H.B. Fuller Company

2010 Open Enrollment:

Helping you Buy Well, Use Well, Be Well

October, 2009

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Overview of 2010 medical options

Tools and resources

How and when to enroll

Incentives reminder and sales pitch

Today’s Discussion

PURPOSE OF TODAY’S MEETING:To help you understand your medical plan options

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1 Medical Plan

3 Options for Paying

Medical Plan

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Market 500 Value 750High Deductible

PlanPreventive care (in-network only)

100% 100% 100%

Office visit copay

$30 $30 N/A

Fuller HSA

Contribution*

N/A N/A $500 Single

$1,000 Family Prorated by pay period

Emergency Room Co-pay

$150 $150 NA

Medical Plan Options Summary

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Why change ER Co-pays?

• Our ER usage is higher than the general population

• Cost of emergency room is $550-750/visit versus $110-150 for regular office visit

• Most of our ER usage was considered preventable

• Emergency Room alternatives:

• Have a family doctor (Medical Home)

• Get regular preventive care

• Use Urgent Care or Walk In Clinics before the ER

Aetna’s DocFind has a link for alternatives to the ER

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Market 500 Value 750High Deductible

PlanIn-network $500 Single

$1,000 Family

$750 Single

$1,500 Family

$2,000 Single

$4,000 Family

Out-of-network* $1,000 Single

$2,000 Family

$1,500 Single

$3,000 Family

$2,000 Single

$4,000 Family

Family Deductible*

Imbedded single Imbedded single True family

Medical Plan Options Summary

Deductible – the amount you pay before the plan pays

* This is an additional deductible – not part of in-network.

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Deductible Example (Value 750)

Single imbedded

($1,500 Family deductible)

• First family member pays single deductible - $750 then 20% going forward

• Remaining deductible $750 (other family members meet)

True Family

($4,000 Family deductible)

• Cost for all family members $4,000 combined to meet deductible

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Market 500 Value 750 HDHP w/ HSA

Coinsurance – in-network

20% 20% 0%

Coinsurance – out-of-network

40% 40% 0%

Medical Plan Options Summary (cont.)

Co-insurance: The percentage of the cost you pay after you meet your deductible

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Market 500 Value 750 HDHP w/ HSA

OOP maximum - in-network

$1,500 Single

$3,000 Family

$3,000 Single

$6,000 Family

$2,000 Single

$4,000 Family

OOP maximum –out-of-network*

$3,000 Single

$6,000 Family

$6,000 Single

$12,000 Family

$2,000 Single

$4,000 Family

Medical Plan Options Summary (cont.)

Out of Pocket Maximum: The most you will pay out of pocket for the year

Separate maximum for in-network and out-of-network. *OOP Maximum for out-of-network does not include costs

over “reasonable and customary”

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Claims Payment Comparison

You Shared Plan

Plan Deductible Copay OOP Max Plan Pays

Market 500*

(family)

$1,000 20% $3,000 100%

Value 750*

(family)

$1,500 20% $6,000 100%

High Deductible (individual)

$2,000 0% $2,000 100%

High Deductible (family)

$4,000 0% $4,000 100%

* Office visit co-pays, ER co-pays pharmacy co-pays not included

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Market 500 Value 750 HDHP w/ HSA

Premium (Month)Employee

Employee + 1Family

$109.75$219.50

$329.25

$58.75$117.50$176.25

$54.80$109.60$164.40

Medical Plan Premiums

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Why is the Market 500 higher?

• We are self-insured. This means our rates are based on our volume of medical claims.

• Claims costs per employee for this option through July are considerably higher than the other options:

• $1,500/person for Market 400 versus $705/person for Value 750

• Premiums adjusted based on option costs

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Market 500 Value 750 HDHP w/ HSA

Pharmacy

Generic

Brand (30%)

Non-formulary (50%)

Specialty (50%)

Min Max

Cost $10

$20 $40

$40 $80

$80 $160

Min Max

Cost $10

$20 $40

$40 $80

$80 $160

You pay 100% of negotiated rate until you reach your deductible – then plan pays 100%

Pharmacy Coverage

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Pharmacy Example

Example cost for non-formulary drug:

Retail Drug Cost: $450Aetna Negotiated Rate: $292You pay: Market 500 (50%) $80 (ongoing)

Value 750 (50%) $80 (ongoing) High Deductible* $292

* Pay full amount until deductible is met

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Tax-free contributions to pay for current and/or future medical expenses

Interest earned tax free

Flexible – you choose when or whether to use the account for health care expense

Banking services provided by JPMorgan Chase Bank. Some fees required.

Easy access to funds through debit card

Key Features of an HSA

What is an HSA?It is a savings account that is owned by you

and is associated with a High Deductible Health Plan

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Includes expenses such as: Deductibles Coinsurance Not covered but eligible

IRS expenses Prescription drugs

It also includes expenses for: COBRA-continuation coverage Health plan coverage while receiving unemployment compensation Medicare premiums and out-of-pocket expenses Qualified long-term care insurance

Employees are responsible for keeping all receipts and records, demonstrating that HSA dollars were used for qualified health

care expenses.

HSA Tax-Qualified Expenses

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Changes for 2010:• This is an employee-paid benefit • You will be auto-enrolled for 50% coverage• The Company will reimburse your premium• No buy-up option

Why the change?Since this is a post-tax benefit, you will not pay taxes on any amount you receive while on long-term disability.

Long Term Disability Plan

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For 2010, our disability and Family Medical Leave programs will be

managed by UNUM

Why the change? To gain consistency throughout the country. To better manage our disability programs. To employ expertise for managing FML program.

Total Absence Management

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For help with your benefit plan questions: October 2009 For Your Benefit newsletter 2010 Open Enrollment Guide (online) Aetna:

Website

Aetna Navigator

Plan Selection and Cost Estimator Tool

Customer Service line (plan questions)

Benefits Connection (general benefits)

Resources and Tools

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You must enroll if:

You want to change your medical plan

You have a High Deductible Plan and want to put money into a Health Savings Account through payroll deduction

You want to put pre-tax money into a Flexible Spending Account for Health Care or Dependent Care

Do I need to enroll this year?

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If you don’t enroll, your benefit elections from last year continue, EXCEPT:

Flexible Spending Account deductions go to $0

Health Savings Account deductions go to $0

You are automatically enrolled in Long Term Disability

Those in the Market 400 plan in 2009 will be enrolled in the Market 500 plan for 2010

What if I don’t Enroll?

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To enroll online, you will need:

your 6-digit employee ID (on your pay stub)

Your PIN (Unless changed, PIN is last four digits of SSN)

To enroll by phone:

Call Benefits Connection weekdays between 8:00 am. And 5:00 p.m. Central time

How and When to Enroll

Enroll between October 28 and November 11

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Make sure that your enrollment is correct. To do so:

Print a copy of your enrollment elections at end of your online session

In early December, confirmation statements will be sent to everyone by mail

Review the statements carefully

Call Benefits Connection by December 14 if you need to make corrections.

What happens after I enroll?

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2009 Incentive Program Ends November 30

Make sure you:• Take your Health Assessment – learn about your health

and earn $150• Review incentives on Aetna Navigator• Complete programs by 11/30 to get an incentive• Aetna tracks doctor, dental and program completion• If you don’t have our medical coverage, see me

Watch for 2010 program details in December

Incentive Program Status

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Thank you for your time!

Questions?