2017 OPEN ENROLLMENT & BENEFIT UPDATE

STATE’S APPROACH We closely monitor our benefit costs. We offer wellness initiatives and encourage our employees to be proactive about their health. We seek to offer a total benefits package that is superior to our competitors, while remaining affordable. Despite our best efforts, like most employers, benefit costs continue to rise at an alarming rate.

MEDICAL CHANGES FOR 2017 - GOOD NEWS! We are NOT changing carriers for 2017, we will continue to offer a variety of plans through Blue Cross Blue Shield to meet you and your family’s needs. Employees who participated in the wellness program and earn 400 points will enjoy cost savings of $1200 for the year of 2018. We are offing Live Health Online copayment of $10.

2017 Medical Program Plan Features In-Network Gold In-Network Silver In-Network HSA Calendar Year Deductible $1,000/Individual $2,000/Family $1,500/Individual $3,000/Family $2,600/Individual $5200/ Family Calendar Year Maximum Out of Pocket $3,200/Individual $6,400/Family $3,800/Individual $7,600/Family $4,000/Individual $8,000/ Family Coinsurance (amount you pay) 20% after deductible 0% after deductible Preventive Care No Charge Physician Office Visit/SPC $25/$40 Copayment $30/60 $30/60 after deductible LiveHealth Online $10 Copayment $10 after deductible Urgent Care $75 Copayment $60 after deductible Emergency Room Services $250/20% $250 after deductible Hospital Services Diagnostic Lab and X-ray Prescription Drugs -Retail 4 tier structure $10/25%to$100/50% to $200 $10/25%/50%/50% after deductible Physician office visit copays, ER and urgent care copays, and prescriptions do not count toward your deductible, but do accumulate toward your out-of-pocket maximum. The annual deductible is included in the out-of-pocket maximum.

OUR COMMITMENT TO YOUR WELLNESS State is committed to the health of our employees. We continued to offer the Incentives for Health Program in 2017. Again, members who participated in this program will enjoy cost savings of premiums in the amount of $1200 for 2018.

OUR COMMITMENT TO YOUR WELLNESS Beginning after January 1, 2017 – we will be updating the Incentives For Health program to provide an even more meaningful and robust reward to employees. Participation in the 2017 Incentives For Health Program will qualify you for incentives in 2018, look for more details after January 1st! Tobacco users will pay $100 surcharge per month (this has not changed from last year)

TOBACCO FREE DISCOUNT Your status can be found on your personalized Benefit Enrollment Statement. If your status has changed, and if not reflected on the Benefit Enrollment Statement please complete the Tobacco Use Affidavit Form and return to HR. Our plan offers assistance with cessation from tobacco products. We will be offering even more programs in 2017, more information will follow in January.

2015 DENTAL MORE GOOD NEWS! Delta Dental is very popular across State Industrial Products and employees have positive feedback concerning the dual programs offered, benefit levels in each of these programs and affordable employee contributions. In 2017, there will be no employee contribution increase on the dental program.

$1,500 per eligible person per year for all services 2017 Dental Program - PPO Plan Features In-Network Premier Dentist Out of Network Calendar Year Deductible $50 per person $150 family maximum Calendar Year Maximum $1,500 per eligible person per year for all services Diagnostic & Preventive Services 100% covered 100% Basic & Restorative Services 20% after deductible 30% after deductible Major Services 40% after deductible 60% after deductible Orthodontia (up to age 19) 50% $1,500 lifetime maximum 40% Find a Delta Dental PPO Dentist Visit www.deltadentaloh.com and click “Find a Dentist” and then “Delta Dental” to find an in-network dentist near you. Look for dentists in the PPO network or Premier Network.

2017 Dental Program-HMO Plan Features In Network Only Calendar Year Deductible None Calendar Year Maximum Diagnostic & Preventive Services Set Copayments Basic & Restorative Services Major Services Orthodontia (up to age 19) Set fee’s

OTHER IMPORTANT BENEFITS EAP/Employee Engagement New program offered to employees through ComPsych Vision Coverage Carrier is changing to Anthem BCBS- Blue View Vision Life Insurance / STD / LTD Carrier is remaining the same – The Hartford Flexible Spending Accounts Carrier is remaining the same -CBIZ

$25 Copay Up to $130 allowance 2017 Vision Program -Blue Vison Plan Features Exams In-Network Frames In-Network Contact Lenses Core Plan A $10 copay Once every 12 months up to $130 allowance Once every 24 months $25 Copay Up to $130 allowance Contact Lenses- Instead of eyeglasses Elective Conventional Lenses $130 allowance, 15% off remaining balance Elective Disposable Lenses $130 allowance Non-Elective Contact Lenses Covered in Full The Core Plan A + Lens and the Buy-up Plan B + Lens provide benefits for additional lens options, such as progressive lenses, high index and blended bi-focals, scratch and antireflective coating

LONG-TERM DISABILITY LTD rates have not increased in many years and 2017 is no exception. The LTD benefit is salary and age rated Please refer to your Personalized Benefit Form for your enrollment status for 2017. If you wish to elect LTD and have not enrolled in the past, your enrollment may be contingent upon completion and approval of an Evidence of Insurability Form.

EMPLOYEE ASSISTANCE PROGRAM – NEW AND FREE! Our EAP will be administered by ComPsych. At no expense to you, the GuidanceResource EAP provides confidential services for you or immediate household family members. ComPsych isn’t just a resource for stress or emotional issues. ComPsych can provide referral resources to all members of your household for services ranging from: Legal Guidance Financial Counseling Grief Counseling Services Community Resources Daycare Referral and Ranking Services

FLEXIBLE SPENDING ACCOUNTS The FSAs will continue to be offered through CBIZ. You will NOT receive new Healthcare FSA debit cards, if you are re-enrolling for the 2017 plan year – they do not expire until December 201. More Good News!!!! Any unused money, up to $500 on your 2016 FSA, will rollover into the 2017 plan year. This amount will automatically roll over and get loaded (with your 2017 contributions) onto your North Coast debit card.

HOW ANTHEM BCBS EFFECTS YOU This year you will receive NEW ID cards at the end of the year. You will need to use these new ID cards to access benefits. These ID cards will include your new vision plan. You will receive 2 ID cards per family. If you require more ID cards, you can simply log in to anthem.com to order more. Please make sure to give BOTH your doctor’s office and your pharmacy your new insurance information. Have a smartphone? Download the Anthem BCBS app where you can find information on service cost, prescription ordering and even an electronic version of your ID card.

MAKING THE PLAN WORK FOR YOU Save yourself time and money by taking the time to understand your benefits before you need or use them. Communicate with your primary care provider: BEFORE your visit – when making the appointment. Be specific about the services you expect and how you understand them to be coded, billed, and paid via insurance. DURING your visit – when talking about your needs and expectations with your physician. Be sure to discuss insurance items with your physician and ask your doctor about how items are being coded. AFTER your visit – double check coding and ask for clarification before you leave the office so you have a better understanding of how items will be billed.

All benefit information is located in one spot!! www.sipbenefits.com All benefit information is located in one spot!! What can I find here… Information on Medical, Dental, Vision, Life Insurance, Long and Short Term Disability, Flex Spending, Forms, Benefit Summaries…. …and the list goes on!

HEALTHCARE EXCHANGES The Marketplace is designed to help individuals find health insurance that meets their needs and fits their budget. State Industrial’s health plan qualifies as being affordable, as defined by the Healthcare Reform Law. Should an employee choose not to enroll in the State Industrial Product’s health benefit plan, there are other options listed on the Marketplace Exchange available to the employee. You can visit www.healthcare.gov for more information.

Changes for 2017 Vision carrier changing to Anthem No wellness 2017 you have a $100 monthly surcharge in 2018 Wellness point increased to 400 for 2017 for 2018 premium reduction Live Health Online copayment reduced to $10 Adding Dependent life with Hartford Employee Voluntary life going to flat dollar amount

QUESTIONS?