



Benefits Include Lower Out-of-Pocket Costs for Doctor Visits

(October 2, 2006) — SCAN Health Plan today announced its 2007 benefits package
for Los Angeles County, which includes lower out-of-pocket costs for office
visits as well as reduced co-payments for generic and preferred brand name
drugs. In addition, SCAN announced that it will continue to offer Medicare-
eligible individuals in the county comprehensive medical and prescription drug
coverage with no monthly premiums and no deductibles.

“We continue to be dedicated to offering seniors and others on Medicare the best
possible value when it comes to benefits and services,” said David Schmidt,
chief executive officer of SCAN Health Plan. “As evidence of this commitment we
are especially pleased in 2007 to offer our members in the county reduced co-
payments for visits to their SCAN physician.”

Primary care physician office visit co-payments are being reduced to just $5 for
members in Los Angeles County. Another significant benefit improvement at SCAN
involves hearing aids. The health plan has increased the amount it will cover on
hearing aids from $250 to $400, and the benefit is now available every three
years as opposed to every two.

Under Medicare Part D, SCAN will continue to offer a generous prescription drug
benefit that includes unlimited coverage for generic medications on the SCAN
formulary. SCAN will cover up to $4,000 for brand name drugs. Co-payments for
non-preferred formulary drugs have increased slightly while co-payments for
generic and preferred brand name formulary drugs – retail and mail order – have
been reduced. The co-payment for a 31-day supply of a generic drug from a SCAN-
approved pharmacy is now just $5.

SCAN members will continue to receive all of the basic benefits covered under
Medicare including doctor visits, hospital care, emergency/urgent care, skilled
nursing facility care and more. Beyond these core Medicare benefits, plus
Medicare Part D prescription drug coverage, SCAN members in 2007 will continue
to enjoy coverage for routine eye and hearing exams and transportation to the
doctor’s office, plus SCAN On-Call™, a 24-hour nurse advice line, in-home
assistance services, and access to emergency care worldwide.

SCAN is one of California’s fastest-growing senior-focused health plans
currently serving more than 90,000 Medicare-eligible individuals in Los Angeles,
Orange, Riverside, San Bernardino, Ventura and Kern counties. Effective January
1, 2007, SCAN will begin serving members in San Diego County through a
partnership with Scripps Health. In addition, the plan was recently awarded a
three-year contract by the Arizona Health Care Cost Containment System to
provide long-term care services to low-income elderly and physically disabled
Arizonans enrolled in the Arizona Long-Term Care System program in Maricopa
County.

Since its founding nearly 30 years ago, SCAN has demonstrated a unique passion
for finding innovative ways to enhance its members’ abilities to manage their
own health and continue to control how and where they live. Further information
may be obtained at www.scanhealthplan.com. Medicare-eligible individuals
interested in joining should call toll-free 1-877-452-5896.

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