1. 2017 BENEFITS WELCOME TO THE HEALTH BENEFITS BUFFET  Open Enrollment ~ October 17-28

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3. But why do we have to change things? I like things just the way they are! 3

4. INTRODUCING THE HEALTH BENEFITS BUFFET (AKA MODIFIED CAFÉTERIA PLAN) 4

5. FEATURES OF THE BENEFITS BUFFET: You will have 705 benefit credits to spend: A wide variety of insurance choices:  4 Medical plans (Blue Cross Blue Shield)  2 Dental plans (Ameritas)  Vision (Vision Service Plan)  Disability (Unum)  Gap Insurance (Custom Benefits) Choose ONLY insurance you want NO plan is dependent on the electing another 5

6. ON THE MENU: MAIN COURSE 4 Medical Insurance Plans: Premium (Current Plan) Preferred (New) Core (New) HRA (Current Plan) Gap Insurance: Employer-paid Employee-only - If Electing Preferred or CORE PPO Plans SIDE DISHES 2 Dental Plans Standard And Premium Vision Insurance Short And Long Term Disability Supplemental Life Insurance DESSERT Flexible Spending Account ($500 Rollover) Dependent Care 6

7. ALSO ON THE MENU FREE CONDIMENTS COMPANY PAID LIFE INSURANCE EMPLOYEE ASSISTANCE PLAN TUITION WAIVERS WELLNESS PROGRAMS & INCENTIVES UTENSILS – TOOLS TO HELP MEL AND FRAN! BENEFIT MANAGEMENT CENTER TOM WATSON ~ GAP INSURANCE LSSC WEBSITE ~ BENEFITS PAGE ~ LINKS TO PLAN PROVIDERS 7

8. ENTRÉE: MEDICAL INSURANCE BCBS not offering plan in 2018 Prescription Coverage (ALL PLANS): $15 generic $45 preferred brand name $65 brand name ACA Compliant Plans: 4 th Tier – 25% up to $250 per month ** See Mel for list of 4 th tier meds CURRENT Premium PPO (Not ACA Compliant) NEW Preferred PPO (ACACompliant) NEW Core PPO (ACA Compliant) CURRENT HRA (ACA Compliant) Cost Sharing - Member's Responsibility Deductible (DED) (Per Person/Family Aggregate) In-Network $500 / $1,500 $600 / $1,800$1,000/$3,000$1,500/$3,000 Out-of-Network Combined with In-Network Coinsurance (BCBSF pays / Member pays) In-Network 80% / 20% Out-of-Network 70% / 30% 60% / 40% Out of Pocket Maximum (Per Person/Family Aggregate) In-Network $5,000/$10,000 $6,000/$12,000 $3,000/$9,000 Out-of-Network Combined with In-Network Medical / Surgical Care by a Physician Office Services In-Network Family Physician $25 Copayment $30 Copayment$40 CopaymentDED + 20% In-Network Specialist $40 Copayment $50 Copayment$75 CopaymentDED + 20% Out-of-Network DED + 30% DED + 40% Emergency Room Facility (per visit) If admitted as an inpatient from ER, the hospital will submit an inpatient hospital claim instead of an ER facility claim. ER Copay will not apply on the claim; only inpatient facility cost share will apply. In-Network $100 Copayment + 20% DED + 20% Out-of-Network $100 Copayment + 20% DED + 20% Same as In-Network Wellness Limited to $500 (colonscopy not included in limit) no member cost share Ambulance 20% DED + 20% Gastric ByPass covered 1 per lifetime RX $15/$45/$65 Mail $30/$90/$130 $15/$45/$65/25%* Mail $30/$90/$130/25% *$250 Monthly Member Out of Pocket Maximum per specialty prescription applies Women's Wellness Standard no member cost share handout

9. PREFERRED PPO PLAN HIGHLIGHTS NO CO-PAYS, DEDUCTIBLES OR LIMITS ON PREVENTIVE CARE (Physical) SCREENINGS (Colonoscopy, Mammogram) IMMUNIZATIONS (Flu, Pneumonia) LAB FEES Prescriptions: $15 – $45 - $65 – 25% (Injectable) Deductible: $600 Co-pays: $30 primary care/$50 specialist/$0 mental health/substance abuse No lifetime max WHY THIS MAY BE A GOOD PLAN FOR YOU:  You get an annual physical and are committed to improving your health;  Visit the doctor regularly or take medication;  Spouse/Child/Family need coverage. 9

10. CORE PPO PLAN HIGHLIGHTS NO CO-PAYS, DEDUCTIBLES OR LIMITS ON PREVENTIVE CARE (Physical) SCREENINGS (Colonoscopy, Mammogram) IMMUNIZATIONS (Flu, Pneumonia) LAB FEES Prescriptions: $15 – $45 - $65 – 25% (Injectable) Deductible: $1,000 Co-pays: $40 primary care/$75 specialist/$0 mental health/substance abuse No lifetime max WHY THIS MAY BE A GOOD PLAN FOR YOU:  You get an annual physical and are committed to improving your health;  You rarely visit a doctor;  You have no chronic conditions requiring regular medication;  You have dependents to insure. 10

11. HRA PPO PLAN HIGHLIGHTS NO CO-PAYS, DEDUCTIBLES OR LIMITS ON PREVENTIVE CARE (Physical) SCREENINGS (Colonoscopy, Mammogram) IMMUNIZATIONS (Flu, Pneumonia) LAB FEES Prescriptions: $15 – $45 - $65 – 25% (Injectable) Deductible: $1,500 (50% funded by LSSC with HRA card) Co-pays: deductible + 20% coinsurance No lifetime max WHY THIS MAY BE A GOOD PLAN FOR YOU:  You have coverage under another health plan and want to supplement coverage  Your providers are outside the Blue Cross network  You rarely visit a doctor 11

12. PREMIUM PPO PLAN HIGHLIGHTS WILL BE DISCONTINUED IN 2018 DEDUCTIBLES AND LIMITS ON PREVENTIVE CARE $500 limit on annual wellness exam Prescriptions: $15 – $45 - $65 Deductible: $500 Co-Payments: $25 primary care (even for preventive care) $40 specialist $1 million lifetime max WHY THIS MAY BE A GOOD PLAN FOR YOU:  You are in the midst of a treatment plan;  You use an injectable medication on the 4 th Tier (insulin is 2 nd or 3 rd tier);  You need time to transition to an ACA- compliant plan. 12

13. NEW - 4 TH TIER MEDICATIONS WHAT MAY FALL INTO THIS CATEGORY? Medications that are high-cost injectable, infused, oral or inhaled medications that require close supervision and monitoring (cancer, hepatitis) EXAMPLES: Avastin, Entyvio, Herceptin EPIPENS are 2 nd tier ($45 per month co-pay) INSULIN may be 2 nd or 3 rd tier, depending on the type 13 See Mel for complete list

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16. FOR EXAMPLE: 16 Benefit Credits: $705.00 PREMIUM PlanPREFERRED PlanCORE PlanHRA Plan CREDIT: $705.00 MONTHLY Medical Cost $730.00$659.00$639.00$617.00 employee cost $25.00-$46.00-$66.00-$88.00 MONTHLY Dental (single Premium) $29.92 employee cost $54.92-$16.08-$36.08-$58.08 MONTHLY Vision (single) $4.68 employee cost $59.60-$11.40-$31.40-$53.40 ** Savings to be applied ONLY to Dependent coverage Medical, Dental or Vision Plan ** * Divide by 2 for the per pay period deduction Example spreadsheet will be on website

17. GAP INSURANCE You pay (in-network) GAP Insurance Pays Current Premium PPO (3562)Preferred PPO (3769)Core PPO (5772) Standard / Premium You break your leg $250/$500 (initial benefit ) Ambulance Ride Deductible + 20% coinsurance $150/$300 per day Doctor's visit $25.00$30.00$40.00$25/$50 Emergency Room $100 copay + 20% Deductible + 20% coinsurance 3 day hospital stay $750$1,000 Deductible + 20% coinsurance $250 (initial once/year) + $300 $500 (initial) + $600 Surgery to fix Deductible + 20% coinsurance $20-$500 Anethesia Deductible + 20% coinsurance 25% In-home visiting nurse Deductible + 20% coinsurance $50/day - $100/day Deductible$500$600$1,000$0 Coinsurance20% until you reach $5K20% until you reach $6K $0 (free with Preferred or Core PPO election) Handout 17

18. SIDE DISHES Vision Insurance (provider: Vision Service Plan) Benefit Overview: Eye exam: every 12 months with a $10 co-pay Prescription lenses: every 12 months with a $10 co- pay for single vision, lined bifocal, lined trifocal Frames: every 24 months with a $85 frame allowance Contact lenses in lieu of glasses: $60 co-pay for combined eye exam; $120 allowance for lenses Website: www.vsp.com Dental Insurance (Provider: Ameritas Dental) Employees may select from one of two dental plans: Standard Plan Annual benefit: $1,250 per calendar year Diagnostic & Preventive (exams, cleanings) – 100% no copay Basic (fillings, tooth extractions) – 80% with a $50 co-pay Periodontics (treatment of gum disease) – 80% Major (crowns, bridges, dentures) – 50% with a $50 co-pay Out of network: 100% basic, 50% periodontics, 25% major Premium Plan Annual benefit: $1,500 per calendar year Same coverage for in and out of network providers Diagnostic & Preventive (exams, cleanings) – 100% no copay Basic (fillings, tooth extractions) – 80% with a $50 co-pay Periodontics (treatment of gum disease) – 80% Major (crowns, bridges, dentures) – 50% with a $50 co-pay Website: www.ameritas.com 18

19. SIDE DISHES Short Term Disability Benefit: 60% of basic weekly earnings Maximum weekly benefit: $1,000 Minimum weekly benefit: $25 Waiting or Elimination Period: 7 days accident/7 days illness Maximum duration: 12 weeks Cost: dependent upon age and salary Website: www.unum.com Long Term Disability Benefit: 60% of basic monthly earnings Maximum monthly benefit: $5,000 Minimum monthly benefit: greater of $100 or 10% Waiting or Elimination Period: 90 days Maximum duration: To age 65 Some waiting periods for pre-existing conditions may apply Worldwide emergency travel assistance included Cost: dependent upon age and salary Website: www.unum.com Reminder: If electing either benefit for the first time, you must complete an Evidence of Insurability form. You will not be charged for the benefit until it is approved by the carrier. 19

20. DESSERTS Reminder: Both are calendar year elections Dependent Care Reimbursement Account  Up to $5,000  Reimbursement for daycare and after school care  Use in calendar year.  Auto pay available Healthcare Reimbursement Account  Up to $2,550  Reimbursement for qualified medical expenses not covered by insurance;  Use in calendar year but up to $500 can be rolled over into next year account  Benefit is auto adjudicated without additional documentation  Easily downloaded app 20

21. FREE CONDIMENTS Employee Assistance Program Free Confidential 24/7 Assistance:  Childcare and/or eldercare referrals  Personal relationships  Legal consultations with licensed attorneys  Financial planning  Stress management www.lifebalance.netwww.lifebalance.net – login/password: lifebalance Life Insurance/Supplemental Life Insurance  Employees get 1 x annual salary in additional life insurance at no charge (Max of $200K)  Additional Term Life/AD&D insurance coverage  No Physical Exam required to increase coverage but Evidence of Insurability form must be completed and approved.  Dependent Coverage: $40 per pay; Spouse: $5,000 Child - 14 days – 6 mos. $500 Child - 6 mos. to 25 yrs. $2,500 DON’T FORGET!  Tuition Waivers  Wellness Programs  Professional Development trainings  403(b) Tax-Deferred Plans 21

22. Pet Insurance  Accidents and injuries  Dental cleanings  Illnesses and diseases  Flea and tick preventives  Cancer  Vaccinations  Poisonings  And more...  Spaying or neutering Handout 22

23. All policies include 24/7 access to the exclusive CHOOSE A PET PLAN TO FIT YOUR NEEDS # of PetsWith WellnessWithout Wellness 1$ 35.16$ 21.96 2$ 70.32$ 43.92 3$ 105.48$ 65.88 4$ 140.64$ 87.84 Per pay period

24. BENEFITS STILL ON THE MENU – WHAT PLANS AREN’T CHANGING?  Dental Insurance ~ Ameritas  Vision Insurance ~ VSP  Flex Spending Health Equity: $500 carryover to 2017  Short and Long Term Disability  Life Insurance 24

25. TOOLS TO HELP YOU PICK THE PLANS THAT WILL WORK BEST FOR YOU Mel and Fran and Dr Sidor LSSC Benefits Page ~ links to summary plan descriptions, plan overviews, benefit provider websites Benefit Management Center ~ Open Enrollment site will walk you through the different scenarios for costs Tom Watson ! Custom Benefits 25

26. TO RECAP:  Modified Cafeteria Plan ~ 705 benefit credits to spend in 2017  NEW ~ 2 Medical Plans, Gap Insurance, Pet Insurance  Current PPO plan will not be offered in 2018.  Employees electing Preferred and Core PPO plans ~ Automatically enrolled in Employee-Only Gap Insurance  Open Enrollment ~ October 17-28 LOIS ~ Online Benefit Management Center  All employees must re-enroll their Benefits during Open Enrollment  Electing Short or Long Term Disability, or Life Insurance products ~ Complete Evidence of Insurability form 26