2. 2
Overview
OptumHealth Allies meets the needs of a wide range of adults over
age 50:
– Reduces out-of-pocket health spending for working adults over 50
– Makes health care more affordable for pre-65 retirees
– Complements Medicare and Medicare Supplement coverage for consumers 65+
– Provides savings on desirable but costly “vanity” services for mature adults of all ages
OptumHealth Allies Basic and Enhanced products can be positioned to
focus on those benefits that have the most appeal to senior populations:
–Dental
–Long-term care services
–Pharmacy
–Cosmetic surgery
–Hearing
–And others
3. 3
Meeting a Growing Need
Health Care Spending Facts
In the 1980s, two-thirds of all companies
offered health benefits to supplement Medicare
for former employees aged 65 or more. Today,
only 31 percent of large businesses and only four
percent of small businesses (under 200 employees)
offer retiree health benefits1
.
Medicare pays only about half (49.1%) of total
personal health care expenditures for beneficiaries2
.
Medicare households spend approximately $4,000 annually on health care. Health
insurance premiums account for 52.1 percent; followed by medical services (31.3
percent), prescription drugs (13.4 percent) and medical supplies (3.2 percent)3
.
According to U.S. Census Bureau projections, in 2011, when the first baby boomers hit
retirement age, the number of Americans turning 65 years of age each year will increase
from 7,000 to 10,0004
. By 2030, 70 million Americans will be over age 65 — almost twice
as many as in 20025
.
1 Kaiser Family Foundation
2 What Share of Beneficiaries’ Total Health Care Costs Does Medicare Pay? Craig Caplan, AARP Public Policy Institute, September 2002
3 Health Care on a Budget: An Analysis of Spending by Medicare Households. Juliette Cubanski, Anthony Damico, and Tricia Neuman.
February 2009
4 U.S. Census Bureau
5 Medicare & You 2009 (http://www.medicare.gov/Publications/Pubs/pdf/10050.pdf
4. 4
OptumHealth Allies Fills Medicare Gaps
Not covered by Medicare Parts A&B 5
Discounts available through OHA
Dental X
Long Term Care X
Pharmacy X
Cosmetic Surgery X
Hearing X
24 Hour Nurse Help Line X
Vision X
Chiropractic X
Foot Care X
Orthopedic shoes X
Laboratory tests X
Syringes and insulin X
Acupuncture X
Not covered by Medicare Part D Discounts available through OHA
Rx Coverage Gap (“Donut Hole”)aA&B X
Over-the-counter Medications X
5 Medicare & You 2009 (http://www.medicare.gov/Publications/Pubs/pdf/10050.pdf
5. 5
Appealing to the “vanity” market
In 2008, Americans spent almost $11.8 billion on cosmetic procedures, both surgical and non-surgical, and
had more than 10 million procedures. 32% of all cosmetic procedures were performed on adults age 51
and older.
The most popular procedures among older adults are shown below
Age 51-64 Age 65+
Cosmetic Service Number of
Procedures
Percent of
Procedural Total
Number of
Procedures)
Percent of
Procedural Total
Blepharoplasty
(cosmetic eyelid surgery)
91,806 47.1% 24,836 12.7%
Faceifts 75,920 57.3% 23,722 17.9%
Liposuction 69,479 20.4% 5,829 1.7%
Breast Augmentation 30,826 8.7% 2,316 0.7%
Abdominoplasty
(tummy tuck)
25,676 17.4% 2,904 2.0%
American Society for Aesthetic Plastic Surgery (ASAPS).
6. 6
Basic Program
Dental: Save 10-35% on dental care, including general dentistry, dentures, dental implants,
crowns, bridges, and much more.
Long-term Care Services: Save 5% to 30% on nursing and assisted living facilities, home
health care, hospice/respite, homemaker and personal care. Discounts are available to
members and their aging parents
Cosmetic Procedures – Aging beautifully is easy, with savings of 20 to 30 percent cosmetic
surgery. To ensure a positive experience, representatives work with members to find a
physician with whom they are comfortable and help set up their first appointment.
Hearing: Lower of 30% off MSRP or $300 off total retail price on hearing aids and ancillary
products from 26 manufacturers
Vision: 5-20% savings on vision care products and services. Members pay no more than
$40 for eye examinations.
Wellness: Discounts on weight management programs
such as Jenny Craig, Fitness Clubs (including select
locations of Curves, Gold’s Gym, etc.) smoking cessation,
nutrition and more.
Alternative Care: Discounts of 20% on chiropractic care,
massage therapy, acupuncture and naturopathy
50+ Working Adults Pre-65 Retirees Medicare
Eligibles
Target Markets
• Complements coverage for working adults age 50+
• Fills gaps in Medicare Supplement plans
Approximately 70% of older
adults (65+) do not have dental
coverage.
7. 7
Value-added Extras
Marketplace: Members-only discounts from dozen of brand name
retailers, on fitness apparel, home medical supplies, vitamins and
supplements, spa and salon services, OTC medications and much more
Tools and Resources:
Personal Health Record, health
assessments, symptom guide, health
news and information
50+ Working Adults Pre-65 Retirees Medicare
Eligibles
Target Markets
• Working adults 50+
• Pre-65 retirees
• Medicare enrollees with and without MedSup plans
8. 8
Seniors Value the Discount Program*
How valuable is the discount on: Very Valuable Valuable Total
OTC drugs and personal care products 41.1% 19.0% 60.1%
Vitamins and supplements 32.0% 20.5% 52.5%
Long-term care 35.0% 17.3% 52.3%
Hearing care 30.5% 16.5% 47.0%
Alternative care 30.9% 14.1% 45.0%
Wellness programs 25.3% 17.5% 42.8%
Cosmetic dental care 31.9% 10.2% 42.1%
LASIK 29.6% 12.1% 41.7%
Healthy lifestyle products 23.0% 13.9% 36.9%
Fitness apparel 22.8% 13.0% 35.8%
*Based on a third-party survey of OptumHealth Allies retiree members conducted in October 2008
Surveys were conducted via phone, and quantitative as well as qualitative data (comments) were
collected.
Members surveyed have access to a limited product that includes only LASIK, Cosmetic Dental,
Alternative Care, Wellness, Hearing and Marketplace.
9. 9
Seniors Are Interested Health Discounts*
78.2% 77.3%
63.2%
37.5%
26.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Vision care Dental care Medical
supplies and
home medical
equipment
Counseling Cosmetic
surgery
How interested are you in receiving discounts on:
*Based on a third-party survey of OptumHealth Allies retiree members conducted in October 2008
Surveys were conducted via phone, and quantitative as well as qualitative data (comments) were
collected.
Members surveyed have access to a limited product that includes only LASIK, Cosmetic Dental,
Alternative Care, Wellness, Hearing and Marketplace.
10. 10
Summary
Seniors age 50+ have a variety of
unmet health care needs
The senior demographic is growing
rapidly as Baby Boomers reach
retirement age
OptumHealth Allies products meet the
needs of a wide range of adults over 50
Existing products can easily be
positioned to appeal to senior
populations
11. CONTACT INFORMATION
To make the OptumHealthAllies discount program available
to your employees or group members,
contact:
Lee Gerber
516-239-1332
leegerber@optonline.net
www.savings.optumhealthallies.com
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