PROPOSAL SUMMARY. The Boeing Company

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1 PROPOSAL SUMMARY The Being Cmpany Emplyees Represented by Sciety f Prfessinal Engineering Emplyees in Aerspace (SPEEA), Prfessinal and Technical Units January 8, 2016 ACTIVE MEDICAL, DENTAL, AND INSURANCE PLANS The existing medical, dental and insurance plans will cntinue thrugh December 31, The Cmpany prpses the fllwing benefit changes as described belw r referenced in Article 16, Grup Benefits, effective January 1, 2018, unless therwise nted. Insurance Benefits The Cmpany will pay the full cst f the Basic Life Insurance, Accidental Death and Dismemberment, Shrt-term Disability and Basic Lng Term Disability Plans fr eligible emplyees. The Cmpany will prvide access t an emplyee-paid Supplemental Life Plan, Supplemental Accidental Death and Dismemberment Plan, a ten percent supplemental Lng Term Disability Plan benefit, and Health Care and Dependent Care Spending Accunt Plans under the same terms, cnditins and limitatins as described in the Summary Plan Descriptin fr BCA Puget Sund nnunin salaried emplyees in effect as f January 1, Cmpany and emplyee cst will be based n SPEEA claims experience. Dental Plan Benefits Preferred Dental Plan Effective January 1, 2020, the Preferred Dental Plan annual maximum cverage per persn will increase frm $2,000 t $2,500. Scheduled Dental Plan The referenced dental cdes will be updated t cnfrm t American Dental Assciatin standard cding references. Active Emplyee Medical Plan Benefits The Cmpany will revise medical plan benefits as described belw. Traditinal Medical Plan Annual Deductible The annual deductible (nw netwrk-nn-netwrk cmbined) will change t separate deductibles fr netwrk and nn-netwrk. It will increase frm the greater f $225 r 0.225% base annual salary per individual ($675 r 0.675% base annual salary per family) t: Netwrk $300 per individual,n mre than $900 per family f 3 r mre. Page 1 f 8

2 Nn-netwrk $600 per individual, n mre than $1,800 per family f 3 r mre. Nnnetwrk charges will apply tward the netwrk deductible. Cpayments The emplyee cst fr an ffice visit will change frm a $15 cpayment t 10% cinsurance after the deductible fr netwrk prviders. The emergency rm cpayment will change frm $50 t 10%. Netwrk Cinsurance The plan s cinsurance will decrease frm 100% t 90% fr netwrk services. Nn-netwrk Cinsurance The plan s cinsurance will be 60% fr all nn-emergency nn-netwrk services. Annual Medical Out-f-Pcket Maximum The annual ut-f-pcket maximum fr medical services and supplies (netwrk-nn-netwrk cmbined) will increase frm $2,000 per individual ($4,000 per family) t $2,000 per individual ($4,500 per family). Cncurrent with increasing the annual ut-f-pcket maximum, the annual deductible will be included in these values, and cpayments fr medical services (excluding visin plan and prescriptin drug cpayments) will apply t the annual ut-f-pcket maximum. Preventive Care Preventive care will be cvered accrding t U.S. Preventive Services Task Frce guidelines, the Advisry Cmmittee n Immunizatin Practices f the Centers fr Disease Cntrl and Preventin, r the US Health Resurces and Services Administratin in accrdance with the Patient Prtectin and Affrdable Care Act. [Currently age and frequency limitatins apply] Hemdialysis Clarify that fllwing the first 30-mnths if the emplyee r cvered dependent des nt enrll in Medicare when it becmes the primary plan, benefits under the Plan will be reduced in the same manner as if the emplyee (r cvered dependent) were enrlled in Medicare. Prescriptin Drug Prgram The prescriptin drug prgram will be revised as fllws: An annual prescriptin drug ut-f-pcket maximum f $4,000 per individual ($8,000 per family) will be added fr prescriptin drugs purchased thrugh a netwrk retail pharmacy. Cverage fr generic cntraceptives and single-surce cntraceptives will be 100%. [Currently subject t applicable retail and mail rder cinsurance/cpayments] The Schedule f Benefits fr prescriptin drugs purchased thrugh a netwrk retail pharmacy will remain unchanged. Prescriptin drugs purchased thrugh the mail service prgram will be cvered as fllws: $10 cpayment generic. [N change] $40 cpayment brand-name frmulary. [Currently $30 cpayment] $70 cpayment brand-name nnfrmulary. [Currently $60 cpayment] Page 2 f 8

3 90-day supply. The prescriptin drug prgram will cver emergency use at a nnparticipating pharmacy. [Currently nt cvered.] Crdinated Care Plans, EPO, and HMOs Cpayments The cpayment fr a primary care ffice visit will increase frm $10 t $20. The cpayment fr a specialist ffice visit (including chirpractic) will increase frm $10 t $25. The cpayment fr an inpatient admissin will be $250. The cpayment fr emergency rm visit will increase frm $50 t $75. Annual Out-f-Pcket Maximum Fr Select Netwrk, Selectins Plus, Grup Health HMO, and Select Health HMO, the annual ut-f-pcket maximum fr cvered medical services and supplies, cpayments, and prescriptin drugs will be $6,850 per individual ($13,700 per family). There is currently n annual ut-f-pcket maximum. Fr Kaiser HMOs in Oregn and Califrnia, the annual ut-f-pcket maximum fr cvered medical services and supplies will nt change, but prescriptin drug cpayments will apply t the annual ut-f-pcket maximum. Select Netwrk Plan The Select Netwrk Plan eligibility and service area will be expanded t the entire state f Washingtn. Preventive Care Preventive care will be cvered accrding t U.S. Preventive Services Task Frce guidelines, the Advisry Cmmittee n Immunizatin Practices f the Centers fr Disease Cntrl and Preventin, r the US Health Resurces and Services Administratin in accrdance with the Patient Prtectin and Affrdable Care Act. [Currently age and frequency limitatins apply] Hemdialysis Clarify that fllwing the first 30-mnths if the emplyee r cvered dependent des nt enrll in Medicare when it becmes the primary plan, benefits under the Plan will be reduced in the same manner as if the emplyee (r cvered dependent) were enrlled in Medicare. Prescriptin Drug Prgram The prescriptin drug prgram will be revised as fllws: Cverage fr generic cntraceptives and single-surce cntraceptives will be 100%.[Currently subject t applicable retail and mail rder cinsurance/cpayments] Select Netwrk, Selectins Plus, and Select Health HMO Prescriptin drugs purchased thrugh a netwrk retail pharmacy will be cvered as fllws: $5 cpayment generic. [N change] $25 cpayment brand-name frmulary. [Currently $15 cpayment] Page 3 f 8

4 $40 cpayment brand-name nnfrmulary. [Currently $30 cpayment] 30-day supply. [N change] Prescriptin drugs purchased thrugh the mail service prgram will be cvered as fllws: $10 cpayment generic. [N change] $40 cpayment brand-name frmulary. [Currently $30 cpayment] $70 cpayment brand-name nnfrmulary. [Currently $60 cpayment] 90-day supply. [N change] Grup Health HMO, Kaiser CCP, and Kaiser HMO Prescriptin drugs purchased thrugh a netwrk retail pharmacy will be cvered as fllws: $5 cpayment generic. [N change] $25 cpayment brand-name frmulary. [Currently $15 cpayment] Brand-name nnfrmulary nt cververed. [N change] 30-day supply. [N change] Prescriptin drugs purchased thrugh the mail service prgram will be cvered as fllws: $10 cpayment generic. [N change] $60 cpayment brand-name frmulary. [Currently $30 cpayment] Brand-name nnfrmulary nt cvered. [N change] 90-day supply. (100-day supply Kaiser Califrnia). [N change] Advantage+ Health Plan Annual Deductible The annual deductible (netwrk-nn-netwrk cmbined) will change frm a 3-tier design t a 2- tier design and will be the lwest permitted by the federal regulatins. It will be $1,300 per individual ($2,600 per family f 2 r mre). [Currently $1,500 per individual, $2,625 emplyee & spuse r emplyee & child(ren) and $3,750 emplyee & family] Cinsurance The plan s cinsurance will decrease frm 95% t 90% fr netwrk services. Annual Out-f-Pcket Maximum The annual ut-f-pcket maximum will change frm a 3-tier design t a 2-tier design and shall be tw times the applicable deductible fr netwrk and three times the applicable deductible fr nn-netwrk. The annual deductible will be included in the annual ut-f-pcket maximum. [Current netwrk: $1,600 emplyee, $2,800 emplyee & spuse r emplyee & child(ren), emplyee & family $4,000; nn-netwrk: $3,200 emplyee, $5,600 emplyee & spuse r emplyee & child(ren), emplyee & family $8,000; annual deductible is nt included] Page 4 f 8

5 Emergency Rm Care Cverage f nnemergency netwrk care will decrease frm 95% t 60%. Hemdialysis Clarify that fllwing the first 30-mnths if the emplyee r cvered dependent des nt enrll in Medicare when it becmes the primary plan, benefits under the Plan will be reduced in the same manner as if the emplyee (r cvered dependent) were enrlled in Medicare. Naturpathy A Naturpath will be recgnized as a cvered prvider when services received are within the scpe f their license. Prescriptin Drug Prgram The prescriptin drug prgram will cver emergency use at a nnparticipating pharmacy. Health Savings Accunt Cntributins Fr the 2018 plan year, cmpany HSA cntributins under the Advantage+ health plan shall be 75% f the applicable deductible. [Currently $700 emplyee, $1,250 emplyee & spuse r emplyee & child(ren) and $1,750 emplyee & family] Effective January 1, 2019 and thereafter, cmpany HSA cntributins shall be 50% f the applicable deductible. HSA cntributins shall be depsited int the emplyee s accunt maintained by the HSA custdian f Being s chice n r abut January 15 f each year. Preferred Partnership Plans Being entered int a partnership with 2 leading health care systems in the Puget Sund regin Prvidence-Swedish Health Alliance and UW Medicine Accuntable Care Netwrk t ffer a unique health plan service delivery apprach, called the Preferred Partnership. These ptins are designed t imprve quality, prvide a better patient experience and be mre cst effective. Shuld either r bth f the partnerships terminate, r shuld the terms f the existing partnerships change significantly, the cmpany will be under n bligatin t cntinue the plan design, HSA cntributins r cntributin credits stated belw. In n event will incentives listed belw be less favrable than what is ffered fr nnunin emplyees in the Puget Sund. This new arrangement will apply t the fllwing standard plans: Advantage+ health plan. Traditinal Medical Plan. Select Netwrk Plan. If yu enrll in the Preferred Partnership ptin fr any f the plans listed abve, yu will use Puget Sund regin prviders in the Preferred Partnership ptin that yu chse t receive the netwrk level f benefits. The Preferred Partnership ptin benefits will be the same as thse f the standard Traditinal Medical Plan, Select Netwrk Plan and Advantage+ health plan with certain imprvements as nted belw: Page 5 f 8

6 Traditinal Medical Plan and Select Netwrk Preferred Partnership Plans Primary care physician ffice visits will be cvered at 100%. Generic prescriptin drugs purchased thrugh a netwrk retail pharmacy r thrugh the mail service prgram will be cvered at 100%. Advantage+ Health Plan Preferred Partnership Plan Primary care physician ffice visits will be cvered at 100% after yu meet the annual deductible. Generic prescriptin drugs purchased thrugh a netwrk retail pharmacy r thrugh the mail service prgram will be cvered at 100% after yu meet the annual deductible. Health Savings Accunt Cntributins Fr the 2018 plan year, cmpany HSA cntributins under the Advantage+ health plan Preferred Partnership ptin shall be 100% f the applicable deductible. Effective January 1, 2019 and thereafter, cmpany HSA cntributins under the Advantage+ health plan Preferred Partnership ptin shall be 80% f the applicable deductible. Other Vluntary Benefit Prgrams The Cmpany is cmmitted t prmting emplyee well-being while prviding the highest quality f care thrugh prgrams in which the emplyee may participate vluntarily. As such, the Cmpany may implement, at its sle discretin, efficient, cst-effective prgrams n an enterprise-wide r reginal basis withut further bargaining (fr example, Carena, weight management, stress management, etc.) Centers f Excellence Emplyees cvered by this agreement (and eligible dependents) wh participate in the Traditinal Medical Plan, Select Netwrk Plan, Selectins Plus PPO, r Advantage+ health plan may participate vluntarily in the Centers f Excellence prgram. The prgram ffers a higher level f benefits fr certain cvered medical prcedures (such as cardiac, spine surgery, and hip r knee replacement) at apprved Centers f Excellence facilities that specialize in a particular treatment. At a Center f Excellence, eligible expenses will be paid at 100% (after the deductible, where applicable). If participants must travel 75 miles r mre frm their residence t a Center f Excellence, the plan als ffers certain travel benefits. The Cmpany reserves the right t unilaterally alter, amend, and /r mdify any r all terms f this and ther vluntary prgrams at its sle discretin n an enterprise-wide r reginal basis withut further bargaining. ACTIVE MEDICAL PLAN CONTRIBUTIONS Beginning January 1, 2018, active emplyee medical plan cntributins will be as fllws: Advantage+ health plan will be ffered as a n cntributin plan. The emplyee will cntribute n a pre-tax basis 5% f the Traditinal Medical Plan fr eligible emplyees, spuses and dependents. Miami emplyees will cntribute n a pre-tax basis 8% f the cst f the Traditinal Medical Plan fr eligible emplyees, spuses and dependents. Page 6 f 8

7 Fr thse emplyees, spuses and dependents whse cverage is with anther plan, emplyees will cntribute n a pretax basis 12% f the cst f the plan the emplyee chses. Emplyee cntributins under the Traditinal Medical Plan and the Advantage+ health plan shall be based n the same rates, regardless f gegraphic regin. In lcatins where the Preferred Partnership Plan is available, emplyee s mnthly cntributin fr the Preferred Partnership Plan will be reduced by $30 fr an emplyee, $60 emplyee + spuse r child(ren), r $90 emplyee + family (but in n event will the emplyee s mnthly cntributin be less than $0). Beginning January 1, 2018, there will be an additinal cntributin each calendar year as fllws fr emplyees and spuses where applicable wh d nt cmplete certain health and Well Being assessment activities. Beginning in 2017 fr the 2018 plan year, thse health assessment activities will cnsist f 1) cmpleting the nline health assessment and, 2) cmpleting health screenings (e.g. bld pressure, chlesterl, bld glucse, and bdy mass). The health assessment activities assciated with this cntributin prvisin may change frm year t year withut further bargaining and will be generally applicable n an enterprise-wide basis. The additinal cntributins will be as fllws: Fr either emplyee-nly cverage r emplyee + child(ren) cverage, the additinal cntributin will be $20 per mnth if the emplyee des nt cmplete the nline assessment and screenings. Fr either emplyee + spuse r emplyee + spuse r child(ren) cverage, the additinal cntributin will be $20 per mnth if the emplyee des nt cmplete bth the nline assessment and screenings, and an additinal $20 per mnth ($40 per mnth ttal) if the spuse des nt als cmplete the health assessment. The additinal $100 mnthly wrking spuse cntributin will cntinue t apply t all plans. RETIREE MEDICAL BENEFITS FOR EMPLOYEES WHO RETIRE DURING THE TERM OF THIS AGREEMENT Traditinal Medical Plan The same changes that apply t this plan fr active emplyees will apply. Crdinated Care Plans, EPO and HMOs The same changes that apply t these plans fr active emplyees will apply. Retiree Medical Plan Cntributins fr Emplyees Wh Retire During the Term f This Agreement The Cmpany will cntinue the current prvisins. Miami Emplyees Page 7 f 8

8 Any Miami emplyee wh was nt eligible fr cmpany-subsidized retiree medical cverage prir t Nvember 25, 2013, shall nt be eligible fr retiree medical cverage under Article 16 f the Agreement; including thse hired prir t January 1, Page 8 f 8

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