10,000 $20,000

LumenosHSA3000/100% $3,000 $6,000 100% 70% 100% $3,000 $9,000

LumenosHSA5000/80% $5,000 $10,000 80% 60% 100% $10,000 $20,000

LumenosHSA5000/100% $5,000 $10,000 100% 70% 100% $5,000 $15,000

LumenosHSA6000/80% $6,000 $12,000 80% 60% 100% $10,000 $20,000

LumenosHSA6000/100% $6,000 $12,000 100% 70% 100% $6,000 $18,000

LumenosHSA10000/100% $10,000 $20,000 100% 70% 100% $10,000 $30,000

Health Savings Account

•For2007*,youcanmaketax-deductiblecontributionstoyouraccountuptothefollowinglimits:

• Individual$2,850

•Family$5,650

Other Details

•Theplan’sannualdeductiblemustbesatisfiedbeforetradi-tionalhealthcoveragebegins.ThemoneyyoupayfromyourHealthSavingsAccountforcoveredmedicalexpensesappliestoyourdeductible.

• IfthereisnomoneyinyourHealthSavingsAccount,orifyouchoosenottousetheaccounttopayforcoveredservices,youwillpayanyremainingdeductibleout-of-pocketasa“Bridge”tothetraditionalhealthcoverage.

•Whentraditionalhealthcoveragebegins,theplanpaysthemajorityofcoveredexpenses,andyoupayalimitedcoinsur-anceamount.

•Theplanpays100%ofcoveredexpensesafteryoureachtheannualout-of-pocketmaximum,includingthedeductibleandcoinsurancepayments.

*ThecontributionlimitssetbytheU.S.TreasuryandtheIRSmaybeincreasedforinflationannually.Consumersoverage50maymakeadditional“catch-up”contribu-tors.Consultyourtaxadvisorfordetails.

Lumenos HSA plan options

Year 1 Year 2

HSA: $1,500contribution $1,500 SABalance: $0fromYear1,plus $1,500ContributionforYear2

$1,500

TotalExpenses:Preventivecareservices:$250ArthroscopicKneeSurgery:$4,200Prescriptiondrugs:$20

$4,650 TotalExpenses:Preventivecareservices:$200Officevisits:$100Prescriptiondrugs:$200

$500

Paidbypreventivecarebenefit–nodeductionfromHSA $250 Paidbypreventivecarebenefit–nodeductionfromHSA $200

Expensebalanceremaining $4,400 AmountpaidfromHSA(Steve’schoice) $300

AmountpaidfromHSA(Steve’schoice) $1,500

StevepaysremainderofBridgeamountneededtomeetannualdeductible($2,000-$1,500=$500)

$500

Expensebalanceremaining $2,400

AmountpaidbyTraditionalHealthCoverage(90%x$2,400=$2,160)

$2,160

StevepayscoinsuranceunderTraditionalHealthCoverage(10%x$2,400=$240)

$240

TotalAmountHSAandPlanPays $3,910

TotalAmountSteveAdamsPays $740

HSARollovertoYear2 $0 HSARollovertoYear3 $1,200

SinceStevedidnotspendallofhisHSAdollars,hedidnotneedtopayanyadditionalamountsout-of-pocketthisyear.

Steve Adams

Steveisahealthy35-year-oldwholovesskiingandtheoutdoors.Beinghealthyisimportanttohim,butheneverreallythinksaboutit.Unfortunately,hetookanastyspillontheslopesandhadtohavekneesurgerylaterintheyear.Sincehisexpenseswerehigherthanusual,Stevehadsomeout-of-pocketexpensesinhisfirstyear.HissecondyearwasmoretypicalandhewasabletobegintobuildsavingsinhisHSAforthefuture.

ServicesusedbySteve:

• OnlineHealthAssessment

• Onlinephysiciandirectoryandprofiles

• 24-HourNurseAdviceLine

ServicestohelpStevestayhealthy:

• Onlinefitnessprogram

Steve Adams’ HSA Plan

Stevecontributes$1,500tohisHSAeachyear.Hisplan’sdeductibleis$2,000.IfhechoosestousehisHSAtopayforcoveredservices,thiswillreducetheout-of-pocketamount(theBridge)neededtomeethisdeductiblebeforetheTraditionalHealthCover-agebegins.

How could the Lumenos HSA plan work for you?Let’slookatoneexampleofhowtheLumenosHSAplancanhelpindividualsandtheirfamilies.Youcanviewmoreexamplesatanthem.com.

Thisisanexample.Youractualexperiencewillvary.Allexpensesassumetheuseofin-networkproviders.

Need another reason to choose the Lumenos HSA Plan?Howabouthoweasyitistoapply.

OurLumenosHSAPlanoffersawealthofbenefits,including:

• 100%preventivecarecoverage

• AHealthSavingsAccounttobettermanageandcontrolyourhealthcaredollars

• Traditionalhealthcoveragetoprotectagainsthighmedicalexpenses

• Taxadvantagesonyourhealthcaresavings

• Exclusiveaccesstoonlinetools,information,andpersonalizedservicestohelpimproveandmaintainyourhealth

Toallthesebenefits,addonemore:it’seasytogetstarted.

Whetheryou’relookingforindividualorfamilycoverage,theapplicationcanbefilledoutandsubmittedeasilyandsecurelyonlineand,inmostcases,theapprovalprocesstakesonlyadayortwo.

Talktoyouragentorfinancialadvisortodayformoreinforma-tionandcompletedetails.Ahealthierfutureisjustahead.

ThecontributionlimitssetbytheU.S.TreasuryandtheIRSmaybeincreasedforinflationannually.Theselimitsincludecontributionsfromanysource.

AnthemBlueCrossandBlueShieldisthetradenameofRockyMountainHospitalandMedicalService,Inc.LifeanddisabilityproductsareunderwrittenbyAnthemLifeInsuranceCompany.IndependentlicenseesoftheBlueCrossandBlueShieldAssociation.®Anthemisaregisteredtrademark.TheBlueCrossandBlueShieldnamesandsymbolsareregisteredmarksoftheBlueCrossandBlueShieldAssociation.®LUMENOSisaregisteredtrademark.

07-00010(Rev.01/07)