2012 Benefits Guide - Hospira

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2012 Benefits Guide - Hospira

invest in our futureNecessary Steps to Take WhenEnrolling for 2012:STEP1STEP2Educate Yourself.Before making your benefit elections, you have to firsteducate yourself on all the benefit options Hospira has tooffer. Read this guide for a summary of your options.Review Your Health Plan Options &Covered Dependents.Hospira is proud to continue to offer the HSA PremierMedical Plan and the HRA Plus Medical Plan for 2012.Refer to pages 6-11 for more details.STEP4STEP5Review Your Financial ProtectionOptionsHospira offers a range of insurance options to protectyou and your family in case of an unexpected injury ordeath. Refer to pages 13 and 14 for more details.Review Your Retirement Plan.When you contribute to your 401(k), Hospira alsocontributes on your behalf. Refer to page 14 for moredetails.STEP3Review Your FSA Options.Hospira offers three different flexible spending account(FSA) options: the Standard Health Care FSA, LimitedHealth Care FSA, and Dependent Care FSA. Refer topage 12 for more details.STEP6Complete Your EnrollmentBe sure to complete enrollment in order to have benefitsin 2012. Once you’ve elected all your benefit options for2012, be sure to print out the confirmation statement foryour own records.Contents4 Benefit Options and Eligibility6 Medical10 Wellness Reward Dollars10 Dental11 Vision11 Weekly Employee Rates12 Flexible Spending Accounts (FSA)13 Life and AD&D13 Disability14 401(k)14 Enrolling in Your Benefits15 2012 Benefit Resources16 Important Notices2 HOSPIRA BENEFITS GUIDE : 2012


Dear Colleagues,At Hospira, we focus on health and wellness in everything we doand we are driven to be the WORLD’S LEADING PROVIDEROF INJECTABLE DRUGS AND INFUSION TECHNOLOGIES.This descriptor reinforces that Hospira is here to help customersenhance patient care across the globe. As an employer we provide benefitplans designed to focus on prevention, promote wellness and encourageinformed decision making.For 2012, Hospira is proud to provide benefits thatpromote healthy lifestyles, financial security, and retirementinvestment and planning.Our employees are the key to our success and theHospira benefits package is a shared investment in thehealth and welfare of you and your family. Our healthbenefit can help you manage your health AND put cashback into your pocket based on the choices you make.• The Health Savings Account (HSA) Premier Medicalplan includes automatic Health Savings Accountcontributions and you can increase your HSA fundbalance through pre-tax payroll deductions.• The Health Reimbursement Account (HRA)Medical Plan.Stay well...with help fromHospira-sponsoredbenefits• Both the HSA and HRA offer FREE preventive servicesand screenings and access to health coaches, aroundthe clock access to registered nurses and numerousonline tools, calculators and resources.• Comprehensive dental and vision benefit options• Financial security protection through flexible insuranceoptions and a generous 401(k) matching programThis guide includes the tools and resources to help youmake informed decisions regarding your 2012 benefits.If you need additional information or assistance weencourage you to reach out to the Hospira partnersoutlined in this guide.We are in the Wellness business – for both our customers,our patients and for you, our employees and your families.We hope you will take advantage of Hospira’s 2012benefit program to build a strong foundation of health andcontrol your benefits, health care and future. I think ourprogram provides the resources to help you make themost of our programs and I hope you will agree!Sincerely,Pamela HannonVice President, Total Rewards & Employee ServicesHospira, Inc.3


How the Medical Plans WorkThe HSA Premier Medical PlanWhen you enroll in the HSA Plan, Hospira will make contributionsto a Health Savings Account (HSA) for you every pay period. Youmay also make tax-free contributions* in addition to any WellnessReward dollars you earn. Any Wellness Reward dollars you earnwill also be deposited into your HSA.HSA funds can then be used to pay for eligible medical expensesor saved for the future. Remember—these funds are always yours,even after you leave or retire from Hospira. Note: Anyone coveredby an HSA Medical Plan cannot have medical coverage elsewhere.For additional information on the HSA Premier Medical Plan,you can visit the U.S. Treasury’s website for some answers toFrequently Asked Questions: http://www.treas.gov/offices/publicaffairs/hsa/faq.shtml.Or you can visit the IRS website for a detailed guide:http//www.irs.gov/pub/irs-pdf/p969.pdf.HSA Premier Medical Plan: Funding & Medical CoverageHospira PaysYou Pay* Contact Aetna for more details.HSA FundingContributions toyour HSA each payperiod.Optional pre-taxcontributions to yourHSA.Plan Coverage100% of preventivemedical services,screenings, and IRSdefinedpreventivegeneric medications.*100% of medical andnon-preventiveprescriptions untildeductible is met.AnnualDeductible Met80% until out-ofpocketis met.20% until out-ofpocketis met.Annual Out-of-PocketMax MetHealthSavings AccountFund100% Unused funds areyours to save or usefor current or futureexpenses, COBRA,retiree medical, etc.Nothing.Special requirements fordependents age 23 to 25.While the HSA medical plan will providemedical coverage for your dependent childrenover age 23, you may not be able to use HSAfunds to cover expenses for dependents overage 23. Your adult child may be eligible toopen his/her own HSA at a financial institution.Please consult a tax advisor or Aetna for moreinformation.Minimize costs…Here’s how:• Take advantage of FREE preventivecheck-ups and screenings• Earn additional Wellness Reward dollars• Choose generic prescription drugswhenever possible• Get answers to simple health questionswith FREE 24-hour Nurse Line• Use free Disease Management Coaches• Take advantage of FREE online healthtools• Opt for urgent care facilities vs. ERswhen appropriate• Use our FREE EAP—check out theCommunity Resources DiscountProgram7


invest in our futureThe HRA Plus Medical PlanWhen you enroll in the HRA Plus Medical Plan, Hospira contributes dollars to your HealthReimbursement Account (HRA) health fund based on the coverage level you select in additionto any Wellness Rewards dollars you earn. When you seek medical treatment, coveredexpenses are automatically paid from the HRA health fund. Only if you use up all of yourHRA health fund dollars will you begin to pay out of your own pocket.Please note: if you enroll in the HRA Plus Medical Plan mid-year, Hospira's contributions toyour HRA health fund will be prorated based on the quarter in which you enroll. Please contactAetna or CIGNA for more details (see “Hospira 2012 Benefit Resources” on page 15).How HRA Health Fund Dollars Pay for Medical ExpensesHRA HealthFundYou PayHospira PaysHRA HealthFundingAutomatic fundingwhen you enroll.Additional fundingwhen you completeWellness Rewardsactivities.Medical ExpenseHealth fundautomatically paysexpenses; health fundpayments apply todeductible.100% once HRAhealth fund depleted,until rest of deductibleis met.PrescriptionExpenseA co-pay for everyprescription.After DeductibleMet20% until out-ofpocketmax met.80% until out-ofpocketmet.After Out-of-Pocket Max MetMedical: NothingRx: Copay.100% of medicalexpenses.HSA vs. HRA: Key DifferentiatorsFeature HSA Premier Medical Plan HRA Plus Medical PlanPortabilityHSA funds are yours, even if you change health plans,retire, or leave the company.HRA health funds are forfeited when you retire or leavethe company.Plan Deductible Medical and prescription costs apply to deductible. Only medical expenses apply to deductible.Employee Pre-TaxContributions*You can make pre-tax contributions to your HSA upto $2,300 (employee only) or $4,700 (employee +dependents).*None.Control of FundsAvailability of FundsPreventivePrescription DrugCoverageNon-PreventivePrescription DrugsYou decide how to save or spend your HSA funds, aswell as how to invest the account.HSA funds may only be used as they are deposited inyour account.Certain generic preventive drugs are FREE.Prescription costs apply to your deductible and arecovered after the plan deductible is met.HRA funds automatically applied to pay eligibleexpenses.The entire HRA fund is available once coveragebegins.No special coverage.HRA funds do not cover prescription costs. You pay acopay.* 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.8 HOSPIRA BENEFITS GUIDE : 2012


Prescription Drug BenefitsThe HSA Premier Medical Plan PrescriptionDrug CoverageThe HRA Plus Medical Plan PrescriptionDrug CoverageFor more information, tools, and resources, contact:Aetna800-833-0220www.aetnanavigator.comFor more information, tools and resources, contact:Express Scripts866-472-6223www.express-scripts.comDrug Coverage Under the HSAPrescriptionCoverageGenericFormulary BrandNon-FormularyRetail – 30 daysHome Delivery– 90 daysThe employee pays the cost of themedication. Hospira pays 80% afterdeductible is met.Under the HSA Medical Plan, prescriptions for certain preventivedrugs for conditions such as hypertension, cholesterol, diabetes,asthma, and osteoporosis may be FREE. Prescriptions notincluded in the IRS-defined preventive drug list are covered onlyafter the full deductible is met. Prescription coverage for the HSAMedical Plan is managed by Aetna.PreventiveMedications 1 Retail – 30 days Home Delivery– 90 daysGeneric FREE FREEFormulary Brand $25 $62Non-Formulary 50% (Min. $50,Max. $150)$125Eligibility Questions?The Hospira Employee Service Center (ESC)is here for you. Call 877-771-7722 Mondaythrough Friday, 7 a.m.-6 p.m. CST or visit:http://employees.hospira.com.The HRA provides prescription coverage with a copayment andno deductible is applied. The HRA Plus Plan also features a StepTherapy Program which requires you to get a generic prescription,or “front-line medication,” when available. If that prescription isn’tright for you, your doctor may prescribe a brand name prescription.Prescription coverage for the HRA Plan is managed by ExpressScripts.Prescription Coverage under the HRAPrescription type Retail – 30 days Home Delivery– 90 daysGeneric $7 $17Formulary Brand 30%($25 min/$75 max)Non-Formulary 50%($50 min/$150max)Network Availability30%($60 min/$180max)50% ($125min/$375 max)The Aetna HSA and HRA options are available to all employeesand utilize the Aetna Choice POS II provider network. Foremployees 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 providernetwork(s), please call the carrier or go online formore information:• Aetna 800-833-0220 www.aetnanavigator.com• CIGNA 800-244-6224 www.myCIGNA.com1Covers hypertension, cholesterol, diabetes, asthma and osteoporosis medications and must be on the “Preventive Medications List for HSAs.”Please contact Aetna for details.9


invest in our futureHealth Benefits: Wellness Reward DollarsPut Health Care Dollars Into Your Health Fund—Without Spending a Dime!Make smart choices, then enjoy the benefits! It’s easy with our Wellness Reward Dollars program, which lets you earn up to $500 perperson or $1,000 per family with easy-to-complete activities.Healthy Activity HSA or HRA Health FundContributionBiometric Screening $300Health Assessment $250Well Woman Exam (includes $200Pap smear)Well Male Exam (includes $200prostate exam)Mammogram (routine) $200Colonoscopy $200Healthy Lifestyle Coaching $50Online Wellness Programs $50 eachVisit the Hospira intranet at www.ourhospira.corp or contact Aetna formore details at 800-833-0220.Health Benefits: DentalCoverage To Keep You SmilingFor more information, tools, and resources, contact:MetLife888-251-0709www.metlife.com/dentalTo help protect your dental health, Hospira’s dental plan optionincludes preventive services at no additional cost to you.Orthodontia benefits are also included. You may choose to receivecovered care from any licensed dentist; however, you’ll pay less formost services when you choose an in-network dentist. To locatea participating dentist near you, refer to “Hospira 2012 BenefitsResources” on page 15.The following provides a brief overview of the Dental Plan.Complete details are available by contacting MetLife (see “Hospira2012 Benefits Resources” on page 15).Type of Care Plan Benefits Network CoverageDeductiblePer personPer family$50$100Annual Maximum Benefit Per person $1,500, excluding orthodontia and TMJ treatment.Lifetime Maximum Per person NonePreventive Services Routine exam, X-rays, and cleaning, two per year;Plan pays 100%, no deductible.fluoride treatment (up to age 19).Basic Restorative Services Routine fillings, simple extractions, impacted teethPlan pays 80% after deductible.removal.Major Restorative Services Crown and bridgework, surgical extractions, rootPlan pays 50% after deductible.canals, periodontal surgery (once every five years)Orthodontia Braces Plan pays 50% after deductible, up to $1,500lifetime maximum/person.10 HOSPIRA BENEFITS GUIDE : 2012


Health Benefits: VisionWhen It Comes to Eye Exams and Eyewear,We’ve Got You CoveredFor more information, tools, and resources, contact:VSP800-877-7195www.vsp.comVision care benefits help pay for routine exams and eyewear foryou and your family at any licensed vision provider. And when youchoose an in-network provider, you’ll pay even less out of pocket.To locate a participating vision provider near you, refer to “Hospira2012 Benefits Resources” on page 15.The following shows plan highlights. For more complete details,contact VSP (see “Hospira 2012 Benefits Resources” on page 15).Type of Care Plan Benefits Network Coverage Out-of-Network CoverageDeductible None None NonePreventive Services Annual exam $10 co-pay $25 reimbursementPrescription Lenses &FramesLenses, once per year; frames,once every two years in lieu ofcontacts.$25 co-pay $30 reimbursement single vision;$35 reimbursement bifocal andtrifocal lenses; $45 reimbursementframes.Contact Lenses One set per year, in lieu of frames. Plan pays 100% up to $150 per $150 reimbursementyear.Other Savings—Prescription LensesLens options, frames 20% average savings NoneOther Savings—Contact LensesContact lens fitting and evaluation;annual supplies.15% average savings NoneHealth Benefits: 2012 Weekly Employee RatesHospira Works to Help Keep Your Benefits Affordable2012 Weekly Employee RatesOption Employee Only Employee + Spouse Employee +FamilyChild(ren)Health Savings Account (HSA) $13.00 $28.00 $25.50 $39.00Premier Medical PlanHealth Reimbursement$21.00 $46.50 $41.50 $64.00Account (HRA) Plus MedicalPlanDental Plan $3.75 $5.25 $5.25 $9.00Vision Plan $2.02 $3.25 $3.31 $5.3311


STEP4Financial Protection Benefits: Life And DisabilityYour Life and AD&D OptionsFor more information, tools, and resources, contact:Prudential800-778-3827www.prudential.com/webenrollHospira believes it’s important to help employees financially protecttheir loved ones in the event of an injury or death. Therefore, we’repleased to provide you Basic Life insurance at one times yourannual salary and Accidental Death and Dismemberment coverage(AD&D) equal to $10,000—both at no cost to you. You may alsopurchase supplemental and dependent life insurance.The following chart provides an overview of your Life and AD&Dbenefits and options. For more complete details, contact Prudential(see “Hospira 2012 Benefits Resources” on page 15).Benefit Options Who pays for When you can enrollcoverageBasic Life One times your annual salary. Hospira Automatic on date of hire.Supplemental Life* One to six times your salary. You Within 31 days of hire date, or anytime subject to approval.Dependent Life* †Several options:• Spouse: $25,000, $50,000, or $75,000• Child(ren): $5,000, $10,000, or $25,000YouWithin 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 YouAny timebase pay or a maximum of $500,000.Spouse AD&D † $10,000 increments up to $100,000. You Any time* 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.Your Disability CoverageIf you are unable to work due to illness, Hospiraprovides Short-Term Disability (STD) insurancewhich pays a portion of your income while you areunable to work, up to 26 weeks.To help protect you from the potential impact of a longer-termdisability, Hospira provides Long-Term Disability (LTD) benefits if youare disabled for at least 26 weeks. You are automatically coveredunder the LTD Basic plan and can elect to increase your coveragewith LTD Plus.The following chart provides a high-level overview of your options.For more complete details, contact Prudential (see “Hospira 2012Benefits Resources” on page 15).Benefit Options Who pays for coverage When you can enrollLTD BasicProvides benefit of 60% ofHospira Automatic after six months ofincome during disability.employment.LTD PlusProvides benefit of 66 2/3% ofincome during disability.YouWithin six months of hire or anytimesubject to approval.13


invest in our futureSTEP5Retirement Benefits:401(k)When It Comes to Planning for Your Retirement,You’re in ControlFor more information, tools and resources, contact:JPMorgan800-345-2345www.retireonline.comGone are the days when Americans could lean on Social Securityto provide a financially secure retirement. The new reality is thatevery one of us controls the kind of retirement we will have. To helpyou create a retirement that is comfortable, secure, and all thatyou hope it will be, you are eligible to enroll and participate in theHospira 401(k)—and to receive matching 401(k) contributions fromus that will help your savings grow even faster!Here’s how it works: You determine how much you want tocontribute—up to 25 percent of your base pay on a pre-tax, aftertax,Roth option, or combination basis. You can even open andplace your contributions in a JP Morgan Self Directed BrokerageAccount (SDA).If you contribute… Hospira contributes an additional… So your total contributions add up to…5% of Eligible Pay 7% of pay 12% of eligible pay4% of Eligible Pay 6.5% of pay 10.5% of eligible pay3% of Eligible Pay 6% of pay 9% of eligible pay2% of Eligible Pay 5% of pay 7% of eligible paySTEP6Enrolling in Your BenefitsFinal Checklist Before Enrolling for 2012Read this guide carefully.Before making your benefits elections, try to anticipate andlist benefits options you and your dependents may need in2012. Review all of your 2012 options for Medical, Dental,Vision, Flexible Spending Accounts (FSAs), Optional Life,Dependent Life, Long-term Disability (LTD) Buy-Up, and401(k).Take advantage of online tools andresources.• Aetna and CIGNA’s websites, www.aetnahospira.comand www.myCIGNA.com, enable better health withassessment tools, plan management, medical updates,and much more. They can help you:> Verify plan details such as coverage, co-pays, anddeductibles> Choose doctors and create a list of nearby hospitals andpharmacies> Find information on and estimate costs for medicalprocedures and treatments> Find personalized health and wellness recommendations> Find the latest medical literature on health conditions,treatments, and medications> Keep track of medical conditions, medications,surgeries, immunizations, and emergency contacts> Organize and track all medical expense information• Benefits resources:> The Hospira intranet: www.ourhospira.corp, then selectFunctions > Organizational Transformation and PeopleDevelopment > Benefits> Additional tools and calculators on www.aetnahospira.comEnroll within 31 days!New hires must enroll within 31 days of date of hire tohave benefits in 2012. If you do not enroll within 31 days,you can still elect health plan coverage between 32 and 60days. However, it will begin on the day you enroll, and yourdeductions will be made after tax. After 60 days, you will haveto wait until the next benefits Open Enrollment period.If you do not enroll in Life and/or LTD insurance within 31days of first becoming eligible, you will be required to gothrough a medical approval process if you choose to enrollat a later date.If you experience a “qualified family status change” (see page5), you must call the Employee Service Center (ESC) within 31days of the event to request a change to your coverage.14 HOSPIRA BENEFITS GUIDE : 2012


2012 BenefitResourcesTo enroll, please refer to the chart below:To enroll in… Contact… At phone number… Or Website…Medical, Dental, Vision, or FSA Employee Self Service 877-771-7722 http://employees.hospira.comLife, AD&D, LTD, & STD Prudential 800-778-3827 www.prudential.com/webenroll401k JPMorgan 800-345-2345 www.retireonline.comFor more information on benefits resources through the Hospira Intranet, go towww.ourhospira.corp. Select Functions > Organization and Transformation and Peopleand Developments > Benefits.If you have questionsabout…General BenefitsInformationAdditional BenefitsResourcesMedical Coverage: AetnaHSA Premier Medical Plan& HRA Plus Medical PlanMedical Coverage: CIGNAHRA Plus medical Plan(North Carolina ONLY)Prescription DrugCoverage: HSA PremierMedical PlanPrescription DrugCoverage: HRA PlusMedical PlanFlexible SpendingAccounts (FSAs)Contact… At phone number… Or website…Hospira Employee ServiceCenter (ESC)877-771-7722Mon.-Fri., 7 a.m.-6 p.m., CSTHR Connection (ESS): http://employees.hospira.comBenefits N/A The Hospira Intranet:www.ourhospira.corp (select Functions> Organizational Transformation andPeople Development > Benefits)AetnaCIGNACustomer Service:800-833-0220Nurse Line:800-556-1555Customer Service:800-CIGNA24(800-244-6224)www.aetnahospira.comUtilize plan selector and cost estimationtools, find network doctors, calculate FSAcontributions, and find special savingsprograms.www.myCIGNA.comFind network doctors and special savingsprograms.Nurse Line:800-CIGNA24(800-244-6224)Aetna 800-833-0220 www.aetnanavigator.comExpress Scripts 866-472-6223 www.express-scripts.comAetna 800-833-0220 www.aetnanavigator.comDental Coverage MetLife 888-251-0709 www.metlife.com/dentalGroup #: 303261Vision Coverage VSP 800-877-7195 www.vsp.comLife, AD&D, LTD, and STD Prudential 800-778-3827 www.prudential.com/webenrollInsurance401(k) Retirement Savings JPMorgan 800-345-2345 www.retireonline.comPlanLong-Term Care John Hancock 800-311-2058 http://hospira.jhancock.comUser: Hospira, Password: LTCEAP and Work/LifeResourcesAPS Healthcare 866-496-9599Available 24/7www.apshelplink.comCompany Code: HospiraFor Savings Center, Password:Advantage.15


Important NoticesGrandfathered Plan Notice. Hospira believes the medical plans weoffer are “grandfathered health plans” under the Patient Protectionand Affordable Care Act (the Affordable Care Act). As permitted bythe Affordable Care Act, a grandfathered health plan can preservecertain basic health coverage that was already in effect when thatlaw was enacted. Being a grandfathered health plan means thatyour plan is not required to include certain consumer protections ofthe Affordable Care Act that apply to other plans, for example, therequirement for the provision of preventive health services withoutany cost sharing (Hospira has already met the vast majority of thatrequirement). However, grandfathered health plans must comply withcertain other consumer protections in the Affordable Care Act, forexample, covering adult children to age 26.Per the Mental Health Parity Act, benefits for mental health andsubstance use disorder must be treated like benefits for regularmedical and surgical care. For example, if there is no limitation onthe number of days for inpatient and number of visits for outpatientmedical care, then there can be no limitation for mental health andsubstance use disorder treatments. As always, treatments must bemedically necessary to qualify for coverage. Plan participants shouldreview their plan’s certificate of coverage or benefit document forspecific information about coverage, limitations and exclusions formental health care and substance use disorder treatments.Per the Women’s Health and Cancer Rights Act of 1998, eachof our medical options provides benefits for mastectomy-relatedservices including: reconstruction and surgery to achieve symmetrybetween breasts; prostheses and complications resulting from amastectomy (including lymphedema). Please contact UHC or CIGNAfor more information.Questions regarding which protections apply and which do notapply to a grandfathered health plan and what might cause aplan to change from a grandfathered health plan status can bedirected to the Employee Service Center at 877-771-7722. Youmay 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 whichprotections do and do not apply to grandfathered health plans.Building a StrongFoundation for YourHealth Now...andin the FutureThis benefits guide highlights certain key features of the Hospira Benefits Program and the individual plans within it. More details can be found inthe governing plan documents. In the event of a discrepancy or ambiguity between this guide and the plan documents, or if questions arise thatthis 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 aninvestment advisor to address these questions. Participation in investment programs is voluntary.invest in our future

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