Xpress Global Systems EMPLOYEE BENEFIT PLAN

Transcription

1 Xpress Global Systems EMPLOYEE BENEFIT PLAN SUMMARY PLAN DESCRIPTION FOR OFFICE EMPLOYEES Introduction This is a Summary Plan Description of the Xpress Global Systems Employee Benefit Plan (called the "Plan" in this summary) as in effect January 1, If you have questions after reading the Summary, please contact the employee benefits department at As stated in the administrative information section of this Summary, the legal name of the Plan is the U.S. Xpress Enterprises, Inc. Employee Benefit Plan. This Summary cannot modify the terms of the Plan document. If there are inconsistencies between the Summary and the Plan document, the Plan document will control. Xpress Global Systems (called the Company in this Summary) has the right to terminate its participation in the Plan and U.S. Xpress Enterprises, Inc. has the right to amend or terminate the Plan at any time. This version of the Summary Plan Description describes benefits provided to employees who are classified as Office Employees by the Company. For Xpress Global System employees, the Plan is known as the Xpress Global Systems Employee Benefit Plan. There are other versions of the Summary Plan Description for the U.S. Xpress Enterprises, Inc. Employee Benefit Plan that apply to employees classified by the Company as Drivers and to U.S. Xpress, Total Transportation and Arnold Transportation employees. This group health plan believes it 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 (800) You may also contact the Employee Benefits Security Administration, U.S. Department of Labor at or This website has a table summarizing which protections do and do not apply to grandfathered health plans. 1

2 Eligibility Any employee of the Company or an affiliated business that has adopted the Plan who is required to work at least 33 hours per week, and who receives W-2 compensation is eligible to participate in the Plan. A list of the affiliated business(es) that have adopted the Plan is at the end of this document. Coverage for benefits under the Plan begins on the first day of the month following completion of 90 days of employment. The company will honor time worked as a contractor or temporary worker (for US Xpress) in determining the 1 st of the month following 90 days waiting period. Employee contributions toward the cost of benefits coverage must begin to be paid one month in advance of the date that coverage begins, with the first contribution beginning with the first paycheck on or after the first day of the month following completion of 60 days of employment. The Company has established a procedure regarding the refund of portions of prepaid contributions in certain situations minus any amounts owed for taxes or administrative fees accrued. In certain cases where an individual becomes an employee of the Company (or an affiliated business that has adopted the Plan) as a result of the Company s (or affiliated business s) acquisition of another business, the employee may be given credit for his or her service with the acquired business for purposes of determining the effective date of the employee s coverage under the Plan. For medical, dental and vision benefits, you may elect to cover your eligible dependents. Your eligible dependents are the following: 1. Your legal spouse, as determined under the law of the state in which you are a resident. Domestic partners who are not legal spouses as described above are not eligible for medical benefits. You will need to provide proof of spousal status. 2. Your or your legal spouse s biological child, legally adopted child (including children placed for adoption), step-child, eligible foster children or child for whom you or your legal spouse is the legal guardian, provided that the child is less than 26 years old and does not have access to his/her own employer-sponsored health coverage. If you have dependents, you ll need to provide proof of dependent status prior to enrolling them. Documentation may include the appropriate marriage license, birth certificate, or court order. You may also be required to provide documentation of their continued eligible status from time to time after they are initially enrolled for coverage. 3. Your or your legal spouse s child for whom a qualified medical child support order has been issued. 4. Your or your legal spouse s unmarried child (as described above) who is, and continues to be, both (i) incapable of self-sustaining employment by reason of mental retardation or physical handicap; and (ii) chiefly dependent upon you or your legal spouse for economic support and maintenance, provided that you furnish proof of such incapacity and dependent within 30 days of the child s attainment of the applicable limiting age and subsequently as may be required. In addition, the child must be a dependent enrolled in the Plan prior to attaining the applicable limiting age. Benefit Options The Benefit Options under the Plan are: medical, dental & vision insurance, short and long-term disability, AD&D, group term life, dependent care assistance benefits and medical reimbursement benefits. For all benefits, eligibility begins on the first day of the month following completion of 90 days of full-time (at least 33 hours per week) employment. Enrollment and Elections In order to participate in the Plan, you must complete the enrollment process during an enrollment period. During the enrollment process, you will select the benefits you would like to enroll in and agree to reduce your pay for each payroll period to pay for your share of the cost of the benefit elected. Office Employees who elect dependent care assistance and/or medical reimbursement benefits must indicate the amount they want to contribute to their dependent care and/or medical reimbursement benefit spending account for the Plan Year. 2

3 The enrollment periods for the Plan are as follows: 1. Initial (New Hire) Enrollment Period: The date you first satisfy the Plan s eligibility requirements. This is the first time you may complete the enrollment process. 2. Regular Re-Enrollment Period: The re-enrollment period in the fall of each year. At this time, an eligible employee or participant may add, change or revoke existing elections. New elections will be effective at the beginning of the following Plan Year (January 1st). The Plan Year is January 1 to December 31 of each year. If you wish to add Dependents during the re-enrollment period, you must submit Dependent Verification.* 3. Special Enrollment Period (Change of Election): The 30 day period following an approved Change in Status or a Change in Coverage Event. You must complete a Change in Status form and submit Dependent Verification (if applicable) to the Company within 30 days of the event.* * By submitting Dependent Verification, you are acknowledging that you understand the Plan s eligibility requirements and certifying that the dependent(s) whom you are enrolling satisfy those requirements. Falsification of any forms constitutes fraud or an intentional misrepresentation of material fact and may result in the cancellation of coverage and in your being financially and legally responsible for any claims paid for an ineligible dependent who was enrolled in the Plan. Once you have made your election, you are not permitted to change it before the next regular re-enrollment period, unless you have experienced a qualifying "Change in Status" or other "Change in Cost/Coverage" event as described in the "Change in Elections" section below. Termination of Participation Your participation will terminate if you: - Terminate employment; - Retire; - Become permanently and totally disabled; or - Transfer to an ineligible employment category; - Non-payment of benefit premiums within designated timeframe. Your participation will automatically stop if the Plan is terminated. Contributions 1. Each payroll period, your employer will reduce your taxable income by your share of the cost of the medical, dental, vision, medical reimbursement and dependent care assistance benefits you have elected for the Plan Year. These are pre-tax deductions. Your contributions for AD&D and group term life, short and long-term disability benefits are deducted from your pay on a post-tax basis. Your employer will credit the amount to a separate account to pay for each benefit you select. Employees' share of the cost of benefits under the Plan is set forth in the Annual Benefit Guide and may be changed by the Company from time to time. If your share of the cost increases during a Plan Year, either due to an increase in the cost of the benefit or a decrease in the Company's contribution toward the cost, your contribution amount will be adjusted automatically. An amount credited to an account for one benefit cannot be used to pay for another benefit. 2. If the reduction amount exceeds the cost of the benefit, you will not receive money back at the end of the Plan Year. 3. If you need to go on leave for any reason, you will need to make arrangements to continue paying premiums for your insurance benefits. Payments should be mailed to: U.S. Xpress Direct Attention: Benefits Department 4080 Jenkins Rd Chattanooga, TN

4 4. If you are enrolled in any Allstate Workplace Division supplemental products and you miss a monthly payment you will then be set up as a self payment through Allstate. Medical Benefits Medical benefits under the Plan (including prescription drug benefits) are provided on a self-insured basis by the Company, with claims paid from the general assets of the Company and by Employees' contributions. Claim payments are paid first from employee contributions and then, to the extent necessary, from the Company's general assets. The Company has a contract with Blue Cross Blue Shield of Tennessee, Inc. ("BCBST") to process claims for medical benefits under the Plan. Two coverage levels are available: standard plan and premium plan. A detailed description of medical benefits is contained in the "Evidence of Coverage" document prepared by BCBST, which forms part of this Summary Plan Description. The Company has delegated to BCBST the exclusive discretionary authority to decide claims for medical benefits under the Plan, including the right to make final determinations on appeals of denied claims. BCBST's authority includes the right to make factual determinations with regard to medical benefits provided under the Plan. The Company has a contract with Medco/Express Scripts to process claims for prescription drugs under the Plan under a self-insured arrangement. A detailed evidence of coverage booklet may be obtained from the Human Resources department by calling the Benefits Department at (800) The Company has delegated to Medco/Express Scripts the exclusive discretionary authority to decide claims for prescription drug benefits under the Plan, including the right to make factual determinations with regard to prescription drug benefits under the Plan. Dental Benefits Dental benefits under the Plan are provided on a fully-insured basis through an insurance contract issued by Delta Dental Plan of Tennessee ("Delta Dental"). Premiums for dental coverage are paid solely by the covered employee. The Company does not contribute toward the cost of dental benefits. A detailed description of dental benefits is contained in the benefit description document prepared by Delta Dental, which forms part of this Summary Plan Description and is attached at the end of this Summary. Delta Dental has exclusive discretionary authority to determine eligibility for coverage under the terms of the insurance contract, based upon employee information provided by the Company, and to determine whether benefits are payable under the contract and the amount of such benefits. Vision Benefits Vision benefits under the Plan are provided on a fully-insured basis through an insurance contract issued by Vision Service Plan ( VSP ). Premiums for vision coverage are paid solely by the covered employee. The Company does not contribute toward the cost of vision benefits. A description of vision benefits is contained in the benefit description document prepared by VSP, which forms part of this Summary Plan Description and is attached at the end of this Summary. VSP has exclusive discretionary authority to determine eligibility for coverage under the terms of the insurance contract, based upon employee information provided by the Company, and to determine whether any benefits are payable under the contract and the amount of such benefits. Long-Term Disability Benefits Long-term disability ("LTD") benefits under the Plan are provided on a fully-insured basis through an insurance contract issued by Unum. A detailed description of the LTD benefits is contained in the separate certificate of insurance document prepared by Unum, which forms part of this Summary Plan Description. Premiums for LTD coverage are paid solely by the covered employee. Employee contributions are made on an after-tax basis. Unum has exclusive discretionary authority to determine eligibility for coverage under the terms of the insurance contract, based upon employee information provided by the Company, and to determine whether any benefits are payable under the contract and the amount of such benefits. A brief summary of the LTD benefits is attached at the end of this Summary. A 4

5 copy of the certificate of insurance coverage may be obtained from the Human Resources department by calling the Benefits Department at (800) Short-Term Disability Benefits Short-term disability ("STD") benefits under the Plan are provided on a fully-insured basis through an insurance contract issued by Unum. A detailed description of the STD benefits is contained in the separate certificate of insurance document prepared by Unum, which forms part of this Summary Plan Description. The Company provides full-time employees with $200 of weekly STD pay (eligible the first day of the month following 90 days of employment). Employees may purchase additional STD benefit from $50 per week to $950 (maximum of up to 60% of base salary). Employee contributions are made on an after-tax basis. Unum has exclusive discretionary authority to determine eligibility for coverage under the terms of the insurance contract, based upon employee information provided by the Company, and to determine whether any benefits are payable under the contract and the amount of such benefits. As described in the certificate of insurance, benefits payable under the insurance contract will be reduced by any benefit payable under any state statutory disability benefit plan. A brief summary of the STD benefits is attached at the end of this Summary. A copy of the certificate of insurance coverage may be obtained from the Human Resources department by calling the Benefits Department at (800) Accidental Death and Dismemberment Benefits Accidental death and dismemberment ("AD&D") benefits under the Plan are provided on a fully-insured basis through an insurance contract issued by Unum. AD&D coverage is available on a voluntary basis and premiums for AD&D coverage are paid entirely by the covered employee on an after-tax basis. A detailed description of AD&D benefits is contained in the certificate of insurance document prepared by Unum, which forms part of this Summary Plan Description. Unum has exclusive discretionary authority to determine eligibility for coverage under the insurance contract, based upon employee information provided by the Company, and to determine whether any benefits are payable under the contract and the amount of such benefits. A copy of the certificate of insurance coverage may be obtained from the Human Resources department by calling the Benefits Department at (800) Group Term Life Benefits The Plan provides basic group term life insurance benefits as well as voluntary supplemental group term life insurance benefits on a fully-insured basis through contracts issued by Unum. Premiums for $10,000 of basic group term life insurance on the employee s life are paid entirely by the Company. Basic group life insurance is effective beginning the first day of the month following 90 days of employment. Voluntary supplemental group term life insurance is available on a voluntary basis and premiums are paid entirely by the covered employee. Voluntary supplemental coverage is available for the employee as well as the employee's dependents. A detailed description of group term life benefits is contained in the certificate of insurance documents prepared by Unum, which form part of this Summary Plan Description. Unum has exclusive discretionary authority to determine eligibility for coverage under the insurance contracts, based upon employee information provided by the Company, and to determine whether any benefits are payable under the contracts and the amount of such benefits. Please note that voluntary supplemental coverage for the employees' spouses and dependents is not provided through the Plan's Internal Revenue Code section 125 provisions. Employee contributions are made on an after-tax basis. A brief summary of the basic and supplemental life benefits is attached at the end of this Summary. A copy of the certificate of the certificate of insurance coverage may be obtained from the Human Resources department by calling the Benefits Department at (800) Dependent Care Assistance and Medical Reimbursement Benefits Dependent care assistance and medical reimbursement benefits are available to Office Employees. Office Employees who elect dependent care assistance and/or medical reimbursement benefits must specify the amount they would like to contribute for such benefits on a pre-tax basis. Enrollments in these benefits are only allowed during open enrollment following 90 days of employment. The 5

6 Company has a contract with PayFlex Systems USA, Inc. to process claims for dependent care and medical reimbursement benefits. A detailed description of dependent care assistance and medical reimbursement benefits is contained in the separate summary of dependent care and medical reimbursement benefits document, which forms part of this Summary Plan Description for Office Employees. A copy of the detailed summary may be obtained from the Human Resources department by calling the Benefits Department at (800) Changes in Elections Due to Internal Revenue Service regulations, your benefit elections must remain in effect until the beginning of the next Plan Year (the following January 1). As explained previously, each Fall, there will be a regular re-enrollment period during which you can make elections for the next Plan Year. The only times you are permitted to make an election change before the next Plan Year are: - if there is a Change in Status and your election change complies with the Consistency rule. - if there is a qualified Change in Cost / Coverage event. - you must complete a Change in Status/ Election form within 30 days of the event(s) and the Company must approve the change. Change in Status Events 1. Change in employee s legal marital status Including marriage, divorce, death of spouse, legal separation, and annulment. 2. Change in number of dependents Including birth, adoption, placement for adoption, and death. (Must be a tax dependent) 3. Change in employment status Employment status change of the employee, spouse, or tax dependent. Commencement or termination of employment; strike or lockout; return from unpaid leave of absence; promotion or demotion, change in worksite affecting benefits; employment status change with the consequence that the individual becomes (or ceases to be) eligible under the plan. 4. Dependent satisfies (or ceases to satisfy) eligibility requirements An event that causes a tax dependent to satisfy or cease to satisfy the requirements for coverage due to attainment of age, gain or loss of student status, marriage or any similar circumstance. 5. Residence change - A change in the place of residence of an employee, spouse or tax dependent if the change in residence affects the eligibility for coverage. Consistency Rules 1. General consistency rule- In order to change an election due to a Change in Status the election change must be on account of and correspond with a change in status event that affects coverage eligibility of the employee, spouse or dependent under an employer s plan. 2. Special consistency rule for loss of dependent eligibility If the change in status is the employee s divorce, annulment or legal separation from a spouse, the death of a spouse or dependent, or a dependent s ceasing to satisfy the eligibility requirements for coverage, then the employee can cancel accident or health insurance coverage for only the spouse or dependent, as applicable. 3. Consistency rule for gain of coverage eligibility under another employer plan- If an employee, spouse or dependent gains eligibility for coverage under another employer s plan (or qualified benefit) as a result of a change in marital status or a change in employment status, then an employee s election under the plan to cease or decrease coverage for that individual under the plan corresponds with that change in status only if coverage for that individual becomes effective or is increased under the other employer s plan. Change in Cost/Coverage 1. Significant Cost Increase If the cost of a benefit package option significantly increases during a Plan Year, you may revoke your elections and, in lieu thereof, elect to receive on a prospective basis coverage under another benefit package option providing similar coverage. Dropping coverage altogether is not allowed. 6

7 2. Significant Curtailment of Coverage If the coverage under a benefit option is significantly curtailed or ceases during a Plan Year, affected employees may revoke their elections under that benefit option and make a new election for coverage under another benefit package option providing similar coverage. IRS regulations provide that coverage under an accident or health plan is significantly curtailed only if there is an overall reduction in coverage provided to participants under the plan so as to constitute reduced coverage to participants generally. A single provider leaving a network of providers would not permit an election change. 3. Addition or Elimination of Benefit Package Option If during a Plan Year, the Plan adds a new coverage option (or eliminates an existing option) affected employees may elect the newly-added option (or elect another option if an option has been eliminated) prospectively and make a corresponding election change with respect to other benefit options providing similar coverage. 4. Change in Coverage of Spouse or Dependent Under Other Employer s Plan - An employee may make a prospective election change that is on account of and corresponds with a change made under the plan of the spouse s, former spouse s or dependent s employer if: (1) an Internal Revenue Code section 125 plan or qualified benefits plan of the spouse s, former spouse s or dependent s employer permits participants to make election change that would be permitted under the regulations; or (2) the other employer s plan permits participants to make an election for a period of coverage that is different from the period of coverage under this Plan. 5. FMLA Leaves An employee taking leave under FMLA may revoke an existing election of group health plan coverage and make such other election for the remaining portion of period of coverage as may be provided for under FMLA. 6. HIPAA Special Enrollment Rights An employee may change his/her election for group health plan coverage under the Plan to the extent that the election change corresponds with special enrollment rights under HIPAA. 7. COBRA An employee may increase his/her pre-tax contributions for coverage under the Plan if a COBRA event (or similar state law continuation coverage event) occurs with respect to the employee, the employee s spouse or dependent. 8. Judgment, Decree or Orders (QMCSO)- If there is a judgment, decree, or order resulting from divorce, legal separation, annulment or change in legal custody that requires accident or health coverage for an employee s child or dependent foster child, then the employee may change his/her election to add or drop coverage consistent with the order. 9. Entitlement to Medicare or Medicaid Medicare or Medicaid entitlement or loss of entitlement may allow an employee to make an election change. HIPAA NOTICE OF PRIVACY PRACTICES THIS NOTICE DESCRIBES HOW MEDICAL INFORMATION ABOUT YOU MAY BE USED AND DISCLOSED AND HOW YOU CAN GET ACCESS TO THIS INFORMATION. PLEASE REVIEW IT CAREFULLY. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) imposes numerous requirements on employer health plans concerning the use and disclosure of protected health information. This portion of the Summary Plan Description is a Notice that describes the privacy practices of the Plan and your legal rights under HIPAA regarding your protected health information held by the Plan. Among other things, this Notice describes how your protected health information may be used or disclosed to carry out treatment, payment, or health care operations, or for any other purposes that are permitted or required by law. This Notice applies to your medical (including prescription drug) benefits, dental benefits, vision benefits and medical reimbursement benefits under the Plan. How the Plan May Use Your Information The Plan is permitted by law to use and disclose your personal medical information (called Protected Health Information ) in certain ways without your authorization: 7

8 For treatment: So that you receive appropriate treatment and care, the Plan may disclose your Protected Health Information to coordinate or manage your health care services. For example, the Plan might disclose information about your prior prescriptions to a pharmacist to determine if prior prescriptions would cause a problem with a new prescription. For payment: To make sure that claims are paid accurately and you receive the correct benefits, the Plan may use and disclose your Personal Health Information to determine plan eligibility and responsibility for coverage and benefits. For example, the Plan may use your information to confer with other health plans to resolve a coordination of benefits issue. The Plan may also use your Personal Health Information for utilization review activities. For health care operations: To ensure quality and efficient plan operations, the Plan may use your Personal Health Information in several ways, including plan administration, quality assessment and improvement, and vendor review. Your information could be used, for example, to assist in the evaluation of a vendor who supports the Plan. The Plan may contact you to provide information about treatment alternatives or other health-related benefits and services available under the Plan. To Business Associates: The Plan may contract with individuals or entities known as Business Associates to perform various functions involving Protected Health Information on the Plan s behalf or to provide certain types of services for the Plan. As Required by Law: The Plan may disclose your Protected Health Information when required to do so by federal, state or local law. To Avert a Serious Threat to Health or Safety: The Plan may use and disclose your Protected Health Information when necessary to prevent a serious threat to your health and safety, or the health and safety of the public or another person. Organ and Tissue Donation: If you are an organ donor, the Plan may release your Protected Health Information to organizations that handle organ procurement or organ, eye, or tissue transplantation or to an organ donation bank, as necessary to facilitate organ or tissue donation and transplantation. Military and Veterans: If you are a member of the armed forces, the Plan may release your Protected Health Information as required by military command authorities. Workers' Compensation: The Plan may release your Protected Health Information for workers' compensation or similar programs. Public Health Risks: The Plan may disclose your Protected Health Information for public health actions, such as to prevent or control disease or to report abuse, neglect or domestic violence. Health Oversight Activities: The Plan may disclose your Protected Health Information to a health oversight agency for activities authorized by law (for example, audits, investigations, inspections, and licensure). Lawsuits and Disputes: If you are involved in a lawsuit or a dispute, the Plan may disclose your Protected Health Information in response to a court or administrative order, or in response to a subpoena, discovery request, or other lawful process by someone else involved in the dispute, but only if efforts have been made to tell you about the request or to obtain an order protecting the information requested. Law Enforcement: The Plan may disclose your Protected Health Information if asked to do so by a law enforcement official (for example, to identify a suspect or missing person). Coroners, Medical Examiners and Funeral Directors: The Plan may release your Protected Health Information to a coroner or medical examiner. National Security and Intelligence Activities: The Plan may release your Protected Health Information to authorized federal officials for intelligence, counterintelligence, and other national security activities authorized by law. Inmates: If you are an inmate of a correctional institution or are in the custody of a law enforcement official, the Plan may disclose your Protected Health Information to the correctional institution or law enforcement official if necessary for the institution to provide you with health care, to protect your health and safety or the health and safety of others, for the safety and security of the correctional institution. Research: The Plan may disclose your Protected Health Information to researchers when the individual identifiers have been removed or when an institutional review board or privacy board 8

9 has reviewed the research proposal and established protocols to ensure the privacy of the requested information and approves the research. Plan Sponsor: The Plan may disclose your Protected Health Information to U.S. Xpress Enterprises, Inc. (the plan sponsor) in connection with these activities and other plan administration activities. Employees in the following positions may have access to your protected health information for plan administration purposes: Benefits Department; Privacy Officer; Privacy Manager; Employee Relations Department; Vice President and Legal Counsel; and Vice President of Human Resources. If you are covered under an insured health plan, the insurer also may disclose Protected Health Information to the plan sponsor in connection with payment, treatment or health care operations. Other Purposes Permitted or Required by Law: The Plan may disclose your Protected Health Information for other purposes required by law, provided that the use or disclosure is limited to the relevant requirements of such law. In Special Situations: The Plan may disclose your Protected Health Information to a family member, relative, close personal friend, or any other person whom you identify, when that information is directly relevant to the person's involvement with your care or payment related to your care. The Plan also may use your Protected Health Information to notify a family member, your personal representative, another person responsible for your care, or certain disaster relief agencies of your location, general condition, or death. If you are incapacitated, there is an emergency, or you otherwise do not have the opportunity to agree to or object to this use or disclosure, the Plan will do what in the administrator's judgment is in your best interest regarding such disclosure and will disclose only information that is directly relevant to the person's involvement with your health care. The Plan will make other uses and disclosures only after you authorize them in writing. You may revoke your authorization in writing at any time. Your Rights Regarding Protected Health Information You have the right to: Inspect and copy your Protected Health Information If the Plan uses electronic health records, you have the right to obtain an electronic copy of the Protected Health Information in the record and, if you so choose, the Protected Health Information will be transmitted directly to an entity or person you specify, provided your directive is clear, conspicuous and specific Request that your Protected Health Information be amended or corrected if inaccurate Receive an accounting of certain disclosures of your information made by the Plan; you are not entitled to an accounting of several types of disclosures, including, but not limited to: Disclosures made for payment, treatment or health care operations Disclosures made to you Disclosures made to friends or family in your presence or because of an emergency Disclosures for national security purposes Disclosures you authorized in writing Disclosures made before April 14, 2003 Disclosures incidental to otherwise permissible disclosures. Receive a paper copy of this notice, even if you agreed to receive it electronically. Right to Request Restrictions You may ask the Plan to restrict how it uses and discloses your Protected Health Information as it carries out payment, treatment, or health care operations. You may also ask the Plan to restrict disclosures to your family members, relatives, friends, or other persons you identify who are involved in your care or payment for your care. However, the Plan is not required to agree to these requests. Right to Request Confidential Communications You may request to receive your Protected Health Information by alternative means or at an alternative location if you reasonably believe that other disclosure could pose a danger to you. 9

10 For example, you may only want to have information sent by mail or to an address other than your home. For more information about exercising these rights, contact the office below. Right to Be Notified of a Breach You have the right to be notified in the event that the Plan or a Business Associate of the Plan discovers a breach involving your unsecured protected health information. Complaints If you believe that your privacy rights have been violated, you may file a written complaint without fear of reprisal. Direct your complaint to the office listed below under Contacting Us or to the Secretary of Health and Human Services, Hubert H. Humphrey Building, 200 Independence Avenue, SW, Washington, DC About this Notice The Plan is required by law to maintain the privacy of Protected Health Information and to provide individuals with notice of its legal duties and privacy practices with respect to Protected Health Information. The Plan is required to abide by the terms of this Notice. The Plan reserves the right to change the terms of this Notice and to make the new notice provisions effective for all Protected Health Information it maintains. If this Notice is changed, you will receive a new notice via mail. Contacting Us You may exercise the rights described in this notice by contacting the U.S. Xpress office identified below, which will provide you with additional information. The contact is: Amanda Thompson Sr. Director, Compensation & Benefits Human Resources Department (800) x 3491 NOTICE OF RIGHTS TO CONTINUE GROUP HEALTH COVERAGE This section of the Summary Plan Description is your notice of continuation coverage rights under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"). COBRA continuation coverage can become available to you and to your spouse and dependent children, if they are covered under the Plan when you would otherwise lose your group health coverage. Under the Plan, COBRA continuation coverage rights apply to medical (including prescription drug), vision and dental benefits and also apply on a limited basis to medical reimbursement benefits. COBRA continuation coverage is a continuation of Plan coverage when coverage would otherwise end because of a life event known as a "qualifying event." Specific qualifying events are listed later in this notice. COBRA continuation coverage must be offered to each person who is a "qualified beneficiary." A qualified beneficiary is someone who will lose coverage under the Plan because of a qualifying event. Depending on the type of qualifying event, employees, spouses of employees, and dependent children of employees may be qualified beneficiaries. Under the Plan, qualified beneficiaries who elect COBRA continuation coverage must pay for COBRA continuation coverage. If you are an employee covered under the Plan, you have a right to choose this continuation coverage if you lose your group health coverage because of a reduction in your hours of employment or the termination of your employment (for reasons other than gross misconduct on your part). If you are the spouse of an employee covered by the Plan, you have the right to choose continuation coverage for yourself if you lose group health coverage under the Plan for any of the following four reasons: 1) The death of your spouse; 2) A termination of your spouse's employment (for reasons other than gross misconduct) or a reduction in your spouse's hours of employment; 3) Divorce or legal separation from your spouse; or 10

11 4) Your spouse becomes entitled to Medicare. In the case of a dependent child of an employee covered by the Plan, he or she has the right to continuation coverage if group health coverage under the Plan is lost for any of the following five reasons: 1) The death of a parent; 2) A termination of a parent's employment (for reasons other than gross misconduct) or reduction in a parent s hours of employment; 3) Parent s divorce or legal separation; 4) A parent becomes entitled to Medicare; or 5) The dependent child ceases to be a "dependent child" under the U.S. Xpress Inc. Employee Benefit Plan. Furthermore, a child born to, or placed for adoption with, the covered employee during the period of continuation coverage may also become covered as a qualified beneficiary. Under the law, the employee or a family member has the responsibility to inform the Plan Administrator of a divorce, legal separation, or a child losing dependent status under the Plan within 60 days of the date of the event or the date in which coverage would end under the Plan because of the event, whichever is later. The Company has the responsibility to notify the Plan Administrator of the employee's death, termination, and reduction in hours of employment or Medicare entitlement. When the Plan Administrator is notified that one of these events has happened, the Plan Administrator will in turn notify you that you have the right to choose continuation coverage. Under the law, you have at least 60 days from the date you would lose coverage because of one of the events described above, or the date notice of your election rights is sent to you, whichever is later, to inform the Plan Administrator that you want continuation coverage. If you do not choose continuation coverage, your group health insurance coverage will end. Also, if you do not become re-employed within 63 days of your termination of employment, and you have not chosen continuation coverage, you may lose prior coverage credit toward pre-existing condition limitation periods when you next become insured. If you choose continuation coverage, the Company is required to give you coverage which, as of the time coverage is being provided, is similar to the coverage provided under the plan to similarly situated employees or family members. The law requires that you be afforded the opportunity to maintain continuation coverage for 36 months unless you lost group health coverage because of a termination of employment or reduction in hours. In that case, the required continuation coverage period is 18 months. This18 months may be extended to 36 months if other events (such as a death, divorce, legal separation, or Medicare entitlement) occur during that 18-month period. If a second qualifying event occurs, you must make sure that the Plan Administrator is notified of the second qualifying event within 60 days of the second qualifying event. Continuation coverage for medical reimbursement benefits is only available through the end of the Plan Year in which the qualifying event occurs. The 18 months may be extended to 29 months for an individual, and his/her qualified dependents, if the individual is determined to be disabled (for Social Security disability purposes) at the time of the qualifying event or at any time during the first 60 days of continuation coverage, and the Plan Administrator is notified of that determination within 60 days of the date of the determination and before the end of the 18-month period. The affected individual must also notify the Plan Administrator within 30 days of any final determination that the individual is no longer disabled. In no event will continuation coverage last beyond 3 years from the date of the event that originally made a qualified beneficiary eligible to elect coverage. However, the law also provides that your continuation coverage may be terminated before the end of the maximum period for any of the following five reasons: 11

12 (1) The Company no longer provides group health coverage to any of its employees (2) You do not pay the premium for your continuation coverage on time (3) You become covered under another group health plan after the date of your COBRA election, unless that plan contains any exclusions or limitations with respect to any preexisting conditions you or your covered dependents may have (4) You become entitled to Medicare after the date of your COBRA election (5) You extended coverage for up to 29 months due to your disability and there has been a final determination that you are no longer disabled. You do not have to show that you are insurable to choose continuation coverage. In order to protect your family's rights, you should keep the Plan Administrator informed of any changes in the addresses of family members. You should also keep a copy, for your records, of any notices you send to the Plan Administrator. Maternity and Newborn Coverage Your Plan provides maternity and newborn infant coverage. Federal law generally prohibits this Plan from restricting benefits for any hospital length of stay in connection with childbirth for the mother or newborn child to less than 48 hours following a normal vaginal delivery, or less than 96 hours following a cesarean section. Federal law also generally prohibits the Plan from requiring that a Provider obtain authorization to prescribe a length of stay in excess of the above periods. Please refer to the Covered Services section of the BlueCross BlueShield of Tennessee Evidence of Coverage document for details. Qualified Medical Child Support Order In accordance with section 609(a) of ERISA, the Plan will provide health benefit coverage to a child of a participant in accordance with the terms of any medical child support order that the Plan Administrator determines to be a "qualified medical child support order." A qualified medical child support order is a judgment, decree or order issued by a court, which provides for child support or health benefit coverage relating to benefits under the Plan and which meets certain requirements regarding substance and form. Medical child support orders should be submitted to the Plan Administrator, who will promptly notify the involved individuals of its receipt of the order and of the Plan's procedure for determining whether the order is a qualified order. You may request a copy of the Plan's procedure for determining whether an order is a qualified medical child support order from the Human Resources Department. Certificate of Creditable Coverage A certificate of creditable coverage is a document that reports the period of time that you and/or a dependent have had medical benefits coverage under the Plan without a significant break in coverage. This information may be helpful if you or a dependent become covered under a group health plan other than the Plan and that other group health plan contains a preexisting condition limitation. Under Federal law, your coverage or your dependent s coverage under this Plan may reduce or eliminate the application of the other plan s preexisting condition limitation. A certificate of creditable coverage will be provided automatically when your coverage or your dependent s coverage under the Plan terminates. You or your dependent also have the right to request a certificate of creditable coverage from the Plan at any time, as long as your request is made within 24 months after your coverage or your dependent s coverage under the Plan terminates. Requests should be directed to the Human Resources Benefits Department at Medicaid-Eligible Individuals In determining whether an individual is eligible for health benefit coverage and is making benefit payments, the Plan will not take into account the fact that an individual is eligible for or is covered by Medicaid. 12

13 In addition, the Plan will make benefit payments in accordance with any assignment of rights made by or on behalf of an individual as required by a state Medicaid program and in accordance with any state law which provides that the state has acquired rights to payment with respect to a participant. Mastectomy Benefit Coverage Under Federal law, group health plans, insurance companies, and health maintenance organizations (HMOs) that provide coverage for medical and surgical benefits for mastectomy must also provide coverage for reconstructive surgery in a manner determined in consultation with the attending physician and the patient. Required coverage includes reconstruction of the breast on which the mastectomy was performed, surgery and reconstruction of the other breast to produce a symmetrical appearance, and prostheses and treatment of physical complications at all stages of the mastectomy, including lymphedemas. These benefits are subject to the normal deductible and coinsurance provisions that apply to other benefits under your coverage. Statement of Rights As a participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan participants be entitled to: Receive Information About Your Plan and Benefits. Examine, without charge, at the Plan Administrator's office and at other specific locations all documents governing the Plan including insurance contracts and a copy of the latest annual report (Form 5500) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration. Obtain upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts and copies of the latest annual report (Form 5500) and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan's annual financial report. The Plan Administrator is required by law to furnish you with a copy of this summary annual report. Continue Group Health Plan Coverage. Continue health care coverage for yourself, spouse or dependents if there is a loss of coverage under the Plan as a result of a qualifying event. You or your dependents may have to pay for such coverage. Review this summary plan description and the documents governing the Plan on the rules governing your COBRA continuation coverage rights. Reduction or elimination of exclusionary periods of coverage for preexisting conditions under your group health plan, if you have creditable coverage from another plan. You should be provided a certificate of creditable coverage, free of charge, from your group health plan or health insurance issuer when you lose coverage under the plan, when you become entitled to elect COBRA continuation coverage, when your COBRA continuation coverage ceases, if you request it before losing coverage, or if you request it up to 24 months after losing coverage. Without evidence of creditable coverage, you may subject to a preexisting condition exclusion for 12 months (18 months for late enrollees) after your enrollment date in your coverage. Prudent Actions by Plan Fiduciaries. In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer or any other person, may 13

14 fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. Enforce Your Rights. If your claim for a welfare benefit is denied or ignored, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court, provided that you have exhausted your administrative appeal rights. In addition, if you disagree with the Plan s decision or lack thereof concerning the qualified status of a medical child support order, you may file suit in Federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees; for example, if it finds your claim is frivolous. Assistance With Your Questions. If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest Area Office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. Claims Procedures Specific claim procedures for medical benefits are set forth in the medical Evidence of Coverage document. Specific claim procedures for long-term disability benefits, accidental death and dismemberment benefits and group term life insurance benefits are set forth in the certificates of insurance that describe those benefits. Specific claim procedures for dependent care assistance benefits and medical reimbursement benefits are set forth in the separate summary of those benefits. The following claim procedures apply to dental and vision benefit claims. References to the insurance carrier refer to Delta Dental Plan of Tennessee for dental benefits and VSP for vision benefits. If you are required to obtain pre-approval from your insurance carrier as a prerequisite to obtaining a benefit, you should follow the pre-approval procedures established by the insurance carrier. If you contact your insurance carrier to obtain pre-approval but you fail to follow the pre-approval procedure for filing a pre-service claim, the insurance carrier is required to notify you of this failure and the proper procedure for filing the pre-service claim. A pre-service claim is a benefit claim that requires some form of pre-approval by the insurance carrier. The notice is required to be provided to you as soon as possible but not later than 5 days after the failure, or, in the case of an urgent care claim (see below), within 24 hours of the failure. The notice may be given to you orally, unless you request a written notice. 14

15 You may designate a representative to act on your behalf in pursuing a benefit claim or appealing a denial of a benefit claim by contacting your insurance carrier. Even if you have not formally designated a representative, your physician or licensed health care professional may act on your behalf as your authorized representative if the benefit claim is an urgent care claim (see below). The period within which the insurance carrier is required to decide your claim depends upon the type of claim being made. There are generally three types of claims that can be made under the Plan a pre-service claim, an urgent care claim, and a post-service claim. Pre-Service Claim A pre-service claim is a claim for a benefit which requires some form of preapproval by the insurance carrier. The insurance carrier must decide a pre-service claim within 15 days. This 15 day period may be extended for up to an additional 15 days if the insurance company determines the extension is necessary for reasons beyond its control. The insurance carrier is required to notify a claimant in writing if there is an extension. Urgent Care Claim An urgent care claim is a pre-service claim where application of the normal period for deciding pre-service claims could jeopardize the life, health or ability to regain maximum function of the claimant, or would subject the claimant to severe pain that cannot be adequately managed without the care or treatment that is being claimed. The insurance carrier is required to decide an urgent care claim within 72 hours. Post-Service Claim A post-service claim is any claim that is not a pre-service claim. It would include a claim in which the medical procedure has already occurred and the claimant is seeking payment of it or reimbursement for it. The insurance carrier is required to decide a post-service claim within 30 days. This 30 day period may be extended for up to an additional 15 days if the insurance carrier determines the extension is necessary for reasons beyond its control. The insurance carrier is required to notify a claimant in writing if there is an extension. In addition, some special rules apply where the insurance carrier has already approved an ongoing course of treatment over a period of time or number of treatments. First, if the insurance carrier reduces or terminates coverage for the course of treatment before it otherwise would have ended, that reduction or termination is a benefit denial. The insurance carrier must notify the claimant sufficiently in advance of the reduction or termination to allow the claimant to appeal the decision (see Appealing a Claim below) and to obtain a decision on the appeal. Second, if the claimant requests an extension of the course of treatment at least 24 hours before the course of treatment ends and it is an urgent care situation (see Urgent Care Claim above), the insurance carrier must notify the claimant within 24 hours of its decision on the extension request. If your claim is allowed, the insurance carrier will notify you who has been paid and the amount that has been paid, or will be paid, in the case of a pre-service claim. If your claim is denied in whole or in part, you will receive a written notice which must include the following information: 1. The specific reason or reasons for the denial of all or any portion of the claim. 2. The specific provisions of the coverage certificate, subscriber contract, the Plan and any other document, on which the denial is based. If the decision to deny benefits is based, in whole or in part, on a specific internal rule, guideline, protocol or similar criteria, either a copy of the document will be provided to you or you may request a copy of such document from the insurance carrier at no charge. If the decision to deny benefits is based, in whole or in part, on an exclusion or limitation that the treatment is experimental or investigational, or that the treatment is not medically necessary, either an explanation that applies the appropriate terms to your medical circumstances, and which details the scientific or clinical judgment that led to the decision to deny benefits will be provided to you or you may request such an explanation from the insurance carrier at no charge. 15

16 3. A description of any additional material or information necessary for you to complete the claim, and an explanation as to why such information or material is necessary. 4. Information as to how you may submit the claim for review and the applicable time limits. 5. A statement regarding your right to bring a civil suit under federal law should your appeal be denied. In the case of an urgent care claim, the notice of denial may be provided to you orally within the 72 hour period, so long as a written notice is provided within 3 days thereafter. You may appeal a claim denial by following the appeal procedure explained below. Appealing a Claim If you do not agree with the denial or partial denial of your claim or if you have questions concerning your claim, you are encouraged to contact the insurance carrier handling your claim. If you wish to appeal a claim denial, you may need to complete a form provided and required by your insurance carrier to file your appeal. In your appeal, you must state that you are requesting an official review of your claim and the reason(s) why you do not agree with the denial or partial denial of your claims and any additional information pertinent to the claim. You should contact the insurance carrier to bring an appeal. Except in the case of urgent care claims, the insurance carrier need not consider any telephone inquiry as a request for an official review of a denied claim. However, if the claim which is denied is an urgent care claim, you can request an expedited appeal by calling the insurance carrier handling your claim. If you want to appeal a denied claim, the insurance carrier must allow you at least 180 days after you receive notice of a denial or partial denial to file the appeal. During the 180 days (or any longer period the insurance carrier may allow), you or your representative may review and obtain from the insurance carrier copies of all documents, records and information relating to your claim. If you wish, you or your representative may submit written issues, comments and additional justification as to why the claim should be allowed. The insurance carrier is required to provide you with the name of each medical or vocational expert whose advice was obtained in connection with your denied claim, regardless of whether the advice was relied upon. When the insurance carrier reviews a denied claim, it may not afford any deference to the initial decision. The review will be conducted by an individual, committee or department identified in your subscriber contract or coverage certificate. If the benefit denial is based in whole or in part on a medical judgment, such as whether the procedure is experimental or is not medically necessary, the person reviewing the claim at the insurance carrier is required to consult with a health care professional who has appropriate training and experience in the particular field of medicine relating to your claim. This health care professional will be someone who was not consulted on the initial claim denial. The review of a claim denial is required to be done by the insurance carrier within the following time frames: Pre-Service Claim If the denied claim was a pre-service claim (other than an urgent care claim) the insurance carrier is required to decide your appeal within 30 days. Urgent Care Claim If the denied claim was an urgent care claim, the insurance carrier is required to decide your appeal within 72 hours. 16

17 Post-Service Claim If the denied claim was a post-service claim, the insurance carrier is required to decide your appeal within 60 days. The insurance carrier is required to provide you with a written notice of the determination on review. If the denial of your claim is upheld (in whole or in part) the notice is required to include the following information: 1. The specific reason or reasons for the adverse determination. 2. The specific provisions of the subscriber contract, certificate of coverage, the Plan and any other document on which the adverse determination is based. 3. A statement that you may obtain, upon request and free of charge, reasonable access to and copies of all documents, records and other information relevant to your claim for benefits. If any internal rule, guideline, protocol or similar guideline was relied upon in making the adverse determination, the insurance carrier must either provide it to you with the written notice or provide you with a copy of it free of charge upon request. If the adverse determination is based on medical necessity, experimental treatment or a similar exclusion, the insurance carrier must either provide an explanation of the scientific or clinical judgment for the adverse determination to you with the written notice, or provide it to you free of charge upon request. 4. If the insurance carrier has any voluntary appeal procedures, information regarding those procedures. Should you have any questions regarding the claims procedure, please contact the Human Resources Benefits Department. Name of Plan: Plan Sponsor: Plan Administrator: Address: U.S. XPRESS Enterprises, Inc. Employee Benefit Plan U.S. XPRESS Enterprises, Inc. U.S. XPRESS Enterprises, Inc Jenkins Road Chattanooga, TN Telephone: Employer ID: Plan #: 501 Agent for Service of Legal Process: Vice President & General Counsel Address: 4080 Jenkins Road Chattanooga, TN Service of Legal Process may be made on the Plan Administrator. Plan Year: Calendar Year 17

18 Type of Plan: Welfare plan providing health (hospitalization, physician visits, prescription drugs, outpatient services and preventative services), dental, vision, long-term disability, AD&D and group term life, dependent care assistance benefits and medical reimbursement benefits. The Plan is also an Internal Revenue Code section 125 plan and an Internal Revenue Code section 129 plan. Funding: Except for medical benefits, benefits are fully insured. Medical benefits are self-insured with claims paid from the general assets of the Company and employee contributions. Premiums for fully insured benefits are paid in whole or part by the Company out of its general assets and in part by the Employee s pre-tax or post-tax payroll deductions. The Plan Administrator provides a schedule of the applicable premiums during the initial and subsequent annual enrollment periods and on request for each of the component benefit programs, as applicable. Claims Administrators and Insurance Carriers: 1. Blue Cross Blue Shield of Tennessee, Inc. 1 Cameron Hill Circle Chattanooga, TN (800) PayFlex Systems USA, Inc. P.O. Box 3039 Omaha, NE (800) Delta Dental Plan of Tennessee 240 Venture Circle Nashville, TN (800) Medco/Express Scripts. N 19 W24130 Riverwood Drive Waukesha, WI VSP 3091 Governors Lake Drive, Suite 240 Norcross, GA (800) Unum 1 Fountain Square Chattanooga, TN (877) Allstate Workplace Division 1776 American Heritage Life Drive Jacksonville, FL

19 Please contact the Benefits Department for a complete copy of the Evidence of Medical Coverage. 19

20 20