2014 Benefits Guide - Hospira

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2014 Benefits Guide - Hospira

your benefits

2014

Smart Benefits.

Smart Choices.

2014 Benefits Guide

invest in our future


invest in our future

Dear Colleagues,

As the world’s leading provider of injectable drugs and infusion

technologies, Hospira offers a competitive, sustainable benefits

package designed to promote a healthy lifestyle for you and your

loved ones. Just as we help our customers enhance patient care

across the globe, we remain dedicated to providing comprehensive

benefits to our employees. You are the key to our success as a

company.

For 2014, Hospira will continue to provide many of the same benefits

to you and your family, and has even enhanced certain benefits. For

example, our vision plan now offers frames every calendar year, so

you have even more options when you get your annual eye exam.

What’s more, we’re introducing myHospira, a new HR information

platform that makes enrolling in your benefits easier than ever! Be

sure to verify your information for accuracy once you make your

benefit elections for 2014.

Finally, like last year, Open Enrollment will be passive, meaning that

if you are not making any changes to your current elections, and do

not want to enroll in a flexible spending account (FSA) or contribute to

a health savings account (HSA) for 2014, there is nothing you need to

do. Your current elections will simply roll over for next year.

That being said, we encourage you to look through the information

in this guide to see if you need to make changes to your benefits,

particularly if you have experienced a qualified change—such as a

birth, marriage, or change in employment status—during the past

year. Some highlights of our benefits package include:

• The Health Savings Account (HSA) Premier and Health

Reimbursement Account (HRA) Medical Plans, both of which

offer FREE preventive services and screenings

• Online tools to help you make informed decisions regarding your

health, such as Alex, your own personal, online Aetna Benefits

Advisor and the Aetna Plan Selection & Cost Estimator

• FSA options that offer financial protection and lower out-of-pocket

health care costs

Please take time to review these and other options for 2014. Should

you have additional questions or require further assistance, we

encourage you to reach out to Hospira’s partners outlined in this

guide. We hope you will take advantage of Hospira’s 2014 benefits

program and continue to invest in your health now—and for the

future.

Sincerely,

Bakir Vitehskich

Vice President, Total Rewards

Contents

3 Health Care Reform & You

4 Your Benefit Options at a Glance

5 Employee Rates & Eligibility

6 Medical Coverage

10 Wellness

11 Dental & Vision Coverage

12 Flexible Spending Accounts (FSAs)

13 Life, Accidental Death & Dismemberment

(AD&D), & Disability Coverage

14 401(k) Plan

14 Enrolling in Your Benefits

15 Hospira 2014 Benefit Resources

16 Important Notices

2 HOSPIRA BENEFITS GUIDE : 2014


Health Care

Reform & You

The Affordable Care Act (ACA), commonly

referred to as health care reform, is a U.S. federal

statute signed into law in 2010. Although health

care reform is being phased in over a period

of several years, the ACA is already impacting

many individuals—and it will eventually affect

most Americans. Following are some of the

highlights of how health care reform affects you

and Hospira. We will continue to provide you with

updates as they become available.

How Health Care Reform Impacts You

}}

Starting in January 2014, most individuals will be required to have

health insurance that meets certain requirements, or they will

have to pay an annual tax penalty.

}}

All of Hospira’s current medical plans meet ACA requirements.

}}

If you enroll in a Hospira medical plan or other qualified

coverage for 2014 (such as coverage through your

spouse’s employer or Medicaid), you will meet ACA

requirements and will not have to pay a tax penalty.

}}

You will also have the option of purchasing insurance through a

state Health Insurance Marketplace. However, as long as you

are eligible for medical coverage through Hospira that

meets ACA requirements, it is unlikely that you will be

eligible for financial assistance to help pay for insurance

through a Marketplace (even if you waive Hospira’s

coverage).

}}

Those who are currently uninsured can either enroll in health

insurance that meets ACA requirements, such as a Hospira

medical plan, a spouse’s plan, or other coverage, or they may

choose to remain uninsured, in which case they would have to

pay the annual tax penalty.

For more detailed information on the ACA, refer to “Navigating the Road of

Health Care Reform,” a newsletter that was mailed to your home earlier this

year, or visit www.healthcare.gov for the most up-to-date information.

Note: This content provides general information on the Affordable Care Act (ACA) and should not be considered all inclusive, nor should it be considered legal

advice. Some portions of the law and governing regulations have yet to be finalized and are subject to change.

3


Your Benefit Options at a Glance

Below is a summary of the benefits available to you. We encourage you to learn more about each option

by reviewing this guide carefully. We believe it will help you make smart choices for 2014.

Medical

2014 Benefit Options

Health Benefits Description Who pays for this

benefit?

Hospira You

Health Savings Account

(HSA)

Wellness Reward Dollars

Two options:

1. Health Savings Account (HSA) Premier Medical Plan

2. Health Reimbursement Account (HRA) Plus Medical Plan

3. Both plans include prescription drug coverage

Tax-favored savings account that Hospira funds when you

elect the HSA Premier Medical Plan. You can also make pretax

contributions and use for medical, dental, and vision costs

Lets you earn fund dollars for certain health activities, such as

completing a health risk assessment or getting preventive care,

check-ups, and screenings

x

x

x

x

Page 6

x x Page 6

x Page 10

Dental MetLife Preferred Dentist Program x x Page 11

Vision Helps you pay for routine exams and eyewear x Page 11

Flexible Spending Accounts

(FSAs)

Page 12

Employee Assistance Plan

(EAP) & Work/Life Resources

Financial Protection Benefits

Life Insurance

Accidental Death &

Dismemberment (AD&D)

Insurance

Disability Insurance

Business Travel Accident

Insurance

Retirement Benefits

401(k) Plan

Three options:

1. Limited Health Care FSA

2. Health Care FSA

3. Dependent Care FSA

Confidential counseling, resources, and referrals for you and

members of your household, as well as legal and financial

counseling

Company-paid benefit:

• Basic life insurance—one times salary

Supplemental options:

• Optional life insurance

• Dependent life insurance (spouse/child)

Company-paid benefit:

• Basic AD&D—$10,000

Supplemental options:

• Optional AD&D

• Spouse AD&D

Company-paid benefits:

• Sick pay and short-term disability (STD)

• Basic long-term disability (LTD)

Supplemental option:

• LTD Plus

x

x

x

x

x

x

x

x

x

x

x

x

x

Where can I find more

information?

The Hospira Intranet (see Benefit

Resources on page 15)

Page 13

Page 13

Page 13

Coverage of five times your salary up to $1 million x The Hospira Intranet (see

Benefits Resources on page 15)

If you contribute at least 2% of your base pay, Hospira will

begin matching your contribution per a certain schedule

x x Page 14

Other Benefits

Adoption Assistance Reimbursement up to $10,000 x The Hospira Intranet (see

Benefits Resources on page 15)

Tuition Assistance Education reimbursement up to $5,250 per year x The Hospira Intranet (see

Benefits Resources on page 15)

Vacation & Holidays Company-paid time off (PTO) x The Hospira Intranet (see

Benefits Resources on page 15)

4 HOSPIRA BENEFITS GUIDE : 2014


Employee Rates & Eligibility

Health Benefits: 2014 Weekly Employee Rates

Hospira Works to Help Keep Your Benefits Affordable

2014 Weekly Employee Rates

Option Employee Only Employee +

Spouse

Health Savings Account

(HSA) Premier Medical

Plan

Employee +

Child(ren)

Family

$14.25 $38.50 $28.25 $53.25

Health Reimbursement

Account (HRA) Plus

Medical Plan

$23.25 $54.00 $46.00 $74.75

Dental Plan $3.75 $5.50 $5.50 $9.50

Vision Plan $2.19 $3.52 $3.60 $5.78

Eligibility

You may enroll in Hospira’s benefit plans if you are scheduled to

work 20 hours or more per week. 1 Please refer to the Summary

Plan Description (SPD) for more details. 2

Eligible dependents:

}}

Your legal/common law spouse (including same-sex spouse) or

eligible domestic partner 3

}}

Medical coverage: Your children ages 19-25

}}

Dental and vision coverage: Your unmarried children ages

19-22, if they are full-time students

}}

Your stepchildren, domestic partner’s children, 4 and other

children for whom you are legally responsible

This is an abbreviated version of your eligibility requirements.

For complete details on eligibility, please visit the self-service HR

website, myHospira.

1 For LTD coverage, you must work 32 or more hours per week.

2 Please visit www.ourhospira.corp Functions > Organizational Transformation

and People Development > Benefits.

3 Completion of an “Affidavit of Domestic Partnership” is required for domestic

partner coverage.

4 You may cover eligible children of your domestic partner only if you also cover

your domestic partner.

Making Benefit Changes Midyear

Due to the pre-tax nature of our health plans, Open Enrollment is

your one-time, annual opportunity to review and change your health

coverage. There is one exception: You may make changes midyear

if you experience a qualified change in:

}}

Legal marital status: marriage, divorce, death of a spouse,

legal separation, or annulment

}}

Number of dependents: birth, adoption, placement for

adoption, death, or dependent reaching age limit

}}

Employment status: change of employment status of

employee, dependent, or spouse that affects that individual’s

eligibility

}}

Entitlement to Medicare, Medicaid, or State Children’s

Health Insurance Program (CHIP)* for employee, dependent,

or spouse

}}

Eligibility for group health plan premium assistance under

Medicaid or CHIP* for employee, dependent, or spouse

It is your responsibility to notify myHospira at https://esa.

euhreka.com/HSP/redirect.jsp within 31 days of the event. If

you fail to do so, you will not be able to enroll or make changes until

the next Open Enrollment period. For more information, please go

to myHospira.

*In such cases you have 60 days to notify myHospira of the event instead of 31.

5


Medical Coverage

Compare Your Medical Plan Options

Hospira Contributes to Your Account

HSA Premier Medical Plan

Employee Only

Employee &

Dependents

HRA Plus Medical Plan

Employee Only

Employee &

Dependents

Hospira Annual Health Fund

Contribution

Up to $260 Up to $520 Up to $250 Up to $500

Wellness Reward Dollars Up to $500 Up to $1,000 Up to $500 Up to $1,000

Hospira Funding Subtotal $760 $1,520 $750 $1,500

You Contribute to Your Account

Pre-Tax Employee Contribution

Limits to HSA

Up to $2,540 Up to $5,030 N/A N/A

Total Annual Fund Opportunity $3,330 $6,550 $750 $1,500

Medical Plan Highlights

Annual Deductible $1,750 $3,500 $1,750 1 $3,500 1

Both medical and prescription costs

apply to the deductible.

HRA funds automatically pay medical expenses and

apply to the deductible.

Annual Out-of-Pocket Maximum 2 $5,000 $10,000 $3,500 $7,000

Medical Plan Highlights

Prescription Coverage Preventive Medications Only: 3

RETAIL—up to 30 days

Generic: $0

Formulary: $25

Non-Formulary: 50% ($50 min/$150 max)

HOME DELIVERY—up to 90 days

Generic: $0

Formulary; $62

Non-Formulary: $125

RETAIL—up to 30 days

Generic: $7

Formulary: 30% ($25 min/$75 max)

Non-Formulary: 50% ($50 min/$150 max)

HOME DELIVERY—up to 90 days

(Mandatory for maintenance medications)

Generic: $17

Formulary: 30% ($60 min/$180 max)

Non-Formulary: 50% ($125 min/$375 max)

Employee pays 100% of non-preventive prescription

costs until deductible is met. Hospira pays 80% once

deductible is met.

Preventive Care: Exams, Labs,

and Screenings

Coinsurance After Annual

Deductible is Met

In-Network: Hospira pays 100% even before deductible met.

Out-of-Network: Hospira pays 60% of R&C rate, after deductible. 4

In-Network: Hospira pays 80%.

Out-of-Network: Hospira pays 60% of R&C rate. 4

For more complete details, contact Aetna or Cigna.

1 When covered expenses equal $1,750 for one member, future expenses for that member will be paid at coinsurance levels. If you cover dependents, once covered expenses total

$3,500, future expenses for all members will be paid at coinsurance levels.

2 Applicable for in-network only; maximums are double for out-of-network services. HRA prescription drug copays are excluded.

3 HSA only: Covers hypertension, cholesterol, diabetes, asthma, and osteoporosis medications only. Contact Aetna at 800-833-0220 for a complete list.

4 You will be responsible for charges over the reasonable and customary (R&C) rate.

6 HOSPIRA BENEFITS GUIDE : 2014


HSA Premier Medical Plan

When you enroll in the HSA Premier Plan, Hospira will make

contributions to a health savings account (HSA) for you every pay

period. You may also make tax-free contributions in addition to any

Wellness Reward Dollars you earn. Any Wellness Reward Dollars

you earn will also be deposited into your HSA.

HSA funds, administered by Discovery Benefits, can be used to pay

for eligible medical expenses or saved for the future. Remember—

these funds are always yours, even after you leave or retire from

Hospira. Note: Anyone covered by the HSA Premier Medical Plan

cannot have medical coverage elsewhere.

For additional information on how plans such as the HSA Premier

Medical Plan work, you can visit the U.S. Treasury’s website for

answers to frequently asked questions: http://www.treas.gov/offices/

public-affairs/hsa/faq.shtml.

Or you can visit the IRS website for a detailed guide: http//www.irs.

gov/pub/irs-pdf/p969.pdf.

Important: If you wish to change your HSA contribution level for

2014, you must make the change during Open Enrollment.

HSA Premier Medical Plan: Funding & Medical Coverage

Description

Until Deductible

Is Met

Includes cost of

non-preventive

medical care and

prescriptions

After

Deductible

Is Met

Includes

cost of nonpreventive

medical

care and

prescriptions

After Outof-Pocket

Maximum Is Met

Includes cost of

non-preventive

medical care and

prescriptions

Prescriptions

Non-preventive medications are treated like

any other medical condition and are subject to

deductible and coinsurance; generic preventive

medications are covered at 100% and are not

subject to deductible; brand name preventive

medications are not subject to deductible, but

copays apply

In-Network

Preventive Care

100% company

paid, not subject

to deductible or

out-of-pocket

maximum

Hospira Pays 0% 80% 100% 100% for generic preventive medications 100%

You Pay 100% 20% 0% Preventive Medication Coverage Only:

RETAIL:

Generic: $0

Formulary: $25

Non-Formulary: 50% ($50 min/$150 max)

0%

HOME DELIVERY:

Generic: $0

Formulary: $62

Non-Formulary: $125

The HSA Premier Medical Plan

Prescription Drug Coverage

For more information, tools, and resources, contact:

Aetna ®

800-833-0220

www.aetnahospira.com

Non-Preventive Prescription Drug Coverage Under the

HSA

Prescription Type Retail (30 days) Home Delivery

(90 days)

Generic

Formulary Brand

Non-Formulary

The employee pays the full cost of the

medication. Hospira pays 80% after

deductible is met.

Prescription drug coverage for the HSA Premier Plan is managed

by Aetna. Under the HSA Premier Plan, prescriptions for certain

preventive or “maintenance” drugs for conditions such as

hypertension, cholesterol, diabetes, asthma, and osteoporosis may

be FREE. Prescriptions not included in the IRS-defined preventive

drug list are covered at 80 percent after the deductible is met.

You can review a copy of the IRS drug list on our self-service HR

website, myHospira.

Preventive Prescription Drug Coverage Under the HSA

Preventive Type 1 Retail (30 days) Home Delivery

(90 days)

Generic FREE FREE

Formulary Brand $25 $62

Non-Formulary

50% (Min. $50, Max.

$150)

$125

1

Covers hypertension, cholesterol, diabetes, asthma, and osteoporosis medications,

and must be on the “Preventive Medications List for HSAs.” Please contact Aetna for

details.

7


HRA Plus Medical Plan

When you enroll in the HRA Plus Medical Plan, Hospira contributes

dollars to your health reimbursement account (HRA) health fund

based on the coverage level you select, in addition to any Wellness

Reward Dollars you earn. When you seek medical treatment,

covered expenses are automatically paid from the HRA health fund.

Only if you use up all of your HRA health fund dollars will you begin

to pay out of your own pocket.

HRA Plus Medical Plan: Funding & Medical Coverage

Description

Until Deductible

Is Met

Includes cost of

non-preventive

medical care only

After

Deductible

Is Met

Includes

cost of

non-preventive

medical care

only

After Outof-Pocket

Maximum Is Met

Includes cost of

non-preventive

medical care only

Please note: If you enroll in the HRA Plus Medical Plan midyear,

Hospira's contributions to your HRA health fund will be prorated

based on the quarter in which you enroll. Please contact Aetna or

Cigna for more details (see “Hospira 2014 Benefit Resources” on

page 15).

Prescriptions

Covered at a flat copay and do not apply to

deductible or out-of-pocket maximum

In-Network

Preventive Care

Covered at a flat

copay and does not

apply to deductible

or out-of-pocket

maximum

Hospira Pays

Hospira pays

100% when HRA

funds are present

80% 100% 100% for generic preventive medications 100%

You Pay

You pay 100% of

medical services

once HRA is

exhausted until

rest of deductible

is met

20% 0% RETAIL

Generic: $7

Formulary: 30% ($25 min/$75 max)

Non-Formulary: 50% ($50 min/$150 max)

HOME DELIVERY

(mandatory for maintenance medications)

Generic: $17

Formulary: 30% ($60 min/$180 max)

Non-Formulary: 50% ($125 min/$375 max)

0%

The HRA Plus Medical Plan

Prescription Drug Coverage

For more information, tools, and resources, contact:

Express Scripts ®

866-472-6223

www.express-scripts.com

Prescription coverage for the HRA Plus Plan is managed by Express

Scripts. The HRA Plus Plan provides prescription coverage with a

copayment that does not apply to your annual deductible. The HRA

Plus Plan also features a Step Therapy Program which requires you

to get a generic prescription whenever available. If a generic is not

right for your condition, your doctor may still prescribe a brand name

drug, but they must obtain pre-approval from Express Scripts. You

can review a copy of the Express Scripts Step Therapy brochure

posted on our self-service HR website, myHospira. In addition, most

maintenance medications must be filled through the Express Scripts

Home Delivery Program.

Prescription Drug Coverage Under the HRA

Prescription Type Retail (30 days) Home Delivery

(90 days)

Generic $7 $17

Formulary Brand 30%

($25 min/$75 max)

Non-Formulary 50%

($50 min/$150 max)

30%

($60 min/$180

max)

50% ($125

min/$375 max)

8 HOSPIRA BENEFITS GUIDE : 2014


Plan Differences

HSA vs. HRA: Key Differences

Feature HSA Premier Medical Plan HRA Plus Medical Plan

Portability

HSA funds are yours, even if you change health plans, retire,

or leave the company.

HRA health funds are forfeited when you retire or leave

the company.

Plan Deductible Medical and prescription expenses apply to deductible. Only medical expenses apply to deductible.

Employee Pre-Tax

Contributions*

You can make pre-tax contributions to your HSA up to $2,540

(employee only) or $5,030 (employee + dependents).*

Not available.

Control of Funds You decide how to save, spend, or invest your HSA funds. HRA funds are automatically applied to pay eligible

expenses.

Availability of Funds

Preventive Prescription

Drug Coverage

Non-Preventive

Prescription Drugs

HSA funds may only be used as they are deposited in your

account.

Certain generic preventive, or “maintenance,” drugs are

FREE.

Prescription costs apply to your deductible and are covered

at 80% after the plan deductible is met.

The entire HRA fund is available once coverage begins.

Follows standard procedure.

HRA funds do not cover prescription costs. You pay a

copay.

* Please note that there may be tax penalties to your HSA if you enroll midyear. You may wish to prorate your contributions to avoid this situation.

Network Availability

The Aetna HSA and HRA options are available to all employees

who utilize the Aetna Choice POS II provider network. For

employees in North Carolina, the Cigna Open Access Plus (OAP)

provider network is also available for the HRA Plus Plan.

For questions about plan coverage or provider

network(s), please call the carrier or go online for

more information:

• Aetna ® : 800-833-0220 www.aetnahospira.com

• Cigna ® : 800-244-6224 www.myCigna.com

Special Requirements for

Adult Children Age 23 to 25

While the HSA medical plan will provide medical

coverage for your children over age 23, you may not

be able to use HSA funds to cover expenses for adult

children over age 23. Your adult child may be eligible

to open his/her own HSA at a financial institution.

Please consult a tax advisor or your carrier for more

information.

Minimize Costs…Here’s How:

• Take advantage of FREE preventive

check-ups and screenings

• Earn additional Wellness Reward Dollars

• Choose generic prescription drugs

whenever possible

• Get answers to simple health questions

with the FREE 24-hour Nurse Line

• Use free Disease Management Coaches

• Take advantage of FREE online health tools

• Opt for urgent care facilities vs. ERs when

appropriate

• Use our FREE EAP—check out the

Community Resources Discount Program

For contact information, see “Hospira 2014

Benefit Resources” on page 15.

9


Wellness

Wellness Reward Dollars

Our Wellness Reward Dollars program lets you earn up to

$500 per person up to a maximum of $1,000 per family, with

easy-to-complete activities. Contact Aetna or Cigna for details.

Healthy Activity

Biometric Screening $300

Health Assessment $250

HSA or HRA Health

Fund Contribution

Well Woman Exam (includes Pap

smear)

Well Male Exam (includes prostate

exam)

Cancer Screenings (mammogram/

colonoscopy)

Cigna Programs

• Healthy Pregnancy, Healthy Babies

• Online Health Coaching

Aetna Programs

• Beginning Right

• Online Wellness

• Healthy Lifestyle Coaching

$200

$200

$200

$150 (first trimester)

$75 (second trimester)

$50 per program

$150

$50 per program (3 max)

$50

Aetna Wellness Resources

You can access these resources by calling 800-833-0220 or

logging on to www.aetnahospira.com.

Cigna Wellness Resources

You can access these resources by calling 800-Cigna24

(800-244-6224), or logging on to www.myCigna.com.

Resource

Description

Resource

Description

Personal Health

Record (PHR)

Summary of health-related activity (e.g.,

doctor visits, tests, treatments, and

prescriptions) gathered and automatically

updated from your claims activity

24-Hour Health

Information Line and

Audio Library Catalog

Speak with a registered nurse for solutions

and advice, download podcasts, or access

the audio library on a variety of health

topics

Aetna Health

Connections

Informed Health® Line

Provides education, counseling, self-care

information, and physician support to help

participants manage chronic conditions

24-hour, toll-free access to a team of

registered nurses experienced in providing

information on a variety of health topics

My Health

Assessment

Online Wellness

Coaching Programs

Complete an online health and well-being

questionnaire, and receive a health status

report and recommendations to improve

health

Programs focusing on nutrition, physical

activity, stress, and sleep

Aetna InteliHealth

Healthwise®

Knowledgebase

Award-winning health website with

information provided by Harvard Medical

School on a wide variety of topics

Provides information on thousands of

health-related topics, conditions, and

treatment options

A-Z Medical

Encyclopedia from

Healthwise®

WebMD® Personal

Health Record

Index of health and wellness topics,

including links to additional resources

Organize, manage, and share health

information

WebMD® Symptom

Checker

Online tool used to determine what to do

about symptoms

Weight and Nutrition

Discounts

Discounts on weight management

programs, including the Jenny Craig®

Program, and services by registered

dietitians

10 HOSPIRA BENEFITS GUIDE : 2014


Dental & Vision Coverage

Health Benefits: Dental

For more information, tools, and resources, contact:

MetLife ®

888-251-0709

www.metlife.com/dental

To help protect your dental health, Hospira’s dental plan option

includes preventive services at no additional cost to you.

Orthodontia benefits are also included for both adults and children.

You may choose to receive covered care from any licensed

dentist; however, you’ll pay less for services when you choose an

in-network dentist. The following provides a brief overview of the

dental plan. For more complete details, or to find an in-network

provider, contact MetLife.

Type of Care Plan Benefits In-Network Coverage

Deductible

Per person

Per family

Annual Maximum Benefit Per person $1,500, excluding orthodontia and TMJ treatment

Lifetime Maximum Per person $1,500 each for orthodontia and TMJ treatment

$50

$100

Preventive Services

Basic Restorative Services

Major Restorative Services

Orthodontia (adults and

children)

Routine exam, X-rays, and cleanings (two per year);

fluoride treatments to age 19

Routine fillings, simple extractions, impacted tooth

removal, and root canals; periodontal scaling limited to

every 24 months per quadrant

Crowns, bridges, implants, inlays/onlays; periodontal

surgery once every five years

Braces

Plan pays 100%, no deductible

Plan pays 80% after deductible

Plan pays 50% after deductible

Plan pays 50% after deductible, up to $1,500 lifetime

maximum/person

Health Benefits: Vision

For more information, tools, and resources, contact:

VSP ®

800-877-7195

www.vsp.com

Vision care benefits help pay for routine exams and eyewear for

you and your family at any licensed vision provider. And when you

choose an in-network provider, you’ll pay even less out of pocket.

The following shows plan highlights. For more complete details, or

to find an in-network provider, contact VSP.

Type of Care Plan Benefits In-Network Coverage Out-of-Network Coverage

Deductible None None None

Preventive Services Annual WellVision exam $10 copay Up to $45 reimbursement

Prescription Glasses

(includes frame and lens)

Lens Options

$150 allowance for wide selection of

frames

Standard; Premium; and Custom

Progressive

$25 copay

$55 copay; $95-$105 copay; $150-

$175 copay

Up to $70 reimbursement for frames;

up to $30 for single vision lenses; up

to $50 for lined bifocal lenses; up to

$65 for lined trifocal lenses

Diabetic Eyecare Plus

Program

Services related to diabetic eye

disease, glaucoma, and age-related

macular degeneration (AMD). Retinal

screening for eligible members with

diabetes as needed

$20 copay

Contact Lenses One set per year, in lieu of glasses Plan pays 100% up to $150 per year Up to $105 reimbursement

Other Savings:

Prescription Lenses

Lens options, frames 20% average savings None

Other Savings: Contact

Lenses

Contact lens fitting and evaluation;

annual supplies

15% average savings None

11


Flexible Spending Accounts (FSAs)

Flexible Spending Accounts (FSAs)

For more information, tools, and resources, contact:

Discovery Benefits ®

866-451-3399

www.discoverybenefits.com

Maximum FSA Contribution Amounts

Health Care

FSAs

Dependent Care

FSA

Limited to $2,500 by the Affordable Care Act (health

care reform)

Limited to $5,000 by the IRS

Participating in a tax-free flexible spending account (FSA) can

help cover qualified out-of-pocket expenses. Whether you plan on

starting up an FSA, or want to continue contributing to one next

year, you must enroll (or re-enroll) each year. Even if you are not

making any other changes to your benefits for 2014, if you want to

participate in an FSA, you must sign up during Open Enrollment.

Keep in mind that contributions made to your FSA are deducted

from your pay before your federal and Social Security taxes are

calculated. The result is that you lower your taxable income and

get to keep a greater portion of your paycheck.

Hospira offers three FSA options:

}}

Standard Health Care FSA (for those NOT enrolled in the

HSA Premier Medical Plan) Lets you set aside pre-tax dollars

to cover qualified medical, dental, prescription, and vision

expenses

}}

Limited Health Care FSA (for those enrolled in the HSA

Premier Medical Plan) Lets you set aside pre-tax dollars to

cover qualified dental and vision expenses prior to meeting plan

deductible, and medical and prescription expenses once the

plan deductible is met

}}

Dependent Care FSA Lets you set aside pre-tax dollars to

cover qualified dependent day care expenses, such as child

care or elder care

Important Notes

Regarding FSAs

• “Use it or lose it:” The IRS requires that

any money left in your FSA account at

the end of the year be forfeited. You can

submit claims for reimbursement of eligible

expenses incurred on or before December

31 of the plan year until April 30 of the

following year

• You must enroll each year

• If you are enrolled in the Limited Health

Care FSA (under the HSA Premier Plan),

remember that your FSA dollars are not

available to use until you have satisfied your

deductible

• Over-the-counter medications cannot be

reimbursed by FSAs unless prescribed by a

physician

• A complete list of qualified health care

expenses is available at www.irs.gov/pub/

irs-pdf/p502.pdf

• A complete list of qualified dependent care

expenses is available at www.irs.gov/pub/

irs-pdf/p503.pdf

12 HOSPIRA BENEFITS GUIDE : 2014


Life, AD&D, & Disability Coverage

Life and AD&D Coverage

For more information, tools, and resources, contact:

Prudential ®

800-778-3827

www.prudential.com/webenroll

Hospira believes it’s important to help employees financially protect

their loved ones in the event of an injury or death. Therefore, we’re

pleased to provide you with basic life insurance at one times your

annual salary, and accidental death and dismemberment (AD&D)

coverage equal to $10,000—both at no cost to you. You may also

purchase optional and dependent life insurance.

The following chart provides an overview of your life and AD&D benefits and options. For more complete details, contact Prudential.

Your Life and AD&D Options

Options Description Who pays for

coverage

Basic Life

One times your annual salary (rounded to the next Hospira

higher multiple of $1,000)

Optional Life*

One to six times your salary (rounded to the next You

higher multiple of $1,000)

Dependent Life* †

Several options:

You

• Spouse: $25,000, $50,000, or $75,000

• Child(ren): $5,000, $10,000, or $25,000

When you can enroll

Automatic on date of hire

Within 31 days of hire date, or anytime

subject to approval

Within 31 days of hire date, or anytime

subject to approval

Basic AD&D $10,000 Hospira Automatic on date of hire

Supplemental AD&D

$10,000 increments up to 10 times your base pay You

Anytime

or a maximum of $500,000

Spouse AD&D † $10,000 increments up to $100,000 You Anytime

* Supplemental guaranteed issue: four times salary or $500,000. Spouse guaranteed issue: $25,000. Higher levels require health information and approval.

† Cannot insure spouse for more than yourself.

Disability Coverage

If you are unable to work due to illness, Hospira provides short-term

disability (STD) insurance that pays a portion of your income while

you are unable to work, up to 26 weeks per disability event.

To help protect you from the potential impact of a longer-term

disability, Hospira provides long-term disability (LTD) benefits

if you are disabled for at least 26 weeks. You are automatically

covered under the LTD Basic plan and can elect to increase your

coverage with the LTD Plus plan.

The following chart provides a high-level overview of your options. For more complete details, contact Prudential.

Your Disability Options

Benefit Description Who pays for coverage When you can enroll

LTD Basic

Provides benefit of 60% of your Hospira

Automatic after six months of employment

base income during disability

LTD Plus

Provides an additional 6.67% of

base income to the LTD Basic

option (total of 66.67%)

You pay a small premium for

this additional benefit

Within six months of hire or anytime subject to

approval

13


401(k) Plan

401(k) Plan

For more information, tools, and resources, contact:

T. Rowe Price ®

800-922-9945

www.rps.troweprice.com

To help you create a retirement that is comfortable, secure, and all

that you hope it will be, you are eligible to enroll and participate in

the Hospira 401(k)—and receive matching 401(k) contributions

from Hospira that will help your savings grow even faster!

Here’s how it works: You determine how much you want to

contribute—up to 75 percent of your base pay on a pre-tax,

after-tax, Roth option, or combination basis. You can even

open and place your contributions in a Tradelink Self Directed

Brokerage Account (SDA). Hospira will then match your

contributions according to the table shown below. Remember,

your contributions are 100 percent vested, meaning you own 100

percent of the funds in your account.

If you contribute… Hospira contributes an additional… So your total contributions add up to…

5% of eligible pay 7% of eligible pay 12% of eligible pay

4% of eligible pay 6.5% of eligible pay 10.5% of eligible pay

3% of eligible pay 6% of eligible pay 9% of eligible pay

2% of eligible pay 5% of eligible pay 7% of eligible pay

Enrolling in Your Benefits

Final Checklist

Read this guide carefully.

Before making your benefits elections, try to anticipate and list the benefits you and your dependents may need in 2014.

Take advantage of online tools and resources. See page 15.

Enroll!

Once you’re ready to enroll, log on to our self-service HR website at http://esa.euhreka.com/HSP/redirect.jsp.

Note: New hires must enroll within 31 days of their date of hire to have benefits in 2014. If you do not enroll within 31

days, you can still elect health plan coverage between 32 and 60 days. However, it will begin on the day you enroll, and your

deductions will be made after tax. After 60 days, you will have to wait until the next benefits Open Enrollment period. If you do

not enroll in life and/or LTD insurance within 31 days of first becoming eligible, you will also be required to go through a medical

approval process if you choose to enroll at a later date. You may enroll in life and/or disability insurance by contacting Prudential

at 800-778-3827 or www.prudential.com/webenroll.

If you experience a “qualified family status change” (see page 5), you must log on to our self-service HR website, myHospira,

within 31 days of the event to request a change to your coverage.

To enroll, please refer to the chart below:

To enroll in… Contact… At phone number… Or website…

Medical, Dental, Vision, or FSA

Coverage

myHospira N/A https://esa.euhreka.com/HSP/redirect.jsp

Life, AD&D, STD, and LTD

Coverage

Prudential 800-778-3827 www.prudential.com/webenroll

401(k) Plan T. Rowe Price 800-922-9945 www.rps.troweprice.com

14 HOSPIRA BENEFITS GUIDE : 2014


Hospira 2014 Benefit Resources

For more information on benefit resources through the Hospira Intranet, go to www.ourhospira.corp.

Select Functions > Organization and Transformation and People and Developments > Benefits.

If you have questions

about…

Contact… At phone number… Or website…

General Benefits Information Employee Service Center 877-771-7722

Mon.-Fri., 7 a.m.-6 p.m. CT

myHospira:

https://esa.euhreka.com/HSP/redirect.jsp

Additional Benefit Resources Benefits N/A The Hospira Intranet:

www.ourhospira.corp (select Functions >

Organizational Transformation and People

Development > Benefits)

Medical Coverage: Aetna

HSA Premier Medical Plan

and HRA Plus Medical Plan

Aetna

Customer Service:

800-833-0220

Nurse Line:

800-556-1555

www.aetnahospira.com

Utilize plan selector and cost estimation tools,

find in-network doctors, and find special

savings programs.

Medical Coverage: Cigna

HRA Plus Medical Plan

(North Carolina only)

Cigna

Customer Service:

800-Cigna24

(800-244-6224)

www.myCigna.com

Find in-network doctors and special savings

programs.

Nurse Line:

800-Cigna24

(800-244-6224)

Flexible Spending Accounts

(FSAs) and Health Savings

Account (HSA) Administrator

Discovery Benefits 866-451-3399 www.discoverybenefits.com

Dental Coverage MetLife 888-251-0709 www.metlife.com/dental

Vision Coverage VSP 800-877-7195 www.vsp.com

Life, AD&D, LTD, and STD

Insurance

Prudential 800-778-3827 www.prudential.com/webenroll

Control Number: 46721

401(k) Plan T. Rowe Price 800-922-9945 www.rps.troweprice.com

EAP and Work/Life

Resources

APS Healthcare 866-496-9599

Available 24/7

www.apshelplink.com

Company Code: Hospira

15


Important Notices

Grandfathered Plan Notice

Hospira believes the medical plans we offer 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 plan is not required to

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 does not have

to be included because Hospira has already met the vast majority of

that requirement. However, grandfathered health plans must comply

with certain other consumer protections in the Affordable Care Act,

for example, covering adult children to age 26.

Questions regarding which protections apply and which do not

apply to a grandfathered health plan and what might cause a plan to

change from a grandfathered health plan status can be directed to

the Employee Service Center at 877-771-7722. You may also contact

the Employee Benefits Security Administration, U.S. Department of

Labor at 866-444-3272 or www.dol.gov/ebsa/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

On January 1, 1999, a new federal law, the Women’s Health and

Cancer Rights Act of 1998, became effective for our Plan, the Hospira

Group Health Plan. This law requires group health plans that provide

coverage for mastectomies (ours does) to also provide coverage for

reconstructive surgery and prostheses following mastectomies. As

required under the law, we are sending this notice to inform you about

this law and our policy.

The law mandates that a participant or eligible beneficiary who is

receiving benefits, on or after the law’s effective date (January 1,

1999 for our Plan), for a covered mastectomy, and who elects breast

reconstruction in connection with the mastectomy, will also receive

coverage for:

}}

All stages of reconstruction of the breast on which the mastectomy

has been performed;

}}

Surgery and reconstruction of the other breast to produce a

symmetrical appearance; and

}}

Prostheses and treatment of physical complications of all stages of

mastectomy, including lymphedemas.

This coverage will be provided in consultation with the patient and the

patient’s attending physician and will be subject to the same annual

deductible, coinsurance, and/or copayment provisions otherwise

applicable under the Plan.

If you have any questions about coverage for mastectomies and postoperative

reconstructive surgery, please contact your local Human

Resources Representative.

Availability of Summary Health Information

As an employee, the health benefits available to you represent a

significant component of your total compensation package.

They also provide important protection for you and your family

in the case of illness or injury. Hospira offers a series of health

coverage options. To help you make an informed choice, Hospira

makes available a Summary of Benefits and Coverage (SBC),

which summarizes important information about each of our health

coverage options in a standard format, to help you compare

across options. You should have received a copy of the SBC in

the mail. Please reference the Glossary of Health Coverage and

Medical Terms, which you should have also received in the mail,

to better understand health care terms used in the SBCs. You

can also view and/or print an electronic copy of the SBC through

the Hospira Intranet at www.ourhospira.corp.

This benefits guide highlights certain key features of the Hospira Benefits Program and the individual plans within it. More details can

be found in the governing plan documents. In the event of a discrepancy or ambiguity between this guide and the plan documents, or

if questions arise that this guide does not answer, the relevant plan documents govern in all cases.

The information contained in this guide is not intended as legal or tax advice. Any tax information provided is not intended or written to

be used, and cannot be used or relied upon by any taxpayer for the purpose of filing taxes or avoiding penalties that may be imposed

on the taxpayer. You should seek advice from an independent legal or tax advisor. Hospira is not an investment advisor and is not

acting in the capacity of an investment advisor to address these questions. Participation in investment programs is voluntary.

16 HOSPIRA BENEFITS GUIDE : 2014

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