MEDICAL

Health Choice Savings Option

The Health Choice Savings Plan, a consumer-driven health plan that replaces the SmartCare Plus plan, allows you to be a partner in making informed decisions regarding your health care in an effort to control costs for both Valassis and you. Your per pay period associate contribution is low and your deductible is high, meaning you are the primary contributor for health care services that you utilize.

There are two levels of coverage under the Health Choice Savings plan: An underlying Health Savings Account (HSA) qualified high deductible health plan and the health savings account (HSA).

The HSA Qualified High Deductible Health Plan

• In-network preventive care is covered at 100% (not subject to the deductible).
• Your remaining eligible medical expenses including prescriptions are subject to the deductible.
• Your plan includes a deductible ($2,000 for individual coverage, $4,000 for individual plus one and family coverage. Both are in-network amounts, please see the comparison for the out of network deductible amounts).
• The deductible is a set amount of expenses you pay each year before your medical plan begins to make payment.
• Once the deductible is met, the plan covers eligible expenses, including prescriptions, at 100%
• The full family deductible must be met prior to any services being covered at 100%.
• You are free to seek covered services from any recognized health care professional without a referral.
• Deductibles are lower in-network than they are out-of-network, so you should seek an in-network provider whenever possible.

The Health Savings Account

• You can contribute through pre-tax payroll deductions or after-tax contributions directly to your account, up to the IRS-allowed maximums.
• Use your account to pay for eligible health care expenses. If you use your account to pay for ineligible expenses, you are subject to a 20% penalty in addition to normal taxation as per IRS regulations.
• If you plan right and put enough in your health savings account to cover your deductible, your out-of-pocket plan expenses will be minimal.
• You must set up your account with WageWorks and PNC in order to receive both the company and your own contributions.
• Due to IRS regulations, funds cannot be accessed until they are deposited into your account. The company contributions will be available by1/31/2010.
• Your account will be with PNC and earn a fixed interest rate.
• Once you have $1,000 in your account, if you choose, you may invest the money in a number of investments, including a money market fund, a bond fund, age-targeted retirement funds and stock funds.
• You will receive a debit card to use for eligible expenses. You may also submit eligible expenses for reimbursement directly to WageWorks.
• Stretch your fund dollars by shopping for the most cost-effective care and services, just as
• you manage your own budget.
• Your account is fully portable, allowing unused money to remain in your account, allowing you to save for future expenses.

Six Great Reasons to Enroll

1. Tax savings. Put more money in your pocket by setting aside pre-tax dollars for health care expenses through payroll deductions, reducing your taxable income and Social Security taxes. If you prefer, you can make cash contributions when you choose and deduct them on your federal income tax return.

2. Convenience. The WageWorks Card makes accessing your health care savings as easy as using a debit card - with no need to worry about claim forms. You may use it whenever you pay for eligible expenses, or if you prefer, pay bills directly on-line.

3. Control. You decide where your money goes and when and how to spend it. First, choose how much to set aside for future eligible health care expenses. Your initial contributions go into an FDIC-insured, interest-earning HSA bank account. After you've contributed $1,500, you can invest in a variety of mutual fund options. And you decide whether to spend or save your money, or do a little of both.

4. Hundreds of eligible expenses - tax-free! You can use the HSA to pay for hundreds of eligible products and services not covered by your health plan. Here's a short list:

• Office visits and prescription drugs
• Prescription glasses, sunglasses, contact lenses and solutions
• Dental care (preventive and restorative)
  
• Adult and child orthodontia
  
• Over-the-counter products and medications like antacids, bandages and allergy medications

6. Yours to keep - no matter what. Money you don't spend rolls over from year to year, so if you change jobs, switch health plans, or retire, your HSA and the money in it is still yours to keep.

Eligibility Requirements

Due to IRS regulations, you may not open an HSA (including the company contributions if:

1. you are covered by other non-qualified medical coverage, such as the Traditional PPO, Medicare, TriCare or TriCare For Life Health Reimbursement Accounts (HRAs);
2. you have a spouse with a Health Care Flexible Spending Account;
3. you are claimed as a dependent on someone else’s tax return;
4. you have received Veterans’ Administration (VA) benefits within the last three months; or
5. you have a post office box as your address of record.
   

2011 Maximum Contribution Limits

Can I Still Contribute to a Flexible Spending Account if I Open a Health Savings Account?

Due to IRS regulations, you cannot enroll in the traditional Flexible Spending Account (FSA) if you have a Health Savings Account. However, Valassis is offering a Limited Purpose Flexible Spending Account that you can contribute to for eligible dental and vision expenses only. In order to be reimbursed, expenses must be incurred by December 31 of each year and are not subject to the 2 ½ month grace period (per IRS regulations).

What You Need to Do to Enroll:

To take advantage of the HSA, you must:

1. Enroll in a qualifying high-deductible health plan (HDHP) like the Health Choice Savings Plan.

2. Open your HSA account with PNC.

• Decide how much to contribute with Wageworks' easy-to-use calculator at www.wageworks.com/hsasavingscalculator.

3. Follow the enrollment instructions in your enrollment packet.

4. Set up your online account at www.wageworks.com.

• Click Sign Me Up! and follow the simple steps.
• If you're new to WageWorks you'll need to verify your employee status by answering a few short questions and creating a password.
• Complete the required election and account application process.
• Check your account balance, transaction history and request payments from the HSA any time

5. If you are a first time HSA enrollee and you have a Health Care FSA for 2010 plan year and want to begin contributing to the HSA on Jan 1, 2011, you MUST exhaust all funds in the FSA by Dec. 31, 2010 or HSA contributions cannot being until April 1, 2011.

Other Details Regarding the HSA-Qualified High Deductible Medical Plan

When you enroll in the Health Choice Savings Plan, you will want to log on to www.bcbs.com to find an up-to-date listing of the providers near you. If you have questions, call Blue Cross at 866-262-1180. English or Spanish speaking staff will help you find a PPO doctor in your area. For maximum plan benefits, you should select doctors and health care providers who participate as PPO providers. If you use a PPO provider when you get medical care, you can save money because:

• The benefit level is greater.
• The PPO provider generally charges less (based on negotiated fees).

Since rates are negotiated, usual and customary limits do not apply. (If you see a non-PPO provider, plan benefits are limited to usual and customary charges in your geographic area, as determined by Blue Cross.)

PPO providers must meet certification standards for quality, accessibility and costs. In addition, they are monitored by network managers on an ongoing basis for quality assurance, patient satisfaction and clinical and office management standards.

Note: When you use non-PPO providers, you receive a lower level of benefits.

If you live outside the PPO network service area, you may either:

• Travel and use PPO providers in a nearby network and get the higher level of benefits, or
• Use non-PPO providers and receive the lower level of benefits.

Covered Expenses Under the HSA-Qualified High Deductible Medical Plan

Here are some of the medical procedures that are covered under the Health Choice Savings Medical Plan. For a more detailed look at what’s covered, see a comparison of what's covered under all your medical plan options for 2011. For details on the pharmacy (prescription drug) benefit, see Prescription Drug Coverage.

Hospitalization and Surgery
You are covered for referred inpatient and outpatient hospital care for medical conditions. This coverage includes x-rays, laboratory testing, diagnostic services and medications required during your hospital stay. Your hospital benefits cover an unlimited number of days when medically necessary. Certain services (e.g., nonemergency inpatient hospital care) require precertification by Blue Cross.

Emergency Medical Care
If you need emergency care, you’re covered anytime, anywhere in the world. Be sure to call your provider as soon as possible after emergency treatment to report the emergency and coordinate proper follow-up care.

Expenses Not Covered by the HSA-Qualified High Deductible Medical Plan
Services and supplies that are generally not covered include, but are not limited to (some of these items are eligible for reimbursement under your Health Savings Account (HSA), go to www.wageworks for additional details):

• Care and services available at no cost to you in a veteran's, marine or other federal hospital or any hospital maintained by any state or governmental agency
• Medically necessary services received on an inpatient basis that can be provided safely in an outpatient or office location
• Custodial care, rest therapy and care in nursing or rest home facilities
• Dental surgery other than for the removal of impacted teeth or multiple extractions when the patient must be hospitalized for the surgery because a concurrent medical condition, such as a heart condition, exists
• Treatment of temporomandibular Joint Syndrome (TMJ) and related jaw-joint problems by any method
• Any medical care, hospitalization or service provided before the effective date of coverage or after the coverage termination date
• Routine hospital outpatient care requiring repeated visits for the treatment of chronic conditions such as diabetes
• Hospitalization principally for observation, diagnostic evaluation, physical therapy, X-ray or lab tests, reduction of weight by diet control (with or without medication), basal metabolism tests or electrocardiography
• Items for the personal comfort or convenience of the patient
• Psychiatric services after determination that the patient's condition will not respond to treatment
• Psychological tests for vocational guidance or counseling
• Routine premarital or pre-employment exams
• Services and supplies that are not medically necessary according to accepted standards of medical practice
• Services provided through a medical clinic or similar facility provided or maintained by an employer
• Treatment of occupational injury or disease that the employer is obligated to furnish or otherwise fund
• Care and services received under another certificate offered by BCBS
• Care and services payable by government-sponsored health care programs, such as Medicare or TRICARE, for which a member is eligible. These services are not payable even if you have not signed up to receive the benefits provided by such programs
• Cosmetic surgery solely for improving appearance, except as specified in the certificate
• Treatment of a condition caused by military action or war, declared or undeclared
• Services, care, devices or supplies considered experimental or investigative
• Services for which a charge is not customarily made; services for which the patient is not obligated to pay
• Dialysis services after 30 months of end stage renal disease treatment
• Services that are not included in your employer's coverage documents
• Charges from a nonparticipating provider that are in excess of the BCBS approved amount
• Charges for hospital room accommodations over and above the hospital's regular charges covered by your medical benefits
• Transportation and travel except as specified in this handbook
• Eyeglasses or contact lenses and vision examinations for prescribing or fitting them (except for Aphakic patients) or for soft contact lenses or sclera shells intended for use in the treatment of diseases or injury or as specified following cataract surgery (may be covered under an additional freestanding program)
• Professional fees for injections given by anyone other than a physician
• Injections for cosmetic purposes
• Charges for examination required by school, camp, licensing or for any other regulatory purpose
• Charges for services rendered during an office visit by anyone other than a physician
• Therapy or hospital admission for weight control
• Therapy for smoking cessation
• Testing more frequently than necessary
• Dental care and dental appliances except those as specified in the certificate (may be covered under an additional freestanding program)
• Reversal of sterilization procedures
• Specified Oncology Clinical Trials
• Bariatric surgery
• Infertility testing and/or treatment procedures
• Radial Keratomy, LASIK, PRK
• Wigs except with a chemotherapy diagnosis

	Traditional PPO Plan Health Choice Savings Plan Health Savings Account Plan Comparison Chart Rate Sheet

Summary Plan Description
The legal summary of this benefit will be included in the 2011 Benefits Handbook.