HEALTH CARE CHOICES FOR ELIGIBLE RETIREES

Transcription

1 HEALTH CARE CHOICES FOR ELIGIBLE RETIREES Effective 2013

2 table of contents > Page 2 3 Retiree Medical Plan Overview 3 Plan Highlights and Eligibility 5 Non-Medicare Eligible Retiree Component 6 Aetna PPO Plans at a Glance 7 Medicare Eligible Retiree Component 8 Extend Health Resources 8 HRA Reimbursement Arrangement (HRA) 9 Plan Highlights 11 What s Next 11 What You Need to Do 12 Answers to Frequently Asked Questions The SPE benefits are governed by the official plan documents (which may include underlying contracts). This guide is not intended to amend or revise any official plan document or change the terms of any plan in any way. In the event of a conflict between this guide and the governing plan documents, the plan documents will control. This guide is for information purposes only and information contained herein may include programs that are not applicable to all employees. Receipt of this guide does not constitute a waiver of any applicable eligibility requirements. SPE reserves the right to amend (or terminate) any of its benefits programs at any time and for any reason subject only to applicable limitations imposed by law.

3 SPE retiree medical plan overview > Page 3 SPE Retiree Medical Plan When you are ready to retire, the transition to your new retiree medical coverage should be as smooth as possible. This brochure provides you with a summary of the information you ll need, as well as your next steps. This brochure is only a summary. It is not intended to be a complete overview of the retiree medical benefits you may be eligible for. More specific information about the SPE Retiree Medical Plan ( Plan ) can be obtained from Plan Highlights The Plan is comprised of two components the Non-Medicare Eligible Retiree component and the Medicare Eligible Retiree component. Eligibility and benefit options vary by component. Available options allow you to manage your health and well-being with a benefits program that provides valuable health care protection for retirees and their eligible dependents. Non-Medicare Eligible Retirees The SPE Non-Medicare Eligible Retiree component generally offers the same coverage as the medical PPO plan for active employees. Medical coverage is provided by Aetna and prescription drug coverage is provided through Express Scripts. (See page 5 for details). Retirees and spouses/qualifying domestic partners (QDP), will each receive a $14,000* annual subsidy per retiree and spouse/ QDP covered under the SPE Non-Medicare Eligible Retiree component. The total amount will be used to offset the monthly premium amounts due for coverage. While eligible retirees may begin or continue coverage for eligible dependent children, SPE does not subsidize the cost of such coverage. Remember, your children are eligible for Plan coverage only if they satisfy the Plan s eligibility criteria. Medicare Eligible Retirees SPE will provide Medicare eligible retirees and their spouses/qdp access to a variety of individual Medicare supplemental health care plans through the Plan s Medicare Eligible Retiree component. We partner with a company called Extend Health so you can choose the type of Medicare supplement plan that works best for you. If you enroll in coverage for an individual Medicare supplement plan through Extend Health, a Health Reimbursement Account (HRA) will be established for you. SPE will provide an annual subsidy (prorated for the calendar year) per retiree and spouse/qdp via a contribution to a tax-free HRA on your behalf for the plan year, as long as you remain enrolled in a Medicare supplement plan through Extend Health. The annual subsidy for 2014 is $4,800. This amount may change in the future. If it does, you will be notified in advance of any such change. See page 8 for more information regarding HRAs. Your non-medicare eligible spouse/qdp and eligible dependent children will be enrolled in the Plan s Non-Medicare Eligible Retiree component, provided they satisfy the Plan s eligibility criteria. Please note that the SPE Retiree Medical Plan options do not include vision or dental coverage. You, and your spouse/qdp or dependent children may only elect to continue such coverage (if applicable) with COBRA. Eligibility In accordance with Plan rules, employees must meet the following requirements as of the last day of employment, in order to be eligible for SPE s retiree medical coverage: The retiree must: Be at least age 65 with 5 years of service as determined under Plan rules; or Be at least age 55 with 10 years of service as determined under Plan rules; or Be the age at retirement when added to years of service with the Company totals at least 75 Have been hired before January 1, 2011; and Eligible for and enrolled in an SPE sponsored medical plan immediately preceding retirement. Generally, for your spouse/qdp or dependent children to be eligible for Plan coverage, you must be enrolled in either the Non- Medicare Eligible Retiree component or the Medicare Eligible Retiree component part of the Plan. Coverage for spouse/qdp shall continue for their lifetime following your death, pursuant to the terms of the SPE Retiree Medical Plan. Your dependent children will remain eligible for coverage as provided under the Plan. * The amount of the subsidy may change in the future. If it does change, you will be notified in advance of any such change.

4 SPE retiree medical plan overview > Page 4 Which Plan Do I Choose? The type of medical plan coverage available to you, your spouse/qdp or dependent children is based on individual Medicare eligibility. Your dependent(s) coverage does not necessarily follow your medical plan coverage. Therefore, if you are eligible for Medicare, and they are not, you would enroll in the Medicare Eligible Retiree component by selecting an individual Medicare Supplement plan through Extend Health, and your dependent(s) would enroll in the SPE Non-Medicare Eligible Retiree component. What Happens Next? If you are eligible for coverage under the Non-Medicare Eligible Retiree component, you and your spouse/qdp and dependent children will automatically be enrolled in that component of the Plan. You will receive information from CONEXIS. (See page 11). If you are eligible for coverage under the Medicare Eligible Retiree component, you must elect and enroll in a Medicare supplement plan through Extend Health for you and your spouse/qdp and dependent children to remain eligible for Plan coverage. Once enrolled, an HRA will be established for you. Extend Health will send you information about the various Medicare supplement plans available. (See page 5 for information for non-medicare eligible spouses/qdp and dependent children). If you do not elect an option through the SPE Retiree Medical Plan when first eligible to do so, you, your spouse/qdp and eligible children will cease to be eligible to elect a SPE Retiree Medical Plan coverage at that time and in the future. COBRA You and your covered dependent(s), if applicable, will be notified by SPE s COBRA Administrator, CONEXIS, of your rights to continue medical (with prescription), vision, and dental coverage, in compliance with the Consolidated Omnibus Budget Reconciliation Act (COBRA). You may elect to continue medical coverage either through COBRA or through the SPE Retiree Medical Plan. If you elect to continue your medical coverage through COBRA, you will no longer be eligible for SPE Retiree Medical Plan coverage.

5 non-medicare eligible retiree medical plan > Page 5 Non-Medicare ELIGIBLE Retiree COMPONENT The SPE Non-Medicare Eligible Retiree component is an Aetna PPO plan that offers the flexibility of going to any health care provider, in-or out-of- network. There is a deductible that you must meet before the plan benefits start paying. For full details on what is covered, please refer to the Summary Plan Description available on Aetna is committed to making your health care benefits convenient and easy to understand with lots of easy-to-use tools and information. Aetna Navigator. Once you enroll and become an Aetna member, you ll be able to register at You ll use the secure member website to view your benefits, check claims, print a temporary I.D card, and much more. In Touch Care puts Aetna nurses on your case. When your records show you have certain health risks, an Aetna nurse or consultant will call to offer support. You can work one-on-one with your assigned nurse or use the selfdirected program. Personal Health Record is an easy-to understand summary of your health-related activity, including doctor visits and prescription drugs. SPE Custom Docfind is a custom provider look-up site so you can easily check to see if your current physician and facilities are within the Aetna network. The advantage of seeing an in-network doctor is that you ll pay less out of pocket because Aetna has already negotiated the best rates for you. Aetna Concierge Representatives can help you better understand all the health and wellness benefits available to you, check your coverage or look up a claim. Informed Health Line lets you talk to a registered nurse about any health-related issues or concerns. Available 24/7. Aetna Concierge REPRESENTATIVE: An advocate who will listen to you, understand your needs and find the solutions that are right for you one phone call away:

6 benefits eligibility for dependents > Page 6 aetna ppo benefits > Page 6 AETNA PPO BENEFITS AT A GLANCE The following is a summary of the benefits you ll receive through the SPE Non-Medicare Eligible Retiree component for For full details on what is covered, please refer to the Summary Plan Description, available on Plan Features Network Out of Network Annual Deductible $500 Individual/$1,000 Family $500 Individual/$1,000 Family Annual Out-of-Pocket (includes deductible) $1,200 Individual $1,200 Individual Preventive care 100% 80% Office visits 90% 65% Coverage for most services 90% 65% Emergency care Urgent Care Provider 90%* Emergency Room 80%* Urgent Care Provider 65%* Emergency Room 80%* Inpatient Hospital 90%* 65%* Outpatient testing and surgery 90%* 65%* Diagnostic x-ray and laboratory 90%* 65%* Inpatient mental health and substance use 90%* 65%* Outpatient mental health and substance use 90%* 65%* * After deductible Annual Premium Costs Coverage for eligible retirees and spouses/qdp in the SPE Non-Medicare Eligible Retiree component, will be subsidized by SPE for a fixed amount of $14,000* annually per retiree or spouse/partner covered under the Plan. We regret to inform you that SPE does not subsidize the cost of coverage for eligible dependent children. * While SPE intends to continue these contributions from year to year, SPE reserves the right to amend the amount it contributes based on business necessity. Coverage level for nonmedicare eligible retiree plan participants Total Annual Premium Less (-) Subsidy Annual Premium Monthly Premium Retiree or Partner Only $15, ($14,000) $1, $ Retiree + Partner $31, ($28,000) $3, $ Retiree+ Partner+ Child(ren) $44, ($28,000) $16, $1, Retiree or Partner+ Child(ren) $28, ($14,000) $14, $1, Child(ren) Only $12, $12, $1, Prescription Drug Benefits and Costs Prescription drug coverage is included in the cost of the SPE Non-Medicare Eligible component. Coverage is provided through Express Scripts. Please note certain coverage rules: SPE has a mandatory generic drug rule. This means that your pharmacist will always give you a generic equivalent for your prescription if there is one available. You will have to pay the difference in cost if you purchase a brand name drug when a generic is available unless specifically otherwise prescribed by your doctor. You must use mail order services for maintenance medications. You can obtain three refills at the retail pharmacy, after that you will have to fill your prescription through mail order or you will have to pay the full cost of your prescription. EXPRESS SCRIPTS GENERIC DRUGS PREFERRED BRAND NAME (FORMULARY) Participating Retail Pharmacy (30 day supply) Mail Order Pharmacy Short-Term Prescriptions NON-PREFERRED BRAND NAME (NON-FORMULARY) $10 $35 60% (Min. $45/Max. $90) Maintenance Medications You pay same as above for your initial prescriptions and your first three refills. For your next refill, you must use the Medco By Mail Pharmacy service or you will pay the full cost of your prescription. Mail Order (90 day supply) $25 $88 60% (Min. $112/Max. $224)

7 medicare-eligible retiree medical plan > Page 7 Medicare-Eligible Retiree Medical COMPONENT Did you know Extend Health has helped more than 500,000 Medicare eligible individuals at leading companies. SPE will provide Medicare eligible retirees and eligible dependents access to a variety of individual Medicare supplemental health care plans that offer more plan choices and greater flexibility. We partner with a company called Extend Health, so you can choose the type of Medicare supplement plan that works best for you. Extend Health s phone support and enrollment services are offered at no cost to you as an eligible SPE retiree or eligible dependent. Medicare Plan Types Include: Medigap/supplemental coverage that supplements or fills gaps in your existing Medicare Parts A and B. Medicare Part D prescription drug coverage. Medicare Advantage Plans (Medicare HMOs, PPOs). See pages 9-10 for more detail about the Medicare plan types available. The Extend Health plan options vary according to where you live. Extend Health will provide more information about these options when you call Under the Plan s Medicare Eligible Retiree component, SPE will subsidize the cost of medical coverage for Medicare-eligible retirees and spouses/qdp via a tax-free Health Reimbursement Arrangement (HRA) if you enroll in coverage through Extend Health. Your eligible dependent children can be enrolled in the SPE Non-Medicare Eligible Retiree component until they reach the plan s maximum age limit of age 26. (Subject to Plan rules). You can use HRA funds to help pay eligible health care expenses such as monthly premiums, deductibles and copayments, prescription drug, dental and even vision expenses that you incur in connection with the medical coverage you elect through Extend Health. You are responsible for any expenses that exceed the amounts available to you in the HRA. (For more details on the HRA, see page 8).

8 extend health resources > Page 8 EXTEND HEALTH RESOURCES What Resources are Available from Extend Health? We chose Extend Health because of its depth of experience helping people navigate change and assisting with health care benefit enrollment. Their licensed benefit advisors will become your advocates. They will help you choose and enroll in individual health care coverage that meets your needs and fits your budget. After you enroll, Extend Health will send you an annual enrollment notice each year that tells you how to evaluate the coverage choices for the next year and when you can make your enrollment changes. As part of the enrollment process, you will work with an Extend Health benefit advisor to evaluate health care options from leading national and regional insurance companies. Health Reimbursement Arrangement (HRA) SPE CONTRIBUTES TO THE HRA ON YOUR BEHALF If you enroll in medical coverage through Extend Health, SPE will provide an annual fixed amount of $4,800* per retiree/ spouse/qdp (prorated for the calendar year) via a contribution to a tax-free Health Reimbursement Arrangement (HRA) on your behalf for the plan year, as long as you remain enrolled in that coverage. If you enroll in medical coverage through Extend Health, SPE will provide an annual fixed amount of $4,800* per retiree/ spouse/qdp (prorated for the calendar year) via a contribution to a tax-free HRA on your behalf for the plan year. The HRA is an SPE-funded account that you can use to reimburse yourself for qualified health care expenses on a tax-free basis for those expenses incurred on or after the date you are enrolled in the HRA. You can use HRA funds to help pay eligible health care expenses-such as monthly premiums, deductibles and copayments, prescription drugs, dental and even vision expenses that you incur in connection with the medical coverage that you elect through Extend Health. You are responsible for any expenses that exceed the amounts available to you in your HRA. Extend Health manages the account on your behalf. You cannot make additional contributions to this account. Any funds remaining in the account at the end of the year will roll over into the next year. If you use up all the funds in your account before the end of the year, you are still responsible for any expenses incurred during the remainder of the year. You must elect, and maintain active coverage through a Medicare supplement plan through Extend Health to continue to receive, and use the HRA funds. Should your coverage be discontinued through Extend Health, or be cancelled due to non-payment of premiums, you will forfeit any existing and future SPE HRA contributions. HRA-Eligible Expenses The following expenses are among those eligible for reimbursement through an HRA: Premiums for Medicare coverage (including Medicare and Medigap plans) Out-of-pocket medical expenses such as deductibles, copayments, and your share of coinsurance Out-of-pocket prescription drug expenses Dental and vision plan premiums and out of pocket expenses Hearing Aids For a complete list of HRA-eligible expenses, go to gov/publications/ and search for Section 213(d) or call the IRS at This information is also available online at Getting Reimbursed from your HRA 1. You pay premiums and expenses: You pay the full premiums directly to your insurance provider. You also pay your provider any required out-ofpocket expenses. 2. You submit out-of-pocket expenses: You timely submit your claim to Extend Health for your premiums and out-of-pocket health care expenses. 3. Extend Health reimburses you: Extend Health administers your account and will reimburse you from your HRA to the extent that funds are available. Ask about the auto reimbursement option for premiums. * The amount of the subsidy may change in the future. If it does change, you will be notified in advance of any such change.

9 plan highlights > Page 9 How Does the SPE Medicare- Eligible Retiree Component Work? Before you contact Extend Health for your pre-enrollment call, learn how the various Medicare components work and take inventory of your own medical needs. Medicare benefits are divided into several component parts. To decide how to best meet both your medical and budget needs, it helps to understand how these parts work together. The simple outline shown here will familiarize you with the individual parts of Medicare and the decisions you must make. This information is current for Detailed information about Medicare is available at Type What does it cover? How do I Enroll? Part A Part B Medicare Advantage (Part C) 1. Private Fee- for- Service (PFFS) 2. Preferred Provider Organization (PPO) 3. Health Maintenance Organization (HMO) Medigap Part D Hospital Insurance: Part A covers hospice care, some home health care, skilled nursing facilities, and inpatient hospital stays. Medical Insurance: Part B covers physician fees and other medical services not requiring hospitalization. Medicare Advantage is a plan offered by a private company to provide you with Part A and Part B benefits plus additional benefits. There are two versions of Medicare Advantage Plans: MAPD, which includes prescription drug coverage, and MA, which does not. Medicare Advantage plans vary by the type of doctor network they provide: HMO, PPO, and PFFS. PFFS plans cover visits to any primary care doctor, specialist, or hospital that accepts the terms of the plan s payment. PFFS plans usually include a prescription drug plan. PPO plans cover visits to any physician whether they are in or out of the plan s network. However, you will pay less if you use primary care doctors, specialists, and hospitals in the plan s network. A PPO usually includes a prescription drug plan. Except for emergencies, an HMO only covers care that is provided by primary care doctors, specialists, or hospitals in the plan s network. Medigap is Medicare supplemental insurance sold by private insurance companies to fill gaps in Original Medicare plan coverage. Sold by private insurers, these 10 plans labeled Plans A, B, C, D, F, G, K, L, M and N offer standardized menus of benefits. (Massachusetts, Minnesota, and Wisconsin have their own versions of these plans.) Medigap policies only work in conjunction with Medicare Part A and B plans. Generally, there is no prescription drug coverage. Prescription Drug Coverage: Part D covers generic and brand-name drugs included in the plan s formulary, which is a list of drugs for which the plan will pay. Enrollment is automatic when you become Medicare-eligible. You must choose to enroll in Part B, as it is an optional plan. You must choose to enroll in a Medicare Advantage plan as it is an optional plan. You must choose to enroll in Medigap supplemental insurance. You must choose to enroll. A premium penalty is applied if you do not enroll when you first become Medicare-eligible, unless you are enrolled in another plan (e.g. a spouse s employer plan) that provides you with creditable Part D Coverage.

10 plan highlights > Page 10 How Does the SPE Medicare-Eligible Retiree Component Work? CONTINUED... Type Is there a premium? IS THERE A deductible? Is there coinsurance? Part A There is no premium for Part A if you have more than 10 years of Medicare-covered employment. There is a deductible for your first 60 days of inpatient care. There is no coinsurance for your first 60 days of inpatient care. There is no coinsurance for your first 60 days of inpatient care. Part B For 2014, most individuals pay $ each month. Late enrollment penalties may apply. Income adjustment rates can apply. There is a Part B annual deductible. Part B covers 80% of medically necessary services. You are responsible for the remaining 20%. Part B covers 50% of approved outpatient mental health services. Medicare Advantage (Part C) 1. Private Fee- for- Service (PFFS) 2. Preferred Provider Organization (PPO) Each Medicare Advantage plan sets its own premium, deductible and coinsurance. In addition, you will continue to pay your Medicare Part B premiums. 3. Health Maintenance Organization (HMO) Medigap If you choose to enroll in a Medigap plan, you will pay a monthly premium to the insurance company you choose. In addition, you will continue to pay your Medicare Part B premiums and you are responsible for Part B deductibles and coinsurance. There are no deductibles or coinsurance specific to Medigap plans. Part D Whether you pay a Part D premium, deductible or coinsurance depends on the plan you choose, as each Part D plan has a different cost-sharing structure. Depending on the plan, you may pay both a monthly premium and a share of the cost of your prescriptions in a Part D plan.

11 answers to frequently asked questions. what s next? > Page 11 What s Next? NON-MEDICARE ELIGIBLE RETIREES You will receive an enrollment letter in the mail from CONEXIS. WHAT YOU NEED TO DO You may choose your coverage level for you, and/or your eligible dependents. Once enrolled you will receive a monthly invoice for the amount due. A separate document will also be mailed to you outlining your COBRA options and costs. If you have any questions or need any further assistance, please feel free to contact Participant Service Representatives at mybenefits.conexis.com or call MEDICARE ELIGIBLE RETIREES You will receive an Enrollment Guide directly from Extend Health mailed to your home. InsIde You ll learn how to use your extend health online account. which documents you should save for use. FUNDING & REIMBURSEMENT Access & manage your reimbursement funds how to submit claims for reimbursement. WHAT YOU NEED TO DO Review the information in the booklet Review the guide carefully to make sure you understand how the HRA works Complete the pre-enrollment worksheet that is included Call Extend Health if you have questions at or go online at IMPORTANT: If you do not enroll in the SPE Retiree Medical Plan when you first become eligible, your Plan eligibility ends immediately and you may not enroll at a later date. If you are eligible under the Medicare Eligible Retiree component and you do not enroll in a Medicare supplemental plan through Extend Health (either when first eligible or at a later date), you will also cease to be eligible under the SPE Retiree Medical Plan at that time. Similarly, if you do not enroll your dependents when they are first eligible, you will not be allowed to add them to your coverage in the future.

12 answers to frequently asked questions > Page 12 Answers to Frequently Asked Questions Why is SPE Partnering with Extend Health? We believe the arrangement with Extend Health will benefit both you and the company because it: Allows SPE to continue to offer retiree health care options in a time of economic challenges and ongoing national uncertainty about the rising costs of medical insurance coverage and services Provides you with a number of options so you can choose the best health care plan for your situation Gives you flexibility in how you can use SPE s HRA contribution Depending on which options are chosen, you could potentially save money. About Extend Health Who is Extend Health? Extend Health employs licensed benefit advisors to assist you with selecting a health plan that is based on your medical, prescription, vision and dental needs and budget. They have helped more than 500,000 Medicare eligible individuals with this same change from leading companies such as Caterpillar, Avon, Whirlpool, Allstate, and Union Pacific Railroad. What kinds of questions can Extend Health answer for me now? Common questions that Extend Health can answer for you now include: Who is Extend Health? When is the enrollment period? What action do I need to take and when do I need to take it? Will I be able to enroll in any plan I want? What materials will I receive and when? How much is my HRA? How do I schedule my enrollment appointment? Once you receive your Enrollment Guide from Extend Health, call to begin the enrollment process. Extend Health benefit advisors are available weekdays from 9 a.m. to 9 p.m., Eastern time. Identify yourself as an SPE retiree. You may also access information online at Extend Health advisors will provide you with personal support and guidance to help you choose appropriate health care plans and enroll for coverage.

13 answers to frequently asked questions > Page 13 What happens if I AM Medicare Eligible? Here s what happens if you ARE eligible for Medicare Medicare eligible retiree and/or spouse/qpd: If you enroll in the Plan s Medicare Eligible Retiree component through Extend Health, an HRA will be established, and you can begin using the HRA funds. If you are currently enrolled in SPE-sponsored coverage and do not enroll in the Plan s Medicare Eligible Retiree component through Extend Health when first eligible, all financial assistance and coverage from SPE will end. Medicare eligible child of a retiree: With the loss of group coverage, they will be eligible to enroll into individual health plans through Extend Health. What happens if I am AM NOT Medicare Eligible? Here s what will happen if you ARE NOT eligible for Medicare. SPE retiree and or spouse/qdp NOT eligible for Medicare: The Plan s Non-Medicare Eligible Retiree medical coverage through Aetna will be available. Approximately four months before reaching age 65, Extend Health will mail you information so you can begin the enrollment process for the Plan s Medicare Eligible Retiree component and establish your HRA. Dependent child NOT eligible for Medicare: SPE-sponsored coverage available to a non-medicare eligible dependent child will continue to be available under the Plan s Non-Medicare Eligible Retiree component until they reach the plan s age limit, subject to Plan rules. Note: The SPE retiree must be enrolled under the SPE Retiree Medical Plan for a dependent child to enroll. You may enroll your eligible child into the Plan, but SPE does not subsidize their coverage. If your dependent child becomes eligible for Medicare, you may enroll him/her in individual coverage through Extend Health, but you will not receive a subsidy or HRA on his or her behalf. I am a Medicare eligible participant covered under my spouse s medical plan, which she has because she is still working. What is the impact if I enroll in the Plan through Extend Health? You still must enroll in the Plan through Extend Health for coverage if you want to receive an SPE-funded HRA. However, just as your spouse s active employee medical plan pays primary now, that plan will continue to be the primary plan and any Medicare plan, including plans you elect through Extend Health, will be secondary. The Health Reimbursement Arrangement What is a Health Reimbursement Arrangement (HRA)? The HRA is an SPE-funded account that you can use to

14 benefits eligibility for dependents > Page 14 answers to frequently asked questions > Page 14 reimburse yourself for qualified health care expenses on a taxfree basis for those expenses incurred on or after the date you are enrolled in the HRA. An HRA will be established for both you and your spouse/qdp if you each are eligible for Medicare, and you enroll through Extend Health. HRA funds are not taxable when used for qualified health care expenses. You can use them to reimburse yourself for health care plan premiums and/or your share of qualified health care expenses during the year. HRA-eligible expenses The following expenses are among those eligible for reimbursement through an HRA: Premiums for Medicare coverage (including Medicare Advantage and Medigap plans) Out-of-pocket medical expenses such as deductibles, copayments, and your share of coinsurance Out-of-pocket prescription drug expenses Dental and vision plan premiums Dental and vision plan out-of-pocket expenses The cost of hearing aids Extend Health manages the account on your behalf. You cannot make additional contributions to this account. Who is eligible for the HRA? The HRAs will be established only for Medicare eligible SPE retirees and their Medicare eligible spouses/qdp who enroll in the Plan through Extend Health. If I am eligible and qualify for a company contribution toward the cost of my health care coverage, when will the contribution be placed in my HRA? When you enroll through Extend Health as a Medicare eligible participant, SPE s annual contribution to your HRA will be available shortly after you enroll. What happens to the company s contribution to the HRA if I don t use the full amount in the year it s contributed? Any funds remaining in the account at the end of the year roll over into the next year. You have until March 31 of the following year to submit all claims from the prior year. If I enroll for coverage through Extend Health and later drop that coverage, can I cash out any funds remaining in my HRA? No, the HRA is available only while you are enrolled in the Plan through Extend Health. If you later drop coverage, you forfeit any remaining amount in your HRA. Will reimbursements from the HRA be made directly to my provider (physician, pharmacy)? No all HRA reimbursements are paid directly to you. You must first pay the provider and then be reimbursed from the HRA. Will the HRA contribution change in the future? SPE continually evaluates its benefit plans and offerings. If the HRA contribution changes in the future, you will be notified. About the Enrollment Period If I choose not to enroll in the SPE Retiree Medical Plan, or opt out of coverage, can I enroll at a later date? No, if you opt out of coverage at any time, you cannot elect to participate in the SPE Retiree Medical Plan options or receive the HRA contribution or subsidy (if applicable) at a later date. Will I have many plans to choose from when I enroll? There is only one option available under the Plan s Non- Medicare Eligible Retiree component. If you participate in the Plan s Medicare Eligible Retiree component, Extend Health has partners with more than 70 health insurers and offers a wide selection of plans from both national and regional carriers. This means that even if you travel, you can choose a carrier that provides coverage wherever you are in the United States. More detailed information about the Medicare plan types and the actual plans offered will be provided to you by your Extend Health benefit advisor. Will I be able to change Medicare plans again in the future or will I be locked in to the coverage I elect? If you participate in the Plan s Medicare Eligible Retiree component through Extend Health, you will receive an annual enrollment notice each year telling you how to evaluate your coverage choices for the next year and the schedule for making any changes.

15 Sony Pictures Entertainment reserves the right, in its sole and absolute discretion, to amend, modify or terminate the SPE Retiree Medical Plan and any component there of, and any other company-sponsored benefit plan, at any time and for any reason, subject only to applicable limitations imposed by law.