1. Benefits
©2015 General Dynamics. All rights reserved.

2. Agenda
Medical
Enrollment
Resources
Next Steps
Enrollment Process

3. How PHAPs Work
Maximum

4. Personal Health Account plans – Four medical options
Enhanced (PHA E)
Non-Seeded Enhanced (PHA NSE)
Standard (PHA S)
Core (PHA C)

5. Meet Carla Brown 30 years of age Single Gets preventive care
Quite healthy No chronic health issues
Occasional mild cold or flu

6. Carla’s 2016 Healthcare Two doctors visits Annual physical
Gets a “clean bill of health”
Annual physical
Severe cold
Minor cut from bicycle fall. No stitches or tetanus shot required but needs antibiotic.
Two doctors visits
Prescription for an antibiotic
Prescription

7. How Carla Would Fare in 2016 Service Provider charge HMO PHA Enhanced
Annual physical
$225
$15 $0
2 office $180
$360
$30
1 $30
$10
Carla’s medical expenses
$615
$55
$390
Company HSA Contribution
$1,500
Annual Premium
$2,388
$1,445
Total Healthcare Cost
$2,443
$1,445 ($390 paid by Company HSA contribution)
Savings
$608
HSA Rollover Amount
$1,110

8. Meet the Walkers Jack works for GDMS Jack and Betsy have two children:
Billy — age 14
Allison — age 12
Healthy. No major health issues
Obtain preventive care each year 8

9. Walker Family’s 2016 Healthcare
Preventive care obtained for family
Preventative care
Taken to ER but checks out OK.
Son Billy suffers head injury in baseball game
Requires visit to doctor, lab tests, and prescription medication.
Wife Betsy has sinus infection
Taken to ER.
Nothing fractured but she sees a specialist for follow-up.
Daughter Allison has bike accident 9

10. How Walkers would fare in 2016...
Service
Provider Charge
HMO
Enhanced PHAP
Preventive Care
$1,400
$60 $0
Office Visits
$1,500
$15
Prescription
$25
$10
2 ER Visits
$100 (copay for both visits)
$1, (reached deductible at $1,475 and remaining $25 was subject to 10% coinsurance)
Walkers’ Medical Expenses
$4,425
$85
$3,002.50
Company HSA Contribution
$3,000
Annual Premium
$6,256
$4,476
Total Employee Healthcare Cost
$6,341
$4,478.50
Savings
$1,862.50
HSA Rollover
$0 (without employee contributing to HSA)
With the Personal Health Account Plans, the deductible and coinsurance would once again apply to covered services such as those listed.
If you add up all the non-preventive care costs for the family (all the expenses in the top blue area), that group of costs totals $5,330 for the year.
Under the Standard PHA Plan, the first $2,500 of those expenses applies to the deductible, leaving the remaining $1,430 in expenses to be paid through coinsurance. So the plan would pay 80% of those remaining charges, leaving 20% or $286 to be paid by the family. Added to the $2,500 in costs applied to the deductible, the total out-of-pocket expense for covered services looks to be $2,786.
Same procedure for the Enhanced PHA Plan, though here the deductible is $3,000 and the coinsurance is only 10%. Using that formula, expenses would be $3,093 as compared with $2,786 for the Standard PHA Plan.
In this case, all three plans would end up costing somewhat comparable amounts. But remember that the HSA with the PHAPs can pay some of the OOP expenses with tax-free dollars and lower taxes for the household and possibly allow for some money to be saved for use in future years, even retirement. 10

11. Enrollment Process
©2015 General Dynamics. All rights reserved.

12. Enrollment Information
You are eligible for benefits beginning on your first day of employment
Employees may enroll as soon as their 3rd day with GDMS by visiting New users will click on Register Now to establish an account. If you already have a Fidelity account, enter your username/password.

13. What happens if you don’t enroll within 31 days
Benefit
Medical
Employee only Non-Seeded Enhanced PHA coverage with no contribution to the HSA
Dental
No coverage
Vision
Flexible Spending Accounts
No contributions
Life and AD&D
GDMS-provided benefit only; no supplemental coverage
Disability
401(k)
3% of eligible pay deducted on a pre-tax basis and invested in the target date fund

14. Resources
©2015 General Dynamics. All rights reserved.

15. The Benefits Counselor is In!
ALEX® is your personal online benefits counselor
He’s amusing, offers straight talk -- not insurance-talk -- and is available to help you figure out which benefit plans will best serve your needs
ALEX® will ask some basic questions about your personal situation, crunch some numbers, and explain your available benefits options
Visit ALEX® today at:
Enroll at:

16. GDMS Benefits Website www.gdmsbenefits.com Summary Benefits Charts
2016 GDMS Benefits booklet
2016 Calendar
Voluntary Insurance
Discount Plan and Services
Adoption Assistance
Legal Services Plan
Pet Insurance
Insurance Contact Information
Annual Enrollment

17. GDMS Benefits Team benefits@gd-ms.com
Benefits Resources
GDMS Benefits Team
Question and Answer session every Wednesday at 1PM ET
Participant Passcode
GDMS Benefits website
Alex, the online benefits counselor
General Dynamics Service Center
©2015 General Dynamics. All rights reserved.

18. Next Steps
©2015 General Dynamics. All rights reserved.

19. Dependent Verification
Dependents of employees enrolled in health insurance plans (medical, dental, or vision) must be certified as eligible for coverage
Letter explaining process along with directions and required forms sent to employees soon after enrolling dependents through Benefits Service Center
GD recommends submitting documents through HMS website ( – letter will contain reference number needed to login
Employees have 60 calendar days to complete the verification process at which time temporary coverage provided to dependents will become permanent.
If employees do not submit documents within the 60-day timeframe, dependents will be dropped from all plans back to the effective date of coverage.

20. ©2015 General Dynamics. All rights reserved.

21. Embedded Medical Deductibles and Out of Pocket Maximums when covering a dependent
PHA Standard (PHA S) and PHA Core (PHA C) Plans
Insured #1
Individual Deductible Amount
Coinsurance PHA S Only
Individual Out of pocket maximum
Remainder of Family Deductible
Insured #2
Insured #3
Reminder of family out of pocket maximum

22. Aggregate Medical Deductibles and Out of Pocket Maximums when covering a dependent
PHA Enhanced (PHA E) and PHA Non-Seeded Enhanced (PHA NSE) Plans
Deductible
Employee
Spouse
Child(ren)

23. Other Benefits to elect
HSA Contribution
Spousal Surcharge Attestation
FSA
Beneficiaries
Dental
Vision
Supplemental Life, AD&D
PPTO
401k
Hlth Insurance Agenda

24. Plan Designs for 2016 – Employee Only
Enhanced/Non-Seeded Personal
Health Account Plans
Standard Personal
Health Account Plan
Core Personal
In-Network
Out-of-Network
Annual HSA Deposit*
$600 (Enhanced)
$0 (Non-Seeded Enhanced)
N/A
% You Pay for Preventive Care 0%
30%
40%
Your Annual Deductible
$1,500
$3,000
$2,600
$5,200
$6,350
$12,700
Coinsurance—the % You Pay After the Deductible
10%
50%
Your Annual Out-of-Pocket Max
$2,300
$4,600
$4,000
$8,000
What You Pay for an Office Visit, Inpatient, Outpatient, Imaging, Lab Services, etc.
10% after deductible
30% after deductible
50% after deductible
No charge after deductible
No charge after deductible
What You Pay for
Prescriptions :
Generic
Formulary Brand
Non Formulary Brand
Mail Order (additional
discounts applied)
10% after deductible (Preferred Retail Network and PRIME mail)
30% (Prime Therapeutics Network)
Not
Covered
20% after deductible (Preferred Retail Network and PRIME mail);
40% (Prime Therapeutics Network)
*HSA Deposit is prorated based on date of enrollment

25. Plan Designs for 2016 – Employee+Spouse, Employee+Child(ren) and Employee+ Family
Enhanced Personal
Health Account Plan
Standard Personal
Core Personal
In-Network
Out-of-Network
Annual HSA Deposit*
$1,200 (Enhanced)
$0 (Non –Seeded Enhanced)
N/A
% You Pay for Preventive Care 0%
30%
40%
Your Annual Deductible
Deductible Type
$3,000
Aggregate
$6,000
$5,200
Embedded
$10,400
$12,700
$25,400
Coinsurance—the % You Pay After the Deductible
10%
50%
Your Annual Out-of-Pocket Max
Out-of-Pocket Max Type
$4,600
$9,200
$8,000
$16,000
What You Pay for an Office Visit, Inpatient, Outpatient, Imaging, Lab Services, etc.
10% after deductible
30% after deductible
50% after deductible
No charge after deductible
No charge after deductible
What You Pay for
Prescriptions :
Generic
Formulary Brand
Non formulary Brand
Mail Order (Additional
discounts applied)
10% after deductible (GD Preferred Retail Network or Kaiser Pharmacy)
30% (Prime Therapeutics Network)
Not
Covered
20% after deductible (GD Preferred Retail Network);
40% (Prime Therapeutics Network);
30% for Kaiser Pharmacy
*HSA Deposit is prorated based on date of enrollment

26. Prescription Drug Coverage
PRIME Therapeutics - Prescription drug vendor for Corporate PHAPs (CIGNA, UHC, or BCBS)
Two-tiered pharmacy network
GD Preferred Retailers – Walgreens, Walmart, Kmart, Kroger, Target and Community Pharmacy Network
PRIME Therapeutics Network –
If you use a GD Preferred Pharmacy, you pay a lower coinsurance percentage after meeting the deductible.
If you use a PRIME pharmacy, prescription benefits are available but there is a higher coinsurance percentage once you meet the deductible.
Many maintenance medications for asthma, high blood pressure, diabetes and high cholesterol are employer paid
GD medical plans do not offer out of network pharmacy coverage