Proposed 2010 Medical Plan Options

1. Proposed 2010 Medical Plan Options September 2009

2. Purdue’s Goals • Give more choices in medical plans • Support efforts to maintain/improve health • Better manage health care costs for Purdue & employees

3. What can you do to get ready? • Check out CIGNA to see if your medical provider is in the network • Review Health Savings Accounts and see if this would be an option for you • Participate in Healthy Purdue

4. How to Find a CIGNA Provider • http://cigna.com • Enter Doctor Name, Location and State or Zip Code • Select “Open Access Plus ONLY” • Select “Primary Care Physician” • If doesn’t show up, Try “Specialist” • If doesn’t show up, use the CIGNA Provider Nomination Form (on HR’s website or hard copy today) and fax to CIGNA

5. 2010 Changes • CIGNA new medical plan partner • No employee premium increase! • CIGNA Three Plans in 2010: • Purdue Incentive PPO • Purdue Copay • Proposed New Plan: Choice Fund HSA (Health Savings Account) • Drop Purdue 500 medical plan • Integration of EAP and Wellness in the medical plans • St. Anthony’s EAP discontinued as of 12/31/09

6. Highlights of the Choice Fund HSA • Plan deductible is medical and prescription drug COMBINED • Generic prescriptions covered at 100% • In-network preventative care services covered at 100% • Employees would own the money in their HSA (including Purdue contribution), and this account is portable • Employee determines when and how to use account dollars • Money left over at end of year would roll over to the next year-no limit on rollover money & earn interest • Choice Fund HSA costs significantly less for employee than other Purdue plans

7. Using HSA Accounts • Medical plan - annual deductible & coinsurance • Dental and vision expense • Prescription drug expenses, and • Over-the-counter drugs • If electing a Flexible Spending Account (FSA) as well – special IRS rule apply! • If you terminate the HSA money belongs to you with no end date

8. Important Items to Remember if Selecting 2010 HSA Account • 2009 FSA money must be spent by 12/31/2009 versus March 15, 2010 • If HSA plan is selected and employee elects FSA – the FSA $ may only be used for dental and vision expenses

9. Phil & NancyYear 1 In-network Out-of-Pocket Maximum: $4,000 Preventive Care One exam per member $ 0 12 Generic Scripts $ 0 Preventive Care: 100% Coinsurance You pay 20% Company pays 80% Non-Preventive6 Prescriptions $ 510 2 Urgent care visits 470 2 Physician’s visits 300 6 Physical therapy 620 $ 1,900 In-network Annual Deductible: $2,600 HSA: $2,000 (Purdue - Family $1,300 + $EE $700) $3,000 HSA Pays $ 1,900 Phil & Nancy Pay $ 0 Rollover to Year Two $ 100 Note: Assumes all in-network care – different coinsurance levels on out-of-network care apply.

10. Phil & NancyYear 2 Preventive Care One exam per member $ 0 Preventive Care: 100% Out-of-Pocket Maximum: $4,000 Coinsurance You pay 20% Company pays 80% Non-Preventive6 Prescriptions $ 510 2 Urgent care visits 470 1 ER visit 850 10 Physician’s visits 1,000 $ 2,830 Annual Deductible: $2,600 HSA: $2,100 ($100 roll over from year 1) & $2,000 contribution from Purdue ($1,300) and EE($700) HSA Pays$ 2,100 Plan Deductable $ (2,600) Phil & Nancy Pay$500 (to meet $2,600 annual deductible) $ 46 ($2,830-2600 = $230 X 20% toward Out-of-Pocket) Total: $ 546 Rollover to Year Three $ 0 Note: Assumes all in-network care – different coinsurance levels on out-of-network care apply.

11. What can you do to save money in 2010 and be more informed on your 2010 choices? • CIGNA representatives will be here in October • View online tutorial of HSA’s at: http://www.mercerelearning.com/Purdue/ • Read Inside Purdue, Purdue Today and Choose Well, Live Well publications • Save $200(EE)/$400 (EE & Spouse) on 2010 Medical Premium by: • Health Path Questionnaire (Blood Screening) • Must get 4 of the six colored apples • Complete by November 20, 2009