City of Plano Retiree Non-Medicare Open Enrollment

1. City of PlanoRetiree Non-MedicareOpen Enrollment Plan Year 2010

2. Health Plan Overview • City absorbed most of the medical cost increases from 2004 - 2008 • In 2006 - City along with Hay Group developed a strategic approach and organization philosophy - a long term strategic plan for management of its benefit programs. The philosophical position will establish a basis upon which future benefit plan designs will be developed. • Claims incurred January 1, 2008 – December 31, 2008 - 1.1% of membership drove 42% of medical cost - Total claims for medical and RX rose 33% in 2008 - September 2008 – funded GASB moving $15.5 million from health claims fund - Additional 13% City contribution was added to medical rates beginning March 19,2009 to cover the excess claims.

3. Medical – Core Plan with UHC • No Plan Design Changes • Lifetime Maximum of $2,000,000 • Deductible of $1,000 • Out of Pocket Maximum of $3,000 • Coinsurance 80% • No Dental Plan Design Changes • Vision Plan Enhancement • Polycarbonate lenses coverage • $150 contact lenses allowance for 6 boxes – in lieu of glasses

4. Pharmacy – CVS/Caremark • 17.1% increase in cost - attributed to member utilization, mix of drugs, drug price increases, marketing costs • 2008 to 2009 Member cost share decreased - from 26.1% to 18.5% • Net effect is an estimated 29% increase in the City’s annual drug cost

5. Pharmacy – CVS / Caremark2010 Plan Design • Tier 4 for Specialty Drugs - $120 Co-pay with limit of 30 days • $100 Family Deductible reinstated • Minimum Co-pays reinstated • Maximum Out of Pocket increased to $2500

6. Pharmacy – CVS / Caremark

7. Consumerism • Rx – use generics when possible • This may require that you talk to your doctor about alternative drugs and take the drug list with you to your visit • Medical – use in-network providers • Ask the provider to ensure they are in-network or call UHC to verify or check myuhc.com • Taking card doesn’t mean they are in-network, it only means they will file the claim • Use Premium rated (****) doctors and facilities when selecting – these provide proven high quality (better outcomes) at reasonable costs • Dental – ask for pre-determinations so you will know your financial responsibility up front • You are the purchaser of your own health care – Purchase health care just like you would any other product.

8. New Question at Enrollment • “Does your spouse have access to health insurance through their employer?” • Will not be able to proceed with enrollment until question is answered • Question only – NO surcharge being applied and NO spouse will be taken off plan

9. Important Dates • Enrollment opens October 1, 2009 • Enrollment closes October 21, 2009 • Enroll through PeopleSoft Vendor Brochures and Hospital Gap Paper Enrollment Form Available online

10. Other Changes • Hospital Gap - form required if enrolling for first time or making change to coverage • Enrolling Dependents - eligible dependents can now be added during open enrollment or at the time of a qualifying event - “Alert Message” when adding dependents during open enrollment

11. Confirmation Statements • Confirmation Statements will be sent out mid-November • CORRECTIONS Only – send to HR • Check on-line through PeopleSoft at Employee Self Service to review your elections at any time • Premiums can be debited from your checking account