BlueCross BlueShield of Alabama

ECEIVED

BY:

September 30, 2013

Contract N umber: SailrieNINIIP

Rickey L Stokes Dothan, AL 36301-8364

02_513045

Dear Mr. Stokes:

Thank you for being a valued Blue Cross and Blue Shield of Alabama member and for placing your trust in us to provide cover for what matters most your health. It's no secret that the Affordable Care Act (commonly known as healthcare reform or Obamacare) is bringing changes to the healthcare industry. Despite all the changes, Blue Cross is available to assist you and v continue to provide you with quality health coverage. How will the Affordable Care Act affect my health coverage?

Based on new requirements of the Affordable Care Act, the plan you are currently enrolled in must end after
December 31, 2013. Beginning in 2014, all health insurance companies must offer plans that meet certain requirements. Youi current plan does not meet all of the new Affordable Care Act benefit requirements. The Affordable Care Act will require mos Americans to have health insurance, so it is important to maintain coverage throughout 2014 or the federal government may require you to pay a fine. We will offer new individual and family health plans that include all required benefits of the Afforda Care Act. Enclosed is a summary of the new health plans we are offering to you for a coverage effective date beginning January 1, 2014. What do I need to do? There is nothing you are required to do. We will automatically enroll you into our new Blue Secure Silver plan to help you a% a break in health coverage. With Blue Secure Silver, you will enjoy the security of our vast provider network and the peace c mind that comes with having quality Blue Cross health coverage. With no further action on your part, your new contract wil automatically begin on January 1, 2014, and we will bill you for this recommended plan in December. Your new monthly premium for this plan will be $ 1,211.05 1 . We have enclosed highlights of your new plan for you to review. What if I want to choose a different plan? Open Enrollment for all of our new plans begins October 1, 2013, and ends March 31, 2014. If you prefer to choose a differen plan, you may enroll in any one of them by following these easy steps: Visit www.ibcbsal.com/switch, to choose a different plan. Make your new plan choice on the enclosed Change of Benefit Plan Election form. Or, call our Customer Service Department toll free at 1-855-350-7443 (TTY 711) Monday through Friday 7:30 a.m. to 6:00 p.m.

We must receive your new plan choice on or before December 15, 2013, to ensure your effective date of coverage will be January 1, 2014. If you want to keep the recommended plan, there is nothing you need to do. We will automatically enroll and you will be billed for your new premium amount.

Is financial help available? Beginning January 1, 2014, you may be eligible for financial assistance to help lower your health costs. Known as subsidies, these are tax credits that you can use to offset the cost of your health insurance. Depending on your annual income, you may eligible for a subsidy. We have an easy-to-use tool that can help you determine if you may be eligible for financial assistance a see which plans are subsidy eligible. Simply go online at www.ibcbsal.com/switch and choose Get a Quote & Switch. How is my premium determined?

The new law requires that all health insurance companies use a rating method called "member level rating." With this new
method, each person on your insurance policy will be rated based on their age, whether or not they use tobacco, and the cou in which you live. Once each member has been rated, then all amounts will be added together to get the family rate. Dependent children age 2: and older will be individually rated and included in the family premium amount. To view your member level rating, visit www.ibcbsal.com/switch.

Important Dates to Remember

Open Enrollment begins

r
11/1/2013

Last day to submit your new plan choice for an effective date of 1/1/2014

Your

( Open
Enrollment ends

i New Plan i begins

10/1/2013

12/1/2013 12/15/2013 1/1/2014

2/1/2014

3/1/2014

3/31/2014

What about my dental coverage?

Due to the requirements of the new law, we will no longer be able to offer your current dental rider with your new health p
We will automatically enroll you into Dental Blue, one of our stand-alone dental plans. This change will take effect January 1, 2014. Your new monthly premium for your dental plan will be $75.00 1 . You will receive a separate ID card for your dental plan before the new year. What if I want to choose a different dental plan? Enclosed is a summary of the dental plans we offer for a coverage effective date of January 1, 2014. Open Enrollment for any c our dental plans begins October 1, 2013, and ends March 31, 2014. This is the only time to switch dental plans and not have t( re-serve any waiting periods. If you prefer to choose a different plan, you may enroll in any one of them by following these ea.! steps: Go to www.ibcbsal.com/switch, to choose a different plan. Or, call our Customer Service Department toll free at 1-855-350-7443 (TT( 711) Monday through Friday 7:30 a.m. to 6:00 p.m.

We must receive your new plan choice on or before December 15, 2013, to ensure your effective date of coverage will be January 1, 2014. If you want to keep the recommended plan, there is nothing you need to do. We will automatically enroll y and you will be billed for your new premium amount.
Blue Cross is available for assistance: If you have questions or need assistance, please call our Customer Service Department at 1-855-350-7443 (TTY 711), or by usii the Contact Us link located at the bottom of our home page at AlabamaBlue.com . With many changes coming in 2014, we kn( you may have questions. We appreciate the opportunity to provide your health coverage and look forward to continuing to se you in the future.

Tim Sexton

Please use the table below to see what is required by healthcare reform, and what Blue Cross and Blue Shield of Alabama is doing for our members.

Healthcare Reform Requirements The plan you are currently enrolled in must end after December 31, 2013.

How Blue Cross and Blue Shield of Alabama has you covered Blue Cross will automatically enroll you in a new healthcare reform compliant plan, effective date January 1, 2014. Blue Cross is offering 9 new health plans that comply with healthcare reform.

Beginning in 2014, most Americans must have health insurance or may have to pay a fine.
Open enrollment for all of our new plans begins October 1, 2013, and ends March 31, 2014.

You will automatically be enrolled in a new plan. If you qualify for a subsidy or want to choose a different plan, visit www.ibcbsal.com/switch.

The new law requires that all health insurance companies use a rating method called "member level rating." Your dental rider will end after December 31, 2013.

To view your member level rating, visit www.ibcbsal.com/switch.

Blue Cross will automatically enroll you in a new dental plan, effective date January 1, 2014. Visit www.ibcbsal.com/switch to choose a different dental plan.

Open enrollment for dental begins October 1, 2013, and ends March 31, 2014.