2013 Benefits. Open Enrollment Is Coming. Take Three Steps to Get Ready. e Review your enrollment materials. This newsletter and the open

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1 2013 OPEN ENROLLMENT NEWSLETTER SEPTEMBER Benefits Open Enrollment Is Coming 2013 Open Enrollment Sneak Preview CPChem s Pharmacy Benefit Changes for 2013 A Year in Their Shoes What s in Your Toolbox? 5 Things You Can Do to Save on Health Care Costs Benefits Open Enrollment Is Coming Take Three Steps to Get Ready This year s annual open enrollment period is October 18 through November 2, It s your once-a-year opportunity to select the benefits that are right for you, so don t miss it! An enrollment packet will be mailed to your home in October. Here are three steps you can take to prepare: CPChem offers a wide range of benefits to fit your needs from retirement programs to help you save for the future, to health and wellness programs to help you live a healthy lifestyle today. It s all a part of something we call MyTotalAdvantage, and it s designed to help you focus on the big picture of your health, wealth, career and personal well-being. If You Don t Enroll We encourage you to actively enroll, especially since there are changes for However, if you don t enroll, your current elections will roll over to 2013 in the same plans and at their same levels except Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). You must re-enroll each year to contribute to a Health Care FSA, a Dependent Care FSA, and/or an HSA. e Review your enrollment materials. This newsletter and the open enrollment packet include important information about benefit changes for 2013 and the enrollment process. If you would like more detailed information about the benefit plans and programs now, go to This site will be re-designed and re-launched as in early October. r Determine your needs. Studies have shown that the average employee takes less than 30 minutes to make a decision about health care coverage. That s probably less time than you spend deciding where to go for vacation. It doesn t take a great deal of time to determine your needs and make an educated decision about your health care coverage, especially when you have access to robust information and resources to help you make those decisions. Chevron Phillips Chemical has partnered with Aetna to provide online tools and calculators. Learn more about these and other tools on page 7. In early October, go to and click on Health & Wellness, then Tools to get started. t Make your choices. Once you ve done your research and considered all your options, it s time to make your choices. Beginning October 18, go to to access the enrollment site. 1

2 Open Enrollment What s New for 2013 Wondering how your CPChem benefits will change for 2013? No need to wait until October to find out. We ve got a sneak peek at key changes you can expect in Pharmacy Benefit Enhancements We ll move from Express Scripts to Aetna for pharmacy benefits in 2013, and add many convenient new features. Utilization programs, such as step therapy and prior authorization,will be streamlined to improve service and reduce red tape. Learn more about the pharmacy benefit changes on page 3. Value CDH Plan and Health Savings Account CPChem will contribute $250 for employee only coverage or $500 for family coverage to your Health Savings Account for The Plan s out-of-pocket maximum will be reduced from $5,950 to $4,500 for employee only coverage and from $11,900 to $9,000 for family coverage. Deductibles will increase slightly to maintain the plan s eligibility for an HSA. The individual deductible will go from $1,200 to $1,250 and the family deductible from $2,400 to $2,500. MyTotalCare Condition Management We re adding three new conditions that are prevalent among our participants to the MyTotalCare condition management program chronic neck/back pain, acid reflux disease (GERD) and osteoarthritis. Health Care Reform Requirements The Health Care FSA contribution limit will be reduced from $6,000 to $2,500 per employee. Additional women s preventive care: q 100% coverage for designated prenatal care q Five diabetes lab tests for gestational diabetes screening q Breast feeding support, supplies and counseling q Contraceptive methods and counseling New User-Friendly Benefits Website Learn more below about the rollout of in early October. Expatriate Benefits Expatriate medical and dental will continue with Aetna International. q Additional women s preventive care is added to reflect the Health Care Reform changes listed above. q Easier expatriation/repatriation prescription transfers with Aetna as our domestic pharmacy manager. Introducing Your Source for the Most Up-to-Date Benefits Information Beginning in early October, Chevron Phillips Chemical will launch a new benefits website to replace the current site. This new site, (not case sensitive), will provide the same information, tools and resources you have today but in a more userfriendly format. You can find plan details and decision support tools to help you make your enrollment choices. When you re ready to make your elections, use the quick link on the front page to go directly to the Benefits Service Center login screen. From there, you ll enter your User ID and password to access your personal information and to begin the enrollment process. Forgot your User ID or password? Follow the prompts from the login screen, which may include answering three security questions, or call the Chevron Phillips Chemical Benefits Service Center at , option 1. If your personal information has changed, call the Employee Service Center and choose option 3. From here you can update information, such as your address, so you don t miss out on important communications, including your Open Enrollment packet. 2

3 CPChem s Pharmacy Benefit Changes for 2013 More Service, Less Red Tape Chevron Phillips Chemical appreciates feedback from our employees, and whenever possible, we act on it. Over the past few years, we ve heard your concerns with our current prescription drug plan and the associated programs. After thoroughly evaluating our options for 2013, we ve chosen to move our pharmacy benefits to Aetna and to streamline our pharmacy management programs, such as prior authorization and step therapy. This change will mean more service and less red tape going forward. Here s what you can expect from your 2013 pharmacy benefit administered by Aetna: More integration between medical and pharmacy claims, including a single ID card, phone number and website. More prompt and efficient processing of prior authorizations for your prescriptions due to Aetna s access to your medical claim history. The option to fill 90-day prescriptions at a CVS retail pharmacy for the cost of mail order. This means you re no longer required to use the mail order service to receive a 90-day supply. Ability to fill 30-day prescriptions at Walgreens pharmacies. Easier prescription transfers for expatriates and repatriates. Overall higher satisfaction for participants. While your mail-order prescriptions and other prescription information will automatically transfer from Express Scripts to Aetna, please review the insert in your Open Enrollment packet and be on the lookout for more information before 2013 to help you understand steps you need to take for a smooth transition. To learn more, go to ( starting October 18). 3

4 A Y E A R in Their Shoes Meet Alexis, John and Amy three illustrative Chevron Phillips Chemical employees who participated in different medical plans last year. Because each has a different situation, they also have different needs and considerations for choosing medical coverage. Let s see how the changes for 2013 and choosing a different medical plan option could affect their out-of-pocket costs in Alexis Age 28, married Alexis is married but has employee-only medical coverage. She s generally healthy, and when she last completed the health assessment and biometric screening, they didn t identify any high risks. Her main use of the plan is preventive care. Every year she gets her well woman exam and tests recommended for her age group. The only prescription she takes regularly is a generic allergy medication. Last year, she contributed to the Health Care Flexible Spending Account but didn t have enough eligible expenses, so she ended up losing some of the money she contributed. What Alexis Should Know for 2013 There s additional preventive care for women covered at 100%. The new limit for contributions to a Health Care Flexible Spending Account is $2,500. Designated preventive medications for conditions such as allergies are available at reduced copays ($10 retail/$20 mail order). Check Out Our New Video In October, you can watch the Value CDH Plan and Health Savings Account (HSA) A Great Combination video at to learn even more about this exciting combination. Expected Cost of In-Network Health Care Services Employee Costs (2013 Plans) Select EPO Plan Choice PPO Plan Value CDH Plan Annual Paycheck Premium $1,322 $771 $243 Annual Preventive Care Exams Deductible $73 $405 $405 Copays, Coinsurance & Other $200 CPChem HSA Contribution N/A N/A $250 Total Employee Costs $1,595 $1,176 $398 ($648 CPChem HSA contribution) For Alexis, the Value CDH Plan offers the most cost savings over $1,000 a year and she can use her HSA funds to help offset her out-of-pocket costs. Unlike the Heath Care FSA, the HSA rolls over year-to-year, so she can save her funds for the future. Because Alexis plans to take full advantage of the free preventive care and designated preventive medications, the lower annual premium of the Value CDH and the ability to save in the HSA work best for her situation. 4

5 John Age 56, married with grown children John and his wife have employee + one coverage. He recently learned he is at risk for a heart attack, so John will need coronary bypass surgery in In addition, he ll need to take two generic medications daily to help improve his condition. His wife will soon have hip replacement surgery. She also takes two generic medications and one non-preferred brand drug for a hormone condition. What John Should Know for 2013 Through his Aetna medical plan, John has access to the Aexcel Performance Network, Aetna s network of top-performing medical specialists in 12 areas of health care, including general surgery. A dedicated nurse resource is available to John free of charge through the MyTotalCare condition management program to help him understand and manage his coronary artery disease, high blood pressure and high cholesterol. John can use the MyActiveHealth website to create reminders of doctors appointments and record them on a calendar. Expected Cost of In-Network Health Care Services Employee Costs (2013 Plans) Select EPO Plan Choice PPO Plan Value CDH Plan Annual Paycheck Premium $2,882 $1,680 $530 Annual Preventive Care Exams Deductible $800 $1,300 $2,500 Copays, Coinsurance and Other $4,725 $6,280 $6,500 CPChem HSA Contribution N/A N/A $500 Total Employee Costs $8,407 $9,260 $9,030 ($9,530 CPChem HSA contribution) In 2013, John s best option will be the Select EPO Plan. Because John and his wife are both anticipating substantial inpatient surgery costs for 2013, it s worth paying higher premiums to benefit from the Select EPO Plan s lower deductible, out-of-pocket maximum and coinsurance rate. John should also consider contributing tax-free to the Health Care FSA to help offset his medical costs. To help with his condition, John should participate in the MyTotalCare condition management program, which provides dedicated nurse coaching and potential zero-copay prescriptions for his coronary artery disease, blood pressure and cholesterol medications. Next year, with the high medical costs hopefully behind them, John and his wife can reevaluate their plan options. 5

6 Amy Age 40, married with one child Amy covers herself, her husband and her daughter. They all receive their annual preventive care, like immunizations and wellness exams. The family is expecting a new baby in The baby will be delivered by Cesarean section. She typically takes her daughter to the doctor a few times a year for routine colds. Otherwise, the family has no major health risks, but her husband takes a generic medication daily. What Amy Should Know for 2013 Aetna s Beginning Right program will offer Amy support throughout her pregnancy. The program provides tools, information and in some high-risk cases special attention from an Aetna nurse to make sure you have a healthy pregnancy. The Aetna Employee Assistance Program (EAP) can help the family prepare for a new member with resources on parenting and child care. She ll pay nothing for designated in-network preventive care for her new baby, including immunizations and up to seven well child exams during the baby s first 12 months. Expected Cost of In-Network Health Care Services Employee Costs (2013 Plans) Select EPO Plan Choice PPO Plan Value CDH Plan Annual Paycheck Premium $3,451 $2,010 $634 Annual Preventive Care Exams Deductible $500 $916 $2,500 Copays, Coinsurance and Other $3,023 $3,668 $6,402 CPChem HSA Contribution N/A N/A $500 Total Employee Costs $6,974 $6,594 $9,036 ($9,536 CPChem HSA contribution) Amy s family should enroll in the Choice PPO Plan for Often, when only one family member is anticipating high costs for the coming year, the Choice PPO Plan is a good option. It offers a favorable combination of premiums that are lower than those of the Select EPO Plan, along with the additional protection of individual sub-limits on deductibles and out-of-pocket maximums that aren t available in the Value CDH Plan. They ll have the flexibility to see out-of-network providers, although at a reduced level of coverage. Next year, if Amy isn t expecting another addition to the family or any new health concerns, she might consider enrolling in the Value CDH Plan so she can pay even lower premiums and start building a safety net in a Health Savings Account. Now see what your costs could be in After October 18, go to and click on Health & Wellness then Tools to access the Plan Selection and Cost Estimator Tool. See page 7 for more information. 6

7 What s in Your Toolbox? You can t build a house without the right tools. The same could be said for choosing the right health care benefits. That s why Chevron Phillips Chemical provides several online resources and tools to help you estimate your costs, understand your plans and make informed decisions. To access your toolbox, go to ( starting October 18) and click Health & Wellness, then Tools. Plan Selection and Cost Estimator Tool Compares your medical plan options, estimates costs under each plan, and helps you determine the option that s right for you and your family. If you re already a CPChem medical plan participant, your last 12 months of claims data can be automatically populated in the tool. You can make changes to model different scenarios or to compare Chevron Phillips Chemical s plans with your spouse s employer s plan. If you aren t currently participating in a CPChem medical plan, you can access the tool, start with representative data and easily customize it based on your expectations. Aetna Medical Cost Estimator Quickly compare hospital rates, quality scores and look up average medical costs in your area for various procedures and services. Benefits Service Center Representatives are available to answer your questions and to take your benefit enrollment (October 18 November 2) at , option 1, from 8:00 a.m. 5:00 p.m. Central time, Monday through Friday. Aetna DocFind Online Directory Use this online directory of doctors, facilities and pharmacies in the Aetna network to see if your provider is in the network before you enroll. For the Select EPO Plan, choose the Aetna Select (Open Access) network. For the Choice PPO and Value CDH Plans, choose the Aetna Choice POS II (Open Access) network. 5 Things You Can Do to Save on Health Care Costs 1. Use preventive care. It costs you nothing when you receive designated in-network preventive care and can save you money in the long run by helping you avoid a more serious condition. 2. Look for lowest-cost prescriptions. Choosing generic or designated preventive medications when possible can save you a considerable amount of money. If your doctor prescribes a medication not included in your plan s formulary, ask if there is an equivalent medicine that will be less costly. 3. Consider the consumer-directed health plan. It has a lower monthly premium and allows you to make tax-free contributions to a Health Savings Plan to help pay for out-of-pocket costs, such as fulfilling your deductible. Plus, unlike a Health Care FSA, your HSA balance rolls over from year to year to help you save for future health care costs. 4. Stay in network. Network providers have negotiated reasonable rates with the medical plan administrator. When you go outside the network, there are no contracts to ensure you re charged reasonable rates, and the deductibles, coinsurance rate and out-of-pocket maximum you pay are higher. 5. Know how to use your medical coverage. By understanding what s covered and how the plan works, you can avoid costly mistakes, such as failing to pre-certify planned inpatient procedures. 7

8 Chevron Phillips Chemical P.O. Box 9735 Providence, RI Important Dates Date October 18 November 2 December 31 Activity goes live Benefits Open Enrollment begins Benefits Open Enrollment ends Last day to incur 2012 Flexible Spending Account expenses Notice to Participants Elements Your Benefits Newsletter ( the Newsletter ) is applicable to all participating Chevron Phillips Chemical employees (other than Chevron Phillips Chemical Puerto Rico Core employees). The Newsletter, including the examples contained herein, is not intended to constitute a promise or contractual commitment by the Company or a right to benefits under any of its employee benefit plans. The Company reserves the right to unilaterally change or terminate any or all of its employee benefit plans at any time and without prior notice. Also, modifications may be necessary to comply with applicable legal requirements. In the event of any inconsistency between a statement contained in the Newsletter and the relevant plan document, the plan document will control. Employees covered by collective bargaining agreements will also be subject to the benefit plan provisions contained in the applicable collective bargaining agreements. In addition, the Newsletter is not intended to be and should not be treated as investment advice or tax advice. Participants should not rely upon the information contained in the Newsletter as a substitute for obtaining specific tax advice or investment advice from their tax advisor or financial planner MA Y 2011