NEW COVERAGE FOR DEVELOPMENTAL DELAYS

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1 N O V E M B E R BenefitsNews 2014 OPEN ENROLLMENT COVERAGE FOR DEVELOPMENTAL DELAYS PLUS PRESCRIPTION COVERAGE CHANGES In keeping with Oxy s commitment to offer highly competitive benefits to its employees, Oxy is absorbing most of the projected medical cost increase and enhancing some existing coverages. NEW COVERAGE FOR DEVELOPMENTAL DELAYS Effective January 1, the Aetna and Anthem plans will expand speech, occupational and physical therapy benefits for those with certain developmental delays, including autism spectrum disorders. For more information about the specific services now covered, speak with your Aetna or Anthem customer service representative. WOMEN S PREVENTIVE HEALTH Benefits for women s well-being and preventive care have been expanded. Covered services, drugs and supplies will now be paid at 100% in-network, with no deductible or copay, and include certain prescription and surgical contraceptives, devices and sterilization procedures; breastfeeding supplies and counseling; counseling for sexually transmitted infections, HIV, and interpersonal and domestic violence; and testing for gestational diabetes; subject to certain restrictions. For more information, go to oxylink.oxy.com. PREVENTIVE MEDICATION ENHANCEMENTS Starting in 2014, certain preventive drugs and services will be covered at 100% under the Aetna and Anthem medical plans. This includes prescribed smoking cessation products and certain preventive medications and supplements, if prescribed, as shown in the Preventive Medications table on page 3. To obtain medications under the plan that could otherwise be purchased over the counter, you can send your prescription to Express Scripts to fill through home delivery, or present your prescription at a network retail pharmacy counter and make your purchase using your Express Scripts/Medco ID card. Alternatively, you can submit your receipt, with prescription, on a direct claim form (network rates will apply). More information can be found under Preventive Health in the Health, Life, and Disability section at oxylink.oxy.com. Enroll Now Through November 20 No action needed to keep your current coverage Must re-enroll for 2014 FSA and HSA contributions oxylink.oxy.com 1

2 oxylink.oxy.com LONG-TERM DISABILITY RATES INCREASE For the first time in many years, LTD rates will increase. The rates will increase to $0.44 per $100 of monthly base pay for the 50% Option and $0.616 per $100 of monthly base pay for the 60% Option. The new rates will be effective for at least two years, and will begin with January 2014 payroll deductions. HEALTH CARE REFORM Oxy s medical plans are compliant with the provisions of the Affordable Care Act (ACA), and you are not required to take any action due to health care reform. EXPRESS SCRIPTS FORMULARY CHANGE Due to runaway inflation on brand name drugs and the rising cost of specialty drugs, Express Scripts (formerly Medco) is making a change to the formulary (i.e., the covered drug list) utilized by Oxy. Starting in January, there will be 48 medications and other products that will no longer be covered under the plan. In each case, however, there are safe and effective alternatives available. This change affects only about 1% of available medications, so most participants will not be impacted. If one of your prescriptions is affected, you and your physician will be notified by Express Scripts. For more details, see page CONTRIBUTION CHANGES In most cases, employee medical contributions for 2014 will increase by about 10%, with Oxy s portion increasing by about the same percentage. Dental Plan contributions will increase between $1 and $3 per month, depending on your level of coverage. Contributions for the Accidental Death & Dismemberment and Group Universal Life Insurance (GUL) plans are unchanged for OPEN ENROLLMENT FOR 2014 This is your annual opportunity to review and change many of your benefit plan elections. Use the accompanying Open Enrollment 2014 guide to help you make these important decisions. Actions you may need to take are also outlined on page 6. ENROLL TODAY Enrollment Ends November 20 oxylink.oxy.com 2014 MONTHLY MEDICAL & DENTAL CONTRIBUTIONS* Coverage Level Aetna Basic Aetna HealthFund Anthem Dental Employee Only $108 $ 29 $97 $12 Employee + One $216 $58 $194 $24 Family $324 $87 $291 $36 * Contributions will be deducted each pay period according to your pay frequency 2

3 BenefitsNews NEW COVERAGE FOR PREVENTIVE MEDICATIONS The medications and supplements in the table below, if obtained with a prescription, will be covered under the Aetna and Anthem medical plans at 100% with no copay or deductible. Coverage is subject to age, gender and medical condition restrictions. As with other covered prescriptions, if you take a brand name drug when a generic is available, or continue to fill a maintenance medication at retail, you may pay an additional cost. For more information, refer to oxylink.oxy.com or contact Express Scripts at Drug or Drug Category Aspirin (to prevent cardiovascular events) Oral Fluoride Folic Acid Iron Supplements Immunizations (includes travel vaccines) Smoking Cessation Vitamin D Bowel Preps Product Type Generic over-the-counter (OTC) products Generic OTC and prescription products Generic OTC and prescription products Generic OTC and prescription products Prescription products Generic OTC, prescription products and Chantix Generic OTC and prescription products Generic, Single Source Brand and OTC products PLAN COST ESTIMATOR If you re not sure which medical option to choose, the Plan Cost Estimator tool, available through the Open Enrollment website, can help you make this important decision. You provide estimates of your family s health care needs, and the tool produces side-by-side comparisons of the options available to you. You can also model options available to you under a spouse s plan. By adjusting the assumptions (number of expected office visits, medical tests, etc.), you can see how your out-of-pocket costs will vary by option. The tool can also help you estimate how much to set aside in an FSA and/ or HSA. IMPORTANT REGIONAL OPTION INFORMATION Plan changes apply to some of the regional medical options available in Western New York and Southern California. To view 2014 rates and changes, go to oxylink.oxy.com, select the 2014 Open Enrollment Resources link to display the Publications and Information menu, then select Medical and Dental Plan Information. There are still minimum enrollment requirements for the regional medical options. If the number of employees who enroll falls below the minimum requirement, the option will be canceled. If you enroll in an option that is later canceled, you will be notified and allowed to choose another medical option. 3

4 oxylink.oxy.com INTRODUCING OXYHEALTH! Over the last couple of months we ve renewed our focus on health and wellness and launched a new website where you can find information about Oxy s health plans, and the various wellness efforts now underway. At oxyhealth.oxy.com, you ll also find useful information including a calendar with local health and wellness events, articles about healthy living and stories from co-workers about how healthy choices have changed their lives. Also learn how Oxy is helping make healthy choices more affordable, such as providing employee subsidies for gym memberships and Fitbit activity trackers. As announced in October, a free Fitbit Zip is now available to help you track your steps and other activities. Over 2,400 employees ordered Fitbits in the first week! Beginning in November, OxyHealth is sponsoring a company-wide Step Challenge, so if you haven t already, order your Fitbit now. Want some company on your walks? You can now take advantage of discounted pricing to purchase a second Fitbit tracker for a walking companion. For more information go to oxyhealth.oxy.com. GUL AUTOMATIC INCREASES To better keep pace with your salary, starting in 2014, Group Universal Life (GUL) insurance participants who have not specifically opted out of the Automatic Increase Option will have their coverage amounts updated monthly, rather than annually. This means that if you receive a salary increase that would qualify you for a higher coverage amount, that higher coverage will take effect with the next available monthly billing cycle. Premium increases due to a change in five-year age band (e.g., from age to age 50-54) will continue to be applied only once each year, in the last pay period of January. REMINDER: USE 2013 FSA BENEFITS NOW! Participants with FSAs in 2013 have until the end of the year to incur expenses to be reimbursed by their accounts. Unspent money remaining at the end of the plan year will be forfeited. To qualify for reimbursement, expenses must be incurred on or before December 31, 2013, and Aetna must receive your claims no later than March 31, To speed processing, fax your FSA claims to Aetna at 888-AET-FLEX ( ). Claim forms are available from the OxyLink website. MAXIMIZE YOUR 2013 HSA CONTRIBUTIONS If you currently participate in the HealthFund option, you still have time to contribute to a Health Savings Account (HSA) for Most employees are allowed to contribute up to $3,250 for Employee Only, or $6,450 for Employee + One or Family coverage levels. If you are age 55 or older, you can make an additional catch-up contribution of up to $1,000 for Spouses age 55 or older may also make catch-up contributions. The IRS requires a separate HSA account for spousal catch-up contributions. You can set up an account through Aetna if you pay the separate administrative fee ($4 per month for 2014). The spousal HSA must be established before December 31, 2013, and the account funded by check or Electronic Funds Transfer (EFT). You have until April 15, 2014, to make 2013 HSA contributions by check or EFT. To change your payroll deduction for the remainder of 2013, contact OxyLink. A Note to Health Savings Account (HSA) Participants: While health care reform legislation extended dependent eligibility to age 26, the IRS tax code that governs HSA payments did not change. In order to pay expenses for dependents using your HSA, the dependents must qualify as tax dependents, or the distribution must be reported as taxable income and an additional 20% penalty tax will apply. 4

5 BenefitsNews MORE ABOUT THE EXPRESS SCRIPTS FORMULARY CHANGE The Express Scripts formulary is a list of thousands of commonly prescribed brand-name and generic medications that is used to determine coverage level under the Aetna and Anthem medical plans. The formulary includes medications in all therapy classes based upon guidance from an independent group of expert health professionals; those selected for the formulary can treat most medical conditions while helping to contain costs for you and the plan. Medications may be removed from the list, or changed from preferred to non-preferred status, when safe and effective alternatives are available. Starting January 1, 2014, a select group of medications will no longer be covered on the Express Scripts formulary, even if you currently have a prior authorization approved for one of these medications. If you fill a medication that is no longer on the approved formulary, it will not be covered, and you will pay the full, non-discounted retail price. You and your physician will be notified if your drug will no longer be covered, or will be moved to the more expensive non-preferred status. You may want to talk with your doctor to identify an appropriate formulary alternative. In limited circumstances, your physician can request a clinical exception by calling the number shown in the letter Express Scripts will send to your physician. To see a list of the excluded drugs and their covered alternatives, go to Express-Scripts.com/2014drugs. For more information, contact an Express Scripts representative at IMPORTANT REMINDER: If you divorce or legally separate, your former spouse is no longer eligible for any Oxysponsored health or life insurance coverage, regardless of stipulations in your court order. You should immediately notify OxyLink once your divorce or legal separation is final. You may also wish to update your beneficiary designations. COVERED DEPENDENT SPOUSES The Medical and Dental Plans have always made coverage available to legal spouses of employees. The nationwide Aetna and Anthem plans fall under federal law, so same-sex spouses of employees are now eligible for coverage under those plans. The plans recognize any legal marriage, including legal same-sex marriages when one or both partners reside in a state that does not recognize same-sex marriage. If you reside in, or move to, a state that does not recognize same-sex marriage, the value of coverage for your spouse will be imputed to you as income, and subject to state tax, if applicable. If this applies to you, please contact OxyLink to ensure your record is updated. RETIREE MEDICAL COVERAGE FOR SURVIVORS The retiree medical plan offers continued coverage to the surviving spouse and dependents of an employee who dies, if the employee was otherwise eligible for retiree medical coverage. Now, to expand the continued availability of coverage in the event of a death, retiree medical eligibility will be determined under the enhanced retiree medical provisions of the Notice and Severance Pay Plan (i.e., if the employee had at least 30 years of eligible service, or was at least age 50 with at least 5 years of eligible service with combined age and eligible service of 65 years or more). Coverage will be provided under the terms of the Retiree Medical Plan, and is available to the surviving spouse and dependents as early as when the employee would otherwise have turned age 55. 5

6 oxylink.oxy.com BENE-BITS Retiree Medical Plan Contributions... The 2014 retiree base rate for the Aetna Basic plan is $116 per month. Anthem Limit Removed... The 24-visit annual limit for combined speech, occupational and physical therapies will be removed effective January 1, Orthodontic Care... If you expect to use your FSA in 2014 to reimburse orthodontic care that will be billed in advance, do not sign up for FSA streamlined claims submission because you may not be eligible for reimbursement from your FSA at the time your orthodontia claim is processed. Dependents in New York... Under New York state law, employees who are covered under the Traditional Blue POS or Independent Health HMO may cover their unmarried children through age 29. If you are enrolled in one of these regional plans and you wish to enroll a dependent, contact OxyLink. You will be responsible for the full cost of any extended coverage. Networks Change... You can access the most up-to-date information on network hospitals, doctors, and dentists through oxylink.oxy.com or your health plan s website (choose the Aetna Choice POS II (Open Access) or Anthem Blue Card PPO network). You can also check directly with your provider to validate whether they plan to participate in the network for Life Events... If you experience a change in family status (e.g., a marriage, birth or death) and apply within 31 days, you may be eligible to change your benefit elections. You may also be able to add or increase your LTD and/or GUL coverage without showing proof of good health. Did You Know... Sunscreens with SPF-30 or higher are reimbursable expenses under a health care FSA, and that summer camp your child attends may qualify as an eligible dependent care expense, so plan now! For lists of other eligible FSA expenses, go to New Aetna ID Cards... All participants in the Aetna Basic and HealthFund plans will receive new ID cards for Summary Annual Reports (SARs)... The 2012 SAR for the Welfare Plan is enclosed. The government requires plan sponsors to distribute this financial statement to plan participants OPEN ENROLLMENT ACTION STEPS Open Enrollment is taking place now through Wednesday, November 20, The 2014 Open Enrollment guide summarizes your available choices for next year. To review your current coverage and the choices available to you in 2014, log on to OxyLink s website at oxylink.oxy.com and select Employee Self Service > Benefits Enrollment Event. The site and the enrollment guide will help you through the enrollment process. Medical and Dental No action is required to retain your current coverage. You may enroll, waive, change your medical plan option, or change your eligible dependents under either or both plans for To review plan changes for the regional medical options, refer to the Open Enrollment information on the OxyLink website. Flexible Spending Account (FSA) You may enroll in a Health Care and/or Dependent Care Spending Account. You must re-enroll and elect your contribution amount each year; spending account elections do not carry over to the next year. Health Savings Account (HSA) You may enroll in an HSA if you enroll in the HealthFund medical option. You must re-enroll and elect your contribution amount each year; HSA elections do not carry over from one year to the next. Accidental Death & Dismemberment (AD&D) To retain your current coverage, no action is required. You may change your election during Open Enrollment, or effective the first of any month. Long-Term Disability (LTD) To retain your coverage, no action is required. You may increase your coverage from the 50% Option to the 60% Option during Open Enrollment (unless you were previously denied for such coverage). Preexisting condition rules will apply to the increased coverage for 12 months. To newly enroll for LTD coverage, you must apply to Prudential and evidence of good health will be required at your expense (unless you experienced a life event within the last 31 days). Coverage will begin only if Prudential approves your application. You may also cancel or reduce your LTD coverage on the first of any month. Remember... the 2014 Open Enrollment deadline is Wednesday, November 20, If you have questions or cannot access the site, contact an OxyLink representative at (or from outside the U.S.) during normal business hours (8:30 AM to 5:00 PM, Central Time). 6

7 BenefitsNews REQUIRED FEDERAL NOTICES Federal law requires that plan participants be provided with the following notices. MEDICARE CREDITABLE DRUG COVERAGE The medical plan provides drug coverage that is considered creditable, meaning the plan provides coverage that is expected to be as good as or better than the lowest level of drug coverage authorized under a Medicare Part D plan. If you or one of your dependents becomes eligible for Medicare by virtue of a disability, remember to notify OxyLink to ensure you receive the required Certificate of Creditable Coverage. MATERNITY BENEFITS Oxy s medical plan options provide minimum maternity stay benefits for the mother and newborn of 48 hours following a normal delivery and 96 hours following a cesarean section. The attending physician, in consultation with the mother, may decide to discharge the mother and newborn earlier. These benefits are subject to the same annual deductibles, coinsurance and/or copayment provisions that apply to any other medical condition. GRANDFATHERED PLAN STATUS Oxy believes the medical plans referenced in this newsletter are grandfathered health plans under the Patient Protection and Affordable Care Act (the Affordable Care Act). As permitted by the Affordable Care Act, a grandfathered health plan can preserve certain basic health coverage that was already in effect when that law was enacted. Being a grandfathered health plan means that your medical plan may not include certain consumer protections of the Affordable Care Act that apply to other plans, for example, the requirement for the provision of preventive health services without any cost sharing. However, grandfathered health plans must comply with certain other consumer protections in the Affordable Care Act, for example, the elimination of lifetime limits on benefits. Questions regarding which protections apply and which protections do not apply to a grandfathered health plan and what might cause a plan to change from grandfathered health plan status, can be directed to the Occidental Petroleum Corporation Employee Benefits Committee at Wilshire Blvd., Los Angeles, CA You may also contact the Employee Benefits Security Administration, U.S. Department of Labor, at or healthreform. This website has a table summarizing which protections do and do not apply to grandfathered health plans. WOMEN S HEALTH AND CANCER RIGHTS ACT Oxy s medical plan options provide participants with medical and surgical benefits for mastectomies. If a participant has a mastectomy and elects, in consultation with the physician, to have subsequent breast reconstruction, the plan also covers all stages of reconstruction of the breast on which the mastectomy has been performed; surgery and reconstruction on the other breast to produce a symmetrical appearance; prostheses; and treatment of physical complications for all stages of the mastectomy, including lymphedema. 7

8 oxylink.oxy.com HIPAA PRIVACY NOTICE Oxy is required to periodically remind participants in the health plans listed below that the HIPAA Notice of Privacy Practices is available on request by phone or online through OxyLink. To access the Notice online, log on to oxylink.oxy.com and select Forms, Publications & Info > Health, Life, and Disability > HIPAA Privacy Notice. If you are unable to print it, you may call OxyLink at from 8:30 A.M. to 5:00 P.M. (Central Time) weekdays and request that a copy be mailed to you. The Oxy health plans subject to HIPAA notification are the following: Occidental Petroleum Corporation Welfare Plan; Occidental Petroleum Corporation Retiree Medical Plan; Occidental Petroleum Corporation Insured Medical Plan; Occidental Petroleum Corporation Health Promotion Plan; Occidental Chemical Corporation Medical Plan; Occidental Chemical Corporation Retiree Medical Plan; Occidental Chemical Corporation Dental Assistance Plan; Occidental Chemical Corporation Pretax Premium Plan; Occidental Chemical Corporation Special Welfare Plan for North Tonawanda Hourly Employees; Occidental Chemical Corporation Special Welfare Plan for North Tonawanda Salaried Employees; Blue Cross-Blue Shield Plan for Hourly Employees of Occidental Chemical Corporation at Niagara Falls; Blue Cross-Blue Shield Plan for Hourly Employees of Occidental Chemical and Plastics Corporation North Tonawanda; the Group Insurance Plan for Petrolia Hourly Employees; and the Group Insurance Plan for Petrolia Hourly Retirees. SUMMARIES OF BENEFITS COVERAGE As required under health care reform, a Summary of Benefits and Coverage (SBC) for each medical plan and the standardized Uniform Glossary in the government-prescribed formats are available on the OxyLink website. To obtain printed copies, contact OxyLink. SPECIAL ENROLLMENT RIGHTS If you have health coverage under Medicaid, or your dependent has health coverage under the Child Health Insurance Program (CHIP), and that coverage is terminated because you are or your dependent is no longer eligible, you or your dependent may request coverage under Oxy s health plan within 60 days of such termination of coverage, rather than the 31 days normally required upon a loss of health coverage. In addition, under CHIP, financial assistance may be available if you meet that program s eligibility requirements. If you become or your dependent becomes eligible for Medicaid or financial assistance under CHIP, you or your dependent may request coverage under Oxy s health plan within 60 days, rather than 31 days, after your eligibility determination date. For more information about available programs, refer to the enclosure entitled Important Notice to Health Plan Participants. The company expects and intends to continue its benefit plans but does not guarantee any specific level of benefits or the continuation of any benefit plan during any periods of active employment, inactive employment, disability or retirement. Benefits are provided solely at the company s discretion and do not create a contract of employment. The company reserves the right to modify, suspend, change or terminate any of its plans at any time. This information is applicable to eligible non-represented employees. Applicability to represented employees is governed by local collective bargaining agreements. Subject to this and future agreements, the company reserves the right to change, amend, or terminate any benefit plan at any time. The information provided in this document is not tax advice. While the information is believed to be accurate as of the print date, it is subject to change. Consult a qualified tax advisor for help in determining eligibility for any tax benefit mentioned herein. 8