Healthcare Reform Update for 2014

The Affordable Care Act (healthcare reform) continues to bring big changes to the U.S. healthcare system.

IF YOU ARE NOT ELIGIBLE FOR MEDICARE

In accordance with the Affordable Care Act, starting October 1, 2013, if you are not eligible for Medicare, you will have a new source from which to purchase health insurance: the health insurance marketplace that is available in your area. Coverage purchased through the marketplace will take effect on January 1, 2014.

You should compare your Alcatel-Lucent health coverage with the coverage available through the marketplace. Many pre-Medicare retirees may benefit from the potential subsidy offered for marketplace coverage. For the most current information about the health coverage available through the marketplace, please visit HealthCare.gov. The Alcatel-Lucent Benefits Center cannot answer any questions about marketplace coverage.

If you enroll in health coverage through the marketplace instead of through Alcatel-Lucent, you may not be able to enroll in Alcatel-Lucent coverage in the future. Please refer to the SPD for information on when you can make changes to your coverage.

MVP of New York HMO Will No Longer Be Offered

One of our HMOs – MVP of New York – will not be available for 2014. If you are currently enrolled in this HMO, you will need to choose another medical plan option for 2014.

Expanded Prescription Drug Coverage Management Programs

Alcatel-Lucent is committed to keeping the cost of your prescription drugs down while providing you with the coverage you need. With this goal in mind, Express Scripts uses a set of coverage management programs to determine how the Prescription Drug Program (PDP) will cover certain prescription drugs.

Effective July 1, 2013, new drug categories were added to the "step therapy" coverage management program. You will be notified by Express Scripts if you are impacted by any of the new step therapy categories.

If You Are Medicare-Eligible: Changes to the Express Scripts Medicare™ (PDP) for Alcatel-Lucent

Due to adjustments made by the Centers for Medicare & Medicaid Services (CMS), there will be some changes to your drug coverage for 2014:

• The annual deductible is decreasing.
• The prescription drug cost limit is decreasing.
• Cost sharing is changing in the "donut hole."
• Cost sharing is changing outside of the "donut hole."

The chart below highlights the differences for 2014.

	2013	2014
Deductible Amount	$325	$310
"Donut Hole"	After total payments (including copayments and deductible, plus the Plan's cost for the drugs) reach $2,970, you pay 79% of the cost of generic drugs and about 47.5% of the cost of most brand-name drugs, up to $4,750.	After total payments (including copayments and deductible, plus the Plan's cost for the drugs) reach $2,850, you pay 72% of the cost of generic drugs and about 47.5% of the cost of most brand-name drugs, up to $4,550.
Cost sharing outside of the "donut hole"	You pay the greater of 5% of the cost or a copayment of $2.65 for generics/$6.60 for brand-name drugs, per prescription, for the remainder of the year.	You pay the greater of 5% of the cost or a copayment of $2.55 for generics/$6.35 for brand-name drugs, per prescription, for the remainder of the year.

(While you are in the "donut hole," either the Plan pays the rest of the costs for covered drugs, or they are paid for by drug manufacturers' discounts.) For more information about how the Plan works, see page 10 of the Benefits At-a-Glance and Resource Contact Information booklet.

Updates to the YBR Website

The YBR website at http://digital.alight.com/alcatel-lucent was updated in May 2013. If you have not visited YBR since the update, you will notice some changes when you log on.

ENHANCED SECURITY

The first time you log on from a particular device (for example, a computer or mobile device), you will be prompted to choose and answer a new series of security questions. This will register your device with the YBR website.

The next time you log on from the same device, the prompt will not appear, and you will be taken directly to the YBR website homepage. But if you access the YBR website from another device, the first time you log on you will be prompted to answer the security questions on file. This will register your “secondary” device with the YBR website.

These enhancements are designed to provide additional protection to your personal information. The information you supply will not be shared.

SIMPLIFIED PROCESS FOR ADDING A NEW DEPENDENT TO YOUR COVERAGE

You will see a new step in the annual open enrollment process for adding a new dependent to your Alcatel-Lucent benefits coverage. See “Using YBR” for more information.

Thanks to You, Our Green Initiatives Are Working!

Were you one of the more than 100,000 participants who did not request an Annual Open Enrollment Kit last year? Thank you and congratulations! By "going green," you helped save more than 2 million sheets of paper.

As part of our corporate commitment to the environment, we will continue to provide more of your benefits information online instead of in print. So if you have not yet signed up to receive communications from the Alcatel-Lucent Benefits Center electronically, please take a few moments to do so now.

You do not need to wait until annual open enrollment. Just log on to the YBR website anytime. Select "Your Profile" and click "Personal Information." Follow the steps to provide your preferred email address and update your preferred method of delivery.