SMART SHOPPING TIPS. Annual Enrollment. for 2015 ENROLL OCT. 30 NOV. 18, Taking enrollment seriously. ACT

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1 SMART SHOPPING TIPS for 2015 Annual Enrollment ENROLL OCT. 30 NOV. 18, 2014 Taking enrollment seriously. ACT

2 WE ARE BNSF. AND WE TAKE ENROLLMENT SERIOUSLY. 1Know What s New That means you need to be a smart benefits shopper. So, we ve put together this buyer s guide filled with tips to help you decide which plans are best for you and your family. Let s be prepared for enrollment.

3 1 4 Contribute to Your HSA Buy smart. Save time and money. 3 Compare Expected Expenses to Paycheck Contributions 5 Consider Increasing Disability Coverage FOR ALL THE DETAILS, go to enroll.mybnsf.com. 2 Confirm Tobacco and Working Spouse Surcharges 1

4 KNOW WHAT S NEW There are a few changes for Here s what you need to know: The Aetna network for medical coverage will be eliminated. But don t worry. 95% of doctors in the Aetna network are also in the BlueCross BlueShield (BCBS) network. Make sure your doctors are in the BCBS network by going to and clicking on Find a Doctor. Health Advocate can also help you find in-network providers. Just call Monday Friday from 7 a.m. to 8 p.m. Central time. Premiums for both medical options are increasing. Option 1 will increase up to $5 monthly (depending on your salary) for You Only coverage or $34 for Family coverage. Option 2 will increase up to $3 monthly (depending on your salary) for You Only coverage or $25 for Family coverage. Health Savings Account (HSA) maximum contributions are increasing. The maximums for 2015 are $3,350 for You Only coverage and $6,650 for Family coverage. These maximums include your contributions and BNSF s. (You can contribute an extra $1,000 if you will be at least age 55 in 2015.) There s a new rollover feature for the Health Care Flexible Spending Account (FSA). You can roll over from $25 to $500 in unused funds from 2014 into You must use the rollover amount by Dec. 31, Optional Life Insurance and buy-up LTD rates are decreasing. The monthly cost for Optional Life Insurance is decreasing by 20% to cover yourself and 16% to cover your dependents. Contributions for buy-up Long-Term Disability (LTD) are also decreasing. We re making your benefits even better. Check out the insert included in this enrollment kit to learn all about two new programs coming your way in 2015 SurgeryPlus and Teladoc, both of which are designed to save you time and money.

5 Moritz Hawthorne Track Supervisor SMART SHOPPERS DO THIS: Understand the changes. BNSF evaluates our benefits package every year to make sure that we are offering you the best value and coverage for your money. We re making these changes to help manage cost inflation for both you and BNSF, and to help us maintain a reasonable cost-sharing split. This year, BNSF will continue to pay the majority of the cost for your medical benefits 70% on average. Plus, we re making enhancements to encourage you to be a good consumer of health care, which helps us all in the long run. 3

6 Jennifer Duncan Sr. Systems Developer SMART SHOPPERS DO THIS: Cover only dependents who are eligible. Make sure you know who is eligible to be covered. Go to enroll.mybnsf.com to see all the details about who s eligible for BNSF benefits. 4

7 2 Don t pay more than you have to for your benefits. CONFIRM TOBACCO AND WORKING SPOUSE SURCHARGES Covering spouses who have coverage through their own employer costs you and BNSF. So, if you cover a working spouse, you will pay a $50 per-pay-period surcharge if he/she has group medical coverage available through his/her employer. Be sure to compare your options and consider if it makes sense to cover your spouse under his/her employer-provided coverage for Plus, if you or your spouse use tobacco products, you will pay an additional $20 per pay period for each tobacco user. You must certify your tobacco usage and working spouse status during annual enrollment. If you take no action, your current statuses will carry over to

8 COMPARE EXPECTED EXPENSES TO PAYCHECK CONTRIBUTIONS Does it make more sense for you to pay more in paycheck contributions to have a lower deductible? Or would lower paycheck contributions but a higher deductible fit you better? With both medical plan options, you must first meet the deductible. (You can use the money BNSF puts into your HSA to help meet the deductible.) Option 1 offers a lower deductible than Option 2. Paycheck contributions are higher in Option 1 because there s a lower deductible and out-of-pocket maximum. Once you meet your deductible, you and the plan share costs. This is called coinsurance. (Both plans offer the same coinsurance percentages you pay 20% and BNSF pays 80% when you stay in network.) 6 If you have a lot of expenses during the year, you may hit the out-of-pocket maximum, which is the most you pay out of your pocket before the plan pays 100% of eligible in-network expenses for the rest of the year. Option 1 offers lower out-of-pocket maximums than Option 2.

9 Being a smart shopper means choosing the plans that are best for your particular situation. Yolanda Carroll Director, Marketing SMART SHOPPERS DO THIS: Understand how your plan works. If you enroll only yourself for medical coverage, the You Only deductible applies. However, if you enroll yourself and anyone else (your spouse, your children or both), the Family deductible applies. This means you must meet the entire Family deductible amount before the plan will begin to share the cost of eligible expenses for any covered person. See the back section of this guide for plan details and comparisons. 7

10 The HSA is very beneficial. I contribute and it comes in very handy when you need it. Asim Ghanchi Director, Technology Services 8

11 CONTRIBUTE TO YOUR HSA 4 The Health Savings Account (HSA) lets you and BNSF contribute to an account that you can use to pay for eligible health care expenses. BNSF adds as much as $2,300 depending on your salary, which plan you enroll in, who you cover, and whether you got a health screening and certified it during the Know Your Numbers campaign. In addition to the money BNSF adds to your HSA, you can grow your account by adding money of your own and it comes out of your paycheck tax free. In a sense, the HSA works like a 401(k) plan for health care expenses. See the back of this guide for BNSF s contribution amounts. SMART SHOPPERS DO THIS: Save for future expenses. Don t just think about putting money in your HSA for 2015, think about putting in a little bit at a time over the next several years, so you ll have it when you retire. You never know what medical expenses you ll have later in life and with the HSA, the money is always yours to use whenever you need it. It s good to be prepared. 9

12 CONSIDER INCREASING DISABILITY COVERAGE Becoming disabled is not as unlikely as you might think. In fact, of almost 70 million families in the U.S., more than 20 million include at least one person with a disability. But BNSF helps you keep the money coming in to pay your bills by offering:» Short-Term Disability (STD) Ensures 100% of pay for up to 177 days» Long-Term Disability (LTD) Ensures 50% of pay after STD ends, up to age 65 In addition to this coverage, you may buy-up LTD* to 66 2 / 3 % of pay replacement during annual enrollment. * Pre-existing condition limitations apply to the LTD program during your first year of coverage and your first year of buy-up coverage. See the SPD for more details. 10 SMART SHOPPERS DO THIS: Go online and check out the cost. You ll find details and paycheck contributions for buy-up LTD, along with life insurance and accidental death and dismemberment information, at enroll.mybnsf.com.

13 Bobby Webb Switchman 11

14 MEDICAL PLANS The Basics Before the plans pay anything, you have to meet your deductible, which is based on whether you cover yourself only or yourself and your family. But, you can use money in your HSA to help, including money from BNSF.* Option 1 Option 2 Deductible You Only Coverage $1,500 $3,000 Family Coverage $3,000 $6,000 HSA Money from BNSF If Your Annual Salary is Less Than $75,000 You Only Coverage $700 $950 You + Spouse Coverage $1,400 $1,900 You + Children or Family Coverage $1,800 $2,300 If Your Annual Salary is $75,000 or More You Only Coverage $500 $750 Family Coverage $1,000 $1, * The BNSF contributions shown assume you got a health screening and certified it during the Know Your Numbers campaign. If you did not certify, or if you were hired after Aug. 31, 2014, BNSF s contribution will be $250 less than what s shown.

15 The Rates Per Paycheck What you pay per paycheck for medical and prescription drug coverage depends on the plan you choose, your base salary and who you cover. Be sure to keep in mind that the tobacco surcharge and the working spouse surcharge may affect your costs. Option 1 Option 2 Annual Salary Less Than $75,000 $75,000 $100,000 More Than $100,000 Less Than $75,000 $75,000 $100,000 More Than $100,000 You Only Coverage $28.00 $36.50 $59.00 $17.00 $23.50 $35.50 You + Spouse Coverage $75.00 $93.00 $ $43.50 $59.00 $89.50 You + Children Coverage $64.00 $79.50 $ $37.50 $51.00 $77.50 You + Family Coverage $ $ $ $61.00 $83.00 $

16 enroll.mybnsf.com The Details Both medical plans pay the majority of the cost for care after you meet your deductible. If you have a lot of expenses during the year, your share (coinsurance) may reach the out-of-pocket maximum. This is the most you ll pay out of your own pocket for eligible expenses you incur during the calendar year. Once you reach the out-of-pocket maximum, the plan pays 100% of eligible expenses. Both plans also cover in-network preventive care at 100% with no deductible and include prescription drug coverage. Option 1 Option 2 Out-of-Pocket Maximum In Network Out of Network* In Network Out of Network* You Only Coverage $3,500 $5,500 $5,000 $7,000 Family Coverage $7,000 $11,000 $10,000 $14,000 Coinsurance Office Visits, Urgent Care, Hospital Care, Maternity Care 20% after deductible 40% after deductible 20% after deductible 40% after deductible * You are responsible for paying any portion of the charge that exceeds the reasonable and customary limit. 14

17 PICTURE Inside you ll find information about your medical plan options for Go to enroll.mybnsf.com to see complete details about your BNSF benefits, including prescription drug, dental, vision, life insurance, disability and accidental death and dismemberment coverage. AC

18 The information in this brochure provides highlights of certain changes to the Burlington Northern Santa Fe Group Benefits Plan. In addition, this guide serves as a Summary of Material Modifications (SMM) to the Summary Plan Descriptions (SPDs) for various programs included in the Burlington Northern Santa Fe Group Benefits Plan, effective Jan. 1, Complete details of the plans are included in the official plan documents and contracts. If the information in this brochure or other information conflicts with the legal documents or contracts, the documents or contracts will govern in every instance. In addition, BNSF reserves the right to change or terminate the Burlington Northern Santa Fe Group Benefits Plan, individual programs or any provisions of any program at any time. October 2014 ACT