AutoZone’s Medical, Dental and Vision plans Open ...

1 autozone 's medical , Dental and Vision plans Open Enrollment 2003. For full time AutoZoners Open Enrollment period for our medical , Dental and Vision plans is now through December 14, 2002. autozone is making changes to the medical plans effective January 1, 2003: Blue Cross Blue Shield of Illinois (our self-insured medical plans ). * New Blue Cross Blue Shield PPO plans replace current Blue Cross Blue Shield PPO+. and PPO plans new plans , plan A and plan B, are PPO plans , giving you the flexibility of selecting a health care provider inside or outside of the network. * Mandatory Generic Prescription Drug Program - if there is a generic available, you'll be asked to have your prescription filled with a generic. * Discount for Non-Tobacco Product Users - 5% payroll deduction discount for our non- tobacco users. * Change in Co-payment for Doctors Visits co-payments for non-wellness or preventive doctor's visits will increase.

2 kaiser permanente , Health Net of California and Health Net of Arizona (our fully insured HMO plans ). * Change in Co-payment for Doctors Visits co-payments for these plans will increase. * Outpatient Surgical Facilities and Emergency Room Co-payments co-payments for each of the benefits for the Health Net of California will increase. * Inpatient Hospital Co-payment co-payment for both of the Health Net HMO plans will increase. * Prescription Drugs co-payment changes will increase for the kaiser and Health Net of Arizona plans . * Calendar Year Out of Pocket Maximum an out-of pocket maximum will be added to the Health Net of Arizona HMO plan . Dental and Vision plans * There will be no changes to our Dental and Vision programs. Here's more on why we're making these changes to our medical plans and what it means to you. medical plans Why the Changes If you have read the front pages of the newspaper or listened to the evening news within the past year, you're no doubt aware of the continued dramatic rise in health care costs and the overall focus on national health care.

3 Health care expenditures in the United States are approaching a trillion dollars per year, so it's no surprise that the problem of costs and delivery receive so much attention. autozone 's health care expenses range from to a week! Like most companies nationwide, autozone continues to face the challenge of balancing the need to control costs with our commitment to providing quality benefits. In recent years we have been successful in improving the quality of your health care, while increasing access to network providers and providing better customer service. Our process is ongoing. This year we've redesigned our medical plans to be responsive to the wide range of personal situations and needs of our AutoZoners. We're introducing new Blue Cross Blue Shield Preferred Provider Organization (PPO) plans that will allow you to save in your payroll deduction costs.

4 We'll continue to offer the kaiser permanente and HealthNet HMO plans in California and Arizona, with some plan changes. 1. About our self insured medical and Dental plans Our Blue Cross Blue Shield (BCBS) medical plans and our CIGNA traditional/PPO Dental plans are self-insured. That means that we, you and autozone , share the responsibility for all of the expenses related to our medical and Dental plans . Your payroll deductions and the money autozone sets aside each payroll period are used to pay the doctors, hospitals, pharmacies and dentists. Each year, we predict what our total medical and Dental costs will be based on our experience (what we've actually spent in medical care) and our plan design. This is how we determine the amount of your payroll deduction. If we don't predict correctly, the company makes up the shortfall. This year alone our shortfall was $ dollars!

5 We pay BCBS and CIGNA a fee each month to administer our medical and Dental claims for us. They also give us access to their preferred health and Dental care providers and pharmacies, which allows us to provide you the best value for your health care dollars. BCBS and CIGNA reimburse either you or your health or Dental care provider for the benefits covered under the plan . New Blue Cross Blue Shield plans plan A and plan B. The Blue Cross Blue Shield plans , A and B, will replace the current Blue Cross Blue Shield PPO+ and PPO plans . Both plan A and plan B are PPO plans , which mean that you'll have the flexibility of selecting a health care provider inside or outside of Blue Cross Blue Shield's preferred provider network. If you choose a provider in the network, you're choosing quality care at the lower in-network costs. If you and your family members have minimal health care expenses then you may want to carefully consider plan A.

6 Although the annual deductible is higher in plan A, the payroll deduction costs are significantly lower. In most levels of coverage they are even lower than the payroll deduction cost for 2002. plan A will cover office visits, wellness care, emergency care and prescription drugs after a co- pay, without having to meet your annual deductible. It also allows you to have the comfort of knowing that if a catastrophic medical event occurs, you'll have quality medical coverage. If you or your family members have medical conditions that require continuing medical treatment, you may want to consider plan B. While it has higher payroll deduction costs, plan B has a lower annual deductible and may allow you to better manage your out of pocket costs. Discount for Non-Tobacco Product Users You'll be asked to answer on the open enrollment form if you or any covered family member under the Blue Cross Blue Shield plans has used tobacco products within the past 90 days.

7 If you answer no then you'll receive a 5% discount off of your medical plan payroll deduction! Every 90 days you'll have the ability to take advantage of the discount by being tobacco free or by trying to be tobacco free by completing a smoking cessation course or using any of the smoking cessation aids that are covered in our benefit plan . Contact the AutoZoner Information Center at 800- 311-6975 for more details on how to re-apply as a non-tobacco user. Mandatory Generic Prescription Program This year, we're adding a mandatory generic prescription drug program. If there is a generic available, you'll be asked to have your prescription filled with a generic. If you don't then you'll pay the difference in the cost between the generic drug and brand drug, in addition to the generic co-payment. For example, if you choose a $100 brand name drug instead of its $50 generic, then you will pay $65 - the difference of the brand and generic plus the $15 generic co-payment.

8 Here's an example of how it works: $100 brand name - $50 generic = $50 balance plus $15 co-payment = $65 owed by you 2. More about the medical plan Changes Blue Cross and Blue Shield plans Office visit co-payments (both plans ) $20 wellness/preventive visits $25 all other doctor visits Calendar year deductible ( plan A) $1,000 per person/$3,000 per family (Does not apply to office visit and prescription co-payments). Calendar year deductible ( plan B) $ 250 per person/$750 per family (Does not apply to office visit and prescription co-payments). Calendar year out of pocket max (both plans ) $3,000 per person Mandatory Generic Prescription Drug program kaiser permanente HMO plan Office visit co-payments $20 wellness/preventive visits $ 5 prenatal care through age 2. Prescription drug co-payments $10 generic/$25 brand Health Net of California Office visit co-pays $20 wellness/preventive visits Inpatient hospital $350 co-payment Outpatient surgical facility $350 co-payment Emergency $75 co-payment Health Net of Arizona Office visit co-pays $20 wellness/preventive visits Prescription drug co-payments $15 generic/$30 brands/$50 non- preferred Annual out of pocket maximum $2,000 per person inpatient co-pay maximum Inpatient hospital and rehabilitation co-payment $200 co-pay per day, up to 5 days per admission 3.

9 Eligibility for all medical , Dental and Vision plans All full time AutoZoners and eligible dependents are eligible to enroll for the autozone medical , Dental and Vision plans . Eligible dependents are your spouse, including a recognized common-law spouse and your unmarried natural and adopted children. This also includes stepchildren and any other children related to you under the age of 19 who reside in your household and are dependent on you for support.* Coverage for unmarried dependent children who are full time students** continues to age 25**. You must provide us with full-time student confirmation from the school that he or she is attending by Dec. 31, 2002. If you don't, he or she won't have coverage. Fax the confirmation to the AutoZoner Information Center at (901) 495-8335 or email to *Contact the AutoZoner Information Center for required documentation that must be provided for other children related to you who depend on you for support.

10 **Full-time students must be in an accredited or licensed school. **The Health Net of Arizona HMO plan covers all eligible dependent children to age 25 regardless of their full-time student status. Texas only - The CIGNA Dental Care HMO plan and VSP's Vision plan covers all eligible dependent children to age 25 regardless of their full-time student status and all eligible grandchildren. Availability of medical , Dental and Vision plans medical plans All States: Blue Cross Blue Shield plans A&B. Arizona: Blue Cross Blue Shield plans A&B, Health Net of Arizona plans California: Blue Cross Blue Shield plans A&B, Health Net of California & kaiser HMO. Dental plans autozone offers you a choice between a Dental managed care plan , referred to as CIGNA Dental care HMO or PPO, and a traditional Dental care plan . Vision plan This PPO plan is available to all full-time AutoZoners, regardless of where you work or live.