1. Flexco Open Enrollment 2012 Presented by: Lynn Stanley, RHU Account Executive Horton Benefit Solutions

2. TODAY’S MEETING AGENDA Changes to how we spend our income Review your current benefit options Reminder – Screenings! Review your benefit costs Open enrollment action items Tips and traps Who to contact for help info

3. HOW WE SPENT OUR INCOME Source: TIME Magazine 10/10/2011 and data from the Bureau of Economic Analysis

4. YOUR 2012 PLAN OPTIONS Once again this year we will offer 2medical options, with Blue Cross Blue Shield available to all eligible employees and pre-65 retirees. Once again this year we will offer 2 medical options, with Blue Cross Blue Shield available to all eligible employees and pre-65 retirees. This year we are adding Step Therapy and Specialty Pharmacy to your pharmacy plan. In addition to Domestic Partner coverage, we also will be allowing Civil Union partners (will require state certificate of civil union) Civil union participants, like Domestic Partners are not eligible for COBRA or pre-tax contributions Civil union participants, like Domestic Partners are not eligible for COBRA or pre-tax contributions

5. 2012 PPO OPTIONS PPO 1 Primary Care - $20 co-pay Specialist - $35 co-pay Preventive child & adult care services at no cost Prescription Drug Co-pay $3 Generic / $25 Brand; $45 non- preferred brand 90 day mail order available at 2x retail co-payment 90 day mail order available at 2x retail co-payment PPO 2 Primary Care - $25 co-pay Specialist – $40 co-pay Preventive child & adult care services at no cost Prescription Drug Co-pay $3 Generic; $30 Brand; $60 non-preferred brand 90 day mail order available at 2x retail co-payment 90 day mail order available at 2x retail co-payment

6. 2012 PPO OPTIONS PPO 1 In network deductible $250 ($750 per family) –Non-network deductible of $500 ($1,500 per family) –Deductibles are separate – do not accumulate together –Coinsurance – 90% in PPO, 60% outside of network Maximum out-of-pocket of $1,500 in PPO, $4,000 outside PPO (includes deductible) PPO 2 In network deductible $750 ($2,250 per family) –Non-network deductible of $1,500 ($4,500 per family) –Deductibles are separate – do not accumulate together –Coinsurance – 80% in PPO, 50% outside of network Maximum out-of-pocket of $2,000 in PPO, $5,000 outside PPO (includes deductible)

7. Guardian PPO Using network providers prevents balance billing In-network providers = Discounts = Higher annual maximum benefits for you and your family Can cover eligible dependents to age 26 –$2,000 in-network / $1,500 out of network combined per calendar year per person Orthodontia – to age 19 – 60% in-network, 50% out of network - up to $2,000 lifetime 50% out of network - up to $2,000 lifetime HOW YOUR DENTAL PLAN WORKS

8. VSP (Vision Services Plan) Bundled with your health plan, but NOT a part of Blue Cross Blue Shield Bundled with your health plan, but NOT a part of Blue Cross Blue Shield Not just a “discount plan”; it’s a vision insurance plan National network of optometrists and clinics $10 co-pay for eye exam every 12 months $25 co-pay for glasses (lenses / frames) Lenses every 12 months, frames every 24 months $130 allowance for frame or contact lenses/exam Discounts for lens options, sunglasses, designer frames, lasik surgery HOW YOUR VISION PLAN WORKS

9. Pre-Tax Healthcare Expense Savings up to $3,900 – 30% to 40% of out of pocket costs Covers almost all expenses for healthcare –Over the counter medicine until 12/31/10 ONLY! – then prescription needed. –Expenses must be IRS approved – see list on HR Connection “Use it or lose it” – plan accordingly! –Funds can be spent through March 15, 2013 –Receipts can be submitted until March 31, 2013 Dependent care savings up to $5,000 2012 FLEX SPENDING PROGRAM

10. REMINDER – WELLNESS PARTICIPATION  On-site screening dates are over, but you can still participate via the test on demand option  Remember to fast  Call 800-840-6100 to schedule  Need to schedule in time to complete testing by 11/11/2011  Review your results with your physician  Take action to get or stay healthy!  Contributions impacted by participation and meeting your annual goal.

11. MEDICAL PLAN COSTS 2012 Employee Pre-Tax Weekly/Monthly Contribution PPO 1 No Discount PPO 1 Wellness Discount PPO 2 No Discount PPO 2 Wellness Discount Employee Only $38.09 $38.09$165.06 $21.28 $21.28 $92.21 $92.21 $24.26 $24.26$105.13 $13.67 $13.67 $59.24 $59.24 Employee +1 $93.51 $93.51$405.21 $62.79 $62.79$272.09 $64.25 $64.25$278.42 $41.94 $41.94$181.74 Employee +Family $124.63$540.06 $81.20 $81.20$351.87 $85.20 $85.20$369.20 $55.57 $55.57$240.80

12. DENTAL PLAN COSTS 2012 Employee Pre-Tax Contributions Weekly Contributions Monthly Contributions Employee Only $3.00$13.00 Employee +1 $9.38$40.65 Employee +Family $12.50$54.17 No change from 2011 premiums

13. OPEN ENROLLMENT ACTION ITEMS Forms to complete: –Medical, only if… Adding or deleting self or dependents for coverage –Dental, only if… Adding or deleting self or dependents for coverage –Flexible Spending election All employees need to elect or waive coverage! FORM INCLUDED IN YOUR OPEN ENROLLMENT PACKAGE –All election forms must be received no later than Wednesday, November 23

14. CONSUMER TIPS Ask Questions and Get Answers –You can control most services you need by asking questions. This will save you money and get you the very best outcome for meeting you(r family’s) needs Observe all preventative care measures and participate in the annual health screening Always use network providers – VERIFY! Use outpatient labs and facilities at lower costs Get generic substitutions whenever available Avoid emergency rooms for any reason other than a real “life-and-death” situation Find your closest in-network retail clinic Keep records and receipts of all expenses

15. FOR FURTHER ASSISTANCE Employee Benefits Website: HR Connection –www.hrconnection.com www.hrconnection.com –Login: flexco –Password: Cobenefits1 Medical Carrier: Blue Cross Blue Shield –www.bcbsil.com PPO Enrollees – 800-828-3116 –Benefit plan information, resources, claims Dental Carrier: Guardian –www.guardianlife.com or 800-627-4200 www.guardianlife.com Vision Service Plan – www.vsp.com www.vsp.com Life & Disability: Mutual of Omaha - www.mutualofomaha.com or 800-877-5176 www.mutualofomaha.com Flexible Spending: Discovery Benefits www.discoverybenefits.com or 866-451-3399 www.discoverybenefits.com The Horton Group – Confidential Services and Support –lynn.stanley@thehortongroup.com lynn.stanley@thehortongroup.com –708-845-3135