Blue Cross Blue Shield of Texas Replacing Aetna PPO Medical Plan Changes New Health Care Partners for Dental and EAP Improved Dental Plan Benefits

2014 Annual Enrollment Blue Cross Blue Shield of Texas Replacing Aetna PPO Medical Plan Changes New Health Care Partners for Dental and EAP Improved Dental Plan Benefits

2014 Annual Enrollment November 4-15, 2013 Annual enrollment is almost here, and it s time to learn about some important changes to your 2014 benefits. BMC wants to help you prepare to find the benefits that are the right fit for you and your family. This brochure, along with meetings and emails you ll see in the coming weeks, provides a high-level overview of what s new in 2014. Read on to prepare for Annual Enrollment. It begins November 4 and ends November 15, 2013. What s New in 2014? Negotiating the best deals possible for BMC and employees continues to be a priority. In 2014, we ll be changing to new health care partners for the Health Savings Account (HSA) Medical Plan, PPO Medical Plan, Dental Plan, and Employee Assistance Program (EAP). We re also making a few other changes to keep delivering great benefits at a reasonable price. You can expect a smooth transition and consistent service during these changes, as well as access to a full range of benefits and support. Here s a look at the changes to our existing benefits and programs that will be effective January 1, 2014. 1

2014 Benefit Changes Feature What s Changing HSA and PPO Plans New Administrator Teladoc Medical Coverage Costs Health Savings Account The provider network for the Health Savings Account (HSA) and PPO medical plans will change to Blue Cross Blue Shield of Texas (BCBSTX). See page 3 for details. BMC s medication management program will include additional prescription drugs. See mybmcbenefits.com for information about new drugs that require prior authorization starting January 1, 2014. To provide you with more tools to manage your health and save you money, we ve partnered with Teladoc, a company that provides telemedicine services. Telemedicine gives you 24/7/365 access to board-certified physicians and pediatricians via phone or online video consultations. With medical costs continuing to rise, monthly costs will increase for you and BMC. For 2014, BMC is absorbing increases for the HSA and PPO medical plans. If you are enrolled in the HMO Plan, your monthly costs will increase an average of 8% for 2014. The IRS is increasing the amount you can contribute to your Health Savings Account. See page 3. Your Spending Account TM will still administer the HSA and UMB Bank will continue as the custodian. PPO Plan In-Network Deductibles Out-of-Pocket Maximums The annual in-network deductible will increase as follows: Individual: $500 to $750 Family: $1,000 to $1,500 The annual out-of-pocket maximum will increase as follows: Individual: $2,000 to $3,000 Family: $4,000 to $6,000 Copayments The emergency room copayment will increase from $100 to $250. Copayment limits on preferred and non-preferred brand-name drugs are increasing: Retail Mail-Order (90-day supply) Preferred $40 minimum $80 minimum $85 maximum $170 maximum Non-preferred $80 minimum $160 minimum $170 maximum $200 maximum The copayment for generic drugs remains at $4 retail and $10 mail-order. Dental Plan EAP Supplemental Insurance MetLife will administer the BMC Dental Plan (replacing Aetna). See page 4 for details. Dental Plan enhancements for 2014 include increases to the annual plan maximum and the lifetime orthodontia maximum from $1,500 to $2,000 (children and adults). Your 2014 monthly paycheck deductions will be the same as 2013. Magellan Health Services will replace Aetna as our Employee Assistance Program provider. See page 4 for details. On average, the cost of supplemental life and accidental death and disability insurance is decreasing for 2014. See Your Benefits Resources (YBR) for specific costs. 2

Aetna Participants: New Administrator Coming in January To save you and BMC money, BMC selected Blue Cross Blue Shield of Texas (BCBSTX) to administer the HSA and PPO medical plans beginning January 1, 2014. The move to BCBSTX affects only the administration of your plan for example, the provider network, claims submission, phone numbers, ID card and website addresses. The design of the plans such as the services your plan covers and the amount you pay for care will generally be the same as it is today with some minor differences. This change does not affect the HMO Plan. What is Not Changing? You ll continue to have the choice to use any doctor you want in or out of the BCBSTX network. Keep in mind, though, that you will pay less for care if you use a doctor that s in the BCBSTX network. Aetna will continue to pay your claims incurred for care through the remainder of 2013. Express Scripts (formerly Medco) will still provide your prescription drug coverage. Is My Doctor in the Network? You ll likely want to check to see whether your current doctor or hospital is a part of the BCBSTX network. Nearly 95% of the doctors currently used by BMC employees under Aetna are also part of the BCBSTX network. Visit YBR any time after November 4 to find out if your doctor participates in the BCBSTX network. Find current provider directories by clicking through this path: Health and Insurance TAKE ACTION Find a Doctor. Your Spending Account (YSA) will still administer your Health Spending Account and UMB Bank will continue as the custodian. BMC will contribute to your HSA at the same levels as 2013. If you are currently enrolled in the HSA or PPO Medical plan administered by Aetna, your current coverage will automatically transition to BCBSTX at the same coverage level as it is today. You do not need to do anything to maintain your BMC medical coverage for 2014. However, if you want to make changes to your medical coverage or other benefits, please take action during annual enrollment. Currently Receiving Treatment? If you re currently in treatment for a serious condition, we know the last thing you want to worry about is finding another doctor. Depending on your health issue, transition of care may be available to you and your covered dependents. Please visit mybmcbenefits.com during the enrollment period for more information about transition of care. New ID Cards You will receive a new combined BCBSTX and Express Scripts ID card in December if you continue coverage or enroll for the first time in the HSA or PPO medical plan. You ll use the card to receive medical services and prescription drugs starting January 1, 2014. Health Savings Account The IRS is increasing the amount you can contribute to your Health Savings Account. Individual: $3,300, up $50 from 2013 Family: $6,550, up $100 from 2013 Catch-up: $1,000 if you are at least age 55 (no change) 3

NEW! MetLife Replaces Aetna as Dental Plan Vendor Starting January 1, 2014, MetLife will replace Aetna for the BMC Dental Plan and participants will use the MetLife network of providers. In addition, the annual maximum and the orthodontia lifetime maximum are increasing from $1,500 to $2,000. Plan deductibles and coinsurance for covered services will be the same as in 2013. To access a MetLife dental provider directory, go to www.metlife.com/mybenefits. MetLife does not provide dental ID cards. You can download a card at www.metlife.com/ mybenefits after January 1, 2014, or provide your Social Security Number during your dental appointment. You can also call customer service at 1-800-942-0854 for help with locating providers or other questions you may have. NEW! EAP Now Through Magellan Health Services We have selected Magellan Health Services as our new provider for the Employee Assistance Program (EAP) for 2014. The EAP provides all employees and their family members with access, at no cost, to phone calls with trained counselors and up to six mental health visits per issue with an EAP professional. If you are mid-way through counseling sessions for an issue on January 1, 2014, your number of visits will reset, making you eligible to receive up to six more visits for that issue in 2014. You can continue seeing your provider if he or she is in the Magellan network. If your provider is not in the Magellan network, you will need to select another provider for your 2014 visits. To see if your provider is in the Magellan network, visit www.magellanassist.com or call 1-800-327-1393. Pay Less for Medical Coverage Next Year You ll continue to be rewarded for participating in activities that contribute to your overall health and wellness. Look for information in the first quarter about opportunities to earn wellness discounts in 2014 and pay less for medical coverage in 2015. 4

Health Care Reform and Your BMC Benefits BMC continues to revise our medical plans to comply with the changing health care reform law requirements. We will continue to review changes mandated by the federal government, assess their cost impact on our plans, and make adjustments as required. To learn more about health care reform and your BMC benefits, visit www.mybmcbenefits.com. What if I don t enroll by November 15? In most cases, coverage will remain the same if you do not actively enroll during the enrollment period. However, some things will NOT stay the same for 2014: If you are enrolled in the HMO Plan, you will pay increased monthly costs for medical coverage in 2014. Your coverage will automatically transition to our new health care partners for the HSA and PPO medical plans, the Dental Plan, and the EAP. If you are enrolled in supplemental life and disability, you will pay lower monthly costs for coverage. Your current Flexible Spending Accounts (FSAs) and Health Savings Account (HSA) elections will be set at $0. BMC s contributions to your Health Savings Account will continue for 2014. Remember, your FSA and HSA elections do not carry over from year to year. 5

Annual Benefits Enrollment will take place between November 4 and November 15, 2013. Enroll online starting November 4 by logging on to My BMC Compensation and Benefits. You can enroll by: Visiting mybmcrewards.com and clicking on the Enroll Now! link. Visiting mybmcbenefits.com and reading details about benefits changes for 2014. Click on the Enroll Now link to enroll or change your benefits. You can also enroll by phone with a Benefits Center representative at 1-877-262-4849, between 8 a.m. and 9 p.m., Eastern time, Monday through Friday. For your protection, your user ID and password will be required. Want to Learn More About Annual Enrollment? Scan the code with your smartphone to go to mybmcbenefits.com. Looking Ahead This brochure is just step one in learning about your benefit choices for 2014. Watch your email for annual enrollment updates and for information on employee meetings (held at larger locations), WebEx meetings and more. This information is only a summary. The provisions of the benefit plan documents, the current BMC Software, Inc. (the Company) policies and the insurance policies as applicable will determine your actual benefits. If there is a conflict between this document and the plan/company policies or documents, the plan/company policies or documents will govern. The Plan Administrator has the final discretionary authority to determine all issues arising under the benefit plans it administers, including issues of interpretation, eligibility, benefits and factual determination. If there is a conflict between this guide and a determination or interpretation made by the Plan Administrator, the interpretation adopted by the Plan Administrator will govern. 10/2013

BMC Software 2101 CityWest Blvd Houston, Texas 77042 Presorted First Class Mail US Postage Paid Dallas, TX Permit #777 about your BMC benefits Sign Up for Text Alerts Would you like to stay on top of what s important in BMC benefits? You can register your mobile phone number to receive text reminders* about annual enrollment deadlines and wellness programs, as well as other BMC benefits-related information. To subscribe, text BMCBENEFITS to 25827 from your mobile phone. *Text messaging fees may apply depending on your mobile phone plan.