Take control. of your options ANNUAL ENROLLMENT IS NOV AUTUMN 2012 CONNECT 1

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1 AUTUMN 2012 health benefits news for TI employees VOL. 6 NO. 1 Take control of your options ANNUAL ENROLLMENT IS NOV AUTUMN 2012 CONNECT 1

2 2013 ANNUAL ENROLLMENT Fellow TIers, As we prepare to make annual choices for health and insurance benefits, I want to personally update you regarding TI health care costs. Insurance premiums will increase for all of us in 2013, and I d like to explain why. What drives health care cost increases? Our monthly premiums are driven by four factors: Lita Hodges TI vice president and MANAGER, Compensation and Benefits n The expected rate of health care inflation for the upcoming year. Each year we must forecast how much doctors, hospitals, procedures and prescription drugs will cost in the coming year. The TI benefits team uses research from multiple sources to assess this trend. n The expected usage patterns in each TI medical insurance offering. We also must forecast how much TIers and their families will use the health care system. In other words, we estimate the total cost of health care for all TIers and dependents. n The portion of the cost paid by TI and by TIers. TI pays about 70 percent of the total cost of the health care plans offered to TIers. TIers pay the balance through premiums, deductibles and copays/coinsurance. n Administrative costs charged by insurance companies. This is the cost charged to TI by Blue Cross Blue Shield (BCBS), Cigna and the HMOs to administer medical insurance claims services. Why is there such a big difference in premiums between the different plans? About 95 percent of TIers are in three insurance offerings the BCBS High-Deductible Health Plan (HDHP), the BCBS PPO or the Cigna Copay Plan. As the chart below shows, the cost of the PPO and the Cigna plan are significantly higher than the HDHP, for both TI and TIers. In the HDHP, we estimate 2013 health care costs (employees plus their insured family members) will be about $9,000 per employee enrolled in that plan. That s the least expensive plan. In the most expensive plan, Cigna Copay, we expect health care costs to be $17,700 per employee, basically twice the expected cost of the HDHP. The reality is that this type of plan costs more, and will continue to do so for the foreseeable future. Cigna Copay costs the most for TI and TIers 2012 and 2013 estimated costs $20, $15,000 $10, TIer 2013 TIer 2012 TIer 2013 TIer 2012 TIer TIer $ 5,000 TI TI TI TI TI TI BCBS HDHP BCBS PPO CIGNA COPAY 2 CONNECT AUTUMN 2012

3 Why do some plans cost so much more? The basic difference is prepaying for services you may never use, versus paying only for what you use. With the Cigna Copay Plan and the HMOs, you ll pay up-front in your premium for medical protection that you may or may not use. With the HDHP, you pay much less up front, and then pay for the services you need when you need them. How can we reduce the cost of medical insurance? As I have said before: n Adopt or maintain healthy behaviors. The healthier we live, the fewer dollars we ll give away to insurance. n Take control. Know your options, including which health care options are more expensive than others. Choose wisely. n Understand your costs. If every TIer paid closer attention to the use and cost of nonurgent health services (such as doctor visits, prescriptions, etc.) and made informed decisions, we would all pay less. TI s experience with the HDHP over the last two years is proving that. To help, TI pays the Compass health care advocate service to work with BCBS participants. You can use Compass to research the cost of upcoming medical procedures and see the difference between various physicians, procedures, facilities and prescriptions. (Read more on page 8.) We want you and your family members to have the affordable, high-quality health care you need. In today s environment of ever-increasing health care costs, we must each take responsibility for what we can control. Taking action will help manage your costs, as well as TI s. I encourage you to use this booklet to evaluate your options and select what s best for you in HDHP-HSA: Why it s worth checking out n Lowest per-paycheck premium n SAME extensive, high-quality network of doctors and hospitals as the PPO n Comprehensive medical care, SAME as the PPO and the Cigna Copay Plan n SAME 100% coverage for preventive services n PLUS, extra $$ from TI into your personal Health Savings Account n $500 if you have you-only coverage n $1,000 for higher levels of coverage Read more on page 6. Lita Hodges TI vice president and MANAGER, Compensation and Benefits 2013 changes n Premiums increasing for most medical options, as well as dental and vision. n 90-day prescriptions available at CVS pharmacies at the same price as mail-order through Caremark. n Women s preventive coverage: New $0 copay for contraceptive prescriptions. n CIGNA Copay Plan will no longer cover artificial insemination. n Former National Semiconductor employees in Aetna Health Fund (HRA): Only current enrollees remain eligible; if you move to other medical coverage, you will not be able to re-enroll in the Aetna program. n FSA maximum contributions reduced to $2,500 for health care and dental/vision spending accounts. (Details page 9.) n HMOs eliminated: Kaiser HMO Southern California and HMO Illinois will no longer be offered. (Details page 5.) n Vision Plan: Frames allowance will increase from $115 to $150 for in-network services. n Opposite-gender domestic partners will be eligible for medical, dental, vision and spouse life insurance, as well as AD&D. n Health Savings Account maximums increase (Details page 7.) See the 2013 Health & Insurance Benefits Guide for details. When you're ready to enroll, go to netbenefits.com/ti or call the TI Benefits Center. See the back page for details. AUTUMN 2012 CONNECT 3

4 2013 MEDICAL INSURANCE OPTIONS Your medical insurance options Blue Cross Blue Shield High-Deductible Health Plan (HDHP) and Fidelity Health Savings Account (HSA) n Available nationwide. n Operates similar to the PPO, with a deductible and coinsurance. n Prescription drug costs are included in the annual deductible, compared to the PPO in which you immediately pay coinsurance with no deductible. BONUS: Free Compass Health Care Advocate Service provided by TI (page 8) LOWEST COST PER PAYCHECK n With the HDHP, you can also open an HSA that lets you save money tax-free, plus TI makes a tax-free contribution to your savings every year. (Read more on the next page.) n TIers hired in 2012 are eligible for this option only. Blue Cross Blue Shield Preferred Provider Organization (PPO) n Available nationwide. n Lower deductible than the HDHP, with the same coinsurance levels. n Main difference from the HDHP is that there is no deductible for your prescription drug costs. BONUS: Free Compass Health Care Advocate Service provided by TI (page 8) More detailed information on all plans is available on the Fidelity NetBenefits website, netbenefits.com/ti. NetBenefits will display prices on a semi-monthly basis. Specific insurance plan Blue Cross Blue Shield High Deductible Health Plan (eligible for Health Savings Account) Blue Cross Blue Shield PPO CIGNA Copay Plan Region in the U.S. Nationwide Nationwide North Texas, Houston, Austin, Arizona, North Carolina Monthly plan prices (for full-time TIers) 1, 2 You only $ 18 $ 61 $ 96 You and spouse $ 53 $210 $288 You and children $ 41 $169 $233 You and family $ 77 $294 $412 Medical expenses Annual deductible 3 : Individual/family $1,500/$3,000 $300/$600 $0/$0 Annual out-of-pocket maximum: Individual/family (includes coinsurance) In Network: $3,000/$6,000 Out of Network: $6,000/$12,000 Deductible included in maximum. In Network: $2,500/$5,000 Out of Network: $4,000/$8,000 Deductible not included in maximum. Preventive exams and screenings 100% covered 100% covered $0 copay Doctor office visit copay or coinsurance 3 Hospital copay and/or hospital coinsurance In Network: 90% covered In Network: 80% covered In Network: 90% covered In Network: 80% covered Out of Network: $300 annual copay, 50% covered $0/$0 $20 copay PCP; $40 copay specialist $500 copay/admission; 100% covered after hospital copay Emergency room copay or coinsurance (not followed by admission) In Network: 80% covered In Network: 80% covered $100 copay Prescription drug expenses Pharmacy expenses applied to deductible and annual out-of-pocket maximum Yes Deductible: No Maximum: $5,000 individual/$10,000 family NA Retail: Generic/formulary brand/ non-formulary brand copay or coinsurance 30-day supply, except when noted In Network Generic: 75% covered; Brand: 60% 5 covered Out of Network Generic: 55% covered; Brand: 40% 5 covered In Network Generic: 75% covered; Brand: 60% 5 covered Out of Network Generic: 55% covered; Brand: 40% 5 covered NEW: 90-day prescriptions will now be available at retail CVS pharmacies for the same price as mail-order through Caremark. $15/$30/$50 Mail order 4 : Generic/formulary brand/ non-formulary brand copay or coinsurance Up to 90-day supply, except when noted Generic: 80% covered; Brand: 65% 5 covered Generic: 80% covered; Brand: 65% 5 covered $40/$85/$145 1 If you and/or your covered spouse or domestic partner use tobacco products, there will be an additional charge of $30 per month for each covered adult tobacco user, with a maximum of $60 per month. You can avoid paying the additional cost for as long as you participate in a TI-sponsored tobacco cessation program, regardless of whether you actually stop using tobacco products. (The additional cost does not apply to residents of Kentucky.) For details about TI-sponsored tobacco cessation programs, go to benefits.ti.com > Wellness > Tobacco Cessation. 2 These prices assume that you and your covered spouse or domestic partner will complete the Wellness Assessment by Dec. 4, If you choose not to complete the Wellness Assessment within that time, add $10 per month to the prices listed. If your covered spouse or domestic partner chooses not to complete the Wellness Assessment, add $10 per month to the prices listed. This could result in a total of $20 more per month if neither of you take the Wellness Assessment. 4 CONNECT AUTUMN 2012

5 Don t treat it prevent it! All of the TI medical insurance offerings include 100-percent coverage for preventive services when using network providers. No copay, coinsurance or deductibles apply. See the full list of services at benefits.ti.com/prevention. Preventive services by non-network providers are covered at 100 percent of the regional out-of-pocket reimbursement limits. Cigna Copay Plan n Available to TIers in specific areas. n Operates similar to an HMO, with copays for most services instead of coinsurance. n Uses medical providers in the Cigna Open Access Plus network, with no requirement to choose a primary care provider. HIGHEST COST PER PAYCHECK Regional HMOs n Three HMOs are available for 2013 to TIers in specific parts of the country. (See table below.) n Two HMOs discontinued: Kaiser Southern California HMO and HMO Illinois will no longer be offered. Current participants will be enrolled automatically in the BCBS HDHP for 2013, unless they choose another plan during annual enrollment. These participants were mailed a letter to their homes about this change. Aetna Health Fund (HRA) n This option is open only to former National Semiconductor employees who are already participating in the plan. If you re currently in the plan and choose another medical insurance option, you will not be able to enroll in the Aetna Health Fund (HRA) if it is offered in the future. HMO Blue New England Kaiser HMO Optimum Choice HMO Aetna Health Fund (HRA) Connecticut, Massachusetts, New Hampshire, Rhode Island Northern California Maryland, Washington, D.C., Virginia, Delaware, West Virginia Nationwide Open only to TI employees from National $171 $108 $ 24 $ 26 $409 $215 $146 $ 77 $300 $206 $137 $ 60 $532 $298 $215 $111 $0/$0 $0/$0 $0/$0 $1,500/$3,000 $0/$0 $1,500/$3,000 $750/$1,500 In Network: $3,000/$6,000 Out of Network: $6,000/$12,000 $0 copay $0 copay $0 copay 100% covered $20 copay PCP; $25 copay specialist $500 copay/admission; 100% covered after hospital copay $20 copay $20 copay PCP; $30 copay specialist $500 copay/admission; 100% covered after hospital copay $300 copay/admission; 100% covered after hospital copay In Network: 90% covered In Network: 80% covered $100 copay $100 copay $75 copay In Network: 90% covered NA NA NA Yes $15/$30/$50 $15/$30/$30 Some restrictions may apply. $10/$30 5 /$50 5 (31-day supply) In Network Generic: 75% covered; Brand: 60% 5 covered Out of Network Generic: 55% covered; Brand: 40% 5 covered $30/$60/$100 $45/$90/$90 (100-day supply) Some restrictions may apply. $25/$75 5 /$125 5 Generic: 80% covered; Brand: 65% 5 covered 3 Applies to both in-network and out-of-network medical and behavioral health care expenses. 4 Mail order is not available out of network. 5 If a generic drug is available and a brand-name drug is purchased instead, you ll pay the coinsurance/copay for the brand-name drug cost, plus the cost difference between the brand-name and generic drug. AUTUMN 2012 CONNECT 5

6 HIGH-DEDUCTIBLE HEALTH PLAN (HDHP) Online at benefits.ti.com/ annualenrollment Watch the video Check out the 3-minute Do the math video See scenarios Find a situation similar to yours and see how costs compare between the HDHP, PPO and Cigna Copay. Spouses, too! The benefits.ti.com website is available outside the TI network. Want more $$ in your paycheck? TI has multiple health plans that provide you comprehensive insurance in different ways. The various plans provide alternatives as to how and when you pay for health services. These are reflected in the monthly premiums and annual deductibles. The chart below shows the premiums for the three primary plans, and the amount you would save each month when comparing the HDHP to the PPO and Cigna Copay plans. BCBS Cigna PPO Copay $ 294 $ 412 HDHP premium for family coverage $ 77 $ 77 Monthly premiums for family coverage Monthly savings in your paycheck with the HDHP $ 217 $ 335 Make your paycheck savings work for you with an HSA You can take your savings and when you open a Fidelity Health Savings Account build it up for future health care expenses. Here s an example, using the $335 that you would save for family coverage under the Cigna Copay Plan compared to the HDHP with an HSA START with your TI contribution to your HSA $ 1,335 ADD your monthly paycheck savings* $ 1,670 $ 2,005 $ 2,340 $ 2,675 WATCH your potential savings soar! $ 3,010 $ 3,345 $ 3,680 $ 4,015 $ 4,350 $ 4,685 $ 5,020 Building savings in your HSA $1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec * This is one example, with savings compared to the Cigna Copay family coverage premium. Your specific savings amount will depend on which medical insurance option you compare to the HDHP and how much money you personally contribute to your HSA. 6 CONNECT AUTUMN 2012

7 FIDELITY HEALTH SAVINGS ACCOUNT (HSA) Q&A What you get with an HSA TI contribution every January n $500 for individual coverage n $1,000 for other levels of coverage HSA debit card and online BillPay for easy payment of expenses Triple tax advantage no taxes on: n The money you and TI contribute n The money earned on your investments n The money you spend out of your HSA for qualified health care expenses. Control over your money. You can spend it as needed or let it build up to help pay for future health care expenses. Q. If I go with the HDHP-HSA this year, can I go back to another plan the following year? A. Yes, if you were hired before And whatever you have in your HSA will still be yours to keep. Q. How soon will I have access to TI s contribution in my HSA? A. As soon as TI s contribution is deposited in January, you can use those funds to pay for eligible expenses. If you were hired after January, the TI contribution will be prorated and deposited by the time of the first regular paycheck after you establish your health savings account. Q. How is an FSA different from an HSA? A. With a flexible spending account (FSA), such as TI s Health Care Spending Account, you have to forfeit unused funds at the end of the year. With an HSA, you keep your savings year to year. Health Savings Account 2013 contribution limits (AS set by the IRS) Individual Family coverage coverage HSA $3,250 $6,450 contribution maximums (includes TI contribution) Additional $1,000 catch-up contribution available annually if age 55 or older by year-end 5 No year-end forfeiture. It isn t like an FSA (flexible spending account) in which you have to forfeit unused funds at the end of the year. Your HSA rolls over year to year, plus you take the funds with you if you leave the company. AUTUMN 2012 CONNECT 7

8 COMPASS HEALTH CARE ADVOCATE SERVICE Use Compass now If you are currently enrolled in the Blue Cross Blue Shield High-Deductible Health Plan or PPO, you can use Compass the next time you need any medical procedure, big or small. Call x718. Or Caitlyn, the Compass Health Pro for TI employees, at and get $10! The first time you use Compass after Nov. 1, 2012, you'll get a $10 gift card even if you ve used Compass before. Join the TIers who are saving thousands with Compass When you enroll in the Blue Cross Blue Shield HDHP or PPO, you also get free use of the health pros at Compass Professional Health Services. Compass can help you: n Get a customized list of providers and costs in your area for most procedures, labs and services you review the list, compare costs, and choose the provider that works for you n Analyze what amount insurance will pay n Find a new doctor n Choose the right insurance option for your situation in 2013 n Decipher bills and fix issues What TIers are saying My experience with both my physician and Compass has been very good... Compass has made it easier for me to find the best medical services in my city and they are able to answer all my insurance queries. Kartik, Tucson Compass helped me research every detail of my expected health care needs in the upcoming year, taught me so many details about each plan that I have never understood before, provided me with an in-depth but easy to use analysis between all the plan options, and went an extra mile at the end to help me ensure that my specific doctors, labs and other health service providers were in network for each of the plans. I know they saved me anywhere from $2k-$4k in my health spending in the coming year. Anonymous, summer 2011 survey By the time this procedure is finished, we will have saved over $700 out-of-pocket from the original quote. Wife of HVAL TIer I have greatly appreciated your services your help in working through the overcharges and billing was instrumental It saved me and BCBS a lot of money. I will definitely contact you in the future when I need help locating a new doctor or setting up procedures so they go smoothly. DAWN, DALLAS 8 CONNECT AUTUMN 2012

9 FLEXIBLE SPENDING ACCOUNT (FSA) FSA = $$ off your taxes Join the thousands of TIers who save on taxes every year with flexible spending accounts (FSAs). n An FSA is a tax-advantaged savings account you set up during annual enrollment. n Three types are available: n Health Care Spending Account (not available with HDHP) n Dental & Vision Spending Account (available with HDHP) n Dependent Daycare Spending Account n You elect how much money you want in the FSA, based on what you think you ll spend during the year on health care and/or dependent daycare. n The money is deducted from your paycheck before taxes. n Claims are submitted automatically by Blue Cross Blue Shield PPO (for medical care), Caremark (for prescription drugs) and MetLife (for dental care). Claims for expenses from other carriers are submitted manually. n You manage your FSA through Ceridian, TI s FSA administrator. Important considerations n Your contributions do not roll over from one year to the next, so funds not used by Dec. 31, 2013, will be lost. Estimate carefully; no refunds are allowed. n Money cannot be transferred between the different FSAs. n Once your election is complete, you may not change your election amounts unless you have an appropriate qualified status change (such as a birth, marriage or divorce) during the plan year. Refer to the 2013 Health and Insurance Benefits Guide before enrolling due to a qualified status change FSA limits Red alert! Maximum contribution reduced The Affordable Care Act reduced the maximum annual contribution to a Health Care Spending Account or a Dental & Vision Spending Account to $2,500 for The maximum contribution for a Dependent Daycare Spending Account remains at $5,000. Remember, to participate in 2013, you must sign up during annual enrollment, Nov. 6-20, For details, including limitations and exclusions, go to benefits.ti.com/annualenrollment. Go mobile with Ceridian Get your FSA account information anytime, anywhere, with the new mobile app from Ceridian. Available for both Android and Apple smart phones. Same user log-in as the website. Go to ceridian-benefits.com. AUTUMN 2012 CONNECT 9

10 OTHER 2013 INSURANCE OPTIONS Your dental options: Dental Basic, Dental Plus, or Dental HMO n MetLife: The main difference between the MetLife Dental Basic and MetLife Dental Plus is the level of coinsurance paid. Dentists in the MetLife network must negotiate their rates, resulting in lower costs for both you and TI. To find a dentist, go to netbenefits.com/ti and, after you start the enrollment process, click Quick Links next to one of the MetLife options and then Find a Provider. n Aetna Dental HMO: If you re eligible for this option, it will display for you on the dental enrollment page at netbenefits.com/ti. You must use a dentist in the Aetna network to receive coverage and services usually involve a copay. Key features can be viewed by clicking the Details link. Your vision plan option n Administered by VSP, the Vision Plan provides coverage at negotiated rates for a wide variety of eye-care services through a network of ophthalmologists, optometrists and vision care service centers. Note: Vision is not included under any TI medical plan, except for covered diseases of the eye. EyeMed eye care discount No membership! No enrollment! Just show your TI badge or a TI medical ID card at participating LensCrafters, Sears Optical, Target Optical, JCPenney Optical or most Pearle Vision locations. For more information, go to eyemedvisioncare.com and choose provider network Select. Other available TI benefits n Disability Pay Continuance (DPC) Plus: Provides additional coverage for disability beyond DPC Basic provided by TI. n Long-Term Disability (LTD) Basic pays 50 percent of your basic monthly earnings after 26 weeks of disability. LTD Plus provides 66-2/3 percent of your basic monthly earnings after 26 weeks of disability. n Life Insurance: In addition to the basic coverage TI provides (one year of base pay, $50,000 minimum), you can purchase additional insurance for yourself, your spouse or domestic partner, and children (to age 26). n Accidental Death and Dismemberment Insurance: Pays benefits in the event of a dismemberment or death due to a covered accident, whether at work, home or while traveling for business or pleasure. Read more at benefits.ti.com/annualenrollment TEXAS INSTRUMENTS DENTAL PLAN OPTIONS More detailed information on all plans is available on the Fidelity NetBenefits website, netbenefits.com/ti. NetBenefits will display prices on a semi-monthly basis. Region in the U.S. Nationwide Nationwide Availability based on location Monthly plan prices (for full-time TIers) MetLife Dental Basic MetLife Dental Plus Aetna DMO You only $ 8 $23 $ 5 You and spouse $15 $45 $11 You and child(ren) $17 $50 $11 You and family $24 $72 $17 General dental expenses Annual deductible Individual/family $50 per person (applies to basic and major services only) $50 per person (applies to basic and major services only) Annual maximums $1,000 $2,000 N/A Notes You may receive treatment from any dentist. However, dentists in the MetLife Network must You may receive treatment from any dentist. However, dentists in the MetLife Network must $10 office visit copay applies for all treatment. Limitations and exclusions may apply to services. negotiate their rates, resulting in lower fees. 1 negotiate their rates, resulting in lower fees. 1 Preventive care Primary covered services Oral exam, preventive X-rays, cleanings Oral exam, preventive X-rays, cleanings Oral exam, preventive X-rays, cleanings Preventive care benefits 100% covered 100% covered 100% covered after $10 office visit copay Basic services Fillings 2 50% covered 80% covered 100% covered after $10 office visit copay Major services Crowns, dentures, bridges 50% covered 60% covered 60% covered after $10 office visit copay Endodontics 50% covered 60% covered 100% covered after $10 office visit copay. Applies to anterior and bicuspid teeth. Molar teeth 60% covered after $10 office visit copay. Orthodontia services Benefits (adult/child) 50% covered up to lifetime maximum of $1,000 50% covered up to lifetime maximum of $1,500 50% covered after $10 office visit copay 1 Limitations and exclusions may apply to services. Reasonable and customary (R&C) limits apply if you don t use a network provider. 2 The plan provides the alternate benefit of an amalgam filling for composite fillings performed on molar teeth. $0/$0 10 CONNECT AUTUMN 2012

11 2013 TEXAS INSTRUMENTS VISION PLAN OPTIONS NATIONWIDE More detailed information on all plans is available on the Fidelity NetBenefits website, netbenefits.com/ti. NetBenefits will display prices on a semi-monthly basis. Monthly plan prices This is a network plan. You may choose to use any provider, but you receive greater benefits by using network providers. You only $10.90 You and child(ren) $17.34 You and spouse $16.97 You and family $27.92 General vision expenses Annual limits One vision exam per calendar year; contact or eyeglass lenses (but not both) once every calendar year; frames once every two calendar years; limits combined in- and out-of-network. If you choose contact lenses, you will be eligible for frames one calendar year from the date the contact lenses were obtained. Exclusions/limitations Tints, special lenses and scratch-resistant coatings are not covered under this plan, but will be available to you at discounted prices if you use a network provider. Exams and other services Routine exams In-network: $10 copay Out-of-network: Plan pays up to $50 after a $10 copay Laser surgery In-network: Discounts available. The VSP doctor will coordinate referrals for qualified candidates to participating VSP laser surgery centers Out-of-network: Not covered Lenses and frames If you purchase frames and eyeglass lenses at the same time, only one $25 copay will apply. If you choose contact lenses you will be eligible for frames one calendar year from the date the contact lenses were obtained. Single vision In-network: $25 copay Out-of-network: Plan pays up to $50 after a $25 copay Bifocal In-network: $25 copay Out-of-network: Plan pays up to $75 after a $25 copay Frame benefits In-network: $25 copay; up to plan allowance of $150 retail. You receive 20% off any amount over frame allowance. Out-of-network: Plan pays up to $70 after a $25 copay Contact lenses Elective In-network: Up to $200 allowance. Special rebates and other pricing advantages available on popular brands of contacts. Visit vsp.com for details. Out-of-network: Up to $200 allowance, combined in- and out-of-network allowance. DPC / LTD / LIFE INSURANCE / AD&D OPTIONS Income protection Plan Monthly rate Plan Monthly rate Disability Pay Continuance Basic (DPC Basic) $0.000 Long-Term Disability Basic (LTD Basic) $0.139 Disability Pay Continuance Plus (DPC Plus) $0.030 Long-Term Disability Plus (LTD Plus) $0.361 Monthly salary/$100 x monthly rate = Monthly price Supplemental Life Insurance (MetLife) Per $1,000 of coverage. Rates based on age as of Dec. 31, Annual salary x benefit level purchased / $1,000 x monthly rate = Monthly price Age Employee, Employee, Spouse Age Employee, Employee, Spouse non-tobacco user tobacco user non-tobacco user tobacco user Under 25 $0.035 $0.046 $ $0.160 $0.200 $ $0.040 $0.046 $ $0.296 $0.365 $ $0.046 $0.051 $ $0.536 $0.660 $ $0.051 $0.063 $ $0.963 $1.190 $ $0.074 $0.091 $ and over $1.424 $1.779 $ $0.108 $0.131 $0.156 Children s Life Insurance (MetLife) Coverage Monthly rates $ 5,000 $0.70 $10,000 $1.40 Accidental Death & Dismemberment (AD&D) Insurance (Zurich) Per $1,000 of coverage. Participant Monthly rates You only $ You and spouse (spouse s benefit is 60% of employee s coverage) $ Annual salary x benefit level purchased / $1,000 x rate = Monthly price Eligible children are automatically insured for 10% of your AD&D coverage. See the 2013 Health and Insurance Benefits Guide. AUTUMN 2012 CONNECT 11

12 IMPORTANT REMINDERS Online at benefits.ti.com/ annualenrollment n 2013 Health & Insurance Benefits Guide n Details on each benefit program n Recorded PowerPoint presentation on 2013 Annual Enrollment n Videos n HDHP Do The Math (3 minutes) n HDHP-HSA Made Simple (5 minutes) n Scenarios to compare costs between medical insurance options n Tips on how to analyze your 2012 medical costs ID cards All participants in the Blue Cross Blue Shield HDHP and PPO will receive new ID cards. Watch for them in your home mail in late December. NEW: Cards will include contact information on Compass, the free health care advocate service. (See page 8.) More information about TI health benefits is available in the 2013 Health & Insurance Benefits Guide, which you can download at benefits.ti.com > Health > Benefits Guides. TI, as the plan sponsor, has the right to cancel or change any of the plans, programs or provisions without notice. The platform bar is a trademark of Texas Instruments. All trademarks are the properties of their respective owners Texas Instruments Incorporated. Printed in the USA. Annual enrollment step by step Evaluate your coverage options. Use this booklet plus resources at benefits.ti.com/annualenrollment. Go to netbenefits.com/ti. Use the Health Management Center s WebMD tools to further research your options. Register your choices at netbenefits.com/ti by Nov. 20. What if I don t enroll? You don't have to make any changes if you don't need to. If you don t, your health benefits coverage will stay the same as your current 2012 coverage, except that participants in the Kaiser Southern California HMO and HMO Illinois will default into the BCBS High-Deductible Health Plan. However, keep these points in mind: n If you want to use a flexible spending account in 2013, you have to set it up during annual enrollment. n The only other time you can make changes to your benefits is when you have an appropriate qualified status change, such as marriage, divorce, or the birth or adoption of a child. You must make changes within 30 days of the qualifying event. It s not too late to take the TI Wellness Assessment Dec. 4 is the deadline for 2013 credit Completing the TI Wellness Assessment will let you avoid $10 more per month for yourself and a covered spouse or domestic partner for medical insurance in If you took it by Sept. 30: You ll see the lower medical rates (as listed in this paper) when you enroll at netbenefits.com/ti. If you take it Oct. 1-Dec. 4: You can still avoid paying the additional $10 per month, but the adjustment to your medical benefit rates won t be reflected on NetBenefits during annual enrollment. 219 To take the assessment, go to LiveHealthyAtTI.com. COBRA participants are not eligible for the Wellness Assessment. 12 CONNECT AUTUMN TF-H-569C