2011-12 Open Enrollment October 12, 2011

1. 2011-12 Open Enrollment October 12, 2011

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. 2010-11 Open Enrollment Agenda • Open Enrollment • Medical Benefits • HSA Review • Plan Examples • Sample IRS Forms • Other Benefits • Questions

4. 2011-12 Renewal Information • BCBSTX Medical Renewal • Initial = 33.3% / $116,219 annual increase to STRATFOR • Negotiated = 19.4% / $67,685 annual increase to STRATFOR • Guardian Dental Renewal • Initial = 9% / $3,858 annual increase to STRATFOR • Negotiated = 6% / $2,573 annual increase to STRATFOR • Guardian Vision Renewal • 4% / $410 annual increase to STRATFOR • To Accept ALL Renewals with NO CHANGES • $70,668 annual increase to STRATFOR

5. 2011-12 Renewal Information • By changing medical carriers – we were able to reduce the overall increase to STRATFOR • $16,675 annual increase in premium • Savings of $$53,993 to the company • This allowed us to renewal with Guardian and LFG and minimize the overall change for employees • STRATFOR will continue to pay 100% of all benefits for all tiers of coverage AND • STRATFOR will continue to make HSA contributions

6. Open Enrollment Overview November 1st , 2011 Open Enrollment Begins Now Qualifying Events

7. Traditional PPO Copayment (E52) In-Network Only Office Visits Prescription Drugs

8. Deductible

9. Deductible

10. Coinsurance Explained

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

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

13. 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!

14. 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

15. How to use your HSA

16. 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 - INCREASED • $3,100 (2012 Calendar year) • Family Coverage - INCREASED • $6,250 (2012 Calendar year) • Catch-Up Contributions • Age 55 and above • $1,000 per year 2011-12 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 20% penalty.

17. Medical Premiums

18. 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.

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

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

21. Employee Only Example: Tax Savings

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

23. 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.

24. Family Example: Tax Savings

25. 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

26. Sample: Individual 1040 Tax Return

27. Sample: IRS Form 8889

28. Deductible Credit REMEMBER: Medical deductibles run on a calendar year (January-December). You will receive credit for any deductible you have satisfied as of January 1, 2011 under your new medical election for the remainder of 2011 (11/1-12/31). All deductibles will reset back to $0 on January 1, 2012.

29. 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.

30. 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 • 56 members qualified for rollovers for Plan Year 2011 • Dual Option Plan • Same Price Regardless of Plan Selection • National PPO Network • 70,000+ Providers • www.glic.com – DentalGuard Preferred

31. 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

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

33. 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

34. Guardian Premiums

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

36. 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.

37. 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.

38. Value Added Benefits • Aetna • Member Payment Estimator – pg. 13 • Aetna Mobile App – pg. 14 • WhiteGlove House Call – pg. 15-16 • Lincoln Financial • EmployeeConnect EAP – pg. 32 • www.EAPadvantage.comPassword: connect • TravelConnect Travel Services – pg. 33 • BeneficiaryConnect – pg. 34

39. CLS Partners • Service • Support • Reliable • Guidance • Assistance • Consistent • Dependable 512.306.9300 877.306.9305 support@clspartners.com ALL ENROLLMENT/CHANGE FORMS ARE DUE BACK BY: October 17, 2011 RETURN FORMS TO: Leticia Pursel leticia.pursel@stratfor.com