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What's Changing for 2014

(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 law) continues to bring big changes to the U.S. healthcare system.

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 may wish to compare your Alcatel-Lucent health coverage with the coverage available through the marketplace. 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.

The Affordable Care Act does not permit persons who are eligible for Medicare to buy health insurance through the health insurance marketplace.

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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 MetLife Dental Network

As a reminder, effective July 15, 2013, MetLife introduced a new network, PDP Plus. PDP Plus supplements MetLife’s Preferred Dental Program by offering an even broader network of participating dentists along with greater flexibility and savings.

To find a dentist who participates in the PDP Plus network, or to check if your current dentist is a member:

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 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.

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Important Benefit Changes if You Are Receiving Long-Term Disability (LTD) Benefits

CHANGE TO YOUR MEDICAL COVERAGE

If you are receiving LTD benefits, you and your eligible family members may continue Alcatel-Lucent medical coverage through COBRA, at your own expense, for up to 29 months from your COBRA effective date:

  • For the first six months of COBRA eligibility (months one through six): You will pay the same rate you paid as an active employee.
  • For the remaining 23 months of COBRA eligibility (months seven through 29): You will pay the COBRA rate (that is, 102 percent of the Company’s cost for providing coverage to active employees).

CHANGE TO YOUR LIFE INSURANCE COVERAGE

Effective May 1, 2013, participants receiving LTD benefits are no longer eligible for Company-provided Basic Life Insurance coverage.

Important Benefit Change if You Are an International Assignee (IA)

The IA healthcare program administered by Cigna Global Health Benefits will not be available for 2014. Instead, you will have the following options for medical and dental coverage:

  • Medical: UnitedHealthcare Enhanced Point of Service (POS), UnitedHealthcare Standard POS and, if available, HMO(s)
  • Dental: MetLife Enhanced Dental and MetLife Standard Dental

For more information about your new coverage options, visit:

  • Starting September 23: The YBR website
  • Starting October 7: Both the YBR website and the Alcatel-Lucent Benefits Center

New Flexible Spending Account (FSA) Administrator

Effective January 1, 2014, Aon Hewitt’s Your Spending Account™ (YSA) will replace Ceridian as the administrator for the Health Care FSA (HFSA) and Dependent Care FSA (DFSA).

For more information, including important details about the transition from Ceridian to YSA, see “Flexible Spending Accounts (FSAs).”

Premium Costs

Review the YBR website at http://digital.alight.com/alcatel-lucent during the annual open enrollment period for your 2014 premium costs.

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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.

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1 Includes employees on a leave of absence (LOA), short-term disability (STD) or workers' compensation, COBRA participants and survivors in the Family Security Program (FSP).