City of Plano Retiree Non-Medicare Open Enrollment Plan Year 2010

Health Plan Overview City absorbed most of the medical cost increases from In 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, % of membership drove 42% of medical cost -Total claims for medical and RX rose 33% in 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.

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

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

Pharmacy – CVS / Caremark 2010 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

Pharmacy – CVS / Caremark Family Deductible - $100 $2500 Max. OOP/Person Retail (30 Day Supply)CoinsuranceMinimumMaximum Tier 1 - Generic15%$6$15 Tier 2 - Brand Preferred25%$30$45 Tier 3 - Brand Non Preferred40%$45$60 Tier 4 - SpecialtyNA$120 Mail (90 Day Supply) Tier 1 - Generic15%$12$30 Tier 2 - Brand Preferred25%$60$90 Tier 3 - Brand Non Preferred40%$90$120 Tier 4 - SpecialtyNA

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.

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

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

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

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