All Unify, Inc. Employees based in the U.S. From: Human Resources Open Enrollment Frequently Asked Questions (FAQs) Date: November 25, 2014

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1 To: All Unify, Inc. Employees based in the U.S. From: Human Resources Re: Open Enrollment Frequently Asked Questions (FAQs) Date: November 25, 2014 In order to assist employees with Open Enrollment, Human Resources has prepared the below FAQs. Should you have additional questions, please contact the ERC at via to or via phone at General: 1. What are the dates of Open Enrollment? Open Enrollment commenced Monday, November at 8:00 am EST and will end at 12:00 noon EST on Tuesday, December 9, Benefit elections made during Open Enrollment will become effective on January 1, 2015 and continue through December 31, How do employees enroll in Benefits? Employees will log onto User ID - employee number (the numeric portion only) PIN - the four digits corresponding to the month and year of your birth (MMYY). Upon your first login, you will be prompted to change your PIN. 3. What happens if I do nothing during Open Enrollment? You must take action to be covered by Unify medical, dental and vision benefits for Current elections for these benefits will not roll over to If you do not make an election between November 24th and December 9th, 2014, you will NOT have coverage, with the exception of prior Life and Disability elections (current Life and LTD elections will rollover). 4. Where can I find additional information on the benefit plans, such as co-pays, coinsurance amounts and coverage details? The benefits guide gives you a good overview of the plans and options available for The benefits Information website houses all available benefits information (including plan summaries) and is updated frequently: Spousal Surcharge: 5. Can you explain the spousal surcharge? Does the surcharge go to Unify or the insurance carrier? The spousal surcharge will be implemented effective 1/1/2015. If your spouse/domestic partner has coverage available through their own employer and you choose to cover him/her under a Unify medical plan, you will see a surcharge of $100 per month/ $50 per pay period. The surcharge will be paid via payroll deduction and will be used to offset the medical cost that Unify is required to fund to the insurance carrier. The surcharge only applies to medical coverage. Dental, vision and life insurance are not subject to the surcharge. There is no surcharge for dependent children. 6. Does the spousal surcharge apply to domestic partners? Domestic partners are being afforded the same coverage eligibility as a legal spouse. The spousal surcharge is charged for any spouse/domestic partner, if they have coverage through their employer, but are covered by Unify s plans.

2 FSA: HSA: 7. Why is the spousal surcharge being implemented? Unify funds all medical expenses incurred throughout the year. If a spouse has the opportunity for their employer to pay for these costs, it makes sense that the medical costs are borne by that employer and not by Unify. If an employee chooses to cover a spouse with alternate coverage, the surcharge helps to cover those expenses. The surcharge will allow Unify to maintain affordable healthcare costs. 8. My spouse s open enrollment has already passed. What should I do? Our recommendation for first steps is to consider both plans, have your spouse talk to the benefit manager of their company and ask whether they may change their enrollment based on their spouse s plan changes/costs. If your spouse is not able to enroll for 2015, please contact your HR Business Partner and we will assist further. 9. If my spouse/domestic partner is retired and eligible but NOT on Medicare or any other plan, do I have a surcharge? If your spouse/domestic partner is eligible for retiree or Medicare benefits and elects to be covered by Unify medical plans instead, the surcharge will be assessed. 10. How can HSA/FSA dollars be used? Can they be used to offset the spousal surcharge? Generally, eligible expenses include items that are meant to diagnose, cure, mitigate, treat, or prevent illness or disease. This also includes transportation for medical care. However, expenses such as cosmetic surgery, insurance premiums, vitamins, and items for general well-being are not eligible expenses. The surcharge will be considered part of your insurance premium and would not be eligible for coverage. While Insurance premiums are generally not considered qualified medical expenses, the following types of insurance premiums typically do qualify: Continuation coverage under federal law (i.e., COBRA) Qualified long-term care insurance contract Any health plan maintained while an individual is receiving unemployment compensation under federal or state law For accountholders age 65 and over (i.e., those eligible for Medicare), premiums for any health insurance (including Medicare and Medicare Part D premiums) other than a Medicare supplemental policy 11. Who is managing the Flexible Spending Accounts in 2015? ADP will continue to manage the Health Care FSA, Dependent Care FSA and Limited Purpose FSA. 12. Will the Company continue to offer the extended grace period to March 15 of the following year for employees who have a Flexible Spending Account (FSA)? The company will continue to offer the annual FSA grace period to employees Health Care FSA funds can be used for claims incurred through 3/15/2014. Employees need to submit those claims for reimbursement by 5/31/ What are the gains and benefits of using a HSA versus using a FSA? The HSA is owned by the employee and remaining funds roll over from year to year. HSAs are portable and can move with the employee if they leave Unify. The contribution limit is higher with an HSA ($6650 for HSA vs. $2550 for FSA) Funds in an HSA are not use it or lose it and do not have to be used by the end of the year. If you do not use all the funds in a FSA the employee forfeits the unused funds. 14. If I elect the Consumer Choice HSA plan, but do not want to open a HSA account administered by Health Equity, will I still receive the employer contribution? Unify has contracted with Health Equity to administer the HSA for Unify employees. The employer contribution can only be deposited into the Health Equity account. If you choose not to open an account with Health Equity you will not receive the annual employer contribution and you will not be able to set up pre-tax employee contributions. 15. Why is the HSA not available for the employees that elect to use the PPO coverage? The IRS requires a person to be covered by a qualified high deductible health plan in order to be eligible to open and contribute to a HSA.

3 16. If I sign up for Consumer Choice this year and change to the PPO plan with a FSA next year, may I still use the remaining HSA dollars next year? Yes, the balance in the HSA would continue with you and could be used for future expenses. 17. Can I transfer funds from my current FSA to the HSA? No, you cannot mix funds from the two accounts. 18. If you had a financial hardship and you needed the money in your HSA, could you withdraw from the HSA to pay for nonmedical expenses and then pay income tax on that money in your yearly return or is this not permitted? There is not a hardship provision for the HSA. If the funds are not used for qualified medical expenses they may be subject to penalties and taxes. 19. I've had an HSA plan for a number of years. Can the Unify contributions be made to my existing HSA? Will my 2014 HSA account roll over into the 2015 HSA account? Why is the Health Equity HSA better than my existing account? New contributions will be sent only to new accounts at Health Equity beginning 1/1/2015. Unify has contracted with Health Equity as an administrator to manage the HSA contributions and Unify will pay the maintenance fees for these accounts. The employee may request a transfer from the previous account to combine into the Health Equity Account. Additional information on this can be found on the benefits information website. 20. Can I continue to use my current existing HSA? If you previously had an HSA, there will be 2 accounts with 2 different administrators. If you wish, you may request a transfer from the previous administrator to combine funds into the Health Equity HSA account. 21. If I end up in the hospital for 2 weeks in early 2015, and I have the HSA plan, and have only a small amount of money saved in the plan, do I have to pay for the entire Hospital bill? You can set up a payment plan with the provider and then direct Health Equity to send scheduled payments to the provider as new contributions come into the HSA over time. 22. If I had medical expenses before HSA funds are available, it is possible to be reimbursed once there are funds in the account? Yes, you can be reimbursed, at any time in the future, for any eligible out of pocket expenses, beginning with the plan effective date of January 1, Whose expenses can be paid out of the HSA? If a spouse or dependent is not covered under a medical plan offered by Unify, can outstanding charges from the spouses/dependents medical visits be paid for by the employee's HSA? You can use HSA funds for anyone claimed as a dependent on the HSA owner s tax return. A spouse filing jointly is considered a qualified tax dependent. 24. Does every receipt have to be submitted? We do recommend members save receipts to prove distributions are qualified medical expenses in the case of an IRS audit of individual tax returns. Expenses do not have to be documented with Health Equity or the employer. 25. Can HSA funds be used to cover dental and vision expenses, or must we get the Limited Purpose FSA for that? HSA can be used for dental and vision expenses, including orthodontia. 26. Can the HSA account be used to buy non-prescription drugs and supplies? Only medications prescribed by a qualified medical professional are eligible for HSA fund payment. 27. Can I change the HSA contribution amount from one pay period to another? You may change your elections quarterly. 28. The HSA account with Health Equity comes with a debit card, but is there also a web bill pay option? Is there online reporting of debit card usage to track expenses? Each person will have an on-line portal for their individual HSA account in additional to the debit card. The portal does track claims and transactions.

4 29. Can contributions to the HSA be made via portal or only via payroll deductions? Employees may choose to make individual contributions through the Health Equity portal, completely outside of Unify s contributions. 30. Can a brief explanation of HSA rules be given: such as are the funds only for healthcare use, even after retirement? At age 65 funds can continue to be used for Qualified Medical expense, or as income, or a combination of both. If used for income in retirement the funds withdrawn will be subject to income taxes (just like funds taken from a 401K retirement plan). 31. What happens to the money in the HSA account if I die? Individuals should designate a beneficiary, or beneficiaries, and the balance would go to the person named. If the beneficiary is a spouse, an HSA would be created for the spouse and any balance would be moved to their new HSA account tax free. 32. What happens to the funds in the HSA account if Unify decides to change the benefit strategy and not go with the HSA plan in future years? All funds in the HSA account belong to the individual account holder and are completely portable. They remain in the account regardless of future employment or future insurance coverage, and may be used for qualified medical expenses at any time. 33. What is the investment strategy behind the HSA account? What are the interest rates based on? If an individual chooses, any balance over $1,000 can be put into the investment platform. The individual can choose to invest in 41 different mutual funds. Interest rates are based on account balance. Please refer to the document on the Benefits website for more information Medical Plans: 34. Can you explain how the deductible and out of pocket maximum works in the PPO plan? The PPO plan has individual deductibles for each dependent. The in-network deductible for the employee is $400 and the in-network deductible for the spouse is $400. Regardless of the number of dependents you have on file, the maximum deductible for all family members is $1,200, for in-network coverage. The same is true for the out of pocket maximum. It is $2,400 per covered individual and is capped at $7,200 per family, for in-network expenses. 35. How does the deductible and out of pocket maximum work in the Consumer Choice HSA plan? If you are enrolled in the Consumer Choice HSA plan, you have to meet the full family deductible (if you are covering dependents) before the plan starts to pay benefits. The full family out of pocket maximum has to be met if you are covering any dependents. 36. What is the reason for discontinuing the EPO plan? In order to maintain costs and still provide options to employees, we needed to focus on two main plans. The PPO and Consumer Choice with HSA provide a wide-range of benefits to meet employee needs. 37. How do the medical benefits work with Medicare? Which takes precedence when filing a claim? Anthem is primary as long as we are the Active plan. Medicare is primary if the employee is on a COBRA plan. 38. Is there a tool available to estimate medical costs? The Anthem Website ( has a tool to estimate medical costs. Please log into your account to utilize this tool. 39. How long can I cover dependents? Dependents are covered until they turn 26. The coverage will end at the end of the month in which their birth-day falls. 40. Can the medical coverage be extended to a divorced spouse? Divorced spouses are not eligible dependents for the medical plan. They can continue the coverage through COBRA or an individual plan.

5 Other: 41. Where do I find Flex credits? The rate sheet provides employees with an overview of the flex credits available for each coverage option. To take a look at the flex credits you are receiving for 2014, log into the benefits website and click on 2014 Benefits Summary. 42. Are the monthly premiums pre-tax or post-tax? Please refer to the rate sheet for an overview of which premiums are pre-tax and post-tax. 43. How is my annual salary determined for life insurance purposes? It is calculated using the Annual Benefits Base Rate (ABBR). The ABBR includes sales commission, but not Incentive Plans, bonuses or overtime pay. Voluntary Benefits: 44. If choosing a PPO, would there be a need for any of the Voluntary Options? Each employee needs to consider their own situation; however, Voluntary Benefits provide supplemental benefit/assistance for an individual covered under the PPO or Consumer Choice Plan. Should Voluntary plans be elected, payments are paid separate from medical plans and are paid directly to the employee. 45. Do I have to elect a Unify Medical Plan to participate in any of the voluntary benefits? No, the plans are available to any employee;. you do not have to elect medical coverage through Unify to participate 46. How does the Accident, Critical Illness and Hospital Indemnity Insurance work with pre-existing conditions? For Critical Illness insurance, the pre-existing timeframe is 3 months prior. MetLife will look back 3 months for preexisting conditions. They will not pay benefits for a covered condition that is caused or results from pre-existing condition, if the covered condition occurs during the first 6 months of coverage. For Hospital insurance, the pre-existing timeframe is 12 months (same rules apply). For Accident insurance, there is no pre-existing threshold. 47. If I select the $30,000 coverage for critical illness insurance, what is the lifetime maximum? MetLife will pay a recurrence benefit up to 3 times. So, if a covered individual has a separate condition, that would allow them to have the 100% benefit paid up to 3 times, equal to $90, Who can be covered for Accident, Critical Illness and Hospital Indemnity Insurance? You can elect the following tiers of coverage: employee only, employee and spouse, employee and children and family. 49. Do you need to file a claim to receive the Critical Illness, Accident or Hospital Indemnity benefits? Yes, a claim must be presented. This can be done by calling 800-GETMET8 50. Is the reimbursement of Critical Illness, Accident or Hospital Indemnity MetLife plans taxed as income to the employee? No, since premiums are paid post tax, reimbursement is not taxed as income. 51. Are the voluntary Met Life benefits lifetime or annual? Voluntary Benefits normally roll over from year-to-year, meaning that they are lifetime (until cancelled). You need to cancel in order to end coverage. 52. Does Pet Insurance cover pre-existing conditions? Please contact VPI directly to verify your specific situation. 53. If I already have Pet Insurance with VPI, will I be able to roll it over? Please contact VPI directly for further information. 54. Is the Liberty Mutual Auto and Home insurance discount for Unify employees still available? Yes, Liberty Mutual still offers a group discount for Auto & Home. Please refer to the flyer posted to the Benefits website for details.