2017-2018 BENEFITS PRESENTATION - PowerPoint Presentation

2017-2018 BENEFITS PRESENTATION FRED BEANS FAMILY OF DEALERSHIPS

Benefits Presentation Fred Beans Family of Dealerships and Trion are pleased to present your employee benefits for 2017-2018

Agenda Open Enrollment What’s New for 2017-2018 Benefits Overview Medical Plan Options including Health Reimbursement Account (HRA) Prescription Drug Benefit 2017-2018 Plan Program Certifications Healthy Living Telehealth Benefit Dental & Vision Plan Options Flexible Spending Account (FSA) Plans Life and Accidental Death and Dismemberment (AD&D) American Fidelity Voluntary Benefit Plans

Open Enrollment 2017 Open Enrollment - 2017 Benefits Open Enrollment will be from June 1 st and close June 13th Selection of 2017 benefits You must complete online certification for both the Tobacco Surcharge and the Spousal/Domestic Partner (if you’re enrolling a spouse/domestic partner) or the applicable surcharge will apply Add, drop or change coverage Effective: July 1, 2017 – June 30, 2018 Exception: “Qualifying Life Event” (QLE) Birth or adoption of a child Marriage or divorce Change in other coverage for you or your spouse/dependents

Open Enrollment 2017 The Employee portal will be open from June 1 st through June 13 th : To enroll in benefits: Log onto the “Employee Portal” Click on the BLUE BOX “My Benefits” Choose “Review/Select Benefits” There will be a button in the top right-hand corner of the screen that will state “Start Open Enrollment” Once you have completed your elections: Please click “Submit Request”, which is located at the top right of the screen The system will then ask you to review your elections once more Type in your password, and click “Accept” or “Decline”

What’s New for 2017 Medical Plans: Health Reimbursement Account (HRA) Available with the Keystone POS or Personal Choice HDHP plans Employer funded account Helps to pay for services applied toward your plan deductible Unused funds rollover year after year up to the plan limit maximum Vision Plan: Transitional & Photosensitive Lenses added to the program Flexible Spending Accounts (FSA): Health Care Spending Account The annual maximum you can contribute increased to $2,600

What’s New for 2017…continued Aetna Supplemental Employee and Dependent Life and AD&D: Those currently enrolled will be grandfathered at your current election For an increase in coverage, for any first-time enrollment due to a QLE or for new hires, you will need to enroll in American Fidelity Term Life Product Allstate Voluntary Benefits: All of the products will term as of 6/30/17 You will have the option to convert or port your coverage to a direct bill basis You can replace your existing Allstate benefits with a benefit being offered through American Fidelity American Fidelity Voluntary Benefits: Will be offering Term Life, Accident, Hospital GAP, Critical Illness as new options You must meet with an American Fidelity representative to enroll

Benefits Overview Company Paid Benefits Basic Life Insurance and Accidental Death & Dismemberment MDLIVE (telehealth benefit) Health Reimbursement Account (HRA) Contributory Benefits Medical & Prescription Drug Point of Service (IBC POS) Health Maintenance Organization (IBC HMO) Preferred Provider Organization (IBC PPO) High Deductible Health Plan (IBC HDHP PPO) Voluntary Benefits Dental Vision Flexible Benefits (FSAs) Health Care Spending Account Dependent Care Spending Account Voluntary Disability Insurance Cancer Insurance Critical IllnessGroup AccidentTerm Life with AD&DHospital GAP Insurance Pre-Tax Contributions for Medical, Dental, Vision, FSA, Disability , Cancer Insurance, Group Accident and Hospital GAP Insurance

Medical & Prescription Drug Benefits Medical: Plans administered by Independence Blue Cross (IBC) HDHP: lowest payroll cost – higher out-of-pocket cost for services POS: core plan – has copayments and a deductible HMO: In-Network only – has copayments but no deductible PPO: highest payroll cost – richest benefit plan Prescription Drug: Plans administered by Independence Blue Cross (IBC) via FutureScripts POS/HMO/PPO: copayment based benefits, separate OOP HDHP: deductible based benefits, both deductible and OOP integrated with the Medical deductible and OOP All plans offer Mail Order services

How the High Deductible Health Plan (HDHP) works Medical: Preventive Care is covered at 100%, no deductible or copayments Deductible must be satisfied before benefits are paid (except Preventive) You pay the entire cost until deductible is met Tools are available on the IBC website Consumerism driven plan – “shop before you buy” Prescription Drug: Certain Preventive Care prescriptions are covered at 100%, no deductible or copayments The medical plan deductible must be satisfied before benefits are paid (except for preventive care medications) You pay the entire cost of the drug until the deductible is met Deductible and out of pocket maximum are integrated with the medical plan

What is a Health Reimbursement Account (HRA) Health Reimbursement Account (HRA): Is an account that accumulates funds to cover your health care expenses It is paired with a high deductible plan that protects you from large health care expenses Advantages of a HRA: Employer funded. HRAs are funded solely with employer dollars Favorable tax treatment. Coverage and expenses reimbursed through the HRA are excludable from your gross income Reduce your out-of-pocket costs. Use your HRA to pay for eligible medical expenses applied to your deductible Carry-over of unused coverage. Unused account dollars are carried over to subsequent plan years up to the plan limit maximum

How does a Health Reimbursement Account (HRA) work Health Reimbursement Account (HRA): The HRA is paired with the Keystone POS and Personal Choice HDHP The HRA is not available for the Keystone HMO or Personal Choice PPO At the beginning of each plan year, Fred Beans Family of Dealerships will fund: $250 for Employee Only Coverage $500 for Employee Plus One or More Coverage Unused funds will rollover at the end of the 3 month run-out period up to a maximum of: $750 for Employee Only Coverage $1,500 for Employee Plus One or More Coverage The HRA is for eligible expenses applied toward your deductible only: POS: Examples – Inpatient hospital, Outpatient Surgery HDHP: Examples – all services except Preventive Care Services which are covered at 100%

How are the funds used for the Health Reimbursement Account (HRA) Health Reimbursement Account (HRA): HRA will be set up to reimburse the provider directly (except for Rx under the HDHP) Keystone POS Plan: For any services without a copay, advise the provider you have a HRA The provider will submit the bill to IBC Any eligible amount applied to your deductible will be paid to the provider based on the balance of your HRA fund The provider will then balance bill you for any remaining deductible and/or coinsurance for that service Personal Choice HDHP: All services, except Preventive Care, will apply towards the HRA including Rx You will need to advise the medical providers you have a HRA Same reimbursement process above will apply for medial services For Prescription Drugs, you will need to pay for them at time of service You will be reimbursed directly within 7-10 days via check You will be reimbursed within 2-3 days if you set up direct deposit

What tools are available for the Health Reimbursement Account (HRA) Health Reimbursement Account (HRA): You will have easy access via ibxpress.com to: Check your balance and details on claims activity View claims and payments Review your Integrated Plan Activity Statements (EOBs) Resource Center provides information on your HRA as well as other health-related information ASK IBX feature provides members with answers to questions they may have related to their spending account

Medical Plan Designs

Biometric Screenings Onsite Screening Events or at Quest Patient Service Centers (PSC): Find out your health numbers BMI, Cholesterol, Blood Pressure and Blood Sugar Know your risks before they becomes a concern Live a longer, healthier life Financial Wellness Incentive Receive $50 per pay contribution credit for meeting 3 of the 5 measurable targets (Achievement Credit) Receive $25 per pay contribution credit for participation if you do not meet 3 of the 5 measurable targets (Participation Credit) Option to receive full premium credit if you did not meet the Achievement Credit requirements by discussion your results with your physician and submitting the Physician Engagement Form One-time Reward ($25 Participation or $50 Achievement) for those not enrolled in the medical plans

Medical Plan Bi-weekly Payroll Deductions Per-pay Payroll Deductions with the Biometric Screening Credit $50 Per Pay Credit $25 Per Pay Credit Tier HDHP POS HMO PPO HDHP POS HMO PPO Single $51 $76 $118 $163 $51 $101 $143 $188 Employee & Child(ren) $122 $208 $287 $379 $122 $233 $312 $404 Employee & Spouse $148 $259 $360 $511 $148 $284 $385 $536Family$181$321$451$683$181$346$476$708 Per-pay Payroll Deductions without the Biometric Screening Credit TierHDHP2017POS2017HMO2017PPO2017Single$51$126$168$213Employee & Child(ren)$122$258$337$429Employee & Spouse$148$309$410$561Family$181$371$501$733 Note: The above contributions do not include the Tobacco or Spousal/DP Other Coverage surcharges

2017-2018 Plan Program Surcharges & Certifications Surcharges: Tobacco $45 per pay surcharge if you used a tobacco product in past 12 months If you fail to certify your usage online, the surcharge will apply Surcharge will be deducted from 1 st regular paycheck effective 7/1/17 You must complete your enrollment in the Quit&Fit IBC program, a total of 4 calls (an initial intake call and three calls with a coach), after which you will be potentially eligible for a free 8-week supply of nicotine replacement products You will have your surcharge removed, retroactive to your enrollment date in the program Contact Human Resources if it is unreasonably difficult due to a medical condition for you to satisfy this requirement under this program, or if it is medically inadvisable for you to attempt to complete this requirement. We will work with you to develop another way to avoid the tobacco user surcharge. Spousal/Domestic Partner (DP) $25 per pay surcharge if your spouse/DP is employed and has other medical coverage available If you fail to certify coverage online, the surcharge will apply .

2017-2018 Plan Program Surcharges & Certifications Certification: Family Member Verification Process Must certify your dependents meet the eligibility requirements If you fail to certify eligibility online in the Employee Portal, coverage will not apply You may be asked at a later date to submit documentation for each covered dependent for auditor purposes Surcharge & Certification Disclaimer Any false or misleading information regarding the certification of the Tobacco Usage, Spousal/DP Coverage or Family Member Verification could lead to disciplinary action up to and including termination of employment Contact HR if you have any questions or need additional information .

Healthy Living Commitment to Healthy Living Programs: Lunch n’ Learn Health Workshops Wellness Activity Punch Card Biometric Screenings Wellness Newsletter – “Beanstalk” IBC has special programs available at no additional cost at IBXpress Website: Log onto www.ibxpress.com : Complete your Well-being Wellness Profile Healthy Lifestyles Solutions (Fitness/Tobacco Cessation/Weight Management) Access to Health & Wellness The Healthyroads® Quit&Fit® Program: Your Passport to Tobacco Cessation – available at no additional cost to employees, spouses, and dependents age 18 and older and enrolled in a Fred Beans’ medical plan. The program provides you with support, telephonic coaching sessions, online resources to support you with diet, exercise and stress management as well as up to 8 weeks of nicotine replacement therapy (patches, lozenges, or gum). To learn more, call Healthyroads at 877-330-2746 and identify yourself as an Independent Blue Cross member.  You’ll also need to let them know you work for Fred Beans ..  

MDLIVE – What is Telehealth? MDLIVE is a convenient service that allows you to resolve routine medical issues 24/7/365, through confidential telephone or online video consultations wherever you are – at home, on vacation, or on business. You’ll have direct access to high quality physicians who are board-certified in areas like family practice, internal medicine, emergency medicine and pediatrics . Common conditions they treat: Sinus Problems, Nasal Congestion and Allergies Cold and Flu Bronchitis and Upper Respiratory Infection Urinary Tract and Yeast Infections Pink Eye and Ear Infections

MDLIVE – How do I contact them? Visit www.mdlive.com/ibx or call 1-877-764-6605 and complete the registration process, which includes a short medical history. After your account has been established, to request a consultation, simply call or log in to the website. After providing some basic information to verify your identification, you will receive a call back from a physician. You pay a $40 copay per consultation – similar to what you would spend visiting the doctor’s office. Dependents may use the service Some states may have limitations – see website for details

Dental Plan Options Aetna PPO Plan: Discounted fees for all PPO network dentist $50 deductible for basic and major services ($150 family) $1,500 annual maximum $1,500 lifetime maximum for orthodontics Aetna DMO Plan: Must select/designate a network dentist Referrals required for Specialty Care Lower out-of-pocket costs No annual maximum

Dental Benefit Levels DMO Plan PPO Plan Preventive 100% 100%, no deductible Basic 100% 80% Major 60% 50% Orthodontia (children only) 50% 50% to $1,500 Deductible N/A $50/$150 Annual Max N/A $1,500 Single Rate* $9.08 $16.36 Family Rate* $29.44 $54.71 * Per bi-weekly pay

Vision Plan Enhanced Vision Benefits of America (VBA) Plan (2 year commitment) : Vision Exam: 100% no copay (once every 12 months) Lenses: 100% after $20 copay (once every 12 months) Frame: 100% up to $60 wholesale allowance – approximately $160-$180 retail (once every 24 months) Contacts (in lieu of glasses): Reimbursed up to $90 (once every 12 months) Bi-weekly Rates: $1.54/Employee Only $2.78/ Employee + One Dependent $3.78/Family

Flexible Spending Accounts (FSA) Plan American Fidelity is administrator : Why enroll in FSA? Pre-tax dollars set aside for Health Care/Dependent Care expenses Reduces your taxable income You save $$$ Health Care Spending Account: You may contribute up to $2,600 per year Use for copayments, deductibles, dental and vision expenses Dependent Care Spending Account: You may contribute up to $5,000 per year If you are married and file separate tax returns, the maximum contribution is $2,500 each Designed to pay for dependent day care expenses

Flexible Spending Accounts (FSA) Plan Make your election wisely : Use it or lose it – due to the pre-tax saving, any remaining funds are forfeited 2 ½ month extension: Fred Beans has a 2 ½ month grace period added to the end of the plan year You have until September 15 th to incur expenses and apply them to your prior plan year remaining funds The Metavante ® Prepaid Debit MasterCard ® : The card allows you to pay for eligible pre-tax account expenses electronically at approved service providers and merchants, wherever MasterCard ® is accepted If you are a current participant, retain your debit card as your 2017-2018 election will be added to your existing card Save your receipts – you may need to provide evidence that the purchase with the card was for an eligible FSA expense

Life Insurance and AD&D Employee Basic Life Insurance & AD&D: Aetna is the insurer 100% of premium paid by Fred Beans Family of Dealerships $10,000 benefit (Life and AD&D)

American Fidelity Voluntary Disability and Cancer Insurance Disability : Benefit is up to 60% of your basic monthly earnings to a maximum monthly benefit of $10,000 Elimination Waiting Period: Benefits may begin on the 8th, 15th, 31st, 91st or 181st day of total disability Rates fluctuate based upon selected elimination period Rates/Payroll Deductions: Cost is based on your age Cancer Insurance : Reimbursement of medical and non-medical expenses Benefits: Paid to you regardless of other insurance Screening incentive Coverage: Self, Spouse/DP, Children Portable policy **Speak with an American Fidelity representative to enroll**

American Fidelity Voluntary Benefit Plans Group Hospital GAP Insurance Inpatient and Outpatient benefits available to assist you with your out-of-pocket expenses Coverage for Spouse, Children, Family available! Accident Insurance Apply with no medical questions asked and is guaranteed renewable for as long as premiums are paid as requiredBenefits payable on top of any health insurance coverage and payable directly to you! Coverage for Spouse and Children available Group Critical Illness Three Options: $10,000, $20,000 or $30,000 lump sum benefits paid regardless of other coverage Benefits provided in the event of a heart attack, stroke, bypass surgery - payable upon diagnosis, not treatment specific Term Life Insurance Group Term Life options of 10, 20 or 30 years based on your specific needs Coverage for Spouse and Children available Please refer to the specific product brochures for a complete description of the benefits, limitations and exclusions **Speak with an American Fidelity representative to enroll**

Important Enrollment Information What you need to do : Online enrollment: June 1st – June 13th You should log into the Employee Portal and review your elections, regardless if you are electing or waiving coverage for this plan year due to all the changes If you wish to discontinue one of your benefits, you need to log into the Employee Portal to waive that coverage Complete all the online certification, failure to do so will result in the application of the surcharges FSA Elections: If you wish to enroll in the Health Care or Dependent Care FSA plans, you must meet with an American Fidelity representative Elections remain in effect for the entire plan year: From July 1, 2017 through June 30, 2018 unless you have a qualified life event

Questions