September 2009

Purdue’s Goals Give more choices in medical plans Support efforts to maintain/improve health Better manage health care costs for Purdue & employees

What can you do to get ready? Check out CIGNA to see if your medical provider is in the network Review Health Savings Accounts and see if this would be an option for you Participate in Healthy Purdue

How to Find a CIGNA Provider Enter Doctor Name, Location and State or Zip Code Select “Open Access Plus ONLY” Select “Primary Care Physician” If doesn’t show up, Try “Specialist” If doesn’t show up, use the CIGNA Provider Nomination Form (on HR’s website or hard copy today) and fax to CIGNA

2010 Changes CIGNA new medical plan partner No employee premium increase! CIGNA Three Plans in 2010: Purdue Incentive PPO Purdue Copay Proposed New Plan: Choice Fund HSA (Health Savings Account) Drop Purdue 500 medical plan Integration of EAP and Wellness in the medical plans St. Anthony’s EAP discontinued as of 12/31/09

Highlights of the Choice Fund HSA Plan deductible is medical and prescription drug COMBINED Generic prescriptions covered at 100% In-network preventative care services covered at 100% Employees would own the money in their HSA (including Purdue contribution), and this account is portable Employee determines when and how to use account dollars Money left over at end of year would roll over to the next year-no limit on rollover money & earn interest Choice Fund HSA costs significantly less for employee than other Purdue plans

Using HSA Accounts Medical plan - annual deductible & coinsurance Dental and vision expense Prescription drug expenses, and Over-the-counter drugs If electing a Flexible Spending Account (FSA) as well – special IRS rule apply! If you terminate the HSA money belongs to you with no end date

Important Items to Remember if Selecting 2010 HSA Account 2009 FSA money must be spent by 12/31/2009 versus March 15, 2010 If HSA plan is selected and employee elects FSA – the FSA $ may only be used for dental and vision expenses

In-network Out-of- Pocket Maximum: $4,000 $3,000 Note: Assumes all in-network care – different coinsurance levels on out-of-network care apply. In-network Annual Deductible: $2,600 Preventive Care: 100% HSA: $2,000 (Purdue - Family $1,300 + $EE $700) Preventive Care One exam per member $0 12 Generic Scripts$0 Non-Preventive 6 Prescriptions $510 2 Urgent care visits470 2 Physician’s visits300 6 Physical therapy620 $1,900 HSA Pays$1,900 Rollover to Year Two$100 Phil & Nancy Pay$0 Coinsurance You pay 20% Company pays 80% Phil & Nancy Year 1

Note: Assumes all in-network care – different coinsurance levels on out-of-network care apply. Preventive Care One exam per member $0 Non-Preventive 6 Prescriptions $510 2 Urgent care visits470 1 ER visit Physician’s visits1,000 $2,830 HSA Pays$2,100 Plan Deductable $ (2,600) Rollover to Year Three$0 Phil & Nancy Pay$500 (to meet $2,600 annual deductible) $ 46 ($2, = $230 X 20% toward Out-of-Pocket) Total:$546 Phil & Nancy Year 2 Out-of-Pocket Maximum: $4,000 Annual Deductible: $2,600 Preventive Care: 100% HSA: $2,100 ($100 roll over from year 1) & $2,000 contribution from Purdue ($1,300) and EE($700) Coinsurance You pay 20% Company pays 80%

What can you do to save money in 2010 and be more informed on your 2010 choices? CIGNA representatives will be here in October View online tutorial of HSA’s at: Read Inside Purdue, Purdue Today and Choose Well, Live Well publications Save $200(EE)/$400 (EE & Spouse) on 2010 Medical Premium by: Health Path Questionnaire (Blood Screening) Must get 4 of the six colored apples Complete by November 20, 2009