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July 1, 2011 Administrative & Plan Changes Blue Cross Blue Shield for healthcare administration Medco new pharmacy administrator under BCBSNC Retail Mail Order (cost savings by using) Flexible Benefit Administrators for FSA administration With plan design changes, no additional cost to employee for individual coverage 2011 Renewal 2

– 2012 Renewal Primary Physician Care 7/10 - 6/11 BCBSNC 7/11 - 6/12 CurrentNEW Primary Visits$20$30 Specialist VisitsDeductible/80% Well Baby Care$200% Immunizations/Injections$200% Physical Exams$200% Pap Smears/Mammograms$200% Deductible$750$1,000 Deductible - Family Maximum$1,800$2,000 Coinsurance Maximum - Individual$2,500 Coinsurance Maximum - Family$5,000 Hospital ServicesDeductible/80% In-PatientDeductible/80% Out-PatientDeductible/80% Out-Patient Independent Labs100%/$500/Deductible/80%100% Urgent Care$50Deductible/80% Coinsurance80% Emergency Room$250Deductible/80% Pharmacy $5/$30/$50 Mail Order 2x $4/$45/$60/25% Mail Order 2x Lifetime Maximum$2,000,000Unlimited 0%

– 2012 Budgeted Rates Budgeted Rates Monthly Subscriber Count County Monthly Contribution Employee Monthly Contribution County and Employee Monthly Contribution Employee Only441$670.00$0.00$ Employee & Children102$670.00$180.00$ Employee & Spouse84$670.00$260.00$ Employee & Family156$670.00$300.00$ Employee$0.00 Employee & Child (ren)$90.00 Employee & Spouse$ Employee & Family$ New Payroll Deductions as of June 3, 2011

 Over the Counter (OTC) medications will no longer be eligible for FSAs without a physician prescription.  You must file a paper claim with Flexible Benefit Administrators to be reimbursed for Over the Counter (OTC) medications with physician prescription.  Dependent coverage for adult children up to age 26  100% coverage for preventive services in network  No annual limits on certain types of benefits  No pre-existing condition exclusions for children ages Impact of Health Reform 5

6 Website address:

7 Website address:

Manage conditions or progress online − With our Online Healthy Living programs Research prescription drugs − Learn about prescription drug treatments, and their relative costs, for a number of medical conditions Compare hospitals − Find a hospital that matches unique criteria Estimate the cost of health care services − With our Health Care Cost Estimator tool Research more than 200 conditions − Using our online health encyclopedia Find a provider − Locate providers and research outstanding providers/facilities for certain procedures Online Tools & Programs (Available through my member services after you are enrolled)

24 hour health information resource Call  Web-based health information & support tools  Audio and video tape library  24/7 access to specially-trained nurses – employees can get quick, personalized answers to health questions

BCBS ID Cards ID cards will be mailed from BCBSNC to your home 2 copies of your ID card will be mailed during initial enrollment, if additional cards are needed call BCBSNC Customer Service.

P.O. Box 8188 Virginia Beach, VA Toll Free (800) Fax (757) NEW FLEXIBLE SPENDING ACOUNT ADMINISTRATOR

Your Benefits Card Administration You may elect to use the Benefits Card if you enroll in the Healthcare Reimbursement Account or Dependent Care Reimbursement Account The FBA Benefits Card works like a debit card and allows you to automatically pay for expenses from your flexible spending account at the time of service. The card eliminates your need to pay out-of-pocket at the time of service. The Benefits Card is restricted for use only at eligible merchants and for eligible services as governed by the IRS. Using the Benefits Card will lessen the paperwork you have to submit, however, there may be instances where documentation is requested to substantiate a card swipe. If requested, documentation must be submitted within 40 days of the transaction to avoid temporary deactivation of the card. This ensures the Plan is kept in compliance. You may elect to order an additional card for any eligible dependent at no charge.

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Important Reminders  The BCBS card for medical and prescription use  You will receive 2 cards; extras may be requested online or through customer service.  Transition of Care Forms available if in the middle of treatment (3 rd trimester, chemo, etc. )  Explanation of Benefits is only generated and mailed for deductible/coinsurance amounts. View all EOBs on-line.  Call your physician for new prescriptions for mail order: Request a 30 day prescription (to fill locally) Request a 90 day prescription with refills and mail to Medco after 7/1 14

Open Enrollment Notes  For ALL dependents covered by the Medical Plan, you will need to provide Social Security Numbers during open enrollment process.  BCBS Information Line:  Open Enrollment: April 18 th – 27 th to enroll in health plan and make changes to or add all other products as well. MANDATORY to meet with an enroller 15