Employee Benefits Guide

Transcription

1 Employee Benefits Guide July 1, 2014 June 30, 2015

2 Welcome At MedMark Services, Inc., our employees are our greatest asset and your well-being means a healthier, more productive workplace, which is why we are pleased to offer this comprehensive benefits package. This guide is designed to assist you and your family in making the best choices to meet your needs for the plan year. Please read this guide in its entirety; it explains some very important changes for you to consider this year. At MedMark Services, Inc., we strive to provide benefits that: Meet the needs of our employees and eligible family members Are easy to understand and use Help keep money in your pockets by delivering great value 3

3 In this guide we use the term Company to refer to MedMark Services, Inc. This guide is intended to describe the eligibility requirements, enrollment procedures and coverage effective dates for the benefits offered by the Company. It is not a legal plan document and does not imply a guarantee of employment or a continuation of benefits. While this guide is a tool to answer most of your questions, full details of the plans are contained in the Summary Plan Descriptions (SPDs) which govern each plan s operation. Whenever an interpretation of a plan benefit is necessary, the actual plan documents will be used.

4 Contents 6 Enrollment 10 Medical 14 Dental 16 Vision 18 Health Savings Accounts 19 Flexible Spending Accounts 22 Survivor Benefits 25 Income Protection 26 Planning for Retirement 28 Additional Benefits 29 Required Notices 31 Important Contacts See Page 29 for important information concerning Medicare Part D coverage.

5 Enrollment We offer a variety of options to help you select the benefit plans that best suit your and your family s needs. Consider factors such as spousal benefits, dependent eligibility and qualifying life events as you make your benefit selections. Eligibility Enrollment Tip If you have a qualifying event that impacts your benefits status, you must make changes within 31 days of the event. Evidence of the event is required. You are eligible to participate if you are an active full-time employee working a minimum of 32 hours per week and you have met the required waiting period. This includes eligibility to participate in the Medical, Dental, Vision, Life and Disability plans, as well as any additional benefits. When does coverage begin? Annual Enrollment The elections you make during Annual Enrollment are effective on July 1, Due to IRS regulations, once you have made your choices for the plan year, you can t change your benefits until the next enrollment period unless you have a qualifying life event. New Hire Coverage becomes effective the first of the month following 60 days of employment. Your Eligible Dependents Dependents eligible for coverage in the MedMark Services, Inc. benefit plans include: Your legal spouse/domestic partner (or common-law spouse in states which recognize common-law marriages). Your dependent children up to age 26 (includes stepchildren, legally adopted children or children placed with you for adoption, and foster children). Your dependent child, regardless of age, provided he or she is incapable of self-support due to a mental or physical disability, is fully dependent on you for support as indicated on your federal tax return and is approved by your medical plan to continue coverage past age 26. Please note that verification of eligibility will be required once dependents are enrolled. 6

6 Things to Consider It is a good time before you enroll to re-assess your benefit decisions and determine if you need to make changes. Situations that you should take into account as you assess your benefit decisions: Does your spouse/domestic partner have benefits coverage available through another employer? Did you get married, divorced or have a baby recently? If so, do you need to add or remove any dependent(s) or update your beneficiary designation? Did any of your covered children reach their 26th birthday this year? If so, they are no longer eligible for benefits. Qualifying Life Events When one of the following events occurs, you have 31 days from the date of the event to notify Human Resources and/or request changes to your coverage. Your change in coverage must be consistent with your change in status. Change in your legal marital status (marriage, divorce or legal separation) Change in the number of your dependents (for example, through birth or adoption, or if a child is no longer an eligible dependent) Change in your spouse/domestic partner s employment status (resulting in a loss or gain of coverage) Change in your employment status from full time to part time, or part time to full time, resulting in a gain or loss of coverage Entitlement to Medicare or Medicaid Change in your address or location that affects the plans for which you are eligible Enrollment NOTE: Your change in coverage must be consistent with your change in status. Your new coverage becomes effective on the date specified for the Open Enrollment period or on your eligibility date or status change date. 7

7 Preparing to Enroll Enrollment MedMark Services, Inc. provides its employees the best coverage possible. As a committed partner in your health, MedMark Services, Inc. will be absorbing a significant amount of the costs. Your contributions for medical, dental, and vision benefits are deducted on a pre-tax basis, which lessens your tax liability. Please note that employee contributions for medical and dental coverage vary depending on the level of coverage you select. In general, the higher the level of coverage, the higher your employee contribution will be. Keep in mind that you may select any combination of Medical, Dental and/or Vision plans and any combination of coverage categories. For example, you could select medical coverage for you and your entire family, but select dental and vision coverage only for yourself. The only requirement is that you, as an eligible employee of MedMark Services, Inc., must elect coverage for yourself in order to elect any dependent coverage. You have the option to select coverage from the following categories: Employee Only Employee + Spouse/Domestic Partner Employee + Child(ren) Employee + Family (spouse/domestic partner and child(ren)) Be sure to have the Social Security numbers and birth dates for any eligible dependent(s) that you plan to enroll. You cannot enroll your dependent(s) without this information. 8

8 Medical Our medical coverage helps you maintain your well-being through preventive care and access to an extensive network of providers, as well as affordable prescription medication. The choices provided allow you to create a plan that will best serve you and your family. These resources help you enjoy the benefits of good health. Medical Tip Urgent Care Centers are a great alternative to hospital emergency rooms. Using this service when appropriate can save you time and money. It is up to you to choose the plan that best matches your needs. Please keep in mind that the option you elect will be in place for all of the plan year, unless you have a qualifying life event. How to Find a Provider To see the current list of Aetna network providers online, go to If you do not have internet access, please call Aetna Customer Care at (Gold, Silver, HDHP) or (HMO) for assistance. Aetna Informed Health Line The Aetna Informed Health Line gives you 24-hour, toll-free access to a team of registered nurses experienced in providing information on a variety of health topics. Call to speak with a nurse or you can also go online through Aetna Navigator at Aetna Online Wellness There are several online programs to help you reach your health goals. If you enroll in the Aetna plan, these programs are available at no additional cost. To access these programs, log in to your secure member website at click on Simple Steps To A Healthier Life link, choose an online session that interests you the most! Programs include: Quit Smoking with Breathe Deal with Stress with Relax Eat Healthier with Nourish Manage your Weight with Balance Sleep Better with Overcoming Insomnia Be Happier with Overcoming Depression 10

9 Medical Plan Summary The chart below gives a summary of the plan year medical coverage provided by Aetna. All covered services are subject to medical necessity as determined by the plan. Aetna Gold PPO Silver PPO HMO HDHP In-Network In-Network In-Network Only In-Network Calendar Year Deductible Individual Family $1,000 $3,000 $3,000 $6,000 $0 $0 $3,000 $6,000 Coinsurance (Plan Pays) 80%* 80%* 100% 80%* Calendar Year Out-of-Pocket Maximum (Includes Ded. & Medical Copays) (Includes Ded. & All Copays) Individual Family $2,500 $5,000 $6,000 $12,000 $3,000 $6,000 $6,350 $12,700 Lifetime Maximum Unlimited Unlimited Unlimited Unlimited Copays / Coinsurance Primary Care Physician $25 $40 $25 80%* Specialist $50 $60 $50 80%* Preventive Care 100% 100% 100% 100% Urgent Care $75 $75 $75 80%* Emergency Room $200 $200 $100 80%* Outpatient Surgery 80%* 80%* $500 80%* *After deductible NOTE: Please refer to Summary Plan Description to review out-of-network benefits. Medical 11

10 Prescription Drug Coverage for Medical Plans Our Prescription Drug Program is coordinated through Aetna. You will have a single ID Card for medical and for prescriptions. Medical Your cost is determined by the tier assigned to the prescription drug product. All products on the list are assigned as Generic, Preferred or Non-Preferred. You may find information on your benefit coverage and search for network pharmacies by logging on to or calling the Customer Care number on your ID Card. Pharmacy Gold PPO Silver PPO HMO HDHP Retail Rx (30-day supply) In-Network In-Network In-Network In-Network Generic Preferred Non-Preferred $20 $40 $70 $20 $40 $70 $20 $40 $70 $20 Copay after Ded. $40 Copay after Ded. $70 Copay after Ded. Mail Order Rx (90-day supply) In-Network In-Network In-Network In-Network Generic Preferred Non-Preferred $40 $80 $140 $40 $80 $140 $40 $80 $140 $40 Copay after Ded. $80 Copay after Ded. $140 Copay after Ded. 12

11 Generic Drugs One way to get more value from your health care plan is to use Generic drugs when they are available, which lowers the cost of your personal health needs. A Generic drug is chemically identical to the corresponding Preferred or Non-Preferred version. The additional cost of marketing brand-name drugs is essentially the only difference between brand-name drugs and the generic options. They provide the same benefit, but at a lower price. A generic is not always prescribed. However, that shouldn t stop you from asking for the generic every time. In some cases, the prescribed drug will not have an exact generic option, but you can ask for the generic equivalent. Although the core active ingredient may be slightly different, these equivalents still offer the same medical benefit and outcome. Preferred Drugs A Preferred drug is a brand-name drug that is on your provider s list of approved drugs. You can check online to see a complete list of preferred drugs. Non-Preferred Drugs Non-Preferred drugs have higher copayments and are typically newer drugs on the market. Like generic equivalents, you can request a preferred drug equivalent that can offer the same medical effect. You can be a better consumer by doing your research, asking the right questions and buying at the lowest price. Medical Generic Drugs Questions and Answers What is a generic drug? If generic drugs are less expensive than their brandname alternatives, should I question the generic drug s effectiveness or quality? Then why are generic drugs less expensive? What should I do if my doctor prescribes a brand-name drug? How do I know if there is a generic or generic equivalent for my brand-name drug? How much do generic drugs save consumers? When the patent protection for a brand-name drug expires, companies can manufacture drugs that contain the same active ingredient, identical in chemical structure, as the brand-name drug. The generic drug has the same dosage, strength and quality as its brand-name counterpart. No. Generic drugs have the exact same pharmacological effects as their brand-name alternative and they must be approved by the FDA as both safe and effective. Generic drugs are less expensive because the drug manufacturers do not have the added expense of developing and marketing the generic version; therefore, they can sell it at a lower cost. You can always ask your doctor or pharmacist if there is a generic alternative or a generic equivalent (a drug in the same therapeutic class that has a generic) available. You can find generic equivalents online on the FDA s website: Simply search Drugs@FDA. According to the FDA, the price of generic drugs can be up to 85% lower than the cost of brand-name drugs. This equals $8 to $10 billion in annual consumer savings at retail pharmacies, according to the Congressional Budget Office. 13

12 Dental Tip You don t have to enroll in a medical plan to have dental coverage. You can select dental only. Dental In more ways than one, your smile is a sign of your overall well-being. Take care of your teeth and you take care of the rest of your body. Our Dental plan helps you maintain good dental health through affordable options for preventive care including regular checkups and other dental work. You have the option to choose from two Dental plans a DPPO plan and a DHMO plan, both offered through Aetna. With the DPPO plan, you can visit any dentist, but you pay less out-of-pocket when you choose a PPO network dentist. With the DHMO, you pay a fixed copay for each covered service. Out-of-network visits are not covered. Network Dentists Using a network dentist lowers your out-of-pocket costs. This is because the network dentists have agreed to charge lower fees, and your plan s in-network services cover a larger share of the charges. If you choose to use a dentist who doesn t participate in the network, your out-of-pocket costs will be higher. To find a network dentist, visit 14

13 Dental Plan Summary Dental benefits are available to you on a voluntary basis. The chart below gives a summary of the plan year dental coverage provided by Aetna. Make sure you have access to a network dentist prior to electing the DHMO plan. Aetna Calendar Year Deductible Individual Family Calendar Year Maximum In-Network $50 $150 DPPO Out-of-Network $50 $150 DHMO** In-Network Only CA, FL, TX, MD, GA, NM Only Per Person $1,500 $1,500 Unlimited Services Preventive Services 100% 100% See Schedule Basic Services 80%* 80%* See Schedule Major Services 50%* 50%* See Schedule Orthodontics (Children only under age 19) $0 $0 50% 50% See Schedule Orthodontic Lifetime Maximum $1,250 Unlimited * After deductible ** DHMO only available in California, Florida, Texas, Maryland, Georgia and New Mexico. Dental 15

14 Vision Tip Visit to locate network providers. Vision Eye health is an indicator of overall health. Regular eye exams can detect diseases such as glaucoma, diabetes and blindness. Vision benefits provide access to quality vision care. To ensure that you and your family get the care you need, MedMark Services, Inc. offers a comprehensive Vision benefit provided by Aetna. In-network copayments are paid directly to the provider. Out-of-network services will be reimbursed up to the scheduled amounts listed on the vision chart. Contact lenses are in lieu of the eyeglass lenses and frames benefit. The insured is responsible for paying any charges in excess of this allowance. A standard contact lens fitting fee applies to an existing contact lens user who wears disposable, daily wear or extended wear lenses only. 16

15 Vision Plan Summary Vision benefits are available to you on a voluntary basis. The chart below gives a summary of the plan year vision coverage provided by Aetna. Aetna Copays In-Network Out-of-Network Examination $10 $25 Allowance Benefit Frequency Examination Lenses Frames Contacts (in lieu of Lenses and Frames) Covered Materials Lenses Single Vision Lens Bifocal Lens Trifocal Lens Lenticular Lens Frames Retail Frame Equivalent Contact Lenses Elective $20 Copay $20 Copay $20 Copay $20 Copay $120 Allowance (additional 20% discount on remaining balance) $120 Allowance Once every 12 months Once every 12 months Once every 24 months Once every 12 months $15 Allowance $30 Allowance $60 Allowance $60 Allowance $60 Allowance $100 Allowance Vision 17

16 Health Savings Accounts Health Savings Accounts Under the HDHP Medical Plan, you may open an HSA to pay for qualified expenses. An HSA is a financial account that you can use to accumulate tax-free funds to pay for qualified health care expenses, plus you have coverage from a medical benefits plan through payroll deductions. You decide how and when to contribute into your account. You can contribute up to a maximum of $3,300 for an individual and $6,550 for family coverage. Individuals age 55 and older may contribute an additional $1,000 into their HSA account. (This is referred to as a catch-up contribution. ) Contributions into your HSA account must stop once you are enrolled into Medicare. You decide whether or not to use the money in your HSA. Any money left in your HSA account at the end of the year will carry forward to the next plan year, so you can save for future expenses. You can also keep the money in your account, even if you change jobs or health plans. Your HSA dollars can be used to pay for qualified out-of-pocket medical, dental and vision expenses. Examples of qualified expenses include deductibles, coinsurance and copays. A complete list of eligible expenses and can be found at Important HSA Information To establish and contribute to an HSA: You must be covered by a qualified High Deductible Health Plan. You cannot be covered by any other health plan. You cannot be enrolled in Medicare.»» Your spouse cannot participate in a Flexible Spending Account (Health Care Spending Account). 18

17 Flexible Spending Accounts Flexible Spending Accounts (FSAs) offer you an opportunity to lower your taxable income by allowing you to create an account with pre-tax dollars to pay for qualified expenses. FSA Open Enrollment Election for an FSA can only be made during FSA Open Enrollment, which usually occurs during the month of June, unless you experience a qualifying event. Tip If you have any money remaining in your FSA at the end of the year, you forfeit it. In other words: Use it or lose it. Flexible Spending Accounts Health Care Flexible Spending Accounts Health Care FSA allows you to set aside up to $2,500 through payroll deductions on a pre-tax basis to pay for out-of-pocket healthcare costs such as deductibles, copays, coinsurance, dental expenses vision expenses and more. You can contribute up to $2,500 for the plan year (July 1, June 30, 2015). Changes to Over-the-Counter Eligibility Under the Patient Protection and Affordable Care Act (PPACA) that was signed into law on March 23, 2010, there are substantial changes to the requirements applicable to over-the-counter (OTC) medicines and drugs. OTC drugs are no longer eligible for reimbursement through an FSA without a doctor s prescription. 19

18 Flexible Spending Accounts Limited Scope FSA New for the plan year! You can use this Health Care FSA to pay for qualified dental and vision expenses only. (HSA must be used to reimburse qualified medical & pharmaceutical expenses). For a complete list of eligible expenses go to Dependent Care Flexible Spending Accounts The Dependent Care FSA sets aside pre-tax funds to help pay for expenses associated with caring for elder or child dependents. Unlike the Health Care FSA, reimbursement from your Dependent Care FSA is limited to the total amount that is deposited in your account at that time. With the Dependent Care FSA you are allowed to set aside up to $5,000 (per household) to pay for child or elder care expenses on a pre-tax basis. Eligible dependents include children younger than the age of 13 and dependents of any age who are incapable of caring for themselves. Dependent care expenses are reimbursable as long as the provider is not anyone considered your dependent for income tax purposes.»» In order to be reimbursed, you must provide the tax identification number or Social Security number of the party providing care. 20

19 Eligible Dependent Care Flexible Spending Account Expenses This account covers dependent day care expenses that are necessary for you and your spouse to work or attend school full time. The dependent must be younger than the age of 13 and claimed as a dependent on your federal income tax return or a disabled dependent who spends at least eight hours a day in your home. Examples of eligible dependent care expenses include: In-home babysitting services (not by an individual you claim as a dependent) Care of a preschool child by a licensed nursery or day care provider Before- and after-school care Day camp In-house dependent day care Due to federal regulations, expenses for your domestic partner and/or your domestic partner s children may not be reimbursed under the FSA programs. General Rules and Restrictions Flexible Spending Accounts In exchange for the tax advantages that FSAs offer, the IRS has imposed the following rules and restrictions for both Health Care and Dependent Care FSAs: Your expenses must be incurred during the plan year of Your dollars cannot be transferred from one FSA to another. You cannot participate in Dependent Care FSA and claim a tax deduction at the same time. You must use it or lose it any unused funds will be forfeited. Submit claims for reimbursement up to 90 days after the end of the plan year (June 30, 2015). You have a 2.5 month grace period which allows an additional period of time to incur expenses after the plan year ends on June 30, 2015.»» You cannot change FSA election in the middle of the plan year unless you have a qualifying life status change such as a marriage, divorce or birth of a child. 21

20 Survivor Benefits Tip It is important that you name a primary and contingent beneficiary to receive your life insurance benefits. Survivor Benefits Life and disability insurance are very important to those who depend on you for financial security. Survivor benefits provide financial assistance in your absence. Basic Life/AD&D Insurance Life insurance benefits are essential to the financial security of you and your family. As such, it is important to understand how your plan works and what benefits you will receive. Basic Life/AD&D benefits are provided to you as part of your basic coverage at no cost to you. MedMark Services, Inc. provides you Basic Life/AD&D insurance through Aetna, which can help guarantee that loved ones, such as a spouse/domestic partner or other designated survivors, can continue to receive part of an employee s benefits after a death. Your Basic Life/AD&D insurance benefit is $25,000 ($50,000 for Corporate employees). Beneficiary Designation A beneficiary is the person you designate to receive your life insurance benefits in the event of your death. This includes any benefits payable under the Basic/Voluntary Life insurance plan available through MedMark Services, Inc. Benefits payable for a dependent s death under the Voluntary Life insurance plan are payable to you. It is important that your beneficiary designation is clear so that there will be no question as to your intentions. It is also important that you name a primary and contingent beneficiary. When naming your beneficiary(ies) please indicate their full name, address, Social Security number, relationship, date of birth and distribution percentage. If the beneficiary is not legally related, insert the words Not Related in the relationship field. If you need assistance, contact Human Resources or your own legal counsel. 22

21 Primary Mary J. Doe, Wife (34%) Jane Doe, Daughter (33%) John Doe, Son (33%) Contingent Joseph W. Doe, Son (50%) Jane Doe, Daughter (50%) OR Estate of the Insured (100%) If you name more than one beneficiary with unequal shares, please show the amount of insurance to be paid to each beneficiary in percentages, for example 33% to Pauline Smith, Mother, and 67% to Mary J. Doe, Wife. If there is insufficient space for your beneficiary designations, leave it blank and attach a separate sheet of paper indicating your designations and share percentages. Voluntary Life and Voluntary Dependent Life Insurance Eligible employees may purchase Voluntary Life insurance for themselves and their family. Premiums are paid through post-tax payroll deductions. You may purchase Voluntary Life insurance for yourself in increments of $25,000, up to the lesser of $150,000 or 5 x your annual salary. You must purchase Voluntary Life insurance for yourself in order to purchase Voluntary Life insurance for your eligible spouse/domestic partner and child(ren). Voluntary Life Coverage Amount: Increments of $25,000. Who Pays: Benefits are Payable: This coverage is available to you on a voluntary basis. If you die while covered under the plan. This benefit is in addition to your Basic Life benefit. Survivor Benefits Maximum Benefit: Up to the lesser of $150,000 or 5 x your annual salary. Evidence of Insurability (EOI) is required: Voluntary Spouse/Domestic Partner Life Who Pays: Benefits are Payable: Newly eligible employees are eligible for up to $100,000 of Life insurance without providing Evidence of Insurability. This coverage is available on a voluntary basis. If your spouse/domestic partner dies while covered under the plan. Maximum Benefit: 50% of employee coverage to a max of $25,000 Evidence of Insurability (EOI) is required: Voluntary Child Life Who Pays: Benefits are Payable: If you are newly eligible, your eligible spouse/domestic partner and child(ren) are guaranteed $25,000 of coverage without providing Evidence of Insurability. This coverage is available on a voluntary basis. If your child dies while covered under the plan. Maximum Benefit: 10% of employee coverage to a max of $10,

22 Voluntary Employee and Spouse/Domestic Partner Life Insurance Survivor Benefits Employee Age Under * 70-74* 75-79* Rates / $1,000 (Biweekly) $0.024 $0.028 $0.039 $0.063 $0.098 $0.153 $0.263 $0.424 $0.683 $1.087 $1.852 Voluntary Child Life Insurance * Benefits subject to age reduction schedule. Premium Rates / $1,000 $0.054 (Biweekly) Note: Eligible spouse/domestic partner coverage is based on employee s age and terminates at age 70. To calculate how much your Voluntary Life coverage will cost: $ 1,000 = $ x Age Based Rate = $ Benefit Elected Biweekly Premium 24

23 Income Protection If you have to miss work due to injury, we help ensure that at least part of your income continues. Our Disability plans cover a portion of your income until you can return to work, or until you reach retirement age. Short Term Disability Insurance Short Term Disability (STD) benefits are provided to you as a part of your basic coverage. STD insurance protects a portion of your income if you become partially or totally disabled for a short period of time. STD insurance replaces 60% of your income, up to a maximum weekly benefit of $1,000, depending on your current annual earnings. Tip Disability insurance protects a portion of your income should you become disabled. Income Protection You must be sick or disabled for at least 14 days before you can receive your Short Term Disability insurance benefit payment. Payments may last up to 11 weeks. Certain exclusions as well as pre-existing condition limitations may apply. Please refer to your Summary Plan Description for details or contact Human Resources for specific benefits. Long Term Disability Insurance Long Term Disability (LTD) benefits are provided to you as a part of your basic coverage. LTD insurance protects a portion of your income if you become partially or totally disabled for a long period of time. This insurance replaces 60% of your income, up to a maximum of $5,000 per month depending on your current annual earnings. You must be sick or disabled for at least 90 days before you can receive a Long Term Disability insurance benefit payment. You will be taxed on the premium, resulting in a non-taxable benefit. The maximum payment period is up to age 62. However, if you become disabled after age 62, benefits are payable according to an age-based schedule. Certain exclusions as well as pre-existing condition limitations may apply. Please refer to your Summary Plan Description for details or contact Human Resources about specific benefits. 25

24 Planning for Retirement It is critical to plan for your retirement. Making 401(k) contributions is an important step toward achieving your financial goals for later in life. We offer several options to help you make the most of your retirement and live a secure and happy life once your work years are behind you. Planning for Retirement Tip Once you are eligible, you can change the contribution rate to your 401(k) account any time during the year. A 401(k) plan can be a powerful tool in promoting financial security in retirement. The MedMark Services, Inc. s 401(k) plan helps eligible associates save and invest for retirement while receiving certain tax advantages. Administrative and record-keeping services for the 401(k) plan are provided by Securian Retirement Center. Eligibility You may participate in the plan the first day of any month when you have met the following requirement(s): Are at least 21 years of age Completed three months of service Note: All participation is voluntary. Contributing to the Plan You can save from 1% to 75% of your eligible compensation before you pay taxes on that income. The IRS limit for 2014 is $17,500. The Company may match the contributions you make to the plan during the year on a discretionary basis. The Company currently matches 25% of the first 6% of your eligible contributions. Vesting of MedMark Services Inc. s contribution occurs at 20% per year after two years. Catch-up Contributions If you are or will be age 50 or older in this calendar year and contribute the maximum allowed to your account, you may also make catch-up contributions to your account. The catch-up contribution is intended to help you accelerate your progress toward your retirement goals. The maximum catch-up contribution is $5,500 for See your Plan Administrator for more details. 26

25 Changing or Stopping Your Contributions You may change the amount of your contributions any time. All changes will become effective as soon as administratively feasible and will remain in effect until modified or terminated by you. You may discontinue your contributions anytime. Once you stop contributions, you may start again any time. Consolidating Your Retirement Savings Planning for Retirement If you have an existing qualified retirement plan (pre-tax) with a prior employer, you may transfer or roll over that account into the plan anytime. To initiate a rollover into your plan, contact Securian Retirement at for details. Investing in the Plan You decide how to invest the assets in your account. The MedMark Services, Inc. 401(k) plan offers a selection of investment options for you to choose from. You may change your investment choices anytime. For more details, refer to 27

26 Additional Benefits Tip You can call hours a day, 365 days a year to speak with a specially trained EAP professional, ready to help you. Additional Benefits MedMark Services, Inc. believes in a well-rounded benefits package and provides options for additional benefits to help you manage your life. Employee Assistance Program MedMark Services, Inc. cares about you and your family s total health management mental, emotional and physical. For that reason, MedMark Services, Inc. provides an Employee Assistance Program (EAP) at no cost to you. This service connects you with the best mental health and counseling services. Whether you are interested in work/life resources, mental health assistance or legal and financial advice, the EAP service can connect you and members of your household with a variety of professionals. With just one phone call, at any hour of the day or night, you can speak with helpful resources. The EAP benefit includes three face-to-face visits with a licensed professional. All services provided are confidential and will not be shared with MedMark Services, Inc. You may also access information, benefits, educational materials and more either by phone at or online at The program provides referrals to help with: Emotional problems Stress, anxiety, depression Alcohol or drug dependency Grief and loss Marriage or family relationship problems Financial or legal advice Job pressures Employee Assistance Program: Username & Password: RESOURCES 28

27 Required Notices Important Notice from MedMark Services, Inc. About Your Prescription Drug Coverage and Medicare under the Aetna Plan(s) Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with MedMark Services, Inc. and about your options under Medicare s prescription drug coverage. This information can help you decide whether or not you want to join a Medicare drug plan. If you are considering joining, you should compare your current coverage, including which drugs are covered at what cost, with the coverage and costs of the plans offering Medicare prescription drug coverage in your area. Information about where you can get help to make decisions about your prescription drug coverage is at the end of this notice. There are two important things you need to know about your current coverage and Medicare s prescription drug coverage: 1. Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You can get this coverage if you join a Medicare Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug plans provide at least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a higher monthly premium. 2. MedMark Services, Inc. has determined that the prescription drug coverage offered by the Aetna plan(s) is, on average for all plan participants, expected to pay out as much as standard Medicare prescription drug coverage pays and is therefore considered Creditable Coverage. Because your existing coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you later decide to join a Medicare drug plan. When Can You Join A Medicare Drug Plan? You can join a Medicare drug plan when you first become eligible for Medicare during a seven-month initial enrollment period. That period begins three months prior to your 65th birthday, includes the month you turn 65, and continues for the ensuing three months. You may also enroll each year from October 15th through December 7th. However, if you lose your current creditable prescription drug coverage, through no fault of your own, you will also be eligible for a two (2) month Special Enrollment Period (SEP) to join a Medicare drug plan. What Happens To Your Current Coverage If You Decide to Join A Medicare Drug Plan? If you decide to join a Medicare drug plan, your current MedMark Services, Inc. coverage will not be affected. For most persons covered under the Plan, the Plan will pay prescription drug benefits first, and Medicare will determine its payments second. For more information about this issue of what program pays first and what program pays second, see the Plan s summary plan description or contact Medicare at the telephone number or web address listed herein. If you do decide to join a Medicare drug plan and drop your current MedMark Services, Inc. coverage, be aware that you and your dependents will not be able to get this coverage back. When Will You Pay A Higher Premium (Penalty) To Join A Medicare Drug Plan? You should also know that if you drop or lose your current coverage with MedMark Services, Inc. and don t join a Medicare drug plan within 63 continuous days after your current coverage ends, you may pay a higher premium (a penalty) to join a Medicare drug plan later. If you go 63 continuous days or longer without creditable prescription drug coverage, your monthly premium may go up by at least 1% of the Medicare base beneficiary premium per month for every month that you did not have that coverage. For example, if you go nineteen months without creditable coverage, your premium may consistently be at least 19% higher than the Medicare base beneficiary premium. You may have to pay this higher premium (a penalty) as long as you have Medicare prescription drug coverage. In addition, you may have to wait until the following October to join. For More Information about This Notice or Your Current Prescription Drug Coverage Contact the person listed at the end of these notices for further information. NOTE: You ll get this notice each year. You will also get it before the next period you can join a Medicare drug plan, and if this coverage through MedMark Services, Inc. changes. You also may request a copy of this notice at any time. For More Information about Your Options under Medicare Prescription Drug Coverage More detailed information about Medicare plans that offer prescription drug coverage is in the Medicare & You handbook. You ll get a copy of the handbook in the mail every year from Medicare. You may also be contacted directly by Medicare drug plans. For more information about Medicare prescription drug coverage: Visit Call your State Health Insurance Assistance Program (see the inside back cover of your copy of the Medicare & You handbook for their telephone number) for personalized help Call MEDICARE ( ). TTY users should call If you have limited income and resources, extra help paying for Medicare prescription drug coverage is available. For information about this extra help, visit Social Security on the web at or call them at (TTY ). Remember: Keep this Medicare Part D notice. If you decide to join one of the Medicare drug plans, you may be required to provide a copy of this notice when you join to show whether or not you have maintained creditable coverage and, therefore, whether or not you are required to pay a higher premium (a penalty). Date: July 1, 2014 Name of Entity/Sender: Contact Position/Office: MedMark Services, Inc. Human Resources Address: 401 E. Corporate Dr., Suite 220 Lewisville, Texas Phone Number: Required Notices 29

28 Required Notices Women s Health and Cancer Rights Act The Women s Health and Cancer Rights Act of 1998 was signed into law on October 21, The Act requires that all group health plans providing medical and surgical benefits with respect to a mastectomy must provide coverage for all of the following: Reconstruction of the breast on which a mastectomy has been performed Surgery and reconstruction of the other breast to produce a symmetrical appearance Prostheses Treatment of physical complications of all stages of mastectomy, including lymphedema This coverage will be provided in consultation with the attending physician and the patient, and will be subject to the same annual deductibles and coinsurance provisions which apply for the mastectomy. For deductibles and coinsurance information applicable to the plan in which you enroll, please refer to the summary plan description or contact Human Resources at HIPAA Privacy and Security The Health Insurance Portability and Accountability Act of 1996 deals with how an employer can enforce eligibility and enrollment for health care benefits, as well as ensuring that protected health information which identifies you is kept private. You have the right to inspect and copy protected health information that is maintained by and for the plan for enrollment, payment, claims and case management. If you feel that protected health information about you is incorrect or incomplete, you may ask your benefits administrator to amend the information. The Notice of Privacy Practices has been recently updated. For a full copy of the Notice of Privacy Practices, describing how protected health information about you may be used and disclosed and how you can get access to the information, contact Human Resources at HIPAA Special Enrollment Rights If you are declining enrollment for yourself or your dependents (including your spouse) because of other health insurance or group health plan coverage, you may be able to later enroll yourself and your dependents in this plan if you or your dependents lose eligibility for that other coverage (or if the employer stops contributing towards your or your dependents other coverage). Unless the event giving rise to your special enrollment right is a loss of coverage under Medicaid or CHIP, you must request enrollment within 31 days after your or your dependent s(s ) other coverage ends (or after the employer that sponsors that coverage stops contributing toward the coverage). If the event giving rise to your special enrollment right is a loss of coverage under Medicaid or the CHIP, you may request enrollment under this plan within 60 days of the date you or your dependent(s) lose such coverage under Medicaid or CHIP. Similarly, if you or your dependent(s) become eligible for a state-granted premium subsidy towards this plan, you may request enrollment under this plan within 60 days after the date Medicaid or CHIP determine that you or the dependent(s) qualify for the subsidy. In addition, if you have a new dependent as a result of marriage, birth, adoption, or placement for adoption, you may be able to enroll yourself and your dependents. However, you must request enrollment within 31 days after the marriage, birth, adoption, or placement for adoption. To request special enrollment or obtain more information, contact Human Resources at Notice of Grandfathered Status This group health plan believes this plan is a grandfathered health plan under the Patient Protection and Affordable Care Act (the Affordable Care Act). As permitted by the Affordable Care Act, a grandfathered health plan can preserve certain basic health coverage that was already in effect when that law was enacted. Being a grandfathered health plan means that your plan may not include certain consumer protections of the Affordable Care Act that apply to other plans, for example, the requirement for the provision of preventive health services without any cost sharing. However, grandfathered health plans must comply with certain other consumer protections in the Affordable Care Act, for example, the elimination of lifetime limits on benefits. Questions regarding which protections apply and which protections do not apply to a grandfathered health plan and what might cause a plan to change from grandfathered health plan status can be directed to the plan administrator at You may also contact the U.S. Department of Health and Human Services at Loss of eligibility includes but is not limited to: Loss of eligibility for coverage as a result of ceasing to meet the plan s eligibility requirements (i.e. legal separation, divorce, cessation of dependent status, death of an employee, termination of employment, reduction in the number of hours of employment); Loss of HMO coverage because the person no longer resides or works in the HMO service area and no other coverage option is available through the HMO plan sponsor; Elimination of the coverage option a person was enrolled in, and another option is not offered in its place; Reaching the plan s lifetime benefit maximum on all benefits, if the person is covered under a separate plan or a single plan with multiple options and the other option has a higher lifetime maximum, or the benefits paid under the first option were not integrated with the second option; Failing to return from an FMLA leave of absence; and Loss of coverage under Medicaid or the Children s Health Insurance Program (CHIP). 30