2015 BENEFIT CHANGES FREQUENTLY ASKED QUESTIONS

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1 Oct. 1, BENEFIT CHANGES FREQUENTLY ASKED QUESTIONS Changes to The Hartford s 2015 Health Plan Options Consumer-Directed Health Plan (CDHP) Options Health Savings Accounts (HSA) Healthy Lifestyle Premium Credits Where to Go for More Information CHANGES TO THE HARTFORD S 2015 HEALTH PLAN OPTIONS 1. Who is affected by the benefit changes? All active, benefits-eligible employees, except those located in Hawaii, are affected by these changes. 2. What s changing? There are four primary changes: 1. New health plan options are being offered; employees currently enrolled in The Hartford s health plan will automatically be enrolled in one of the new options if they do not make an active election. 2. Change in timing of employer contributions to Health Savings Accounts (HSAs) 3. Single health plan claims administrator 4. Simplified process for earning the $600 healthy lifestyle premium credit including points for healthy screening outcomes New health plan options: Three new Consumer-Directed Health Plan (CDHP) options will be introduced, replacing the current High Deductible Health Plan (HDHP). One Preferred Provider Organization (PPO) option will remain (the $600 individual deductible option). The three CDHP options offer different deductibles and premium levels. CDHPs are considered high deductible health plans, so you also have the option of opening a tax-advantaged Health Savings Account. Value option: $1,500 individual deductible/$3,000 family deductible Standard option: $2,500 individual deductible/$5,000 family deductible (default option) Basic option: $3,500 individual deductible/$7,000 family deductible Important: If current health plan participants do not actively enroll in coverage for 2015 by Nov. 7, they will default to the Standard option. Healthy Lifestyle Premium Credit: Employees will continue to have the opportunity to participate in wellness programs to earn a $600 credit toward their 2015 health premiums. There are new ways to _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 1

2 earn wellness points toward the credit, including being rewarded for having health screening results within a healthy range. Refer to Q 31 for additional information. Company contributions to HSAs: At the beginning of 2015, the company will make full-year contributions into the HSAs of employees enrolled in the CDHP Value and CDHP-Standard options. To receive the company contribution, employees must elect and open their HSA account. (The company s contribution is unchanged from $400 for those enrolled in individual coverage and $800 for those in family coverage.) Single claims administrator: Anthem will be the single claims administrator. A transition of care process will be available, if needed, to help Aetna members who are receiving ongoing care or are hospitalized move to an Anthem provider. Refer to Qs for additional information. 3. Why is The Hartford making changes to the health plan options in 2015? The health care environment in the U.S. continues to evolve. The Affordable Care Act (ACA) has placed new coverage requirements on companies and individuals while U.S. health care costs continue to rise and are expected to double in the next 8-10 years. Health care costs are a shared responsibility between the company and employees. We know from the Employee Experience Survey conducted in the spring of 2014, employees value medical coverage but are concerned about rising costs. Together, we need to take steps to better manage our health care spending. The new consumer-directed health plan (CDHP) options provide employees with greater ability to control their health care spending, as well as the opportunity to save for their current and future health care costs. These plans require employees to become better-informed, more cost-conscious health care consumers which will, in turn, help to slow the growth in our overall health care costs employees and the company s. 4. What is not changing in 2015? The Dental, Vision, Life Insurance/AD&D and Long-Term Disability benefits are not changing in Your current elections will carry over to If you wish to purchase additional Paid Time Off, you must make that election even if you purchased additional PTO in If you are currently enrolled in a Health Care Spending Account or Dependent Day Care Spending Account those elections will also not carry over to When do I need to make my benefits elections for 2015? Annual benefits enrollment begins Oct. 16 and ends Nov What will happen if I am currently enrolled in health coverage at The Hartford and I do not make a health plan election by the deadline? If you are currently enrolled in medical coverage with The Hartford and do not make an active election for your 2015 benefits by Nov. 7, you will automatically be enrolled the CDHP Standard option at your current coverage level (Participant only, Participant + Adult, Participant + Child(ren) and Participant + Family coverage) and you will not be enrolled in a Health Savings Account _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 2

3 7. Will I receive a new health plan ID card? Yes, all participants will receive new ID cards from Anthem in late Dec What tools are available to help me decide which plan is right for me? Individual modeling tools and counseling services are available to you at no cost. Historical claims data (available now): Understanding expected health care costs will assist you in making your decision. A good place to start is to look at your past health care costs. To do this you can visit your current claims administrators websites (Anthem or Aetna) as well as the Express Scripts site. Refer to 2015 Benefits Enrollment Quick Reference Card: Using Historical Claims to Identify Your Optimal Coverage. Coverage Advisor on NetBenefits (available on Oct. 16): This tool can help you estimate your outof-pocket expenses under each health plan option based on how often you anticipate using health care services throughout the year. It also calculates potential tax savings if you contribute money to a HSA (for a CDHP) or Health Care Spending Account (for the PPO). You will need your historical claims data to maximize the tool. Ayco AnswerLine (available on Sept. 25): You also have the option to call the Ayco AnswerLine at , Monday through Friday, 9 a.m. 5 p.m. ET., to speak one-on-one with a counselor who can help you determine which option is best for you. In addition, Ayco is conducting educational seminars (on-site and as webinars). Beginning Sept. 25, you can access all the resources available to help you make a wise choice on the Benefits Resource site. 9. How do I find out how much my premiums will be for each health plan option? This information will be available beginning on Sept. 25 on the Benefits Resource site. 10. If I have health plan coverage through Aetna currently, how can I confirm my providers are in the Anthem network? Follow these steps to search for a doctor: Select the Find a Doctor tool located on In the Search using your plan section, click on the statement that directs users to Use the alpha prefix (first three letters) of your member identification number to search without logging in. Enter HTF in the box beneath the text Enter the alpha prefix (first three letters) of your member identification number. Use this tool to search for doctors, other medical professionals, hospitals, and facilities. 11. What if my provider is not in the Anthem network and I am in the middle of treatment for a condition or am hospitalized? Transition assistance is available for employees enrolled in Aetna whose in-network provider(s) are out-of-network with Anthem BlueCross BlueShield. For additional details about or to request transition of care, contact Anthem at /TTY ; availability Mon.-Fri., 8 a.m. - 6 p.m. ET _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 3

4 CONSUMER-DIRECTED HEALTH PLAN OPTIONS 12. What is a Consumer-Directed Health Plan? CDHPs allow employees to have more control over their health care dollars. In addition, CDHPs are coupled with the opportunity to open a tax-advantaged Health Savings Account (HSA) to save for current and future health care expenses. CDHPs are also referred to as high deductible health plans typically they have higher deductibles that need to be met before the plan starts to pay but you pay less up front in the form of premiums (out of your paycheck.) 13. How does a CDHP differ from the PPO option? The two plans offer the same coverage and care from the same health care providers - the primary difference is how you budget and pay for the services. Higher Deductibles: PPOs tend to have lower deductibles but higher premiums meaning more comes out of your paycheck throughout the year and you pay less when you go to use the plan. Fewer services are subject to the deductible under the PPO than under the CDHP (see chart on next page) Combined Medical/Prescription Drug Deductible: The CDHP options have higher deductibles than the PPO and unlike a PPO, which has no prescription drug deductible, the CDHP deductible is a combined medical and prescription drug deductible. Both retail and mail-order prescription drugs (except preventive drugs as defined by the Affordable Care Act), are subject to the combined medical and prescription drug deductible. Non-preventive physician office visits are also subject to the CDHP deductible. You must meet the combined deductible before the plan begins paying benefits. Family Deductible: The family deductible works differently under the CDHP and the PPO. Under the CDHP, if you have any coverage level other than employee-only, you must meet the entire family deductible before the plan begins paying benefits. One family member, or all family members combined, can satisfy the deductible. Under the PPO, a covered family member meets the individual deductible, and then expenses for this member are covered by the plan at the appropriate coinsurance level for the rest of the year. Opportunity to Open a Health Savings Account: The CDHP offers the opportunity to open an HSA. You can make your own pre-tax contributions to your HSA. The company will contribute $400 if you enroll in coverage as an individual or $800 if you enroll in family coverage, if you enroll in the Value or Standard option and open a Fidelity HSA. HSA funds can be used to offset the higher deductible as well as to pay for qualified medical and prescription drug expenses _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 4

5 Network Covered Services Preventive Care - Routine screenings and preventive care. COMPARISON OF FEATURES OF PPO/CDHP PPO CDHP Both plan options use the Anthem medical network and the Express Scripts prescription drug network Both plan options cover the same set of services Covered at 100% (no deductible) Employee Contributions Higher than the CDHP Lower than the PPO Deductible - The dollar amount of covered services you must pay each calendar year before the plan begins reimbursement. Physician Office Visits Non Office Visit Medical Coverage - Hospital, surgical, etc. Prescription Drugs Out of Pocket Maximum Health Savings Account Lower than the CDHP You pay plan co-insurance (no deductible) Higher than the PPO You pay the full cost until the deductible is met then you pay plan co-insurance You pay the full cost until the deductible is met then you pay plan co-insurance You pay plan co-insurance (no deductible) You pay the full cost until the deductible is met then you pay plan co-insurance The most you ll pay for covered services; once you reach the out-of-pocket maximum, the plan pays 100% N/A If you enroll in the Standard or Value option, The Hartford contributes to help offset the deductible; you also can on a contribute on a pre-tax basis 14. What are the benefits of enrolling in a CHDP? There are many reasons why people choose to participate in a CDHP with an HSA, including: Potential lower cost This type of coverage costs less each pay period (your payroll deductions for premiums) than the PPO plan. However, the CDHP options have a higher deductible that you will have to meet before the plan begins to pay benefits. Remember, you can use funds in your HSA to help offset the cost of the deductible. More control CDHPs encourage you to take more control over how you spend your health care dollars. You pay less up front in payroll deductions, and pay more out-of-pocket when you receive _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 5

6 care. In contrast, you pay more up front in payroll deductions in the PPO and pay less when you receive care. Opportunity to save for current and future health care expenses If you enroll in a CDHP, you have the option of opening a Health Savings Account you can use to pay for qualified expenses current and future. The Hartford will deposit money in your Fidelity HSA (once opened) if you enroll in the Value or Standard options and you can contribute too up to annual IRS limits. 15. How does the out-of-pocket maximum work in the CDHP? If you have any coverage level besides Participant only (Participant + Adult, Participant + Child(ren) Participant + Family coverage) after a family member reaches the individual out-of-pocket maximum, all eligible expenses for that family member are covered 100% by the plan. Remaining family members will continue to accrue towards their individual out-of-pocket maximum. Once the family out-of-pocket is reached in full by any combination of family members then the plan will pay 100% for additional covered expenses. HEALTH SAVINGS ACCOUNTS 16. What is an HSA? A Health Savings Account (HSA) is an individually-owned, tax-advantaged account that is offered in conjunction with a CDHP, such as The Hartford s CDHP options, that can be used to pay current and future eligible health care expenses. 17. Who qualifies for the Fidelity HSA offered to employees of The Hartford? You may participate in an HSA if you: Enroll in a CDHP through The Hartford, Are not claimed as a dependent on someone else s tax return (e.g., you are a dependent domestic partner), Are not enrolled in Medicare, TRICARE or TRICARE for Life, and Attest you meet these criteria. 18. How does an HSA work? If you are enrolled in a CDHP, you may make pre-tax or post-tax contributions to an HSA up to your maximum annual contribution limit. In addition, if you are enrolled in the Value ($1,500 individual deductible) or Standard ($2,500 individual deductible) option and open a Fidelity HSA, the company will contribute to your account. To receive the full company contribution in January, you must open your HSA by Dec. 26, If you open your HSA later in 2015, you will receive your company contribution as a lump sum at that time. The contributions you elect to make will be withheld from the remaining pay periods in the year. Your account will be managed by Fidelity and you can decide how your funds are invested. You can use the funds in your HSA to pay for current and future qualified medical expenses; distributions from your HSA to pay for qualified medical expenses are not subject to federal taxes. Unused HSA funds remain in your account from year to year _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 6

7 19. How much will The Hartford contribute to my HSA? If you are enrolled in the CDHP-Value or CDHP-Standard option and elect an HSA, The Hartford will contribute $400 if you are enrolled in individual coverage or $800 if you are enrolled in family coverage. The Hartford will not contribute to your account if you enroll in the CDHP-Basic option. 20. Is there a maximum I can contribute to my HSA? The IRS puts a cap on the total amount of money that can be contributed to an HSA each year. This cap includes the total of your contributions plus any contributions from The Hartford. As specified by the IRS, in 2015 you can contribute a maximum of $3,350 for an individual and $6,650 for a family to an HSA. Individuals who will be age 55 or older at the end of the 2015 calendar year can contribute an additional $1,000 as a catch-up contribution. The table below represents the maximum amount you can contribute to your HSA in 2015 if you are covered by either the CDHP-Value or CDHP-Standard options, taking into account The Hartford s contribution. Remember, The Hartford will not contribute to your HSA if you enroll in the CDHP-Basic option. In that case, you have the option of contributing the maximum amount through your own contributions. Value or Standard CDHP Coverage Level 2015 HSA Limit The Hartford s Contribution You Can Contribute up to... Individual $3,350 $400 $2,950 Family and all other coverage levels $6,650 $800 $5, Why should I consider an HSA? Savings and growth potential: Over time you can save money in your HSA to pay for future qualified medical expenses and potentially grow your account through investment earnings. Control: You make the decisions about: How much to contribute to your HSA (up to your maximum annual contribution limit per IRS rules), Whether to save for future qualified medical expenses or spend on current qualified medical expenses, Determining which medical expenses you wish to pay from the account, and How to invest your money. Typically funds require a $2,500 minimum initial investment, and $250 minimum on subsequent investments; however, this may vary depending on the fund. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. Portability: An HSA is portable meaning that your HSA is still your account even if you: Change jobs or become unemployed Change medical coverage Move to another state Change marital status _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 7

8 Tax savings: Contributions, earnings and distributions for qualified medical expenses are not subject to federal taxation. Flexibility: HSAs are not subject to the use-it-or-lose-it rule. Funds remain in your account from year to year. Any unused funds may be used to pay for future qualified medical expenses. 22. If I am currently enrolled in the High-Deductible Health Plan (HDHP) for 2014 with a Fidelity HSA do I need to open a new one or make a new election if I choose to enroll in one of the new CDHP options for 2015? No, your HSA remains open and any amount that you are currently contributing to your HSA will continue in 2015 unless you elect to increase or decrease your contribution. Keep in mind the contribution limit has increased in 2015 so if you wish to contribute the maximum, you will need to update your election. 23. Are HSA dollars taxable? HSAs are considered tax-free accounts under federal law, although there is a penalty for withdrawals other than for eligible medical expenses unless you are age 65 or older. If you live in Alabama, California, or New Jersey, your HSA contributions will be subject to state income tax. After your initial contributions are taxed by the state, however, your HSA funds will not be taxed again by the state. If you live in New Hampshire or Tennessee, eligible contributions are not taxed, but any HSA earnings are subject to tax. 24. What if I cover both of my children under a CDHP, but only one of my children is a qualified tax dependent? Can I use HSA funds for both children? Even though you may cover your non-tax dependent children under a CDHP, you may only use HSA funds to pay for expenses of the child who is your tax dependent. You will pay a penalty plus taxes if you use any pre-tax dollars from your HSA to pay health care expenses for your dependent who is not a tax dependent (for example, if your 26-year old child is covered under your medical plan but is not considered a tax dependent for HSA purposes according to IRS guidance). 25. Why can t I use HSA funds to pay for the cost of coverage (payroll deductions or premiums)? The IRS does not allow it. 26. Is there any limit as to how much money I can accumulate in my HSA at any time? As long as you don t exceed the annual maximum contributions allowed per IRS rules, unused account balances can accumulate without any limit. 27. What are qualified medical expenses? For a complete list of eligible HSA expenses, please visit to view Publication 502. Examples of qualified medical expenses include*: Acupuncture Hearing Aids Artificial Teeth Home Care Chiropractor Long Term Care Contact Lenses Medicare Premiums Dental Treatment Eye Exam Transplants Eye Glasses Stop Smoking Programs Eye Surgery Fertility Enhancement Weight-Loss Programs Psychiatric Care _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 8

9 *Under tax law, certain restrictions may apply. This is a generic list and does not include all possible qualified medical expenses. Your actual qualified medical expenses may vary _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 9

10 28. If I have money left in my HSA at the end of the year, can I take the balance in cash? Money in an HSA is only available to pay covered medical expenses; you cannot take the balance of your account as cash while you work at The Hartford. Your balance will, however, carry over to the following year and can be used to help pay for future medical, dental and vision expenses. 29. What happens to money in my account if I leave The Hartford? You, not The Hartford, own the account and the money in it. So, if you are an active employee and leave, you can transfer the money in this account to an HSA at another institution if you wish, or leave your account with Fidelity. 30. What happens to my HSA if my account balance goes to $0? There are no penalties if your HSA balance goes to $0. You will simply pay out-of-pocket for any costs you incur under the plan. No funds will be deducted from your HSA. However, if you write a check that is returned for non-sufficient funds, you will incur a fee. HEALTHY LIFESTYLE PREMIUM CREDITS 31. How can I earn healthy lifestyle credits toward my premiums? You will receive a $150 credit toward each calendar quarter s health premiums 1 if you earn at least ten new wellness points by the end of the prior calendar quarter. There are many ways to earn wellness points, including by participating in the company-sponsored health screening program, having healthy screening values, having a flu shot, completing the required annual health risk assessment which will be available in January, and more. To view a complete list of all the wellness activities available and their wellness point value, log on to the My Wellness at Work portal ( WHERE TO GO FOR MORE INFORMATION 32. Who can I contact if I have questions about the new benefit offerings? If you have any questions about your benefit options, call the HR Service Center at HR-AT- WORK from 8:30 a.m. midnight ET. For one-on-one guidance and help deciding which health plan option is the best choice for you call the Ayco AnswerLine at , Monday through Friday, 9 a.m. 5 p.m. ET. 1 To be eligible to receive a health premium credit, you must be enrolled in The Hartford s health plan in Plan members on long-term disability or COBRA, employees in Hawaii, and retired members are not eligible for medical premium credits _1 THE HARTFORD 2015 BENEFITS CHANGES FAQS PAGE 10