TAKE A FRESH LOOK AT YOUR BENEFITS. One of the ways we live up to Tenet 5 of our Mission is providing you a comprehensive benefit package, designed to help you be physically and financially well, now and in your future.
Your comprehensive benefit package includes: Health benefits, including medical, prescription drug, dental and vision coverage, as well as savings and spending accounts Security, such as life, accident and disability insurance Retirement programs, including the Medtronic 401(k) Plan Medtronic must make smart choices to ensure we provide competitive and cost-effective benefits that meet your needs, and we ask you in turn to use your benefits wisely and be a smart healthcare consumer. Simply put, it s a partnership with you and Medtronic working together. OPEN ENROLLMENT IS NOV. 1 14, 2016 We made significant changes to our benefits last year, as we transitioned to a single, integrated program for all Medtronic employees. This year you will not see major changes to your benefits for 2017 there are just some minor adjustments and enhancements to ensure we remain both competitive and flexible going forward. Your current benefits will continue for 2017, with a few exceptions. It s important to review your current benefit elections and healthcare spending, and consider your and your family s needs for the upcoming year. This newsletter provides a summary of what s changing, some tips for selecting your benefits and a handy checklist for upcoming actions.
FIND OUT WHAT S CHANGING FOR 2017 This chart highlights the major benefit plan changes beginning Jan. 1, 2017. More details about what s changing and your 2017 benefit options are available on benefits.medtronic.com. Benefit Changes effective January 1, 2017 New medical plan option CHP with HSA administered by BCBS A Consumer Health Plan (CHP) with Health Savings Account (HSA) will be offered by BlueCross BlueShield of Minnesota (BCBS) (in addition to the current CHP with HSA offering through UnitedHealthcare (UHC)). During open enrollment, take a minute to look at the provider networks and select the administrator that includes your preferred doctors and facilities. Medtronic HSA contributions Medtronic is increasing the annual HSA contributions for employees who enroll in the CHP with HSA: $500 employee only coverage $750 employee + spouse coverage $750 employee + child(ren) coverage $1,250 family coverage Medical plan contributions You will see modest increases to your contributions, depending on the medical plan you select. The PPO Plan is more expensive to offer, so we are passing on more of the cost to employees who enroll in this plan. If you are currently enrolled in the PPO Plan, you may want to look at the CHP with HSA, our lowest-cost plan. As we introduced last year, legacy Covidien employees will transition from salary-based contributions to a single contribution structure by Jan. 1, 2018. A portion of the contribution increases you will see are due to this transition and because Health Incentive Account credits will no longer be offered. We were able to accelerate our alignment of contributions for some salary brands and coverage tiers and will continue to do so over the next year as planned. Medtronic believes that providing comprehensive healthcare coverage and choices is important for you and your family, so we will continue to pay the majority of the cost of healthcare coverage for eligible employees. The contribution increases we are making allow us to continue to provide quality benefit plans, while staying competitive and covering the rising costs of healthcare. It s important to remember these increases still are in line with those of our competitors and overall healthcare trends. Health Incentive Account credits The Health Incentive Account (HIA) credits towards medical plan contributions and other wellness initiatives have been replaced by Healthier Together. To avoid paying higher medical plan contributions in 2017, you and your covered spouse are required to earn at least 25 points through Healthier Together by Dec. 23, 2016. More information is available on healthiertogether.medtronic.com. Comprehensive Dental Plan annual maximum The annual plan maximum under the Comprehensive Dental Plan is increasing to $3,000. 1
Have you explored the CHP with HSA? The CHP with HSA gives you more visibility to your healthcare spending, and the opportunity to put money away for your healthcare needs whether you need it now or in the future. This plan has lower payroll contributions and a higher deductible than the PPO Plan, but comes with an HSA, which is an account that you can use to pay for your out-of-pocket healthcare expenses, now or in the future. You can also make pre-tax contributions to your HSA, up to IRS limits. Here are a few features of the CHP with HSA: Free preventive care. In-network preventive care is covered at 100%, even before you meet the deductible. Lower costs. It has the lowest per-paycheck contributions, and can potentially offer a much lower overall cost. You don t necessarily need the most expensive plan to protect yourself. Convenience. You have convenient access to the money in your HSA by using a debit card for eligible expenses. Flexibility. Your unused money rolls over each year, so you can choose to spend now or save for the future, even into retirement. Company Contributions. Medtronic makes contributions to your HSA $500, $750 or $1,250, based on your coverage level which you can use to offset the higher deductible. Portable. The account, and money, is yours to keep whether you leave Medtronic, switch medical plans or retire. GET CONNECTED Choosing benefits for you and your family is an important decision. The new and improved benefits.medtronic.com will help you discover more about your health, wealth and work/life benefits at Medtronic, during open enrollment and throughout the year. Benefits.medtronic.com is userfriendly and easy to navigate from your computer, tablet or smartphone. You can access all the information you need on your plan options, along with tools and resources to help you make your decisions. Learn more about your benefits, including detailed plan comparison charts and learning modules. Use ALEX, our online virtual benefits guide, to compare medical plans and find the one that best suits you. Link to plan administrator websites for finding a doctor or checking the cost of a prescription. Enroll in, update or view your benefits with one-click access to Workday. 2
DECIDE WHICH OPTIONS ARE RIGHT FOR YOU Open enrollment is your once-a-year opportunity to make changes to your benefits. Remember, you have several benefits to choose from during open enrollment medical, dental, vision, Health Savings Account (HSA), Health Care and Dependent Care Flexible Spending Accounts (FSAs), life insurance and disability benefits. Review your options on benefits.medtronic.com, and consider the following checklist to ensure the benefits you have today are still the best choice. Check out your medical provider s network. Check out the provider networks and select the administrator that includes your preferred doctors and facilities. Review how you used your coverage this year. Did your benefits meet or exceed your needs? You definitely don t want to be caught without enough protection, but why pay for coverage you don t use? Think about your family s needs for the upcoming year. Will you need extra coverage this year for a surgery, a baby on the way or other large expense? Consider your options. Do you want to pay less out of your paycheck, or less at the doctor s office when you need care? Our medical plans allow you to choose the cost and level of coverage that s right for you. ALEX, our online virtual benefits guide, can help you understand your choices and costs. DON T FORGET OPEN ENROLLMENT ENDS NOV. 14 After reviewing your options, visit Workday from the home page of benefits.medtronic.com to enroll in, update or view your current benefits. If you don t want to make any changes to your current coverage, you may not need to make an active enrollment election. Most of your current benefits will roll over to the next plan year. However, there are some exceptions: If you enroll in the CHP with HSA for 2017, you have a choice of plan administrator: UHC or BCBS. Check out the provider networks and select the administrator that includes your preferred doctors and facilities. If you elect to participate in the CHP with HSA, be sure to enroll in the Medtronic contributions (elect the Employer Plan ) and personal pre-tax contributions to your HSA, or review your current contributions and make adjustments, if needed. Flexible Spending Accounts Health Care and Dependent Care require you to enroll each year. You will need to indicate a contribution amount to participate in an FSA beginning Jan. 1, 2017. 3
KEEP THIS CALENDAR HANDY SO YOU DON T MISS AN IMPORTANT DEADLINE Open Enrollment: Week of Correction Period: Earn 25 points by Earn more than 50 points by 11/1 11/14 11/21 11/28 12/6 12/23 12/23 Use ALEX during open enrollment and enter a drawing for a chance to win free medical premiums for 2017 Make sure you have your covered dependents Social Security numbers listed in Workday Watch for your 2017 confirmation statement to be mailed to your home Make any corrections to your benefits, if necessary Make sure you and your covered spouse (if applicable) meet Healthier Together requirements to avoid paying more for medical coverage in 2017 Participate in Healthier Together for a chance to win free medical premiums for 2017 If your spouse is covered under a medical plan, complete the healthcare coverage question in Workday Complete your enrollment in Workday 4
EARN FREE MEDICAL PREMIUMS FOR 2017 Medtronic is offering you two opportunities to earn free medical premiums in 2017! 1. Use ALEX: Benefits Minus the Boring. ALEX, our online virtual benefits guide, can help you understand your benefit options and costs, and find the right coverage for you. But wait, it gets better! When you use ALEX during open enrollment (Nov. 1 14, 2016) you ll be able to enter a drawing where Medtronic will select ten lucky winners to receive free medical premiums* for 2017! A link to ALEX is available on benefits.medtronic.com. 2. Earn 50+ Points. If you earn more than 50 points through Healthier Together by Dec. 23, 2016, you ll be entered in a drawing, and three lucky winners will receive free medical premiums* for 2017. One winner will be drawn from the following groups: field sales, manufacturing, all others. To learn more about earning points for health-related activities, visit healthiertogether.medtronic.com. *The free medical premiums will be based on the medical plan election made during the open enrollment period and do not include the spouse surcharge and/or Healthier Together premium differential, if applicable. GOT A QUESTION? Start with benefits.medtronic.com for details about your 2017 benefits. For specific or personal benefit questions, contact AskHR at 800-987-3565 or AskHR@Medtronic.com. Please note your Annual Notices for Medtronic Benefit Programs are included in this kit. 5
This communication was prepared in accordance with the Employee Retirement Income Security Act of 1974, as amended. It describes the key features of various Medtronic employee benefit plans that may include medical, wellness, other health, life insurance and disability benefits and retirement, time-away and work/life benefits. The purpose of this communication is to give you a general understanding of benefits available under the various Medtronic benefit plans. This communication represents only general summary information about the terms contained in the official plan document. While we have made every effort to make this communication as accurate as possible, if there are any inconsistencies between this communication and the applicable plan document, the terms of the applicable plan document shall govern. Also, any questions or interpretations concerning benefits provided under the applicable plan will be resolved using the terms of the applicable plan document, not this communication. No person can make any statements of any kind that alter the terms of the applicable plan document. Accordingly you should not consider the applicable plan to have been amended based on written or oral statements made by any employee, officer, director or representative of Medtronic, including supervisors and Human Resources representatives. If you believe that you have received information contrary to the terms of the applicable plan or this communication, please contact AskHR at 800-987-3565 or by email at AskHR@Medtronic.com. These benefits are not automatically applicable to employees in collective bargaining units whose terms and conditions of employment, including benefits, are subject to the collective bargaining process. Open enrollment is Nov. 1 14, 2016 Discover what s new. Then review your options and enrollment resources to choose the coverage that s right for you.