What s Changing and Not Changing for 2018

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1 What s Changing and Not Changing for 2018 What s Changing Contributions Per-paycheck medical plan contributions will increase slightly to reflect the continuously rising cost of health care across the nation. Medical The Health Savings Account (HSA) individual contribution maximum amount will increase from $3,400 to $3,450, and the family contribution maximum will increase from $6,750 to $6,900 in The deductibles under the Health Savings, Health Reimbursement and Preferred Provider Organization (PPO) options will increase. Health Savings Health Reimbursement PPO 2017 $1,900 individual $3,800 family $2,850 individual $5,700 family $1,400 individual $3,500 family $2,100 individual $5,250 family $650 individual $1,950 family $950 individual $2,950 family 2018 $2,000 individual $4,000 family $3,000 individual $6,000 family $1,500 individual $3,700 family $2,250 individual $5,550 family $850 individual $2,300 family $1,250 individual $3,400 family The deductibles and out-of-pocket maximums under the Olean Union PPO and the Olean Union HSA options will increase. Olean Union PPO Olean Union HSA $360 individual $840 family $720 individual $1,680 family $2,600 individual $5,000 family $3,000 individual $6,000 family $390 individual $920 family $790 individual $1,840 family $2,700 individual $5,400 family $3,300 individual $6,600 family 2017 $2,400 individual $4,800 family $4,800 individual $9,600 family $3,600 individual $7,150 family $6,000 individual $12,000 family 2018 $2,640 individual $5,280 family $5,280 individual $10,560 family $3,960 individual $7,865 family $6,600 individual $13,200 family Siemens will continue to pay the majority of the cost of your benefits. The amount you pay for coverage will continue to depend on the plan options you elect and the dependents you cover. Your contributions for coverage will continue to be made through pre-tax and post-tax payroll deductions (depending on the plan). The medical plan options offered in 2017 will continue to be offered in That means you will continue to have the Health Savings, Health Reimbursement and PPO options to choose from for Also, Hawaii Medical Service Association (HMSA), Humana and Kaiser Permanente HMO options will continue to be offered in certain areas. The deductibles, copays, coinsurance and out-of-pocket maximums under the HMSA, Humana and Kaiser Permanente HMO options will remain the same. If you enroll in the Health Savings option, Siemens will make an automatic contribution of $300 to your HSA if you enroll yourself, and another $300 if you also enroll your spouse or domestic partner. The contributions will continue to be made on a per-paycheck basis. If you enroll in the Health Reimbursement option, Siemens will make an automatic contribution to your HRA on January 1 equal to $450 if you cover yourself and another $450 if you also cover your spouse or domestic partner. Note: You cannot make your own contributions to an HRA. If you enroll in the Health Savings or Health Reimbursement option, you will continue to be able to earn Healthy Rewards for completing certain wellness activities. Note: If you re enrolled in the Health Savings option and activities are completed after November 1, 2017, your Healthy Rewards may not be deposited to your HSA until after January 1, 2018, and will then count toward your 2018 Healthy Rewards. What s Changing and Not Changing for 2018 Page 1

2 What s Changing If an employee covers more than one individual under the Health Savings Medical Plan option, and one individual reaches $7,350 in eligible in-network out-of-pocket expenses, all remaining eligible in-network expenses will be paid at 100% for that individual only. This is an increase from $7,150. The following services will be covered under the Blue Cross Blue Shield and UnitedHealthcare medical plan options: New! Applied behavior analysis (ABA) therapy, which is an intensive behavioral treatment for autism spectrum disorder that may help teach those with autism, modify behaviors and develop life skills. New! Bariatric Centers of Excellence facilities under the Blue Cross Blue Shield and UnitedHealthcare medical plan options are now available for better surgery outcomes. If you re considering bariatric surgery in 2018, you have access to Healthy Focus nurses who help with decision support in preparation for surgery, information and education in the selection of a bariatric surgery program, and post-surgery and lifestyle management. To enroll in the program, call Blue Cross Blue Shield at or UnitedHealthcare at New! 3-D mammography is covered 100% under preventive care when received in-network under the Blue Cross Blue Shield and UnitedHealthcare medical plan options. The deductible under the Cigna International Domestic option will increase. Cigna International Domestic Medical Plan 2017 $650 individual $1,950 family $950 individual $2,950 family 2018 $850 individual $2,300 family $1,250 individual $3,400 family Blue Cross Blue Shield and UnitedHealthcare will continue to be the administrators of the Health Reimbursement and PPO Medical Plan options. For the Health Savings option, UnitedHealthcare is the claims administrator, while the HSA is managed by Optum Bank. If you are enrolled in Medicare, neither you nor Siemens may make contributions to your HSA. The Employee Assistance Program (EAP) will continue to be available to you (and any family members who reside with you) through Cigna, regardless of whether you enroll in any of the Siemens medical plan options and regardless of which medical plan or carrier you select for The deductible under the International option will remain the same at $300 individual and $900 family. Prescription Drugs A minimum copay will be introduced for generic drugs filled at a retail pharmacy or through the mail order program. You ll pay 10% of the cost of the drug, subject to a $5 minimum, for a 30-day supply of a generic drug filled at a retail pharmacy and 10% of the cost of the drug, subject to a minimum of $10, for a 90-day supply of a generic drug filled through the mail order program or at a CVS pharmacy. If the total cost of the drug is less than the $5 or $10 minimum, you ll pay only the full cost of the drug. For example, if the cost of a generic drug filled at a retail pharmacy is $30, 10% x $30 = $3. With $5 minimum applied, you would pay $5. If the cost of a generic drug filled at a retail pharmacy is $100, 10% x $100 = $10. In this example, 10% of the drug cost is already greater than the $5 minimum so you would pay $10. However, if the total cost of the generic drug is $3, you ll pay only $3, since the full drug cost is less than the minimum copay. The prescription drug out-of-pocket maximums under the PPO and Health Reimbursement options will increase. PPO and Health Reimbursement s 2017 Prescription $2,000 individual $3,000 family 2018 Prescription $2,300 individual $3,500 family You will continue to have a choice of generic, preferred brand and nonpreferred brand drugs whenever you need a prescription. Coinsurance will remain the same for those enrolled in the Health Reimbursement, Health Savings and PPO options. Under the Health Savings option, the individual or family deductible must be met before coinsurance for prescription drugs begins. What s Changing and Not Changing for 2018 Page 2

3 What s Changing The prescription drug out-of-pocket maximum under the Olean Union PPO Medical Plan option will increase. Olean Union PPO 2017 Prescription $1,500 individual $3,000 family 2018 Prescription $1,650 individual $3,300 family Preventive low-to-moderate-dose generic statins (cholesterol-lowering drugs) will be covered at 100% for members ages 40 to 75. Various pharmacy safety programs through CVS/caremark focused on highly addictive and potentially misused pain medications will be introduced, including: Dental Limiting the quantity of opioids filled for new prescriptions and refills (except for cancer and end-of-life care), based on FDA-approved guidelines. Requiring doctors to receive prior authorization before prescribing Fentanyl products, a powerful pain medication (participants currently receiving these drugs will be grandfathered). Limiting Lidocaine prescriptions to the manufacturer limit guidelines to help prevent it being misused as a compound drug for topical pain relief. Requiring doctors to receive prior authorization before prescribing two high-cost generic Metformin ER products used to treat Type 2 diabetes, as a lower-cost generic version, Glucophage, is available. New! Delta Dental will be the new dental plan administrator, resulting in enhanced networks and greater discounts. You will have access to both the Delta Dental Premier and Delta Dental PPO networks. The following changes will be made: As a result of these changes, contributions for dental coverage will not change for (preventive care not subject to the deductible) Major Services Coinsurance Orthodontia $0 individual $0 family $75 individual $225 family You pay 40% You pay 60% $50 individual $150 family $100 individual $300 family You pay 50% You pay 50% What s Changing and Not Changing for 2018 Page 3

4 Flexible Spending Accounts What s Changing The maximum amount you can contribute to the Health Care Flexible Spending Account (FSA) in 2018 will increase from $2,550 to $2,600. You will continue to be able to contribute between $120 and $2,600 to the Health Care FSA. If you are currently enrolled in the Health Care FSA and enroll in the Health Savings option for 2018, you must use all the money in your Health Care FSA by December 31, 2017 for Siemens and you to make contributions to your HSA beginning January 1, Because of the tax-advantaged nature of the two accounts, you cannot participate in both at the same time. If you participate in the Health Savings option, you will not be able to contribute to a Health Care FSA. Instead, you can contribute to a Limited- Use Health Care FSA. You can use this account to pay for health care expenses not related to medical, such as vision and dental expenses. You can continue to contribute between $120 and $5,000 to the Dependent Day Care FSA in If you re married and file separate tax returns, the maximum you can contribute is $2,500. WageWorks will continue to be the administrator. Short-Term Disability (STD)* and Long-Term Disability (LTD)* SPD Update: The definition of Disability will change to After LTD benefits have been paid for 24 months, you are considered Disabled if you are unable to perform with reasonable continuity the Material and Substantial Duties of Any Occupation for which you are reasonably qualified, taking into account your training, education, experience and pre-disability earnings. We are removing this additional requirement for an illness or injury to be considered a Disability: Unable to earn at least 80% of your Indexed Basic Monthly Earnings. *STD and LTD rules may differ for unions based on applicable collective bargaining agreements. Siemens will continue to provide Company-paid LTD coverage, which pays a taxable benefit equal to 60% of your pay during a disability. You have the option to replace Company-paid LTD coverage with the post-tax, employeepaid LTD coverage, which pays a federal tax-free benefit equal to 60% of your pay during a disability. No changes to Short-Term Disability. What s Changing and Not Changing for 2018 Page 4

5 What s Changing Life Insurance and Personal Accident Insurance (PAI)* SPD Update: For the purpose of calculating contributions and estimated coverage amounts for each plan year under the Life, Personal Accident Insurance (PAI) and Business Travel Accident Insurance Plans, the definition of frozen pay has changed to your base salary on June 30 of the last preceding calendar year plus the total amount of short-term bonuses (if applicable) or commissions (if applicable) paid during the 12 months preceding the same June 30. For instance, frozen pay as calculated on June 30, 2017, will be used to estimate contributions and coverage for the plan year beginning January 1, If you are hired or become an active employee after June 30, then your frozen pay is equal to your base pay. SPD Update: Eligibility for domestic partners and children of a domestic partner under the Siemens Corporation Group Insurance and Flexible Benefits Program Summary Plan Description has been updated to: To initially enroll or increase PAI or life insurance coverage for your domestic partner and/or children of your domestic partner, you must complete and submit a Domestic Partner Affidavit provided by the Siemens Benefits Service Center and this affidavit must be approved by the Siemens Benefits Service Center before coverage will go into effect. *Life and PAI rules may differ for unions based on applicable collective bargaining agreements. Company-paid Basic Life Insurance coverage is provided at one times pay, up to a maximum benefit of $300,000 for all eligible employees, except those whose benefit may differ as defined in a collective bargaining agreement. You continue to automatically receive Company-paid PAI equal to two times pay for individual or one times pay for family. You continue to have the option to purchase Supplemental, Spouse or Domestic Partner and Child Life Insurance. Your Life and PAI benefit is based on your earnings. If you have an increase or decrease in your earnings, your coverage amount will change accordingly, subject to the plan maximum. To maintain your current coverage amount, you should reevaluate the multiple of earnings used to calculate your coverage amount with every salary change. The Hartford will continue to be the administrator. Business Travel Accident Insurance The reduction schedule for employees over age 70 will be eliminated, which means if you re age 70 or older, you are now eligible for full coverage. Introducing additional benefits, including: Personal deviation will be allowed for a maximum of three days per business trip. (A personal deviation is an activity that s not reasonably related to business and not incidental to your business trip.) Paralysis benefits, which will be covered 100% for quadriplegia, 75% for paraplegia, 50% for hemiplegia and 25% for uniplegia. Siemens will continue to automatically provide you with Company-paid Business Travel Accident Insurance that pays benefits to you (if you sustain certain injuries) or your beneficiary (if you die) as a result of an accident while on a business trip. Coverage equals five times your annual base pay, up to $500,000. Seat belt and airbag benefits. Day care, spouse and child education benefits. Coma and rehabilitation benefit. What s Changing and Not Changing for 2018 Page 5

6 Vision There will be no changes to the vision plan, and EyeMed will continue to be the vision carrier. The Basic Vision Plan option will continue to be provided at no cost for you and your eligible dependents. In addition to the Basic Vision Plan option, you will continue to have two buy-up options the Enhanced Vision Plan and Premier Vision Plan options. There will be no increase in paycheck contributions for the Enhanced Vision Plan and Premier Vision Plan options. Commuter Benefits You will continue to be able to contribute pre-tax and post-tax dollars to an account that you can use to pay for public transit including train, subway, bus, ferry and eligible vanpool and qualified parking expenses incurred as part of your daily commute. You can continue to contribute up to the monthly pre-tax limit of $255 for transit and eligible vanpools and $255 for qualified parking; these limits are determined by the IRS and are subject to change. The maximum after-tax contribution is $500 for mass transit or vanpool and $500 for parking. WageWorks will continue to be the administrator of the program. Financial Planning The Money in Motion program, offered through The Ayco Company, L.P., provides you discounted, confidential access to professional financial planners. Services include unlimited one-on-one financial guidance, a toll-free phone line and unlimited access to a secure, personalized web site with educational resources and financial planning tools. Important Information: This document provides brief explanations about Siemens benefits. Complete details of the various benefit plans in the program can be found in the legal plan documents and insurance contracts that govern the plans in the program. If there is a difference between this information and the documents and contracts, the documents and contracts will govern. Siemens Corporation reserves the right to amend or terminate the plan or any part of the plan at any time and for any reason. What s Changing and Not Changing for 2018 Page 6