Alcatel-Lucent

(This section is a Summary of Material Modifications [SMM] to the Summary Plan Description [SPD].)

The following changes to current Alcatel-Lucent benefits coverage under the Alcatel-Lucent health and welfare benefits plan (the "Plan") will take effect on January 1, 2014.

Other Changes May Apply to HMO Coverage

Unless noted, the changes in this guide do not apply to Health Maintenance Organization (HMO) options. You will need to check the YBR website during the annual open enrollment period or contact the carriers of those options directly for their 2014 plan changes. Carrier contact information is located on the back of your HMO ID card and in the Benefits At-a-Glance and Resource Contact Information booklet.

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.

IF YOU ARE MEDICARE-ELIGIBLE

The Affordable Care Act does not permit persons who are eligible for Medicare to buy health insurance through the health insurance marketplace. If you are eligible for Medicare and do not want to enroll for Alcatel-Lucent coverage, you may buy Medicare supplemental insurance on your own (for example, from an insurance company, broker or other resource that offers Medicare supplement plans).

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.

Higher Prescription Drug Copayments

Copayments for in-network formulary and nonformulary prescription drugs under the Point of Service (POS), Traditional Indemnity and UnitedHealthcare Group Medicare Advantage (PPO) options will increase for 2014. The increase will apply to drugs purchased at a retail pharmacy and through mail order.

Your new copayments for 2014 will be as follows:

Drug Class	Retail Copayment (up to a 30-day supply using an in-network pharmacy)	Mail Order Copayment (up to a 90-day supply)
Formulary	$37	$92
Nonformulary	$65	$163

Generic drug copayments will not change 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.

Medical Cost Increase for 2014

If you retired after March 1, 1990, your costs for medical coverage, which are calculated as a percentage of your pension, will increase for 2014. The amount of your increase for 2014 is based on whether or not you cover any dependents and whether or not you are eligible for Medicare.

Also, if you retired prior to March 1, 1990, are eligible for Medicare and elect the TI option, you will experience a cost increase for 2014. If you elect the MA PPO option, you will not pay a monthly premium.

Premium Costs

Review the YBR website during the annual open enrollment period for your 2014 premium costs.

Change to Medical Coverage if You Are Receiving Long-Term Disability (LTD) Benefits

Effective as of July 1, 2013, individuals receiving LTD benefits became eligible for medical coverage under the
Alcatel-Lucent Medical Expense Plan for Retired Employees. LTD participants may enroll into and continue such coverage until the end of the month in which LTD benefits end, or until the end of the month in which the LTD participant turns age 65, whichever comes first.

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.

Choose How You Want to Receive Benefits Information

When you log on to the YBR website, you may be prompted to indicate whether you would prefer to receive communications from the Alcatel-Lucent Benefits Center electronically or through the U.S. mail.

See “Using YBR ” for more information.

¹ Includes Long-Term Disability (LTD) and COBRA participants and survivors in the Family Security Program (FSP).