2010-11 BENEFITS SUMMARY

1. 2010-11 BENEFITS SUMMARY

2. Disclaimer These notes apply to all information contained or presented in this presentation. This presentation provides general information only and is not intended as legal advice. In the case of any inconsistencies between the information presented here and the plan document, the plan document prevails. For complete information, please see your plan document.

3. Health Care Reform, etc. • FSA Changes to Over-the-Counter (OTC) Drugs • Dependents to Age 26 (regardless of student status or marriage status) • 2011 W-2: Reporting the “Value of Health Care” • No taxation consequences

4. Traditional PPO Copayment (M05) In-Network Only Office Visits Prescription Drugs

5. Deductible

6. Deductible

7. Coinsurance Explained

8. PPO Health Insurance Plan REMEMBER: Deductibles are CALENDAR YEAR (January-December)

9. HDHP/HSA Health Insurance Plan REMEMBER: Deductibles are CALENDAR YEAR (January-December)

10. Be a wise consumer! Money Saving Ideas Expert Advice • Stay In-Network • Urgent care vs. Emergency Room • Drugs • Therapeutic equivalents • Target, Wal-Mart Rx plans • Ask the Expert!

11. Health Savings Account (HSA) Everything covered under your health plan goes towards the deductible first. There are no copayments for office visits or prescription drugs. Wellness visits, like your annual exam and immunizations are covered at 100% and the deductible is waived, as long as you stay in-network. HSA

12. How to use your HSA

13. Establish a HSA Bank Account • Fund the account to pay for qualified expenses (medical, dental, vision, etc.) • Tax deductible on annual return or Pre-Tax from your paycheck. • HSA Contribution Maximums • Employee Only • $3,050 (2010 & 2011 Calendar year) • Family Coverage • $6,150 (2010 & 2011 Calendar year) • Catch-Up Contributions • Age 55 and above • $1,000 per year 2010-11 HSA Eligibility & Maximums Must be enrolled in a High Deductible Health Plan (HDHP) Enrollment in a spouse’s Medical FSA will disqualify you, unless it is a Limited Purpose FSA. May not be enrolled in Medicaid or Medicare. Non-qualified expenses are taxed as income, plus a 10% penalty for 2010 and 20% penalty for 2011.

14. Medical Premiums

15. HSA Contributions Employees can choose to contribute to their HSA in on a pre-tax basis from their paychecks. Contributions can be in any frequency and amount (as long as you do not exceed the IRS Calendar Year Maximum). Note: The IRS calendar year maximum above is for January 1 to December 31.

16. Employee Only Example #1 *Employee carries over $375 in HSA funds to the next year

17. Employee Only Example #2 *Point @ which employee met the individual deductible and 100% coverage begins.

18. Family Example #3 *Employee carries over $700 in HSA funds to the next year

19. Family Example #4 *Point @ which employee met the individual deductible and 100% coverage begins. **Point @ which family deductible met and 100% coverage begins for everyone.

20. Why Does the HSA Makes Sense Are you over-insured? How do you use your benefits? IRA / 401K for health expenses More control over expense Tax savings for future medical expenses Long Term Care / COBRA

21. ID/Debit Cards • BCBSTX • ID Card • If lost or never received: • Log onto: www.bcbstx.com • Enter your username/password • Print temporary ID card • Or call: 800-521-2227 • Or call CLS: 306-9300 / 877-306-9305 • HSA Banking • Account Inquiries • 866-492-6434 • https://healthbenefits.wellsfargo.com

22. Guardian Dental Plan Value Plan NAP Plan Out-of-Network Charges are reimbursed at a lower negotiated fee. Balance bill will be higher when using Out-of-Network providers. Out-of-Network Charges are reimbursed at the 90th% of UCR. Balance bill will be lower when using Out-of-Network providers.

23. Dental Reminders • Preventive Care excluded from CYM • Dependent Coverage • Up to age 26 if F/T student • Rollover of Unused Benefit • $350 per year/per person • Maximum of $1,250 per person • Dual Option Plan • Same Price Regardless of Plan Selection • National PPO Network • 70,000+ Providers • www.glic.com – DentalGuard Preferred

24. How To Find a Guardian Provider www.glic.com Choose Provider Online Search Click “FIND A DENTIST” Select Your Dental Plan = PPO Enter Search Criteria & Click Continue Select Your Dental Network = DentalGuard Preferred Select Type of Dentist = General or Specialist Click Continue Results Will Be Displayed on the Following Page You Can Choose to Print Results or Have Them Emailed

25. Guardian Vision Insurance *Contact lenses are in lieu of glasses.

26. How To Find a Guardian Provider www.glic.com Choose Provider Online Search Click “FIND A VISION PROVIDER” Select Your Vision Plan = VSP Enter Search Criteria & Click Continue Enter Additional Preferences (or Skip This Step) Click Continue Results Will Be Displayed on the Following Page You Can Choose to Print Results or Have Them Emailed

27. Guardian Premiums

28. LFG Life and Disability Plans Short Term Long Term Group Life/AD&D

29. LFG Voluntary Life Plan * Guarantee Issue (GI) will only apply to NEW employees. If you did not enroll when first offered, you will be required to answer medical questions before you are approved for any amount – GI does not apply. ** Child coverage is up to age 19 or 25 if a full-time student.

30. Section 125 Plan/FSA • If you elect the HSA medical plan, you may only use the Section 125 plan for dental, vision and dependent daycare expenses. • Effective January 1, 2011, OTC items are no longer considered to be an eligible expense under the plan.