Improvements to Benefit Levels

• The Comprehensive Health Care Benefit ("CHCB") will now cover one physical per year (including testing and immunizations) for employees and eligible dependents, with 100% of costs covered up to $150.00, and 75% of such costs in excess of $150.00.
• CHCB will cover routine childhood immunization subject to applicable deductible and percentage of Covered Expenses payable.
• Under CHCB and Managed Medical Care Program ("MMCP"), existing speech therapy coverage is expanded to include as a Covered Expense speech therapy given to children under three for treatment of autism, development delay, cerebral palsy, hearing impairment, or major congenital anomalies that affect speech.
• PKU blood tests will be a covered expense under MMCP and CHCB when given to infants under age one in a hospital or on an outpatient basis.
• While MMCP will continue to require co-payment with regard to the first OB/GYN pregnancy visit, no co-payment for subsequent office visits for that pregnancy will be required.
• MMCP will not require co-payment for allergy shots.

Plan Design Changes to Contain Costs

• Effective January 1, 2004, there will be a new benefit package, the Basic Health Care Benefit, with benefits specified in Attachment A of the Agreement, with no monthly contributions from the employee.
• Where CHCB and MMCP coverages are available, covered expenses under CHCB will be 75% until the out-of-pocket maximum is reached, but only 60% if required notice is not given to Medical Management or if Medical Management determines the service or supply is not medically appropriate.
• Individual and Family Out-of-Network Deductibles under MMCP are increased to $200 and $600, respectively.
• Prescription drug co-payments are revised as follows: (i) Generic Drug - $5; (ii) Brand Name Drug - $10; (iii) Mail-Order Generic Drug - $10; (iv) Mail-Order Brand Name Drug - $15.
• New employees' and their dependents' coverage will commence the first day of the fourth month after rendition of the Requisite Amount of Compensated Service.
• Qualified employees who have other coverage may opt-out of the plan; such employee will be paid $100 a month by their employer and will not be required to make a monthly cost-sharing contribution.

Employee Cost Sharing

• Effective November 1, 2003, each active employee will contribute $119.61 per month, to be lowered to $100 per month effective July 1, 2004.
• Up to one-half of Cost-of-Living Allowances effective July 1, 2005, January 1, 2006, July 1, 2006, and every six months thereafter may be used for employee cost-sharing.
• The Third General Wage increase in the 2002 National Agreement will be effective December 1, 2004, instead of July 1, 2004.
• Employee cost-sharing contributions will be on a pre-tax basis, and will be implemented through payroll deduction from the employees' wages.