Benefits Overview. Our open enrollment period will run from November 2, 2015 through November 30, 2015.

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2 Benefits Overview This guide contains important information about Wheaton College s benefits for the 2016 plan year. It is important to note that the 2016 plan year will be from January 1, 2016 to December 31, Our open enrollment period will run from November 2, 2015 through November 30, Please review this guide carefully as you consider changes for you and your family for You can also contact Human Resources, extension 8206 or hr@wheatoncollege.edu with any questions. We encourage employees to use the annual enrollment period as an opportunity to re-evaluate all of your current benefit elections to ensure you are enrolled in appropriate coverage for you and your family. Summary of Highlights for 2016: Medical and Dental coverage rates will not increase for 2016 No Rate Increase and No Plan Design Changes! Benefits are summarized on pages 3-4 of this guide o HSA PPO rates have decreased! Introducing a New Voluntary Vision Plan EyeMed Vision Plan We are pleased to introduce a new voluntary vision plan to our benefit offerings. Details about the benefits and costs are included on page 5 of this guide Health Savings Account (HSA) No changes to the Wheaton College annual contribution to the HSA plan. The annual contribution maximum has been increased. Details are available on page 8-9 of this guide Flexible Spending Account Medical Spending Account Annual Maximum Increase The annual maximum for the Medical Spending Account has increased for Details regarding the FSA are on pages 6-7 No Changes to Life Insurance and Long-Term Disability Insurance Rates or Benefits Wheaton College s benefit programs are summarized briefly in this guide. Complete details and limitations are contained in the Summary Plan Description of each plan and appropriate sections of the employee handbook. This guide contains highlights only and is subject to change. The specific terms of coverage, exclusions and limitations are contained in the Plan Document or insurance certificate. If you have any questions about a specific service or treatment, please contact the plan s Customer Service Department. Please note: The availability and amount of all benefits are governed by the legal documents involved. This guide is not a legal document and in no way constitutes a contract of employment. 1

3 Benefits Overview, continued Eligibility You are eligible to enroll in Wheaton s benefits program if you are a full time or part time employee as outlined below. Faculty eligibility is based on the number of courses taught per semester per year. Full-Time Benefit Eligible: Full-time benefit eligible employees are those with a full-time equivalency (FTE) of.75 of greater. Part-Time Benefit Eligible: Part-time benefit eligible employees are those with a regular work schedule of at least 910 hours per fiscal year. You may enroll your dependents in the medical, dental, and vision plans. Eligible dependents include: Spouse Domestic Partner (Same and Opposite Sex) Dependent children who have not attained age 26 Dependent children of any age if they became physically or mentally incapable of self-support before age 19 and remain incapacitated and enrolled in the plan Enrolling for Coverage Before you enroll, be sure to review all enrollment materials which explain your benefit options. Please take this opportunity to make sure you have the right combination of benefits to meet you/your family s needs. Making Changes during the Year Under IRS rules, your health and insurance benefit elections will remain in effect until the next plan year unless you have a qualifying change in status. Qualifying changes in status include: Marriage, divorce, legal separation or annulment Birth or adoption of a child (or placement of a child for adoption) Death of a dependent Ineligibility of a dependent (for example, your child turns 27 or your child marries at any age) A change in you or your partner s employment, if it results in a loss or gain in eligibility for coverage If you have a qualifying change in status during the year, you must notify HR within 31 days of the status change to request a change to your benefit elections. Otherwise, you will have to wait until the next calendar year. Also, any change in your health benefits or your Flexible Spending Account contributions must be consistent with the change in status. For example, if you get married, you may add your spouse to your current medical plan but you may not change plans. 2

4 Medical Coverage At Wheaton College we are pleased to offer a choice of three medical plan designs through Harvard Pilgrim HealthCare. The plan benefits for each plan are illustrated below. HMO PPO HSA PPO* In-Network Calendar Year Deductible Calendar Year Out-of-Pocket Maximum None Employee - $2,500 Family - $5,000 Employee - $500 Family - $1,000 Employee - $2,500 Family - $5,000 Employee - $1,500 Family - $3,000 (Combined Medical & Pharmacy Deductible) Employee - $5,000 Family - $10,000 Coinsurance 0% (20% on Durable Medical Equipment) 0% 0% Office Visits $25 Co-pay $25 Co-pay Ded, then covered in full Specialist Visits $25 Co-pay $25 Co-pay Ded, then covered in full Preventative Health Care Services ** Covered in full Covered in full Covered in full Mental Health & Substance Abuse Inpatient $250 copay per admission $250 copay per admission Ded, then covered in full Outpatient Group Therapy: $10 copay Individual Therapy: $25 copay Group Therapy: $10 copay Individual Therapy: $25 copay Lab Tests & X-Ray Covered in full Covered in full Covered in full after deductible Emergency Room Visit (Waived if Admitted to Hospital) $100 Co-pay $100 Co-pay Ded, then covered in full Outpatient Surgery Facility $100 Co-pay per Visit $100 Co-Pay per Visit Ded, then covered in full Inpatient Hospitalization Prescription Drug Coverage (Retail 30 day supply) Prescription Drug Coverage (Mail Order 90 day supply) Out of Network Calendar Year Deductible $250 Co-pay Per Admission Generic - $15 Preferred Brand $30 Non-Preferred - $50 Generic $30 Preferred Brand - $60 Non-Preferred - $150 N/A $250 Co-pay Per Admission Generic - $15 Preferred Brand $30 Non-Preferred - $50 Generic $30 Preferred Brand - $60 Non-Preferred - $150 $500 / $1,000 (Combined with In-Network) Ded, then covered in full Deductible applies, then: Generic - $15 Preferred Brand $30 Non-Preferred - $50 Deductible applies, then: Generic $30 Preferred Brand - $60 Non-Preferred - $150 1,500 / $3,000 (Combined with In-Network) Calendar Year Out-of-Pocket Maximum N/A $2,500 / $5,000 $5,000 / $10,000 Coinsurance N/A 20% after deductible 20% after deductible *Note: With the HSA PPO Plan, the deductible is collective. This means that if you have family coverage, one individual or a combination of individuals can meet the $3,000 family deductible. No member in the family is eligible for benefits until the family deductible has been met. Wheaton College funds a portion of the deductible through HSA fund contributions. **Preventative Health Care Services include adult routine physical exams (1 per calendar year), well child visits, mammogram & Pap test, colonoscopy, prostate cancer screening, adult immunizations. 3

5 Dental Coverage A summary of the dental plan benefits is illustrated below. BCBS of MA Dental Blue Program 2 Plan Preventative Services: Oral Exams X-rays & Diagnostic Teeth Cleanings (1 every 6 months) Fluoride Treatment Topical Sealant Emergency Treatment In-Network 100% Out-of-Network 100% Minor Restorative Services: Fillings Space Maintainers Oral Surgery Extractions Periodontics Endodontics Stainless Steel Crowns Repairs to crowns & bridgework Occlusion Adjustment Local Anesthesia Major Restorative Services: Porcelain Crowns Fixed & Removable Bridgework Full & Partial Dentures Deductible (Waived for Preventative Services) Annual Maximum per Individual 80% 80% 50% 50% $50 (per Individual) $150 (per Family) $1,250 each Calendar Year Orthodontia Benefit (Dependent children under age 19) 100% Orthodontia Lifetime Maximum $1,500 In-Network: Plan utilizes participating dentists Out-of-Network: Allows freedom of choice, but there may be additional out-of-pocket costs 4

6 NEW! Vision Coverage A summary of the Vision Plan benefits is illustrated below. Note: this plan is voluntary, meaning that the employee pays for the full cost of coverage. Individual Individual + 1 Family Eye Med (12/12/24) - Insight Insight Plan H, Fixed Fee $6.45 $12.25 $18.95 Plan Design Benefits In-Network Out-of-Network Copay Exam: $10 Copay Materials: $25 Copay Examination Covered in full after copay Every 12 months Reimbursed up to $50 Lenses Single Covered in full after $25 copay Every 12 months Reimbursed up to $42 Lined Bifocals Covered in full after $25 copay Every 12 months Reimbursed up to $78 Lined Trifocals Covered in full after $25 copay Every 12 months Reimbursed up to $130 Standard Progressive Lens Covered in full after $75 copay Reimbursed up to $140 Contact Lenses (Elective) Covered in full up to $130 retail allowance Every 12 months Reimbursed up to $130 (in lieu of lenses) Frames Retail Additional Benefits Additional glasses Laser Correction Surgery Covered in full after $25 copay up to $130 retail allowance (20% off balances over $130) Every 24 months 40% discount off complete pair eyeglass purchases and 15% discount off conventional contact lenses once the funded benefit has been used 15% off retail price or 5% off promotional price Reimbursed up to $104 N/A N/A 5

7 Health Care & Dependent Care FSA A flexible spending account allows employees to set aside pretax income to pay for health, dental, vision and dependent care expenses that are expected to occur during the year. Enrollment in the FSA is not dependent on whether you are enrolled in a Wheaton medical or dental plan. Contributions to your FSA are deducted from your paycheck before taxes are taken out. This means that you don t pay federal income tax, Social Security taxes, or state and local income taxes on the portion of your paycheck you contribute to your FSA. You should contribute the amount of money you expect to pay out of pocket for eligible expenses for the plan year. Wheaton College includes a rollover provision that allows employees to carryover up to $500 from the current plan year to the next plan year for unreimbursed expenses. Health Care FSA Examples of IRS-approved medical care expenses include: Co-pays, Deductibles and Coinsurance Vision services, including contact lenses, contact lens solution, eye examinations, and eyeglasses Hearing services, including hearing aids and batteries Dental services and orthodontia Chiropractic services and prescription contraceptives Dependent Care FSA With the Dependent Care FSA, Wheaton College employees use pre-tax dollars towards qualified dependent care expenses, such as caring for children under the age 13 or caring for elders. Examples include: The cost of child or adult dependent care The cost for an individual to provide care either in or out of your house Nursery schools and preschools (excluding kindergarten) Limited Purpose FSA (For those enrolled in the HSA PPO Plan only) This account will reimburse you with pre-tax dollars for dental and vision expenses only until you meet your HSA PPO deductible. Qualified expenses are those that are not reimbursed under your current plan(s) such as dental coinsurance, and deductibles for elective surgery, like laser eye surgery. 6

8 Health Care & Dependent Care FSA, continued Use it or Lose It Rule: You must carefully consider the contribution amount you expect to pay during the plan year for out-of-pocket expenses. If you do not use the money you contributed it will not be refunded to you or rollover to a future plan year. You cannot change the contribution amount during the plan year unless you have a qualified life status change (marriage, birth, divorce, etc.). The maximum amounts you are allowed to fund your 2016 FSA accounts are illustrated below: Health Care FSA Dependent FSA Limited Purpose FSA $2,550 $2,500 (filing individually) $5,000 (filing jointly) $2,550 The following example shows how you can save money with a Flexible Spending Account. Bob s income is $30,000. He has one child in day care and he wants to have Lasik eye surgery done this year which is not covered by his medical benefits or vision insurance. Since Bob knows he will spend $2,000 on the eye surgery and $3,300 for day care, he s enrolled in Health Care FSA = $2,000 and Dependent Care FSA = $3,300. Below shows the same expenses with and without FSA assistance: Without an FSA With an FSA Gross income: $30,000 $30,000 FSA contributions: 0 -$5,300 Gross income: $30,000 $24,700 Estimated taxes: Federal -$2,550* -$1,755* State -$900** -$741** FICA -$2,295 -$1,890 After-tax earnings: $24,255 $20,314 Eligible out-of-pocket Medical and dependent care expenses: -$5,300 $0 Remaining spendable income: $18,955 $20,314 Spendable income increase: $1,359 *Assumes standard deductions and four exemptions. ** Varies this example assumes 3%. The example above is for illustrative purposes only. Every situation varies and we recommend that you consult a tax advisor for all tax advice. 7

9 Health Savings Account (HSA) The HSA is administered through Wage Works. You will have access to a secure website to manage your Health Savings Account funds. If you elect the HSA PPO plan, please note that WageWorks may need to verify information to open up the HSA account and will mail information directly to your home. HSA Account Eligibility Health Savings Account plans have special tax advantages and the IRS defines specific rules for participation. To be eligible, you: Must be enrolled in an IRS qualified high deductible medical plan (Wheaton s HSA PPO plan) Cannot have any other health coverage Not Covered by Spouse s medical or prescription plan Not Covered through Medicare Part A or Part B Not covered through a Medical Spending Account (FSA) plan (either employer s or spouse s) Cannot be claimed as a dependent on another person s tax return Not received Veterans Administration (VA) benefits within the past three months Not received health benefits under TriCare HSA Funding and Eligible Expenses Wheaton will continue to make an upfront HSA contribution as follows: $750: Individual plans $1,500: Two Person plans $1,500: Family plans Wheaton College will deposit the full amount of the employer contribution in January, You may also contribute money, pre-tax, into your account. All HSA funds can be used to pay for eligible medical expenses, as well as dental and vision expenses. Funds can be invested much like 403(b) funds are invested. Also, your HSA account is owned by you, so you can take it with you if you change jobs or retire. If you have any money remaining in your HSA after your retirement, you may withdraw the money as cash. Money in your account rolls over year to year and accumulates. Unlike the FSA there is no use it or lose it feature. Employees are able to use their HSA fund dollars for any Section 213 expenses including medical, pharmacy, dental and vision expenses. A complete list of eligible expenses is available to you through WageWorks. 8

10 Health Savings Account (HSA), continued HSA Contribution Limits The IRS imposes a maximum contribution limit to the HSA on a calendar year basis. The following chart shows the 2016 maximum limits, the Wheaton College contribution and the amount employees may contribute during Under Age Wheaton Contribution Employee Contribution Individual $750 $2,600 $3,350 Two Person $1,500 $5,250 $6,750 Family $1,500 $5,250 $6,750 Total Allowed Contribution Age 55 + Catch up Contribution* If you are 55 or older, you can make catch-up contributions, meaning you can deposit an additional $1,000 per year. If your spouse is also 55 or older, he or she may establish a separate HSA and make a catch-up contribution to that account Wheaton Contribution Employee Contribution Individual $750 $3,600 $4,350 Two Person $1,500 $6,250 $7,750 Family $1,500 $6,250 $7,750 Total Allowed Contribution *Catch-up contributions can be made any time during the year in which the HSA participant turns 55. NOTE: Funds can be used only as they are available in the account. For example, if you have individual coverage and you have a $1,000 expense in January, but only the Wheaton contribution is in the account at this point ($750), then only this amount is available to pay the expense. You can pay the remaining balance with another source (check, credit card, etc.) and reimburse yourself with HSA funds as they become available with additional contribution deposits. Please note: Only a Limited Purpose Flexible Spending Account (FSA) can be used while participating in an HSA plan. 9

11 Health Advocate Health Advocate is a health advocacy firm that assigns you a Personal Health Advocate (PHA) when you contact them. The PHA is typically a registered nurse supported by medical directors and benefits and claims specialists. The PHA s work with providers and insurance companies on your behalf to help you obtain second opinions, provide comparative cost estimates, help resolve claims problems and address other issues. Your PHA can assist you with: Clinical Support - Finding the right doctors, obtaining second opinions, scheduling appointments and coordinating care Administrative Support Helping to resolve insurance claims, billing mistakes and navigating within the insurance plan Healthcare Coaching - Preparing employees for doctor visits; informing about medical tests, treatments; explaining complex conditions Information and Support - Assisting with eldercare and Medicare issues; researching wellness services and transportation Health Advocate is available for you via telephone or Monday through Friday, between 9:00 AM and 9:00 PM, Eastern Time. Telephone: answers@healthadvocate.com Website: HealthAdvocate.com/members You do not need to be enrolled in the college s medical plans to access Health Advocate. When you contact Health Advocate, simply identify yourself a Wheaton College employee. This program is available at no cost to you! 10

12 Carrier Contact Information Coverage Vendor Member Services Medical (888) Dental (888) Vision (866) Health Care & Dependent Care Flexible Spending Account (FSA) (877) Health Savings Account (HSA) (877) Life & Disability (800) Retirement 403(b) (800) Employee Assistance Program (EAP) (877) Health Advocate (866)

13 2016 Monthly Medical Rates The employee monthly contributions effective January 1, 2016 are noted below Wheaton MONTHLY Harvard Pilgrim HMO Contributions Full Time Part Time Individual $ / $ $ / $ Two Person $ / $ $ / $ Family $1, / $ $ / $1, Wheaton MONTHLY Harvard Pilgrim PPO Contributions Full Time Part Time Employee $ / $ $ / $ Two Person $ / $ $ / $1, Family $1, / $ $ / $1, Wheaton MONTHLY Harvard Pilgrim HSA PPO Contributions Full Time Part Time Employee $ / $94.32 $ / $ Two Person $ / $ $ / $ Family $1, / $ $ / $

14 2016 Monthly Dental and Vision Rates The employee monthly contributions effective January 1, 2016 are noted below Wheaton MONTHLY BCBS MA Dental Contributions Full Time Part Time Employee $20.43 / $20.43 $10.22 / $30.64 Two Person $43.26 / $43.25 $21.63 / $64.88 Family $70.78 / $70.77 $35.39 / $ Wheaton MONTHLY EyeMed Vision Contributions All Employees Employee Cost Employee $6.45 Two Person $12.25 Family $

15 2016 Bi-Weekly Medical Rates The employee bi-weekly contributions effective January 1, 2016 are noted below Wheaton BI-WEEKLY Harvard Pilgrim HMO Contributions Full Time Part Time Individual $ / $58.43 $ / $ Two Person $ / $ $ / $ Family $ / $ $ / $ Wheaton BI-WEEKLY Harvard Pilgrim PPO Contributions Full Time Part Time Employee $ / $ $ / $ Two Person $ / $ $ / $ Family $ / $ $ / $ Wheaton BI-WEEKLY Harvard Pilgrim HSA PPO Contributions Full Time Part Time Employee $ / $43.53 $99.49 / $ Two Person $ / $ $ / $ Family $ / $ $ / $

16 2016 Bi-Weekly Dental and Vision Rates The employee bi-weekly contributions effective January 1, 2016 are noted below Wheaton BI-WEEKLY BCBS MA Dental Contributions Full Time Part Time Employee $9.43 / $9.43 $4.72 / $14.14 Two Person $19.97 / $19.96 $9.98 / $29.95 Family $32.67 / $32.66 $16.33 / $ Wheaton BI-WEEKLY EyeMed Vision Contributions All Employees Employee Cost Employee $2.98 Two Person $5.65 Family $

17 Required Annual Federal Compliance Notices Important Information Please Read 16

18 1. Special Enrollment Rights Required Annual Federal Health Insurance Notices for Benefit Eligible Employees If you do not enroll yourself and your dependents in a group health plan after you become eligible or during annual enrollment, you may be able to enroll under the special enrollment rules under the Health Insurance Portability and Accountability Act of 1996 ( HIPAA ) that apply when an individual declines coverage and later wishes to elect it. Generally, special enrollment is available if (i) you declined coverage because you had other health care coverage that you have now lost through no fault of your own (or employer contributions to your other health care coverage terminate); or (ii) you have acquired a new dependent (through marriage or the birth or adoption of a child) and wish to cover that person. When you have previously declined coverage, you must have given (in writing) the alternative coverage as your reason for waiving coverage under the group health plan when you declined to participate. In either case, as long as you meet the necessary requirements, you can enroll both yourself and all eligible dependents in the group health plan if you provide notice to the Plan Administrator within 30 days after you lose your alternative coverage (or employer contributions to your alternative coverage cease) or the date of your marriage or the birth, adoption, or placement for adoption of your child. See the Plan Administrator for details about special enrollment. 2. CHIP You may also enroll yourself and your dependents in a group health plan if you or one of your eligible dependent s coverage under Medicaid or the state Children s Health Insurance Program (CHIP) is terminated as a result of loss of eligibility, or if you or one of your eligible dependents become eligible for premium assistance under a Medicaid or CHIP plan. Under these two circumstances, the special enrollment period must be requested within 60 days of the loss of Medicaid/CHIP coverage or of the determination of eligibility for premium assistance under Medicaid/CHIP. See the Plan Administrator for details about special enrollment. 3. Grandfathered Status The Plan believes that none of the group health plans available under the Plan are grandfathered health plans under the Patient Protection and Affordable Care Act (the Affordable Care Act ). 4. Special Rule for Maternity and Infant Coverage Group health plans and health insurance issuers generally may not, under Federal law, restrict benefits for any hospital length of stay in connection with childbirth for the mother or newborn child to less than 48 hours following a vaginal delivery, or less than 96 hours following a cesarean section. However, Federal law generally does not prohibit the attending provider or physician, after consulting with the mother, from discharging the mother or her newborn earlier than 48 hours (or 96 hours, as applicable). 17

19 5. Special Rule for Women s Health Coverage The Women s Health and Cancer Rights Act of 1998 ( WHCRA ) requires group health plans, insurance issuers, and HMOs who already provide medical and surgical benefits for mastectomy procedures to provide insurance coverage for reconstructive surgery following mastectomies. This expanded coverage includes (i) reconstruction of the breast on which the mastectomy has been performed; (ii) surgery and reconstruction of the other breast to produce a symmetrical appearance; and (iii) prostheses and physical complications at all stages of mastectomy, including lymphedemas. 6. Notice Regarding Lifetime and Annual Dollar Limits In accordance with applicable law, none of the lifetime dollar limits and annual dollar limits set forth in the Plan shall apply to essential health benefits, as such term is defined under Section 1302(b) of the Affordable Care Act. The law defines essential health benefits to include, at minimum, items and services covered within certain categories including emergency services, hospitalization, prescription drugs, rehabilitative and habilitative services and devices, and laboratory services, but currently provides little further information. Accordingly, a determination as to whether a benefit constitutes an essential health benefit will be based on a good faith interpretation by the Plan Administrator of the guidance available as of the date on which the determination is made. 7. Patient Protection Disclosure You have the right to designate any participating primary care provider who is available to accept you or your family members (for children, you may designate a pediatrician as the primary care provider). For information on how to select a primary care provider and for a list of participating primary care providers, contact the Plan Administrator. You do not need prior authorization from the Plan or from any other person, including your primary care provider, in order to obtain access to obstetrical or gynecological care from a health care professional; however, you may be required to comply with certain procedures, including obtaining prior authorization for certain services, following a pre-approved treatment plan, or procedures for making referrals. For a list of participating health care professionals who specialize in obstetrics or gynecology, contact the Plan Administrator. 8. Affordable Care Act Consumer Protections (a.) Coverage for Children Up to Age of 26 The Affordable Care Act of 2010 requires that the Plan must make dependent coverage available to adult children until they turn 26 regardless if they are married, a dependent, or a student. (b.) Prohibition of Lifetime Dollar Value of Benefits The Affordable Care Act of 2010 prohibits the Plan from imposing a lifetime limit on the dollar value of benefits. 18

20 (c.) Your Health Insurance cannot be Rescinded The Affordable Care Act of 2010 prohibits the Plan, or any insurer, from rescinding your health insurance coverage under the Plan for misrepresentation. (d.) Prohibition of Pre Existing Conditions Effective January 1, 2014 The Affordable Care Act of 2010 prohibits the Plan, or any insurer, from denying any health insurance claim for any person because of pre-existing condition. (e.) Prohibition of Restrictions on Annual Limits on Essential Benefits The Affordable Care Act of 2010 prohibits the Plan, or any insurer, effective January 1, 2014 from placing annual limits on the value of essential health benefits. (f.) Notice of Marketplace/Exchange If this health insurance is unaffordable (your cost of the premium exceeds 9.5% of your income) as defined under the Affordable Care Act, you may have the right to subsidized health insurance purchased through an exchange/marketplace created pursuant to the Affordable Care Act. 9. Michelle s Law Michelle s Law provides continued health and dental insurance benefits under the Plan for dependent children who are covered under the Plan as a student but lose their student status in a post-secondary school or college because they take a medically necessary leave of absence from school. If your child is no longer a student because he or she is out of school because of a medically necessary leave of absence, your child may continue to be covered under the Plan for up to one year from the beginning of the leave of absence. 10. The Genetic Information Nondiscrimination Act (GINA) GINA prohibits the Plan from discriminating against individuals on the basis of genetic information in providing any benefits under the Plan. Genetic information includes the results of genetic tests to determine whether someone is at increased risk of acquiring a condition in the future, as well as an individual s family medical history. 11. Wellness If your Plan includes a Wellness program that provides rewards or surcharges based on your ability to complete an activity or satisfy an initial health standard, you have the right to request a reasonable alternative should it be determined that it is not medically advisable for you to either complete the activity or satisfy the initial health standard. 19

21 Model General Notice of COBRA Continuation Coverage Rights (For use by single-employer group health plans) **Continuation Coverage Rights Under COBRA** Introduction You re getting this notice because you recently gained coverage under a group health plan (the Plan). This notice has important information about your right to COBRA continuation coverage, which is a temporary extension of coverage under the Plan. This notice explains COBRA continuation coverage, when it may become available to you and your family, and what you need to do to protect your right to get it. When you become eligible for COBRA, you may also become eligible for other coverage options that may cost less than COBRA continuation coverage. The right to COBRA continuation coverage was created by a federal law, the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). COBRA continuation coverage can become available to you and other members of your family when group health coverage would otherwise end. For more information about your rights and obligations under the Plan and under federal law, you should review the Plan s Summary Plan Description or contact the Plan Administrator. You may have other options available to you when you lose group health coverage. For example, you may be eligible to buy an individual plan through the Health Insurance Marketplace. By enrolling in coverage through the Marketplace, you may qualify for lower costs on your monthly premiums and lower out-of-pocket costs. Additionally, you may qualify for a 30-day special enrollment period for another group health plan for which you are eligible (such as a spouse s plan), even if that plan generally doesn t accept late enrollees. What is COBRA continuation coverage? COBRA continuation coverage is a continuation of Plan coverage when it would otherwise end because of a life event. This is also called a qualifying event. Specific qualifying events are listed later in this notice. After a qualifying event, COBRA continuation coverage must be offered to each person who is a qualified beneficiary. You, your spouse, and your dependent children could become qualified beneficiaries if coverage under the Plan is lost because of the qualifying event. Under the Plan, qualified beneficiaries who elect COBRA continuation coverage must pay for COBRA continuation coverage. If you re an employee, you ll become a qualified beneficiary if you lose your coverage under the Plan because of the following qualifying events: Your hours of employment are reduced, or Your employment ends for any reason other than your gross misconduct. 20

22 If you re the spouse of an employee, you ll become a qualified beneficiary if you lose your coverage under the Plan because of the following qualifying events: Your spouse dies; Your spouse s hours of employment are reduced; Your spouse s employment ends for any reason other than his or her gross misconduct; Your spouse becomes entitled to Medicare benefits (under Part A, Part B, or both); or You become divorced or legally separated from your spouse. Your dependent children will become qualified beneficiaries if they lose coverage under the Plan because of the following qualifying events: The parent-employee dies; The parent-employee s hours of employment are reduced; The parent-employee s employment ends for any reason other than his or her gross misconduct; The parent-employee becomes entitled to Medicare benefits (Part A, Part B, or both); The parents become divorced or legally separated; or The child stops being eligible for coverage under the Plan as a dependent child. When is COBRA continuation coverage available? The Plan will offer COBRA continuation coverage to qualified beneficiaries only after the Plan Administrator has been notified that a qualifying event has occurred. The employer must notify the Plan Administrator of the following qualifying events: The end of employment or reduction of hours of employment; Death of the employee; The employee s becoming entitled to Medicare benefits (under Part A, Part B, or both). For all other qualifying events (divorce or legal separation of the employee and spouse or a dependent child s losing eligibility for coverage as a dependent child), you must notify the Plan Administrator within 60 days after the qualifying event occurs. You must provide this notice to: Omaira Roy How is COBRA continuation coverage provided? Once the Plan Administrator receives notice that a qualifying event has occurred, COBRA continuation coverage will be offered to each of the qualified beneficiaries. Each qualified beneficiary will have an independent right to elect COBRA continuation coverage. Covered 21

23 employees may elect COBRA continuation coverage on behalf of their spouses, and parents may elect COBRA continuation coverage on behalf of their children. COBRA continuation coverage is a temporary continuation of coverage that generally lasts for 18 months due to employment termination or reduction of hours of work. Certain qualifying events, or a second qualifying event during the initial period of coverage, may permit a beneficiary to receive a maximum of 36 months of coverage. There are also ways in which this 18-month period of COBRA continuation coverage can be extended: Disability extension of 18-month period of COBRA continuation coverage If you or anyone in your family covered under the Plan is determined by Social Security to be disabled and you notify the Plan Administrator in a timely fashion, you and your entire family may be entitled to get up to an additional 11 months of COBRA continuation coverage, for a maximum of 29 months. The disability would have to have started at some time before the 60th day of COBRA continuation coverage and must last at least until the end of the 18-month period of COBRA continuation coverage. Second qualifying event extension of 18-month period of continuation coverage If your family experiences another qualifying event during the 18 months of COBRA continuation coverage, the spouse and dependent children in your family can get up to 18 additional months of COBRA continuation coverage, for a maximum of 36 months, if the Plan is properly notified about the second qualifying event. This extension may be available to the spouse and any dependent children getting COBRA continuation coverage if the employee or former employee dies; becomes entitled to Medicare benefits (under Part A, Part B, or both); gets divorced or legally separated; or if the dependent child stops being eligible under the Plan as a dependent child. This extension is only available if the second qualifying event would have caused the spouse or dependent child to lose coverage under the Plan had the first qualifying event not occurred. 22

24 Are there other coverage options besides COBRA Continuation Coverage? Yes. Instead of enrolling in COBRA continuation coverage, there may be other coverage options for you and your family through the Health Insurance Marketplace, Medicaid, or other group health plan coverage options (such as a spouse s plan) through what is called a special enrollment period. Some of these options may cost less than COBRA continuation coverage. You can learn more about many of these options at If you have questions Questions concerning your Plan or your COBRA continuation coverage rights should be addressed to the contact or contacts identified below. For more information about your rights under the Employee Retirement Income Security Act (ERISA), including COBRA, the Patient Protection and Affordable Care Act, and other laws affecting group health plans, contact the nearest Regional or District Office of the U.S. Department of Labor s Employee Benefits Security Administration (EBSA) in your area or visit (Addresses and phone numbers of Regional and District EBSA Offices are available through EBSA s website.) For more information about the Marketplace, visit Keep your Plan informed of address changes To protect your family s rights, let the Plan Administrator know about any changes in the addresses of family members. You should also keep a copy, for your records, of any notices you send to the Plan Administrator. Plan contact information Plan Contact: Omaira Roy Company: Wheaton College Address: 26 E. Main St Norton, MA Phone Number:

25 Important Notice from Wheaton College About Your Prescription Drug Coverage and Medicare Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with Harvard Pilgrim HealthCare and about your options under Medicare s prescription drug coverage. This information can help you decide whether or not you want to join a Medicare drug plan. If you are considering joining, you should compare your current coverage, including which drugs are covered at what cost, with the coverage and costs of the plans offering Medicare prescription drug coverage in your area. Information about where you can get help to make decisions about your prescription drug coverage is at the end of this notice. There are two important things you need to know about your current coverage and Medicare s prescription drug coverage: 1. Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You can get this coverage if you join a Medicare Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug plans provide at least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a higher monthly premium. 2. Wheaton College has determined that the prescription drug coverage offered by Harvard Pilgrim HealthCare is, on average for all plan participants, expected to pay out as much as standard Medicare prescription drug coverage pays and is Therefore considered Creditable Coverage. Because your existing coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you later decide to join a Medicare drug plan. When Can You Join A Medicare Drug Plan? You can join a Medicare drug plan when you first become eligible for Medicare and each year from October 15th to December 7th. However, if you lose your current creditable prescription drug coverage, through no fault of your own, you will also be eligible for a two (2) month Special Enrollment Period (SEP) to join a Medicare drug plan. 24

26 What Happens To Your Current Coverage If You Decide to Join A Medicare Drug Plan? If you decide to join a Medicare drug plan, your current Harvard Pilgrim HealthCare coverage will be affected. If you do decide to join a Medicare drug plan and drop your current Harvard Pilgrim HealthCare coverage, be aware that you and your dependents may not be able to get this coverage back. When Will You Pay A Higher Premium (Penalty) To Join A Medicare Drug Plan? You should also know that if you drop or lose your current coverage with Harvard Pilgrim HealthCare and don t join a Medicare drug plan within 63 continuous days after your current coverage ends, you may pay a higher premium (a penalty) to join a Medicare drug plan later. If you go 63 continuous days or longer without creditable prescription drug coverage, your monthly premium may go up by at least 1% of the Medicare base beneficiary premium per month for every month that you did not have that coverage. For example, if you go nineteen months without creditable coverage, your premium may consistently be at least 19% higher than the Medicare base beneficiary premium. You may have to pay this higher premium (a penalty) as long as you have Medicare prescription drug coverage. In addition, you may have to wait until the following October to join. For More Information about This Notice or Your Current Prescription Drug Coverage Contact the person listed below for further information NOTE: You ll get this notice each year. You will also get it before the next period you can join a Medicare drug plan, and if this coverage through Harvard Pilgrim HealthCare changes. You also may request a copy of this notice at any time For More Information about Your Options under Medicare Prescription Drug Coverage More detailed information about Medicare plans that offer prescription drug coverage is in the Medicare & You handbook. You ll get a copy of the handbook in the mail every year from Medicare. You may also be contacted directly by Medicare drug plans. 25

27 For more information about Medicare prescription drug coverage: Visit Call your State Health Insurance Assistance Program (see the inside back cover of your copy of the Medicare & You handbook for their telephone number) for personalized help Call MEDICARE ( ). TTY users should call If you have limited income and resources, extra help paying for Medicare prescription drug coverage is available. For information about this extra help, visit Social Security on the web at or call them at (TTY ). Remember: Keep this Creditable Coverage notice. If you decide to join one of the Medicare drug plans, you may be required to provide a copy of this notice when you join to show whether or not you have maintained creditable coverage and, therefore, whether or not you are required to pay a higher premium (a penalty). Date: October, 2015 Name of Sender: Omaira Roy Contact Position/Office: Director, Human Resources Operations Address: 26 E. Main St Norton, MA Phone Number:

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29 Required Annual Federal Compliance Notices 28

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31 This booklet prepared for you by: 30