2013 Benefits Newsletter - Spartech Corporation

spartech.com

2013 Benefits Newsletter - Spartech Corporation

SPARTECH

2013 Employee Benefits Open Enrollment Guide

This publication

contains important

information about

your employee benefit

program.

Please read

thoroughly.


2013 Open Enrollment Newsletter

Dear Team Member,

At Spartech we are committed to “providing a great place for our team members to contribute, learn, grow, and

be challenged, respected, appreciated and fulfilled”. We believe that an important aspect of a great place to work

is providing a competitive benefits package for you and your family.

We’ve all heard that healthcare costs keep rising. Healthcare costs in our country are rapidly approaching $2.4

trillion annually. That is nearly $8,000 per year for every man, woman and child in America. All companies,

including ours, need to control healthcare costs to stay competitive. More importantly, we need to make sure

our health benefits do what they are intended to do: help you and your family achieve and maintain your health

potential. If we can provide a benefits program that helps you maintain or improve your health, we are all, our

employees and Spartech, more likely to save money.

Beginning in 2013, we are pleased to offer a new type of health plan known as a consumer driven health plan

which allows you to be a part of the health care solution. It includes your own Health Savings Account (HSA),

to which Spartech will contribute to help pay for eligible expenses. This health plan supports our strategy of

consumerism and wellness & prevention.

The HSA Plan is a consumer driven approach to healthcare in which you have greater control over how your

healthcare dollars are spent. It:




Increases awareness to the cost and quality of health services

Increases awareness of preventive care and routine healthcare services

Encourages a more active role in managing individual healthcare spending

We examined why our costs continue to rise and what we can control. We realized we needed to do a better job at

containing costs by reducing our overall use of healthcare. The most effective way to do this is through wellness

& prevention. The new HSA Plan helps by providing cash incentives to promote staying healthy and engaging in

identifying risks to our future health through:





Getting an Annual Physical (at no charge)

Completing “MyHealth Assessment”

Completing the Tobacco-Free program

Participating in a health coaching program

Please review your coverage options carefully. Enrolling is only one step you need to take control of your

healthcare costs. Use your benefits wisely all year long, be a good consumer of healthcare services and focus on

staying healthy. Take advantage of resources and programs available to assist you.

Thank you for your service and commitment to Spartech.

Bob Lorah

SVP, Human Resources

2


Spartech

Contents

Eligibility .......................... 4

Dependent Verification ................ 5

Medical and Prescription Drug. .......... 6

How the Plans Work. ................. 8

Dental. ........................... 9

Vision ............................ 9

Flexible Spending Accounts (FSA). ....... 10

Life Insurance ..................... 10

Disability Insurance. ................. 12

401(k) Savings and Investment Plan. ..... 13

Special Notice. . . . . . . . . . . . . . . . . . . . . . 14

Important Benefits Contact Information ... 20

Open enrollment is the window of time that provides employees the

opportunity to add or change benefit coverage. November 12, 2012

through November 26, 2012 at midnight has been set for open

enrollment. Any elections or changes received after the deadline

will not be accepted.

All employees must complete new election forms. If you do not

complete new election forms, you will not have benefits for 2013.

Changes that are made during open enrollment will become effective

January 1, 2013.

For those participating in the

Flexible Spending Accounts, new

elections are required annually;

even if you are electing the same

amount you must complete an

enrollment form.

Anyone who elects to opt out of the medical coverage will still

receive the Company provided life insurance and short term

disability. You may still participate in the voluntary life insurance

program, dental, vision and flex spending accounts if you opt

out of the healthcare programs.

If you choose to waive health insurance through Spartech, you

will be eligible for a monthly reimbursement of $100. In order

to receive this reimbursement, employees must provide proof

of coverage by another qualifying plan to include effective dates

and names of covered members. This option is only available to

regular full-time employees.

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2013 Open Enrollment Newsletter

ENROLLMENT AND VERIFICATION

Eligibility

Eligibility Period

Employees are eligible the first of the month following 30 days of

employment.

Dependent Eligibility

Working spouses are not eligible for coverage with Spartech unless

they are first enrolled in their employer’s plan. You will need to supply

proof that your working spouse has elected coverage or is not eligible

for coverage with their employer and complete the Spousal Verification

Form.

Examples of proof include




ID card

Letter from the spouse’s employer on their letterhead

Enrollment confirmation form

This proof must be provided before spouses may be enrolled in the

Spartech medical program.

Children are eligible for coverage through the end of the month in which

they turn age 26, regardless of student, marital or dependency status.

Domestic Partner Eligibility

Domestic Partners are eligible for coverage under the Spartech benefit

plans. Employees wishing to cover domestic partners will be required

to provide proof of domestic partner status and signed affidavits for

Spartech and Anthem.

Employees choosing to enroll domestic partner dependents will be taxed

on the value of coverage for the domestic partner and/or the domestic

partner’s child(ren), as generally they are not defined as tax qualified

dependents.

Refer to the taxation charts on the contribution sheets, under the

appropriate benefit section, for the premium amounts for which you will

be taxed. See your Segment Human Resources Manager for additional

information.

4


Spartech

Dependent Verification

As healthcare costs continue to increase at double digit rates year

over year, it is our focus to keep costs as low as possible and make

certain only eligible dependents are utilizing the Spartech benefit

plans. If you are enrolling dependents for the first time, you must

submit proof of dependent eligibility.

Examples of Acceptable Documentation:

Spouse


Marriage Certificate AND


Copy of front page of most recent federal tax return confirming

this dependent as a spouse OR a document dated within the

last 6 months showing current relationship status such as a joint

household bill, joint bank/credit account or mortgage/lease

or insurance policies. This document must list you and your

spouse’s name, the date and mailing address.

Domestic Partner


An Affidavit of Domestic Partnership AND


TWO documents dated within last 6 months showing current

relationship status such as a joint household bill, joint bank/

credit account or mortgage/lease or insurance policies. This

document must list you and your domestic partner’s name, the

date and mailing address.

Children


A copy of the child’s birth certificate naming you or your spouse

as the child’s parent, or appropriate court order/adoption decree

naming you or your spouse/qualified domestic partner as the

child’s legal guardian.


A Physician’s Statement may be periodically required to

determine disability/dependency status for disabled children and

is subject to review.

5


2013 Open Enrollment Newsletter

Medical and Prescription Drug

Anthem Blue Cross Blue Shield will

continue to administer the Spartech medical

plans.

Employees will have the option to choose

between two plan options, a traditional

Preferred Provider Organization (PPO) plan

or a NEW Health Savings Account (HSA).

How the Plans Work

PPO

The PPO plan is a traditional health plan

that requires certain copays in addition to

satisfying the deductible. The plan pays

100% for eligible, routine preventive medical

expenses received from network providers.

Copays apply to office visits and prescription

medications. An annual deductible is

required for any inpatient or outpatient type

services. An annual deductible is required

for any prescription medications prior to the

copays being applied.

Under the PPO, at least two family members

must contribute a portion of the deductible

and out of pocket maximum.

Copays, deductibles and coinsurance

amounts that are spent on medical expenses

accumulate toward the out of pocket

maximum. Prescription medication copays

are separate and do not accumulate towards

the out of pocket maximum.

HSA

The HSA plan is a consumer-driven approach to

healthcare and features a Health Savings Account

(HSA). The plan pays 100% for eligible, routine

preventive care and 80% for prescription medications

and covered services from network providers once you

meet an annual deductible. Spartech will contribute

$400 for an individual or $1,100 for a family to your

HSA. Half of the Spartech contribution will be

made in January, the remainder in June. Additionally,

when you complete an employee annual physical

Spartech will contribute an additional $100 to your

HSA. You may also elect to contribute, up to IRS

limits. IRS limits include both employer and employee

contributions. Therefore employee contributions are

limited to $2,750 for an individual and $5,250 for

family. Funds in your HSA rollover from year to year

and can be used whenever you have eligible medical

expenses.

Under the HSA plan, one or more family members can

contribute towards the deductible and out of pocket

maximum. Employees that are electing to cover

dependents must satisfy the full family deductible

before the plan begins to pay benefits.

Refer to pages 19-23 for frequently asked question

regarding the PPO and HSA.

For a comprehensive listing of eligible, routine preventive

care services that are paid at 100%, log onto

www.anthem.com or call Anthem’s customer service. For

an interactive tutorial on how the Anthem plans work, log

onto www.anthem.com/basics

6


Spartech

Calendar Year Deductible

St. Louis Metro—Blue Access Choice PPO Network

All Other Locations—Blue Access Network

PPO

HSA

Network Non-Network Network Non-Network

Individual $1,500 $1,500 $2,500 $5,000

Family $3,000 $3,000 $5,000 $10,000

Out-of-Pocket Maximum—Includes Deductible

Individual $4,000 $6,500 $5,000 $10,000

Family $8,000 $13,000 $10,000 $20,000

Physician Office Visits

Primary Care $25 Copay 50% after deductible 20% after deductible 40% after deductible

Specialist $50 Copay 50% after deductible 20% after deductible 40% after deductible

Wellness/Preventive Covered at 100% 50% after deductible Covered at 100% 40% after deductible

Hospital Services

Inpatient 20% after deductible 50% after deductible 20% after deductible 40% after deductible

Outpatient 20% after deductible 50% after deductible 20% after deductible 40% after deductible

Urgent Care $40 Copay 50% after deductible 20% after deductible 40% after deductible

Emergency Room $150 Copay; 20% facility services 20% after deductible

Prescription Drugs

Deductible $50 $50 Combined Med/Rx Combined Med/Rx

Tier 1 $15 Copay 50%; $45 minimum 20% after deductible 40% after deductible

Tier 2 $30 Copay 50%; $45 minimum 20% after deductible 40% after deductible

Tier 3 $50 Copay 50%; $45 minimum 20% after deductible 40% after deductible

Mail Order—Supply Limit

Tier 1

$35 Copay

20% after deductible

Tier 2 $75 Copay Not Covered 20% after deductible

Tier 3 $125 Copay 20% after deductible

Not Covered

Anthem offers an online Care Comparison tool to help you make

more informed health care choices. For example, the same medical

procedure may have a different contracted rate depending on the

hospital or outpatient facility you choose. The Care Comparison

tool can help you see those pricing differences in advance. Log in at

www.anthem.com and select Compare Facility Cost and Quality

for details.

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2013 Open Enrollment Newsletter

Dental

Dental benefits will continue to be provided

through Aetna. Benefit highlights are

illustrated below.

Benefits are the same in and out of network;

however, if you utilize Aetna network

providers you will receive negotiated,

contracted rates, which are in many cases

lower than those charged by non-network

providers. You may access a list of network

providers at www.aetna.com.

Non-Network providers do not have a

contract with Aetna and patients could

be subject to “balance billing”. Aetna

will reimburse out of network providers

based on what is usual and customary for a

specific geographic region.

Dental coverage may be elected

independently or in any combination with

medical or vision.

Vision

Vision benefits are offered through Superior Vision.

Superior Vision’s extensive network includes retail and

private practice providers.

Superior Vision—Voluntary Coverage/Employee Paid

Frequency of Service

Exam

Materials

Lenses

Frames

Contact Lenses (in lieu of

frames & lenses)

Every 12 months

Every 12 months

Every 24 months

Every 12 months

Benefit In-Network Out-of-Network

Eye Exam Covered in Full Up to $37

Single Lens Covered in Full Up to $32

Bifocal Covered in Full Up to $46

Trifocals Covered in Full Up to $61

Lenticular Lenses Covered in Full Up to $84

Frames

Contact Lenses—Medical

Necessity **

Elective Contact Lenses *

Up to $125

retail allowance

Up to $68

Covered in Full Up to $210

Up to $120

allowance

Up to $120

Dental—Aetna

Deductible

Individual $50

Family $150

Annual Benefit Maximum $1,000

Preventative—cleanings, exams, x-rays 100%

Basic—fillings, extractions, root canals 80%

Major—crowns, dentures 50%

Orthodontia (Children to age 19 only)

Deductible $0

Coinsurance 50%

Lifetime Max $1,000

Balance Billing is the practice of billing the

patient for amounts over what is usual and

customary for a particular service and you will

be responsible for paying the difference.

* Contact lens evaluation and fitting is subject to a $25 copay

National retailers include but not limited to:







JC Penney Optical

LensCrafters

Pearle Vision

Sears Optical

Target Optical

Wal-Mart Vision Centers

For a complete listing of providers log onto the Superior

Vision website at www.superiorvision.com (Click on

Members & Future Members, then Locate a Provider) or

by calling Customer Service at 800-507-3800.

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Spartech

Flexible Spending Accounts (FSA)

Flexible Spending Accounts are tax favored accounts that allow you

to pay for eligible medical and dependent care expenses with pre-tax

dollars.

There are two flexible spending accounts available to you regardless

of participation in a medical plan. You may contribute to the

Healthcare Flexible Spending Account if:

1. You participate in the PPO option, or

2. You are over the age of 65, you participate in the HSA and are

covered by Medicare, or

3. You do not have medical coverage through Spartech

Regardless of the medical plan you elect, you may contribute to the

Dependent Care Flexible Spending Account. PayFlex administers

both accounts. You must make a new election each year if you wish

to participate in either or both flex spending accounts.

It is important to be cautious with your election as any unused funds

are not rolled over and are forfeited at the end of the plan year.

Healthcare FSA

Effective January 1, 2013 Health Reform requirements will limit the

maximum amount a participant can contribute to the Healthcare

FSA to $2,500 annually. Your contribution is a pre-tax payroll

deduction each period. The Healthcare FSA offers a grace period

where you may incur claims through March 15th of the following

year and claim against the previous year’s funds. Please note you

cannot elect the Healthcare FSA plan in 2013 if you elect the HSA

Plan. In addition, employee and employer contributions may not be

made to the HSA until the funds in the Healthcare FSA have been

used or forfeited, per IRS rules. In order to contribute to the HSA

immediately following the beginning of the new plan year, you must

have a zero balance in the Healthcare FSA as of December 31.

Eligible expenses include

copayments, deductibles,

coinsurance, healthcare

expenses not covered by the

medical, dental or vision plans,

and hearing aids. Over-thecounter

medications are not

eligible under the healthcare

flexible spending account

without a doctor’s prescription.

Dependent Care FSA

You may also contribute up

to $5,000 ($2,500 if married

and file taxes separately) to a

Dependent Care FSA to pay for

eligible child care and elder care

expenses. Examples of eligible

expenses include payments

to nursery schools, day care

centers, before and after school

care and day care expenses for

dependent parents who spend

at least 8 hours per day in your

home. You may contribute

to the Dependent Care FSA

regardless of medical plan

election.

For a complete listing of eligible

health care and dependent

care expenses please see IRS

Publication 502 by logging onto

www.irs.gov.

9


2013 Open Enrollment Newsletter

Life Insurance—Company Paid

Basic Life and Accidental Death & Dismemberment

(AD&D) and Supplemental Life Insurance coverage is

provided through The Standard Insurance Company.

Exempt

Basic Life/AD&D Insurance

Company Paid

Non-Exempt

2 x Base Salary 1 x Base Salary

(does not include overtime)

Max $500,000 Max $100,000

Supplemental Life Insurance Voluntary Coverage/Employee Paid

Employee

Guarantee Issue: $150,000

Coverage Maximum:

Spouse

$500,000 (after EOI)

Guarantee Issue: $50,000

Coverage Maximum:

Child(ren)

Coverage Maximum:

$300,000 (after EOI)

$10,000 (all Guarantee Issue)

Voluntary Life Insurance

Additional life insurance for the

employee, spouse and/or children may

be purchased on a voluntary basis.

Employees may elect coverage in $10,000

increments to a maximum of $500,000.

Spouse coverage is available in $5,000

increments to a maximum of $300,000.

Employees must be enrolled in Voluntary

Life to purchase coverage for spouse

and/or children. Spouse coverage may

not exceed the employee coverage

amount.

Evidence of Insurability (EOI) is required for elections

over the Guarantee Issue amount of $150,000 for

employee coverage and $50,000 for spouse coverage.

EOI is required for anyone (employee, spouse, and/

or child) if you enroll after your new hire eligibility

period as you are considered a late entrant and coverage

is subject to approval by the insurance company. The

new hire eligibility period is the first 30 days after the

waiting period of first of the month following 30 days

of employment. Any increases in coverage outside of the

initial eligibility period will also be subject to EOI and

approval by the insurance company. Anytime an employee

wishes to increase or add voluntary coverage, he/she

must complete an enrollment form and EOI application.

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Spartech

Payroll deductions for coverage over the

Guarantee Issue limit and late entrant

elections will not begin until approval has

been granted by the insurance company.

You and your Segment HR Manager will be

notified when a decision has been made. If

approved, payroll deductions will begin at the

time of approval.

To cancel coverage, an enrollment form

is required and should be completed as a

change or termination of coverage.

Employee and Spouse Rate Chart

for Supplemental Life Insurance

Monthly Life Insurance Premiums per

$1,000 of Coverage

Age Employee Spouse *

0-29 $0.050 $0.060

30-34 $0.070 $0.080

35-39 $0.110 $0.120

40-44 $0.165 $0.180

45-49 $0.280 $0.310

50-54 $0.480 $0.500

55-59 $0.800 $0.820

60-64 $1.350 $1.400

65-69 $1.950 $2.000

70+ $2.950 $3.000

Example

You choose $100,000 in Employee Supplemental

life and you are in the age group of 35-39.

Bi-weekly rate formula

$100,000 x .11 divided by 1,000 = $11.00 per

month x 12 months divided by 26 weeks = $5.08

bi-weekly

Weekly rate formula

$100,000 x .11 divided by 1,000 = $11.00 per

month x 12 months divided by 52 weeks = $2.54

weekly

See the Rate Chart

Child(ren) Supplemental Life

Insurance Rates Chart

Rates Weekly Bi-weekly

$2,500 Coverage * $0.11 $0.21

$5,000 Coverage * $0.21 $0.42

$10,000 Coverage * $0.42 $0.83

* The cost is the same for one child or total number of dependent

children you elect to cover.

NOTE: EOI is necessary for each child if considered a late entrant

* Your spouse is considered the same age as the employee for

pricing purposes.

11


2013 Open Enrollment Newsletter

Disability Insurance

Short Term and Long Term Disability coverage

is also provided by The Standard Insurance

Company.

Short Term Disability—Company Paid

Short-term disability benefits are provided to

you at no cost. The plan pays a portion of your

earnings, up to a maximum benefit amount, for

up to 26 weeks per rolling 12 calendar months

regardless of number of true disabilities if you are

unable to work due to illness or injury.

Long Term Disability

The long term disability plan can continue a

portion of your pay if you are unable to work

beyond 26 weeks of short term disability and

meet all requirements. Benefits continue up to 24

months in your own occupation or Social Security

Normal Retirement age in any occupation,

provided all requirements are met.

Exempt employees receive 60% of basic earnings

to a maximum of $10,000 per month.

Non-Exempt employees receive 50% of basic

earnings to a maximum of $10,000 per month.

Long Term Disability coverage is voluntary

and 100% paid for by the employee. The rates

are illustrated and include examples of how to

calculate your bi-weekly or weekly cost.

LTD Rate per $100—Non-Exempt

Under 30 $0.074

30-34 $0.146

35-39 $0.266

40-44 $0.398

45-49 $0.603

50-54 $0.967

55-59 $1.320

60-64 $1.299

65-69 $1.059

70+ $1.695

Cost Calculation Examples

Non-Exempt Employee LTD Rate Formula

Locate the appropriate rate per your age bracket.

Annual Earnings divide by 12, divide by $100 and

multiply by the rate = LTD monthly rate _____

multiply by 12 and divide by 26 = bi-weekly cost

______multiply by 12 and divide by 52 = weekly

cost

Weekly Calculation

For example, if your monthly rate is $11.08

multiply by 12, then divide by 52 = $2.56 weekly

rate

Exempt Employee LTD Rate Formula

Annual Earnings ____ ÷ 12 x .0029 = LTD

Monthly Cost ___times 12 divided by 26 = Biweekly

Cost ___

Bi-weekly Calculation

For example, if your monthly rate is $11.08

multiply by 12, then divide by 26 = $5.11 biweekly

rate

12


Spartech

401(k) Savings and Investment Plan

Employees are eligible to participate in Spartech’s 401(k) available

through Prudential:




Eligible new hires will be auto-enrolled at 2% following 30 days

of employment

Contribute on a pre-tax and/or Roth after-tax basis;

2013 Limits: $17,500; plus an additional $5,500 if age 50 or

above


Employer Match is discretionary; currently, it is 50% up to 6%

of compensation.

Participant Resources

To make changes to your 401(k), please contact Prudential directly

at:

Website:

www.prudential.com/online/retirement

Service Center: 877-778-2100

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2013 Open Enrollment Newsletter

Special Notices

Health and Welfare Documents

The benefits Enrollment/Change form, Dependent Eligibility

form, Domestic Partner forms, Benefit Summaries and

Summary Plan Descriptions (SPDs) and amendments, etc.

are available at the company intranet site at

www.spartech.com/benefits. You can also follow the direct

links below to the specific forms you would like to access.

Benefits Enrollment Form

www.spartech.com/benefits/benefitsenrollmentform.pdf

Spousal Verification Form

www.spartech.com/benefits/spousalverificationform.pdf

Dependent Eligibility Form

www.spartech.com/benefits/dependenteligibilityform.pdf

Domestic Partner and Common Law Spouse

Certification

www.spartech.com/benefits/DPandCLSpouseCertification.pdf

Domestic Partner and Common Law Spouse Policy

www.spartech.com/benefits/DPandCLSpousePolicy.pdf

Domestic Partner and Common Law Spouse Anthem

Affidavit

www.spartech.com/benefits/DPandCLSpouseAnthemAffidavit.

pdf

Anthem PPO Plan Summary

www.spartech.com/benefits/PPO.pdf

Anthem HSA Plan Summary

www.spartech.com/benefits/HSA.pdf

Aetna Dental Summary

Patient Protection Disclosure

Spartech Corporation benefit plans generally

allow the designation of a primary care provider.

You have the right to designate any primary care

provider who participates in our network and who

is available to accept you or your family members.

For information on how to select a primary care

provider, and for a list of the participating primary

care providers, visit www.anthem.com, under

Useful Tools and Find a Doctor, on the home page.

You may also call Anthem’s member service number

located on the back of your ID card.

For children, you may designate a pediatrician as

the primary care provider.

You do not need prior authorization from Spartech

Corporation or from any other person (including

a primary care provider) in order to obtain

access to any specialist including obstetrical or

gynecological care from a health care professional

in our network who specializes in obstetrics or

gynecology. The health care professional, however,

may be required to comply with certain procedures,

including obtaining prior authorization for certain

services, following a pre-approved treatment

plan, or procedures for making referrals. For

a list of participating health care professionals

who specialize in obstetrics or gynecology, visit

www. anthem.com, under Useful Tools and Find

a Doctor, on the home page. You may also call

Anthem’s member service number located on the

back of your ID card.

www.spartech.com/benefits/aetnadentalsummary.pdf

Superior Vision Summary

www.spartech.com/benefits/superiorvisionsummary.pdf

Summary of Benefit Coverage

www.spartech.com/benefits/PPOSBC.pdf

www.spartech.com/benefits/HSASBC.pdf

Employee Physical Verification Form

www.spartech.com/benefits/providerform.pdf

14


Spartech

Medicaid and the Children’s Health

Insurance Program (CHIP)

Offer Free Or Low-Cost Health Coverage To Children And

Families

If you are eligible for health coverage from your employer,

but are unable to afford the premiums, some States

have premium assistance programs that can help pay for

coverage. These States use funds from their Medicaid

or CHIP programs to help people who are eligible for

employer-sponsored health coverage, but need assistance

in paying their health premiums.

If you or your dependents are already enrolled in Medicaid

or CHIP, you can contact your State Medicaid or CHIP office

to find out if premium assistance is available.

If you or your dependents are NOT currently enrolled

in Medicaid or CHIP, and you think you or any of your

dependents might be eligible for either of these programs,

you can contact your State Medicaid or CHIP office or dial

1-877-KIDS NOW or

www.insurekidsnow.gov to find out how to apply.

If you qualify, you can ask the State if it has a program

that might help you pay the premiums for an employersponsored

plan.

Once it is determined that you or your dependents are

eligible for premium assistance under Medicaid or CHIP,

your employer’s health plan is required to permit you and

your dependents to enroll in the plan – as long as you and

your dependents are eligible, but not already enrolled in

the employer’s plan. This is called a “special enrollment”

opportunity, and you must request coverage within 60 days

of being determined eligible for premium assistance.

If you live in a state that offers assistance you may be

eligible for support paying your employer health plan

premiums. Visit the Spartech intranet for additional

information including a state listing. You should contact

your state for further information on eligibility.

Important Notice from Spartech

Corporation About Your Prescription

Drug Coverage and Medicare

If neither you nor any of your covered dependents

are eligible for or have Medicare, this notice does

not apply to you or the dependents, as the case may

be.

Please read this notice carefully and keep it where you

can find it. This notice has information about your current

prescription drug coverage with Spartech Corporation and

about your options under Medicare’s prescription drug

coverage. This information can help you decide whether

or not you want to join a Medicare drug plan. Information

about where you can get help to make decisions about

your prescription drug coverage is at the end of this notice.

However, you should still keep a copy of this notice in

the event you or a dependent should qualify for coverage

under Medicare in the future. Please note, however, that

later notices might supersede this notice.

Medicare prescription drug coverage became available in

2006 to everyone with Medicare. You can get this coverage

if you join a Medicare Prescription Drug Plan or join a

Medicare Advantage Plan (like an HMO or PPO) that offers

prescription drug coverage. All Medicare drug plans provide

at least a standard level of coverage set by Medicare. Some

plans may also offer more coverage for a higher monthly

premium.

Spartech has determined that the prescription

drug coverage offered by the Spartech Corporation

Comprehensive Health & Welfare Benefit Plan (“Plan”) is,

on average for all plan participants, expected to pay out

as much as standard Medicare prescription drug coverage

pays and is considered “creditable” prescription drug

coverage. This is important for the reasons described

below.

Because your existing coverage is, on average, at least as

good as standard Medicare prescription drug coverage,

you can keep this coverage and not pay a higher Medicare

premium (a penalty) if you later decide to enroll in a

Medicare drug plan, as long as you later enroll within

specific time periods.

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2013 Open Enrollment Newsletter

Enrolling in Medicare—General Rules

As some background, you can join a Medicare drug plan

when you first become eligible for Medicare. If you qualify

for Medicare due to age, you may enroll in a Medicare drug

plan during a seven-month initial enrollment period. That

period begins three months prior to your 65th birthday,

includes the month you turn 65, and continues for the

ensuing three months. If you qualify for Medicare due to

disability or end-stage renal disease, your initial Medicare

Part D enrollment period depends on the date your

disability or treatment began. For more information you

should contact Medicare at the telephone number or web

address listed on page 17.

Late Enrollment and the Late Enrollment Penalty

If you decide to wait to enroll in a Medicare drug plan

you may enroll later, during Medicare Part D’s annual

enrollment period, which runs each year from October 15th

through December 7th. But as a general rule, if you delay

your enrollment in Medicare Part D, after first becoming

eligible to enroll, you may have to pay a higher premium (a

penalty).

If after your initial Medicare Part D enrollment period

you go 63 continuous days or longer without “creditable”

prescription drug coverage (that is, prescription drug

coverage that’s at least as good as Medicare’s prescription

drug coverage), your monthly Part D premium may go up

by at least 1% of the premium you would have paid had

you enrolled timely, for every month that you did not have

creditable coverage.

Special Enrollment Period Exceptions to the Late

Enrollment Penalty

There are “special enrollment periods” that allow you to

add Medicare Part D coverage months or even years after

you first became eligible to do so, without a penalty. For

example, if after your Medicare Part D initial enrollment

period you lose or decide to leave employer-sponsored

health coverage that includes “creditable” prescription drug

coverage, you will be eligible to join a Medicare drug plan

at that time.

In addition, if you otherwise lose other creditable

prescription drug coverage (such as under an individual

policy) through no fault of your own, you will be able to

join a Medicare drug plan, again without penalty. These

special enrollment periods end two months after the month

in which your other coverage ends.

Compare Coverage

You should compare your current coverage, including

which drugs are covered at what cost, with the coverage

and costs of the plans offering Medicare prescription

drug coverage in your area. See the Plan’s summary plan

description for a summary of the Plan’s prescription drug

coverage. If you don’t have a copy, you can get one by

contacting us at the telephone number or address listed on

page 17.

For example, if after your Medicare Part D initial enrollment

period you go nineteen months without coverage, your

premium may be at least 19% higher than the premium

you otherwise would have paid. You may have to pay

this higher premium for as long as you have Medicare

prescription drug coverage. However, there are some

important exceptions to the late enrollment penalty.

16


Spartech

Coordinating Other Coverage with

Medicare Part D

Generally speaking, if you decide to join a Medicare drug plan while covered

under the Spartech Corporation Plan (“Plan”) due to your employment (or

someone else’s employment, such as a spouse or parent), your coverage under

the Spartech Corporation Plan will not be affected. For most persons covered

under the Plan, the Plan will pay prescription drug benefits first, and Medicare

will determine its payments second. For more information about this issue

of what program pays first and what program pays second, see the Plan’s

summary plan description or contact Medicare at the telephone number or web

address listed below.

If you do decide to join a Medicare drug plan and drop your Spartech

Corporation medical and prescription drug coverage, be aware that you and

your dependents may not be able to get this coverage back. To regain coverage

you would have to re-enroll in the Plan, pursuant to the Plan’s eligibility and

enrollment rules. You should review the Plan’s summary plan description to

determine if and when you are allowed to add coverage.

For more information about this notice or your current prescription drug

coverage:

Contact the person listed below for further information. NOTE: You’ll get this

notice each year. You will also get it before the next period you can join a

Medicare drug plan, and if this coverage through Spartech Corporation changes.

You also may request a copy.

For more information about your options under Medicare prescription drug

coverage:

More detailed information about Medicare plans that offer prescription drug

coverage is in the “Medicare & You” handbook. You’ll get a copy of the

handbook in the mail every year from Medicare. You may also be contacted

directly by Medicare drug plans.

For more information about Medicare prescription drug coverage visit www.

medicare.gov or call your State Health Insurance Assistance Program (see the

inside back cover of your copy of the “Medicare & You” handbook for their

telephone number) for personalized help, call 1-800-MEDICARE

(1-800-633-4227). TTY users should call 1-877-486-2048.

If you have limited income and resources, extra help paying for Medicare

prescription drug coverage is available. For information about this extra help,

visit Social Security on the web at

www.socialsecurity.gov, or call them at 1-800-772-1213 (TTY 1-800-

325-0778).

17


2013 Open Enrollment Newsletter

Remember: Keep this Creditable Coverage notice. If you decide to join one of

the Medicare drug plans, you may be required to provide a copy of this notice

when you join to show whether or not you have maintained creditable coverage

and whether or not you are required to pay a higher premium (a penalty).

Nothing in this notice gives you or your dependents a right to coverage under

the Plan. Your (or your dependents’) right to coverage under the Plan is

determined solely under the terms of the Plan.

Family Medical Leave

Employees wishing to request a leave of absence due to a reason falling

under Federal or State Family Medical Leave, should contact The Standard

insurance company to submit a request for leave by calling 1-866-756-8116.

Operators are available between 7 a.m. and 8 p.m. Eastern Time, Monday

through Friday. Provide them with your name, nature of your leave request,

last day at work, and your physician’s information (name, address, phone,

fax). Spartech’s Group Policy number is #647786. Any Family Medical Leaves

that are eligible for compensation under Spartech’s Short-Term Disability policy

will be handled by The Standard at the same time your leave is requested. A

listing of Frequently Asked Questions is available at http://www.standard.com/

eforms/15156_647786.pdf.

18


Spartech

Question and Answers

Health Savings Account Plan (HSA)

Q

What

A

The

is an HSA?

HSA option gives you the opportunity

to pay a lower annual premium with higher

deductibles in return for taking on a more

active role in managing your individual

healthcare spending.




$200 less for Employee Only coverage

$400 less for Employee + Spouse and

Employee + Child(ren) coverage

$500 less for Employee + Family

coverage

Q

What does an HSA look like?

A

of all costs including doctor visits,

You are responsible for paying 100%



medical services and prescriptions until

the annual deductible is met.

When you meet your annual

deductible, coverage is in a

coinsurance arrangement until the outof-pocket

maximum is met.

Once the maximum out-of-pocket is

met, the HSA will pay 100%.

Q

Are

Q

What

Q

Will

Wellness Exams and

Preventive Services covered

under the HSA?

A

A

If

A

Yes.


In-Network Wellness Exams and

Preventive Services are covered at

100% with no deductible.

Out-Of-Network Wellness Exams and

Preventive Services are subject to the

annual deductible and coinsurance.

can I expect to pay for

services?

you stay in-network, you will pay the

negotiated or discounted rate for expenses.

I have to meet the full

family deductible before the

plan will start to pay?

There are not individual deductibles

in the HSA plan for those electing to cover

dependents

Q

What

are the Annual

Deductibles for the HSA?

(In-Network Only)

A


$2,500 for individuals

$5,000 for families

Q

What

are the Annual Out-of-

Pocket Maximums for the HSA?

(In-Network Only)

A


$5,000 for individuals

$10,000 for families

19


2013 Open Enrollment Newsletter

Health Savings Account (HSA)

General Information

Q

What

A

An

is a Health Savings

Account?

HSA is a personal healthcare bank

account you can use to pay out-of-pocket

healthcare expenses, including dental

and vision expenses, with pre-tax dollars

when you are enrolled in a qualified high

deductible plan.






You, an employer, or even a family

member—may make contributions to

your HSA.

Your HSA dollars earn interest, tax

free.

At the end of the year, any money

remaining in your HSA rolls over to the

next year.

You own your HSA, so you keep the

funds even if you change jobs or

health benefits or insurance plans.

You can withdraw money directly from

your HSA using your HSA debit card

or requesting online reimbursement

to cover qualified expenses. Or,

allow the account to grow over time

and use it to help pay for future

health-related expenses—like longterm

care insurance premiums,

COBRA premiums and certain retiree

expenses.

Q

Who

Q

Is

A

You

A

For

is eligible for an HSA?

are eligible to open and fund an HSA

if:






You are covered by the Spartech HSA

eligible high deductible plan

You are not covered by your spouse’s

health plan, FSA, or HRA (Health

Reimbursement Account)

You are not eligible to be claimed as

a dependent on someone else’s tax

return

You are not enrolled in Medicare,

TRICARE, or TRICARE for life

You have not received Veteran’s

Administration Benefits

there an annual “cap” or

maximum amount that may be

contributed to my HSA?

2013, HSA contributions are limited

to $3,250 for an individual and $6,450

for a family and include employee and

employer contributions ($2,750 net

employee contribution, $5,250 net family

contribution). These limits will be adjusted

for inflation in future years.

Individuals and their spouses who are age

55 and over (or turn 55 during the plan

year) may make an additional “catch-up”

contribution of $1,000 in 2013. If you are

age 65 or over and enrolled in Medicare

Part A or B, your HSA may remain open,

but no additional contributions can be

made to the account.

Q

Do you need an account for

“catch-up” contributions?

A

Yes.

20


Spartech

Setting Up Your HSA

Q

What bank is the HSA set up

through?

A

Mellon Bank

Q

How

Q

Are

A

You

A

If

do I contribute to my HSA?

may contribute to your account

through payroll deductions, authorizing

funds to be deducted from your designated

bank account through electronic funds

transfer (EFT), or you may make a lump

sum contribution at any time, in any

amount up to the maximum limit directly to

the bank. Your contributions may be made,

before taxes, through your paycheck.

If not, you can claim your total amount

contributed for the year as a tax deduction

when you file your income taxes. You

receive tax advantages in any case.

contributions to my HSA tax

deductible?

contributions to your HSA are made

with pre-tax dollars (money that you

contribute through payroll deduction),

those contributions are not considered

taxable income. If contributions to your

HSA are made with post-tax dollars through

a lump sum contribution (money that

has already been subject to income tax),

those contributions are deductible on your

Federal income tax return.

Q

When

Q

If

Q

Can

A

HSA

A

The

A

If

will contributions to

my account be available for

withdrawal?

contributions will be available for

withdrawal when funds are deposited.

Spartech will contribute half in January, the

remainder in June. HSA contributions made

by payroll deduction generally are pro-rated

over the course of the plan year based on

payroll schedules. HSA contributions may

also be made on a lump sum basis at any

time during the plan year. The availability

of funds is dependent upon how funds are

contributed (payroll deduction or periodic,

lump sum contributions) and varies by

individual.

my spouse has a traditional

FSA, can I make contributions

to my HSA?

employee can contribute to the HSA but

cannot use the HSA to pay for their spouse’s

expenses.

I participate in a Flexible

Spending Account (FSA)?

you participate in an HSA, you will

not be eligible to enroll in the traditional

Healthcare FSA reimbursement account.

You will, however, be eligible to participate

in the Dependent Care FSA.

Q

Can I make a lump sum

contribution to the HSA?

A

Yes, directly to Mellon Bank.

21


2013 Open Enrollment Newsletter

22

Using Your HSA

Q

How

Q

How

A

To

A

Once

does the HSA work?

understand how the HSA works, let’s

review its components.






Start by making a contribution. There

is no minimum amount required, but

there is an annual maximum.

When you have a qualified expense

(e.g, doctor visit, prescription refill),

you may withdraw money from your

HSA, tax free, to be reimbursed for

this out-of-pocket expense, including

what you pay toward the deductible.

Or, when you have a claim, you can

choose to pay from other funds and

allow your HSA to grow over time

and use it for future health-related

expenses.

Any unused dollars roll over year after

year.

You own your HSA, so you keep it

even if you change health plans or

jobs.

Fund the HSA every year. This will

lower your taxes and help you build a

larger savings for future health care

expenses.

do I withdraw money from

my HSA?

contributions have been made to your

account, you can then use your HSA debit

card to get instant access to your HSA dollars

to pay for qualified out-of-pocket expenses

quickly and easily.

Q

What

Q

Can

A

Your

A

Yes.

expenses can I pay for

with my HSA?

HSA can be used to pay for most

“qualified medical expenses,” as defined

by IRS Code 213(d). These expenses

include, but are not limited to, medical plan

deductibles, diagnostic services covered

by your plan; dental and vision expenses

including LASIK surgery and some nursing

services. You can also use HSA dollars for

COBRA premiums and health premiums if

you are unemployed.

When you become age 65, you can use the

account to purchase any health insurance

other than a Medigap policy. You may not,

however, continue to make contributions

to your HSA once you are enrolled in

Medicare.

For additional information about IRSallowable

expenses, you can review a

list of allowable expenses by requesting

a copy of IRS Publication 502 by calling

1-800-829-3676, or visit the IRS website

at www.irs.gov and click on “Forms and

Publications.”

I use my HSA to pay for

non-health related expenses?

You may withdraw money from

your HSA for items other than qualified

expenses, but it will be subject to income

tax and an additional 20% penalty tax on

the amount withdrawn (unless you are age

65 or disabled).

You should keep receipts for your HSA

purchases to show that you used your

HSA funds for qualified expenses. If you

are audited and your HSA expenses are

questioned, your receipts provide the best

proof. Remember, under HSA regulations,

you are responsible for determining

which expenses are considered “qualified

expenses” Please consult your tax advisor

for guidance.


Spartech

Q

How

A

You

can I keep track of my HSA

balance?

HSA Advantages

Q

Does

Q

Are

A

Yes—your

A

Yes.

can track your HSA account activity

online anytime—day or night.

the money in my HSA earn

interest?

HSA can grow over time! Your

funds earn interest tax free. There is no

minimum balance required to earn interest.

there investment options?

Once your HSA balance reaches

$1,000, you will have the HSA Investments

Service available to you. A fee of $2.90

per month will be assessed for investment

activity.

Q

What

Q

What

Q

What

A

Unlike

A

You

A

Your

happens to any remaining

money in my HSA at the end of

the year?

a traditional Flexible Spending

Account (FSA), there is not a use-it-or-loseit

rule with an HSA. Any money remaining

in the account will carry over from year to

year.

happens to my HSA if I

leave my health plan or job?

own your account, so you keep your

HSA, even if you change health insurance

plans or jobs. If you no longer are enrolled

in a high deductible health plan, you are

not eligible to make new contributions

to your HSA, but you can continue to

withdraw funds for qualified expenses.

are the survivor benefits

associated with my HSA?

HSA may transfer to your surviving

spouse tax free. Otherwise your balance

becomes part of your estate.

23


SPARTECH

2013 OPEN

ENROLLMENT

Important Benefits Contact Information

Medical/Prescription

Vision

Anthem Blue Cross Blue Shield

Superior Vision

(800) 490-6145 (800) 507-3800

www.anthem.com

www.superiorvision.com

Dental

Life and Disability

Aetna

The Standard

(800) 238-6716 (888) 937-4783

www.aetna.com

www.standard.com

This Employee Benefits Newsletter is only intended to highlight some of the major benefit provisions

of the Company plan and should not be relied upon as a complete detailed representation of the

plan. Please refer to the plan’s Summary Plan Descriptions and amendments for further detail at

www.spartech.com/benefits. Should this newsletter differ from the Summary Plan Descriptions, the

Summary Plan Descriptions prevail.

Images © 2012 Thinkstock. All rights reserved.

s/eb/sparte/eecom/EG/2012/13OE.pdf

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