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U.S. Health Care Benefits for Inpatriates

2010

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Your Avon Benefits

Provide a comprehensive, valuable benefits program that ensures financial security and health and well-being;

Attract, retain and engage Associates; Be competitive in the marketplace; Manage rising healthcare costs for both you and Avon; and Empower Associates to share in the responsibility of their health

and well-being and to take charge of their financial future

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HR Tomorrow - Avon HR Website(Portal to Benefits Websites)

HR Tomorrow www.avonhr.com : Log on to HR Tomorrows

Enter your Host Country Associate ID. Your ID is assigned within 2 weeks of your InPatriate assignment start date

Default PIN is MMDD of your birth date

Log on or call 877-781-1960 (Monday to Friday, 9am to 8pm Eastern Time) to:

Find HR policies and procedures Review pay related information Access the Benefits website (My Avon Benefits ) Tools and resources to help you manage work and life

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HR Tomorrow Link (from Avon Intranet)

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HR Tomorrow Logon Screen

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HR Tomorrow Homepage

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My Avon Benefits Website Access the My Avon Benefits website through HR Tomorrow at

www.avonhr.com.

Log on to www.avonhr.com, click on My Avon Benefits at the top of the left-hand side menu list. From the My Avon Benefits landing page you will find:

The Employee Benefits Handbook – an in-depth description of Avon’s benefit plans;

Access to the UHC website Link to the ‘New Hire Center’ for information about Inpatriate

Benefits & Resources

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My Avon Benefits link

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New Hire Center

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Avon Benefits Center (ABC) Website

Access the ABC website from My Avon Benefits by clicking on the ABC link on the right side of the My Avon Benefits homepage. From the ABC website you can:

View your benefit plans and coverage Report life events to add or remove dependents from coverage

You may also call (877) 781-1960 to speak to an ABC representative Monday through Friday from 8:00 a.m. to 8:00 p.m. Eastern Time.

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ABC link

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ABC Homepage

Jane Smith

Health & Welfare

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Benefits Eligibility You are eligible for all benefits on your first day of your

Inpatriate assignment.

Your eligible dependents are also eligible for all benefits on the first day of your Inpatriate assignment.

Your eligible dependents include your: Legal spouse Domestic Partner (and his/her children) Unmarried children under age 19 (or under 23 if full-time

student)

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Enrolling in Benefits Your enrollment will occur automatically. ABC will enroll you in

all your available benefit options within 2 weeks of your InPatriate assignment.

Enrollment for your eligible dependents will not occur automatically. ABC will contact you, via email and/or phone to collect your

dependent information: Full Name Date of Birth Gender Social Security Number (if available)

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Benefit Glossary Coinsurance – the percentage of covered expenses that is reimbursed.

Co-Payment – the flat fee that you pay for a doctor’s visit, prescription drugs or other covered service.

Deductible – an amount you must pay each year before a plan pays benefits.

Explanation of Benefits (EOB) – a statement sent to you by your health plan administrator after you’ve incurred an expense (i.e. a doctor’s visit or lab or x-ray procedure) that itemizes the total charge for the event, what was paid by the plan and what portion of the bill is to be paid by you. It is not a bill.

Out-of-pocket Maximum – the maximum amount you pay each year for covered health care expenses. Once you meet this limit (and you have satisfied any applicable deductible), plans generally pay 100% for covered expenses for the remainder of the year.

Reasonable and Customary Limits (R&C) – the cost for medical treatment of services defined by the claim administrator as the average cost for a particular area or region.

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I.D. Cards You will receive Identification (I.D.) cards for the following plans:

Medical Prescription Drug Dental Vision

Your I.D. cards and all health care information will be mailed to your home address on file.

I.D. cards will arrive at your home address within 4 weeks of your enrollment. Temporary ID cards are available. To print temporary ID cards see the My Avon Benefits website under the Health tab.

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Travel Outside the U.S.

Your medical plan will cover you and your eligible dependents in the event that you require emergency medical treatment while traveling outside the U.S.

You must pay for all medical expenses and submit an International Medical claim form to be reimbursed.

Your medical plan will NOT cover you or your eligible dependents for non-emergency medical treatment outside the U.S.

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Your Avon Benefits

Health and Welfare Medical Prescription Drug Dental Vision Business Travel Accident Employee Assistance Program & LifeManagement®

Health Advocate

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Medical Plan UnitedHealthcare (UHC) – www.welcometouhc.com/avon

The plan operates on a coinsurance model-where you and the plan pay based on a set percentage.

• In-network services are covered at 90%• Out-of-network services are covered at 70% of R&C.

There are no deductibles for in-network benefits under the plan Most in-network preventive care is covered at 100% There are no referrals required to see a specialist Beginning in 2010, there will be no limits on the number of mental

health and substance abuse coverage outpatient visits or inpatient days for mental health, detoxification, or rehabilitation treatment.

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Using Your Medical Plan Benefits In-network Provider

You go to the doctor and pay nothing at the time of service. Make sure to show your ID card at the time of service

Your doctor submits a claim to UHC UHC pays the appropriate amount and sends you an EOB

showing the amount they paid the doctor and what you owe. Your doctor bills you the amount you owe. You pay the doctor’s bill.

Out-of-network Provider You go to the doctor and pay the bill in full. You submit a claim to UHC. UHC reimburses you the appropriate amount (up to the R&C

limits) and send you an EOB.

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Prescription Drug Plan CVS Caremark - www.caremark.com/avon

Automatic enrollment Retail and Mail Order Rx purchase options Mandatory mail order for long-term maintenance medication 3 cost levels based on type of drug – 2010 Costs

Generic - $10 co-pay Preferred Brand-name* - 25% coinsurance ($20 min/ $80 max) Non-Preferred Brand-name* - 35% coinsurance ($35 min/ $100 max)

*If a generic drug is available but you choose to purchase the brand-name, you will pay a penalty.

$0 co-pay for generic drugs prescribed to treat certain medical conditions that affect our Associates:

High cholesterol, asthma, allergy, and ulcer Beginning in 2010 - Certain drugs that have been specifically approved

by the FDA for treatment of breast cancer. Log on to the MY AVON BENEFITS website or call ABC for the list of

eligible medications.

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Using Your Prescription Drug Benefits

At a Retail Pharmacy In-network Pharmacy

• Drop your prescription off at the pharmacy and pay the required co-pay or coinsurance. Make sure to show your ID card

• DAW Penalty - If a generic drug is available but your doctor has noted DAW (Dispense as Written) on your prescription, you will pay the brand-name co-pay in addition to the difference between the cost of the generic and the brand-name drug.

Out-of-network Pharmacy• Drop your prescription off at the pharmacy • Pay the provider the full cost for the prescription• Submit a CVS Caremark Prescription Drug Claim Form• CVS Caremark Prescription Drug Claim mails you a EOB and any

reimbursement owed to you up to the R&C limits

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Using Your Prescription Drug Benefits Mail-Order

Mail-order Pharmacy• Submit a CVS Caremark Participant Profile and Mail Order Form along with

your prescription • Your credit card will be billed the prescription co-pay or coinsurance• Your prescription will be mailed to your home address.

Maintenance Choice Program Beginning 2010 you must use the mail-order service after you have

purchased three refills of your maintenance drug at a retail pharmacy Help you save money on long-term prescriptions Provide the added convenience of picking up a three-month supply of

maintenance drugs at a retail CVS pharmacy and still pay the lower mail-order copays.

If you opt out of this program, you will pay the full retail cost for your long-term medications going forward.

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Dental Plan Aetna - www.aetna.com

Open Choice (PPO) Plan Use any dentist, or PPO network dentist for preferred lower rate; no

referrals 100% for preventive treatment; deductible required for all other

services Annual benefit limit of $1,500; lifetime orthodontia benefit limit of

$2,500

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Using Your Dental Benefits In-network Provider

You go to the dentist and pay nothing at the time of service. Make sure to show your ID card at the time of service.

Your dentist submits a claim to Aetna Aetna pays the appropriate amount and sends you an EOB showing

the amount they paid the dentist and what you owe. Your dentist bills you the amount you owe. You pay the dentist’s bill.

Out-of-network Provider You go to the dentist and pay the bill in full. You submit a claim to Aetna. UHC reimburses you the appropriate amount (up to the R&C limits)

and send you an EOB.

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Vision Plan Vision Plan – www.eyemedvisioncare.com

In-network co-pays/allowances for eye exams, glasses and lenses Eye Exams - $10 co-pay Lenses - $20 co-pay for standard plastic lenses Frames – up to a $140 allowance towards the cost of frames, 20%

off balance over $140 allowance  Contact Lens - up to a $125 allowance towards the cost of contacts

(materials only), 15% off balance over $125 allowance

Frames/lenses OR contact lenses in 12-month period

Out-of-network allowance for eye exams, glasses and lenses

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Using Your Vision Benefits In-network Provider

You go an EyeMed provider and pay the required co-pay at the time of service. Make sure to show your ID card.

Your EyeMed provider submits a claim to EyeMed EyeMed pays the appropriate amount and sends you an EOB

showing the amount paid.

Out-of-network Provider You go to the EyeMed provider and pay the bill in full. You submit a claim to EyeMed. EyeMed reimburses you the appropriate amount (up to the R&C

limits) and send you an EOB.

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Survivor Benefit Options

Business Travel Accident Insurance Plan

If you are in an accident while traveling on Avon business, Avon provides protection for you and your family through this plan.

If you die as a result of an accident while traveling on company business, your beneficiary will receive five times your annual base pay rate with a maximum benefit of $5,000,000. The plan also provides a benefit to you if you are injured.

Avon pays the full cost of this coverage.

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Other Benefits & Resources Magellan Health – www.magellanassist.com or 1-800-424-1824

Employee Assistance Plan (EAP)• Call or log on to speak to a counselor about everyday concerns such

as job or work stress, marriage or relationships, anxiety, depression or legal issues.

• Receive up to 8 free counseling sessions to help you and your dependents manage

LifeManagement• Call or log on to for pre-natal planning materials, school profiles

(preschool to college); referrals to day care centers, home care, summer camps, nursing homes; educational resources and other information

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Other Benefits & Resources

Health Advocate – www.healthadvocate.com/avon or 1-866-695-8622

Get expert help and support with matters relating to your health care, including finding and scheduling appointments with doctors, assistance with billing errors and complex medical conditions.

Avon Health Club ProgramDiscounts on certain health/fitness club memberships – see My Avon Benefits

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Notes