FEBRUARY 19, 2009
LifeWise Health Plan of Arizona To Exit Market
New Sales to Cease; Access to Benefits, Customer Service and Claims Payment will Continue
Market Exit
Next Steps
Growing Stronger – A
Message from Cliff Klima
Compensation
LifeWise Health Plan of Arizona has made the difficult decision to gradually exit the Arizona
market, ceasing sales of new group and individual health care coverage plans. For its current
members, the company announced plans to conduct an orderly transition out of the market.
LifeWise Arizona has also reached an agreement with Blue Cross Blue Shield of Arizona
(BCBSAZ) to give LifeWise Arizona policyholders an opportunity to move to replacement plans
beginning April 1, 2009.
Importantly, our current individual members will be able to enroll in designated replacement plans
within 30 days of their departure from LifeWise Arizona without further medical underwriting.
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LifeWise Health Plan of
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Customer Service Corner
Scottsdale
Broker Reports
4343 N. Scottsdale Road,
Suite
355 at LifeWise
New Faces
Scottsdale, AZ 85251
Tucson
4514 E Camp Lowell Dr.,
Bldg A
Tucson, AZ 85712
520-318-2600
Sales Department
480-425-2440
1-800-592-6685
Fax: 480-425-2332
“LifeWise Arizona customers have our commitment to oversee an orderly transition for them as
we exit the market.” said Cliff Klima, Market Relations Executive. “We will continue to provide
you and our mutual clients with the same responsive service and claims payment as long as they
are our customers.”
For group customers, LifeWise Arizona will:
• honor quotes issued prior to February 19, 2009.
• offer renewal quotes for existing group customers whose policies renew prior to August 31,
2009, as required by law, and provide coverage for a one-year period following the renewal.
• not offer renewal quotes for existing group customers with renewals on or after September 1,
2009. LifeWise will cease acting as their health plan at the end of their policy period.
For individual customers, LifeWise Arizona will:
• cease acting as their health plan as of August 31, 2009.
• honor applications postmarked February 19, 2009 and earlier.
.
LifeWise Health Plan of Arizona was formed in 2004, and serves 16,000 members today. For any
new health plan, long-term viability depends upon a critical mass of membership and a competitive
cost structure. As a small startup, we have been unable to achieve the membership base and pricecompetitiveness to become viable in this market. The economic downturn did not cause this, but it
has not helped. We have decided to begin an orderly exit.
LifeWise Health Plan of Arizona is financially stable with adequate reserves, able to meet all
contractual and regulatory obligations to customers, brokers, healthcare providers and
policyholders.
NEXT STEPS
As required by law, LifeWise Health Plan of Arizona is notifying employer groups, as well as
group and individual members, of our market exit. The notifications are being sent over the next
week.
Also being sent in the mail is a packet of information for you to help facilitate the transition
process. For your group business, you will receive a list of your employer groups, including the
011924 (02-19-2009)
BROKER BULLETIN
| FEBRUARY 19, 2009
NEXT STEPS (continued)
groups’ current LifeWise Arizona products, as well as renewal proposal packets and requirements from BCBSAZ
based on an effective date of April 1, 2009 or May 1, 2009 for you to share with your group clients.
For your individual business, you will receive a list of your members and their current LifeWise Arizona product, as
well as a copy of the BCBSAZ enrollment packets each of your clients will receive in which we direct them to
contact you for assistance.
If you are not currently contracted with BCBSAZ, we encourage you to contact their Broker Contracting department
at (602) 864-4262 right away.
COMPENSATION
You will continue to receive commissions based on revenue received for the period your clients’ policies remain in
effect. Your agency agreement and any corresponding addenda with LifeWise Health Plan of Arizona will cease to
be effective following the termination of coverage of your last LifeWise Arizona customer or on August 31, 2010,
whichever comes first. If you do not currently have any LifeWise Arizona clients, your agency agreement is
terminated as of March 31, 2009.
Additionally, The Leaders Program is being terminated as of March 31, 2009. You will receive any compensation
owed to you through March 31, 2009 for new or renewal group business, the quarterly persistency reward and the
individual sales bonus.
You will receive a formal notification of termination of your agency agreement and The Leaders Program in the
mail.
COMMUNICATIONS AND CONTACTS
Please continue to contact your LifeWise Arizona sales and service representatives for assistance during this
transition period. They are available to make the transition as smooth and orderly as possible, as well as address
customers’ ongoing service needs.
LifeWise Arizona is in the process of updating our web site – www.lifewiseaz.com – and will use the site to share
information with you and your clients pertinent to the transition. We’ll also send additional e-mail communications
to you as warranted.
LIFEWISE ASSURANCE COMPANY
LifeWise Health Plan of Arizona’s market exit does NOT affect LifeWise Assurance Company. LifeWise
Assurance Company remains committed to the Arizona market and will continue to provide life, AD&D and
disability policies in Arizona.
LifeWise Assurance Company has been serving the life and disability benefit needs of employer groups for the past
27 years. The company’s financial foundation remains strong as evidenced by its A.M. Best A- (excellent) rating.
Ben Corsetti is available to assist you and your clients. You can contact Ben at 480-425-2293 or
[email protected]
THANK YOU
LifeWise Health Plan of Arizona has appreciated the support of the broker community since entering the market in
2004. We are confident that the agreement with BCBSAZ offers our customers good options for their health plan
needs. Please know that you can count on us to help you and your clients through the transition process.
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BROKER BULLETIN
| FEBRUARY 19, 2009
KEY MESSAGES FOR YOUR CLIENTS
• LifeWise Health Plan of Arizona is gradually leaving the market and will no longer offer new group or
individual health plans.
• As a start-up company in 2004, LifeWise knew its long-term viability would depend upon a critical mass of
membership and a competitive cost structure. They have been unable to achieve the membership base and
price-competitiveness to become viable in this market. The economic downturn did not cause this, but it has
not helped. They have decided to begin an orderly exit.
• Your current coverage remains in-force, and as long as you pay your monthly premiums, will remain in-force as
follows.
• Group customers:
Your LifeWise policy renewal period is prior to August 31, 2009. As required by law, LifeWise will provide
you with a renewal quote for one additional year of coverage.
-orYour LifeWise policy renewal period is after August 31, 2009. We will need to seek new coverage for your
employees and their dependents from another health plan before or at your renewal.
• Individual customers:
Your LifeWise policy will remain in effect until August 31, 2009. To avoid a lapse in coverage, we will
need to seek coverage for you (and your family) for an effective date no later than September 1, 2009.
• LifeWise has reached an arrangement with Blue Cross Blue Shield of Arizona that provides you with some
coverage options.
o
o
Individual members: you will receive an enrollment packet in the mail from Blue Cross Blue Shield of
Arizona with coverage options for us to review.
ƒ Importantly, you and your dependents currently on a LifeWise of Arizona plan will be able
to enroll in designated BCBSAZ replacement plans within 30 days of their departure from
LifeWise Arizona without further medical underwriting.
Groups: I will receive a packet from LifeWise of Arizona containing a proposal from Blue Cross Blue
Shield of Arizona with benefit plans and preliminary rates immediately available for us to
review.
ƒ This packet will contain preliminary rates valid for April 1, 2009 or May 1, 2009
ƒ
effective dates. Rates are subject to recalculation and may change based on final
enrollment and BCBSAZ’s standard underwriting guidelines.
BCBSAZ is waiving the Uniform Medical Questionnaire for groups with 10 or more
employees. For groups with 2-9 employees, the Uniform Medical Questionnaire
must be completed by any employee that has not been continuously enrolled with the
group for more than 180 days
• LifeWise Health Plan of Arizona is financially stable. They will continue to provide customer service and
claims payment for eligible services received prior to the last date of coverage.
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