1. 2010 Insurance Orientation Employee Insurance Program 803-734-0678 (Greater Columbia area) 888-260-9430 (Toll-free outside the Columbia area)

2. Disclaimer BENEFITS ADMINISTRATORS AND OTHERS CHOSEN BY YOUR EMPLOYER WHO MAY ASSIST WITH INSURANCE ENROLLMENT, CHANGES, RETIREMENT OR TERMINATION AND RELATED ACTIVITIES ARE NOT AGENTS OF THE EMPLOYEE INSURANCE PROGRAM AND ARE NOT AUTHORIZED TO BIND THE EMPLOYEE INSURANCE PROGRAM. THIS PRESENTATION CONTAINS AN ABBREVIATED DESCRIPTION OF INSURANCE BENEFITS. THE PLAN OF BENEFITS DOCUMENTS AND BENEFITS CONTRACTS CONTAIN COMPLETE DESCRIPTIONS OF THE HEALTH AND DENTAL PLANS AND ALL OTHER INSURANCE BENEFITS. THEIR TERMS AND CONDITIONS GOVERN ALL HEALTH BENEFITS OFFERED BY THE STATE. IF YOU WOULD LIKE TO REVIEW THESE DOCUMENTS, CONTACT YOUR BENEFITS ADMINISTRATOR OR THE EMPLOYEE INSURANCE PROGRAM. THE LANGUAGE USED IN THIS PRESENTATION DOES NOT CREATE AN EMPLOYMENT CONTRACT BETWEEN THE EMPLOYEE AND THE AGENCY. THIS PRESENTATION DOES NOT CREATE ANY CONTRACTUAL RIGHTS OR ENTITLEMENTS. THE AGENCY RESERVES THE RIGHT TO REVISE THE CONTENT OF THIS PRESENTATION, IN WHOLE OR IN PART. NO PROMISES OR ASSURANCES, WHETHER WRITTEN OR ORAL, WHICH ARE CONTRARY TO OR INCONSISTENT WITH THE TERMS OF THIS PARAGRAPH CREATE ANY CONTRACT OF EMPLOYMENT.

3. This overview is not meant to serve as a comprehensive description of the benefits offered by the Employee Insurance Program. For more detailed information, have the 2010 Insurance Benefits Guide handy as you review this presentation. Important Information

4. Insurance Orientation EIP Benefit Programs Health Plans Dental Plans Vision Plan Life Insurance Long Term Disability Long Term Care MoneyPlu$ (Pre-tax programs)

5. Insurance Orientation Eligibility

6. Active Employee Must be employed in permanent, full-time position Work at least 30 hours per week unless Employed as a part-time teacher (only eligible for health, dental, vision and MoneyPlu$) Employed by employer who allows coverage for 20-hour employees

7. Retired Employee Must meet certain requirements to continue coverage in retirement Refer to 2010 Insurance Benefits Guide for retiree eligibility information Eligibility

8. Eligible Spouse Spouse or former spouse * if coverage is court-ordered Cannot cover spouse who is eligible for benefits through EIP as active employee or funded retiree Eligibility * Documentation required to cover a former spouse

9. Children Natural child Step-child Adopted child * Foster child * Child for whom employee has legal custody * Eligibility * Documentation required at time of enrollment

10. Eligibility Eligible Children Under age 19, or until 25, if full- time student * Unmarried, not employed with benefits and principally dependent on employee Reside with employee or employee is court-ordered * to cover Approved for incapacitation * * Documentation required at time of enrollment

11. Eligibility Survivors Dependents covered at time of employees or retirees death may continue health, dental and vision coverage Spouse eligible until remarriage Children remain eligible as long as eligible dependent If all coverage is canceled cannot re-enroll as survivor

12. Insurance Orientation Enrollment and Coordination of Benefits

13. Enrollment Enroll Within 31 days of Hire or retirement date Special eligibility situation During open enrollment as late entrant

14. Enrollment Pre-existing Condition Exclusion Applies to health, Basic and Supplemental Long Term Disability Waiting period 12 months 18 months (late entrant) May be reduced by creditable coverage

15. Enrollment October Enrollment Periods Annual Enrollment (Every year) Change health plans Enroll in or drop State Vision Plan Enroll or re-enroll in MoneyPlu$ programs Open Enrollment (Odd-numbered years, i.e., 2011, 2013) Enroll in or drop health, dental or Dental Plus Add or drop eligible dependents

16. Coordination of Benefits Health and Dental Plan that covers person as employee is primary to plan that covers person as dependent Children – Plan of parent whose birthday occurs earliest in year is primary Deductible and coinsurance linked for married EIP subscribers enrolled in same health plan

17. Insurance Orientation Health Plans

18. Insurance Orientation Health Plan Options State Health Plan Standard Plan Savings Plan HMO BlueChoice HealthPlan CIGNA HMO

19. Insurance Orientation Before you choose a health plan: Read the plan overviews listed in the 2010 Insurance Benefits Guide Review the exclusions and limitations listed for each plan Determine if your doctor is in the network Ask questions – contact EIP, your BA or the plan administrator for assistance

20. State Health Plan (SHP) Administered by BlueCross BlueShield of South Carolina State Health Plan

21. Common to Both Worldwide coverage In- and out-of-network benefits Pharmacy network Online access available www.SouthCarolinaBlues.com www.SouthCarolinaBlues.com State Health Plan Standard Plan and Savings Plan

22. Preauthorization Refer to 2010 Insurance Benefits Guide for information regarding Medi-Call National Imaging Associates APS (mental health and substance abuse services) Medco State Health Plan Standard Plan and Savings Plan

23. Provider Network Provider files claims and accepts allowable charges as payment in full Subscriber pays deductibles and coinsurance State Health Plan Standard Plan and Savings Plan

24. Out-of-network Subscriber May have to file claims Can be balance billed Pays higher coinsurance No benefits paid for out-of-network prescription drugs State Health Plan Standard Plan and Savings Plan

25. Limited Preventive Benefits * Routine mammogram Pap test Well child care Routine colonoscopy State Health Plan Standard Plan and Savings Plan * Refer to the 2010 Insurance Benefits Guide for plan guidelines

26. State Health Plan Standard Plan SHP Standard Plan

27. Standard Plan Annual Deductible $350 individual $700 family Out-of-network Coinsurance Plan pays 60 % Subscriber pays 40 % Coinsurance Maximum $4,000 individual $8,000 family In-network Coinsurance Plan pays 80 % Subscriber pays 20 % Coinsurance Maximum $2,000 individual $4,000 family Deductibles and Coinsurance

28. Standard Plan Per-occurrence Deductibles $10 Office visit $75 Outpatient facility service $125 Emergency room visit

29. Network Retail Pharmacy * (up to 31-day supply) $ 9 Tier 1 $ 30 Tier 2 $ 50 Tier 3 Medco Mail Order * (up to 90-day supply) $ 22 Tier 1 $ 75 Tier 2 $125 Tier 3 Retail Maintenance Network Prescription Drug Benefits $2,500 maximum copayment per person Standard Plan

30. State Health Plan Savings Plan SHP Savings Plan

31. Annual Deductible $3,000 individual $6,000 family Out-of-network Coinsurance Plan pays 60% Subscriber pays 40% Coinsurance Maximum $4,000 individual $8,000 family In-network Coinsurance Plan pays 80% Subscriber pays 20% Coinsurance Maximum $2,000 individual $4,000 family Deductibles and Coinsurance Savings Plan

32. Rules Subscriber pays 100% of Allowable charges in-network Actual charges out-of-network Allowable charges at network pharmacies After deductible is met, Plan will reimburse subscriber 80% of allowable charges

33. Savings Plan Added benefits Annual flu shot Annual physical that includes specific services Eligibility to contribute to Health Savings Account (HSA)

34. HMOs Health Maintenance Organizations (HMOs)

35. HMOs Requirements Must live or work in HMO service area Must choose Primary Care Physician (PCP) in network and receive referrals before seeing specialist Only out-of-network benefit is emergency care

36. BlueChoice HealthPlan (Available in all South Carolina counties) BlueChoice HealthPlan Available in all South Carolina Counties

37. Coinsurance Maximum $2,000 individual $4,000 family Annual Deductible $250 individual $500 family Network Coinsurance Plan pays85 % Subscriber pays 15 % Deductibles and Coinsurance BlueChoice HealthPlan (Available in all South Carolina counties)

38. Provider: $15 PCP $15 OB-GYN $40 specialist $35 urgent care Plan pays 100% after copay Facility: $100 outpatient $125 ER $200 inpatient Plan pays 85% after copay Copays

39. Network Retail Pharmacy (up to 31-day supply) $ 8 Lower-cost generic $ 15 Higher-cost generic $ 35 Preferred brand $ 55 Non-preferred brand $ 80 Preferred brand specialty pharmaceuticals $125 Specialty pharmaceuticals Mail Order (up to 90-day supply) $ 20.00 Lower-cost generic $ 37.50 Higher-cost generic $ 87.50 Preferred brand $137.50 Non-preferred brand BlueChoice HealthPlan (Available in all South Carolina counties)

40. CIGNA HMO Available in all South Carolina counties except Abbeville, Aiken, Barnwell, Edgefield, Greenwood, Laurens, McCormick and Saluda

41. Coinsurance Maximum $2,000 individual $4,000 family Annual Deductible None In-network Coinsurance Plan pays 80% Subscriber pays 20% Deductibles and Coinsurance CIGNA HMO Available in all South Carolina counties except Abbeville, Aiken, Barnwell, Edgefield, Greenwood, Laurens, McCormick and Saluda

42. Copays Provider $15 PCP $15 OB-GYN $30 specialist $100 ER Plan pays 100% after copay Hospital $250 outpatient $500 inpatient Plan pays 80% after copay CIGNA HMO Available in all South Carolina counties except Abbeville, Aiken, Barnwell, Edgefield, Greenwood, Laurens, McCormick and Saluda

43. Mail-Order (up to 90-day supply) $ 14 generic $ 50 preferred brand $100 non-preferred brand Network Retail Pharmacy (up to 30-day supply) $ 7 generic $25 preferred brand $50 non-preferred brand CIGNA HMO Available in all South Carolina counties except Abbeville, Aiken, Barnwell, Edgefield, Greenwood, Laurens, McCormick and Saluda

44. Insurance Orientation Active Employee Health Premiums

45. Premiums for local subdivisions may vary Premiums for local subdivisions may vary SHP Savings Plan SHP Standard Plan Employee only Employee/spouse Employee/children Full family $ 9.28 $ 72.56 $ 20.28 $108.56 $ 93.46 $237.50 $142.46 $294.58 Blue Choice HMO Employee only Employee/spouse Employee/children Full family $185.56 $508.78 $382.66 $741.22 $251.94 $608.42 $518.08 $930.84 CIGNA HMO 2010 Active Employee Monthly Health Premiums

46. Tobacco Surcharge $25 per month for tobacco users Automatically charged unless certify no one uses tobacco May certify by completing paper Certification Regarding Tobacco Use form Tobacco Surcharge

47. Avoid the Surcharge Must be tobacco free for 6 months to certify as non- tobacco user All health plans offer free tobacco cessation program Refer to 2010 Insurance Benefits Guide for detailed information Tobacco Surcharge

48. Insurance Orientation State Dental Plan Administered by BlueCross BlueShield of South Carolina

49. State Dental Plan Features Free to choose dentist No pre-existing condition exclusions Two year plan – may not drop or change until next open enrollment $1,000 maximum benefit

50. * $25 Combined Deductible for Classes II and III Classes of Services Class I Preventive services 100% of fee schedule Class III * Prosthodontics 50% of fee schedule Class IV Orthodontics (only children younger than 19; $1,000 lifetime maximum) Class II * Basic services 80% of fee schedule State Dental Plan

51. Employee only Employee/spouse Employee/children Full family $.00 $ 7.64 $13.72 $21.34 Monthly Premiums State Dental Plan

52. Insurance Orientation Dental Plus Administered by BlueCross BlueShield of South Carolina

53. Dental Plus Features Supplement to Basic Dental Higher allowance for Class I, II and III services Combined maximum benefit of $2,000 May enroll in or cancel coverage during open enrollment

54. Dental Plus premiums are in addition to State Dental Plan premiums. Monthly Premiums Category Basic Dental Dental Plus Total Premium Employee None$22.04 Employee/ Spouse $ 7.64$41.72$49.36 Employee/ Child $13.72$45.54$59.26 Full Family$21.34$65.22$86.56 Dental Plus

55. Insurance Orientation State Vision Plan Administered by EyeMed Vision Care

56. State Vision Plan Features May enroll within 31 days of date of hire or retirement May enroll in or drop coverage every year during October enrollment

57. State Vision Plan Vision Care Services Eye exams Frames Lenses Contact lens services and materials Discounts on LASIK and PRK vision correction

58. State Vision Plan Providers In-network No claims to file Pay copayment and charges above the plans allowance Out-of-network Pay provider for service EyeMed will reimburse you for a portion of expenses for certain services * Locate a provider on EIPs web site or by calling EyeMed at 877-735-9314

59. State Vision Plan Eye Exams $10 copayment Standard contact lens fitting No copayment Premium contact lens fitting 10% discount and $55 allowance toward discounted price

60. State Vision Plan Eyeglasses Frames every 2 years $140 allowance * 20% discount off balance Lenses every year $10 copayment for single vision, bifocal, trifocal and lenticular plastic lenses $45 copayment for standard progressive lenses * Cannot be combined with any other promotion or discount

61. State Vision Plan Contact Lenses * Every year Conventional lenses $130 allowance 15% discount off balance Disposable lenses $130 allowance * Subscriber may choose either eyeglass lenses or contact lenses, but not both in the same plan year.

62. State Vision Plan Employee only Employee/spouse Employee/children Full family $ 7.76 $15.52 $16.48 $24.24 Monthly Premiums

63. Insurance Orientation Vision Care Discount Program

64. Vision Care Discount Program Features No enrollment or premium Discount program Participating providers only $60 for routine eye exam – excludes contact lens exam 20% discount on eyewear except disposable contact lenses

65. Insurance Orientation Life Insurance Administered by MetLife

66. Basic Life $3,000 term life insurance to all eligible employees under age 70 Premium paid by employer Employees enrolled in any health plan are covered Accidental death and dismemberment benefits

67. Optional Life Premium based on amount of coverage and employees age Coverage up to three times salary if enrolled within 31 days of employment Medical evidence required for additional coverage Maximum coverage level of $500,000

68. Dependent Life Child coverage $15,000 per child Premiums $1.24 per month, regardless of number of children covered Can enroll eligible children throughout the year without medical evidence of good health

69. Dependent Life Spouse coverage New hire can enroll spouse for $10,000 or $20,000 without medical evidence of good health Premiums based on employees age and amount of coverage Employee is beneficiary May enroll in up to 50% of employees Optional Life coverage with medical evidence

70. Insurance Orientation Long Term Disability Insurance Administered by Standard Insurance Company

71. Basic Long Term Disability Insurance Basic Long Term Disability (BLTD) Premiums paid by employer Employee automatically enrolled with selection of a health plan 62.5 percent benefit, up to $800 per month 90-day waiting period

72. Supplemental Long Term Disability Insurance Supplemental Long Term Disability (SLTD) Provides protection for employee if annual salary exceeds $15,360 Benefit – 65% of monthly salary up to $8,000 per month Choice of two plans 90-day waiting period 180-day waiting period

73. Supplemental Long Term Disability Insurance Enrollment in SLTD New hire may enroll without providing medical evidence of good health Late entrant must provide medical evidence of good health to enroll Employee pays premium – based on monthly salary, plan chosen and age

74. Insurance Orientation Long Term Care Administered by Prudential

75. Long Term Care Features Benefits paid when subscriber Is unable to perform at least two activities of daily living (ADL) for at least 90 days or Has severe cognitive impairment requiring ongoing help or supervision

76. Long Term Care Eligible Participants Active full-time permanent employees and their Spouse, parents, parents-in-law, grandparents, grandparents-in-law, siblings, adult children (and their spouses) Retirees and their spouse Surviving spouses

77. Long Term Care Enrollment Guaranteed coverage for employees who enroll within 31 days of hire or during a designated open enrollment period Medical evidence of good health required for late entrants and all other eligible participants

78. Long Term Care Premiums Based on Age at time of purchase Selected plan Paid directly to Prudential -- subscriber may continue coverage upon retirement or leaving employment

79. Insurance Orientation MoneyPlu$ Administered by Fringe Benefits Management Company (FBMC)

80. MoneyPlu$ Features Pretax premiums Medical Spending Account (MSA) Dependent Care Spending Account (DCSA) Health Savings Account (HSA)

81. MoneyPlu$ Pre-tax Premium Pretax Premiums Health Dental and Dental Plus State Vision Plan First $50,000 of Optional Life Tobacco Surcharge $0.28 monthly administrative fee

82. MoneyPlu$ Medical Spending Account Medical Spending Account (MSA) Employed for one year before participating $5,000 maximum annual contribution $3.50 monthly administrative fee Use it or lose it account

83. MoneyPlu$ Medical Spending Account Eligible expenses include Deductibles, coinsurance and copayments Medically necessary expenses Prescription medications and approved over-the-counter medications

84. MoneyPlu$ Dependent Care Spending Account Dependent Care Spending Account (DCSA) $5,000 maximum contribution $3.50 monthly administrative fee

85. MoneyPlu$ Dependent Care Spending Account Eligible expenses Day care fees Care for qualified individuals in your home or someone elses home Summer day camps

86. MoneyPlu$ Health Savings Account Health Savings Account (HSA) Employee must be enrolled in the SHP Savings Plan Money deposited into account carries forward from year to year Account is portable Fees $1 per month to FBMC $1 per month ($10/year) to NBSC

87. MoneyPlu$ Health Savings Account 2010 HSA Contributions $3,050 for individuals $6,150 for family Additional $1,000 catch-up provision for individuals age 55 and older

88. Health Savings Account Limited-Use Medical Spending Account (MSA) Limited-Use MSA Must be employed for one year Only used for dental and vision care expenses $5,000 maximum contribution $3.50 monthly administrative fee Use it or Lose it account

89. Important Reminders You are responsible for your benefits. * Nothing is automatic. * For detailed information of the benefits offered by the Employee Insurance Program, refer to the 2010 Insurance Benefits Guide

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