1. Insert Client Logo Your Guide to Health Care Benefits

2. Our Benefits Philosophy Deliver competitive benefits Offer value to you and your family Encourage you to make informed health care choices Help keep costs sustainable – for the company and you 1 [Adjust as needed]

3. Health Care Reform Update Starting January 1, 2014, nearly everyone in the U.S. must have medical coverage or pay a penalty Your options for coverage: –Full time/part time employees (30+ hours/week) –[client name]’s medical plan meets government affordability requirements Not eligible for a government subsidy –Part time employees (<30 hours/week) not eligible for coverage at [client name] – may need to look to the public marketplace –Spouse’s medical plan –Your state’s Health Insurance Marketplace or “Exchange” –Private insurance companies –Medicaid, TEFRA and the Children’s Health Insurance Program (if eligible)

4. Health Care Reform What’s Coming Up August 2013 – December 2013 –You may hear more about your Exchange options or get information from individual medical plan companies [October 1 – November 15, 2013] –[Client name] 2014 Open Enrollment October 2013 – March 2014 –Exchange enrollment period for 2014 coverage January 1, 2014 –Nearly everyone must be enrolled for health care coverage or pay a penalty

5. 4 Your Medical Options PPO Health Savings Account (HSA) Company Contributions Your Contributions CDHP + HSA

6. Medical Options: Compare and Contrast PPOCDHP Routine and preventive care? 100% covered in-network Are there copays? Only for doctor’s visits, specialists’ visits and ER No copays Pay the deductible first? Yes, except for prescription drugs Yes, but the HSA helps Coinsurance?75% in-network 50% out-of-network 80% in-network 60% out-of-network Out-of-pocket maximums Only for medical care; your prescription drug costs are separate Only for medical care; most of your prescription drug costs are separate 5 [update as needed]

7. Medical Options: Compare and Contrast PPOCDHP NetworksCigna Healthcare What are the payroll deductions? Lower deductibles; higher premiums Higher deductibles; lower premiums The most you’ll pay out-of- pocket in a year if you stay in the network? For medical care only Employee Only: $4,000 Family: $12,000 You continue to pay your share of prescription drug costs For medical care only Employee Only: $4,000 Family: $8,000 You continue to pay your share of prescription drug costs 6 [update as needed]

8. Deductibles, Coinsurance and Out-of-Pocket Maximums 7 PPO (in-network) CDHP (in-network) Deductible Individual Family $750 $2,250 $2,000 $4,000 Your coinsurance (what you pay)25%20% Out-of-pocket maximum Individual Family $4,000 $12,000 $4,000 $8,000 After you reach out-of-pocket max, your coinsurance (what you pay) 0% [update as needed]

9. Deductible and Out-of-Pocket Maximum Work Differently: If You Enroll Dependent(s) 8 Two ways to meet the deductible (CDHP example) … Combined covered expenses for entire family. $4,000 Covered expenses for one family member, or … You must meet the family deductible before the plan begins to pay benefits for anything except preventive care You must meet the family out-of-pocket maximum before the plan pays 100% $4,000 [update as needed]

10. CDHP with HSA: Working Together Preventive care Plan pays 100% 9

11. Health Savings Account Together, contributions from you and the Company can cover you deductible and coinsurance. CDHP with HSA: Working Together Preventive care Plan pays 100% Deductible You pay 100%. Once the deductible is met, coinsurance kicks in 10

12. CDHP with HSA: Working Together Preventive care Plan pays 100% Coinsurance You and the Company share a percentage of the costs until you meet the out-of-pocket maximum. Deductible You pay 100%. Once the deductible is met, coinsurance kicks in Health Savings Account Together, contributions from you and the Company can cover you deductible and coinsurance. 11

13. Health Savings Account Together, contributions from you and the Company can cover you deductible and coinsurance. CDHP with HSA: Working Together Preventive care Plan pays 100% Out-of-pocket maximum Once you reach this, the plan pays 100% of in-network costs. Deductible You pay 100%. Once the deductible is met, coinsurance kicks in Coinsurance You and the Company share a percentage of the costs until you meet the out-of-pocket maximum. 12

14. 13 Health Savings Account (HSA) Available with the CDHP if you have no other medical coverage Money goes in tax-free Money comes out tax-free when you use it for qualified health care expenses Unused HSA balance stays with you Health Savings Account (HSA) Company Contributions Your Contributions

15. 14 Health Savings Accounts (HSAs): We Get You Started Based on your medical coverage level Company Contribution Individual$500 Family$1,000 *The company does not make HSA contributions for highly-compensated employees. HSA

16. 15 Health Savings Accounts (HSAs): IRS Contributions Limits for Your HSA HSA When you …You and the Company can contribute up to a combined … Enroll for Individual coverage $3,300 per year Enroll for Family coverage $6,550 per year Are age 55 or older An extra $1,000 per year

17. 16 Health Savings Account: An Example How Money Goes Into Your HSA HSA $1,000 Provided for enrolling $500 You add $500

18. 17 Health Savings Account: An Example How Money Comes Out -$138 visit to your primary doctor -$30 for two prescriptions -$148 specialist visit $316 $684 left HSA $1,000

19. 18 Health Savings Account: An Example Unused HSA Dollars Roll Over 2014: $684 remaining 2015: Start off with $684

20. Health Savings Account: Consider Saving Enough to Cover Deductible 19 In-Network Deductible Company contribution What you need to save Individual Coverage$2,000$500$1,500 or $125/month Family Coverage$4,000$1,000$3,000 or $250/month [update as needed]

21. 20 Examples to Help You Choose Example 1 Single, Generally healthy Example 2 Family

22. 21 CDHP PPO Care + Rx PCP: $200 Prescription Drugs: $180 Total: $380 Teresa’s Out-of-Pocket Health Care Costs = $380 HSA Dollars Company: $500 + Teresa: $500 Total in HSA: $1,000 Out-of-Pocket (minus HSA dollars): $0 Carries forward $620 in HSA Premium + HSA contributions: $X,XXX Care + Rx PCP: $50 Prescription Drugs: $180 Total: $230 Teresa’s Out-of-Pocket Health Care Costs = $230 Teresa – Generally healthy, single, in her late 20s Here’s what Teresa anticipates her expenses to be in 2014, based on her care in 2013: 3 doctor visits – one preventive – and 12 prescriptions (at $15 each) Premium: $X,XXX

23. 22 Tami and Sam – Family coverage Here’s what Tami anticipates her expenses to be in 2014, based on her care in 2013: 8 doctor visits – 5 preventive – and 1 specialist, with 12 generic prescriptions (at $15 each) and 3 brand-name (at $35 each) 2 follow up specialist visits Care + Rx 3 Doctor visits = $300 1 Specialist visit = $200 Prescriptions drugs = $180 Preferred brand prescriptions = $105 2 Follow-up specialist visits = $400 Total: $1,185 Tami’s Out-of-Pocket Health Care Costs = $1,185 HSA Dollars Company: $1,000 + Tami: $400 Total in HSA: $1,400 Out-of-Pocket (minus HSA dollars): $0 Carries forward $215 in HAS Premium + HSA contributions: $X,XXX Tami’s Out-of-Pocket Health Care Costs = $5,10 Premium: $X,XXX Care + Rx 3 Doctor visits = $75 1 Specialist visit = $50 Prescriptions drugs = $180 Preferred brand prescriptions = $105 2 Follow-up specialist visits = $100 Total: $510 CDHP PPO

24. Prescription Drug Coverage You receive prescription drug coverage when you enroll in either medical plan Generic: $15 copay Brand-name formulary: $35 copay Brand-name non-formulary: $50 copay –For 30-day supplies when you visit retail pharmacy 90-day supplies available through mail-order CDHP offers preventive prescription drugs covered at 100% 23

25. 24 Dental Overview In-network Plan year deductible Individual Family $50 $150 Plan year maximum Individual$1,500 Preventive Exam Cleanings X-rays 100 % Basic Fillings Endodontics Periodontics 80% after deductible Major Crowns/Bridges50% after deductible Orthodontia (Children under 19) Up to $1,250 lifetime maximum benefit Vision Overview In-network Deductible$25 Eye exam (every 12 months) Covered at 100% up to $125 after deductible Frames (every 12 months) Covered at 100% up to $125 after deductible Contact lensesOne pair every 12 months in lieu of eyeglasses NO changes to Dental benefits NO changes to Vision benefits [update or delete]

26. 25 Consider Your Choices Enroll for medical coverage? Consider your likely health care needs, other available coverage, cost Which medical plan? Consider your estimated total cost If you enroll in the CDHP - how much to additionally contribute to your HSA? Consider what it would take to meet the deductible Factor in employer contributions and your own 1 2 3

27. 26 Three Simple Steps to Enroll Verify your dependents Submit the needed documents within 31 days of enrolling a new dependent Complete your screenings and health assessment Online health assessment available starting October 1 123 Enroll for 2014 benefits Everyone must make an election – visit the Employee Portal to enroll from Oct. 1 – Nov. 15