2019 Employee Benefits Guide

Effective: January 1, 2019 – December 31st, 2019

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Daybreak’s Benefit Partners

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Welcome to Daybreak’s 2019 Benefit Enrollment

Dear Daybreak Employees:

Providing a comprehensive employee benefits package is essential to attracting and retaining first class employees. Over the past few years, Daybreak Venture has continuously focused its efforts on building and providing the most competitive plans while maintaining lowest cost options.

OPEN ENROLLMENT IS COMING (OCTOBER 1st - NOVEMBER 9TH)

Daybreak Venture's Annual Enrollment period allows you a once-a-year opportunity to review your various benefits offerings and to make any changes for the upcoming year. You can add or remove benefits, dependents, amounts of insurance, and more. Information about the new 2019 benefit programs and changes are outlined below. Any changes that you wish to make to your health and welfare plans can be done during the Annual Enrollment period from October 1st through November 9th. Mark your calendars!!! As you review these benefit changes, you may have specific questions. You can contact our benefit call center at www.daybreakbenefits.com or call: 866-617-1461. *Disclaimer

The information contained in this summary should in no way be construed as a promise or guarantee of employment. The company reserves the right to modify, amend, suspend, or terminate any plan at any time for any reason. If there is a conflict between the information in the brochure and the actual plan documents or policies, the documents or policies will always govern.

Complete details about the benefits can be obtained by reviewing current plan descriptions, contracts, certificates, policies and plan documents available from your HR department. This guide is intended to fully comply with the requirements under the Employee Retirement Income Security Act (ERISA) as a Summary of Material Modifications and should be kept with your most recent Summary Plan Description (SPD).

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WHAT'S NEW AND WHAT'S CHANGING FOR 2019?

1. MEDICAL PLAN CHANGES: Group 1: We will continue to offer our Silver Plan ($5,000 deductible), with Blue Cross. There is no change to the current plan. Group 1 & Group 2: The Blue Cross Bronze HDHP (High Deductible Health Plan) can be used as a HSA. A Health Savings Account (HSA) is a personal savings account that helps employees, with qualified medical expenses, to utilize HDHP to save money by pre-taxing out of pocket medical expenses. Be aware the Bronze/HSA plan strips the copays out, so all expenses (other than preventive care/ACA requirement) go toward your deductibles. See plan details. Group 2: Century Healthcare (CHC). There will be NO CHANGES IN THIS PLAN OR YOUR PER PAYCHECK DEDUCTIONS. The plan covers 100% of routine preventive care, as well as an allowance towards doctor visits and pharmacy coverage. (See your Summary of Benefits and Coverage (SBC) for plan details, exclusions, and limitations). This plan qualifies under the Affordable Care Act (ACA) as having Minimum Essential Coverage; you are not subject to the tax penalty mentioned below. • Please see your Summary of Benefits and Coverage (SBC) for details. Telemedicine: Is offered to our BCBS Silver and Bronze medical plans that allow you to call a doctor thru “Teladoc” 1-800-DOC-CONSULT (362-2667) and receive a prescription for common illnesses such as allergies, cold, flu, sinus, sore throat, pink eye, etc. There is no charge or copay for this service, unless you enroll in the Bronze plan and pre-tax contributions into your Health Savings Account (HSA). This is a $40 consult fee that can be charged to your HSA debit card. Federal Exchange. Under ACA “Obama Care” you are entitled to a suite of products. Beginning November 1st, you can log on to healthcare.gov to enroll in these options. Please note that an income subsidy is not available if you are a 30 hour per week employee and have been offered the option above.

2. TOBACCO POLICY:

We are continuing with our Tobacco Surcharge as part of our culture and company policy of wellness. During open enrollment, you will be asked if you use tobacco. If you do, you will see a $20 (Blue Cross) surcharge on each paycheck beginning January 1st, 2019. Our plan supports tobacco cessation counseling and prescriptions to assist you in living a tobacco-free lifestyle. Our Daybreak on-line enrollment system will ask you to declare by affidavit, whether you are a tobacco user or tobacco free.

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3. PHARMACY PLAN: Cerpass Rx, previously named Healthcare Highways Rx will remain the pharmacy plan during 2019. If you are on the Blue Cross Silver or Bronze Plan, you will receive a new ID card for 2019 with the new Cerpass Rx Logo. On the back of your card you will have the Cerpass Rx information to present to your Pharmacy. Cerpass Rx reviews their drug formulary and changes are made quarterly. If you will be impacted by a formulary change you will be contacted by Rx Results. For any information about your pharmacy plan you can contact customer service at 844-636-7506. This number is also on the back of your ID card. 4. DENTAL PLAN:

Ameritas is replacing Blue Cross for Dental Insurance. The plan coverage is staying the same. There is a 6 month Waiting Period for Type 2 & a 12 Month Waiting Period for Type 3 procedures if you are a new enrollee or have been on the plan less than 12 months. Ameritas will be mailing ID cards to employee's addresses, but they are not required for services. Members have access to plan info, ID Cards, and Explanation of Benefits though the Member Account Access portal through Ameritas.com. Your Dental payroll deduction rates are NOT CHANGING. 5. VISION PLAN: Ameritas is our new vision plan. Ameritas utilizes the VSP network so the plan and the eye doctor network remain the same. Your Vision payroll deduction RATES WILL REMAIN THE SAME and are attached. Ameritas is our new vision plan with claims and network by VSP. Ameritas will be mailing ID cards to employee's addresses, but they are not required for services. When you make an appointment with a VSP doctor, you need to give them your name, date of birth, and last 4 digits of your social security number for them to confirm you are in the VSP system. To find a doctor, visit VSP.com or Ameritas.com. Choose Choice Network. 6. BASIC LIFE/ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE:

This plan is staying with Symetra; it will remain a company paid benefit with the same coverage. 7. VOLUNTARY LIFE INSURANCE:

This Plan is renewing with Symetra with no change in the coverage. Your rate could change based on your age category which changes every 5 years. (Example of age brackets: 40-44, 45-49, etc.) During open enrollment, be sure your beneficiary designation is updated to reflect your wishes. 7. a) Accidental Death & Dismemberment Coverage – Employees can elect increments of 10K (not to exceed 5 times earnings to a maximum of 250K). Spouses can elect 5k to 50k in increments of 5K. Children can elect 5K, 10K or 15K. This coverage is 100% voluntary and has no conversion or portability.

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8. LONG TERM DISABILITY:

This coverage is renewing with Symetra and rates are staying the same.

9. SHORT TERM DISABILITY:

This coverage is renewing with Symetra; your cost and coverage will remain the same (subject to 5-year age bands). 10. UNIVERSAL LIFE + LONG TERM CARE Transamerica is offering a Universal Life with Chronic Care Rider (Long Term Care) benefit. This is a new product offering that includes permanent insurance and doubles the benefit for Long Term Care. Initial enrollment for 1/1/19 offers Guaranteed Issue up to $150,000, see pages 27 & 28 for plan highlights and rates. Benefit Counselors will be at your facility during Open Enrollment to assist you with any questions and help you enroll in your benefits. For guidance on this product or to enroll by phone, call 405-818-3487. 11. WORKSITE PRODUCTS (CRITICAL ILLNESS, ACCIDENT, HOSPITAL INDEMNITY) Colonial Life is replacing Symetra and their Benefit Counselors will be at each facility during Open Enrollment. Reminder: Critical Illness is age rated and subject to age-band adjustments. 12. LEGAL/ID THEFT LEGAL PLAN To make legal protection more accessible and affordable, Daybreak Venture will continue to offer a comprehensive legal benefit from LegalShield. Under the program, you will not have to worry about high hourly costs or about figuring out which attorneys to use – LegalShield will do that for you. LegalShield’s dedicated provider law firms will be your advocates – offering direct high quality legal guidance and responsive service – to promptly address your legal matters. The plan offers a wide array of fully covered services, including: Unlimited consultation and document review, will preparation, moving traffic violations, and real estate matters. IDENTITY THEFT PROTECTION Having an identity theft protection plan with alerts can help notify you of suspicious activity before substantial damage is done. We are excited to continue to offer IDShield, a full and proactive identity theft protection program. The program includes the following services: Credit monitoring with monthly credit score tracking, lost wallet assistance, minor child and social media accounts monitoring, and direct access to Licensed Private Investigators for consultation and restoration services.

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SUMMARY:

You can see that we take our job of offering you the most comprehensive and competitive products and carriers in the marketplace seriously. These January 1, 2019, changes reflect our commitment to YOU, our most valuable asset at Daybreak Venture. Your choices affect your wallet and peace of mind all year long. This is your chance to make some important decisions about your health care coverages. Please take the time required to think about your options and make the best choices for you and your family. Sincerely,

Mike Wallace (President) Barbara Anderson (Director of Employee Benefits)

*Group 1 - Corporate Office, Therapy, Director of Nursing, Assistant Director of Nursing, Business Office Managers, MDS Nurse and Administrators

*Group 2 - All Associates not covered in Group 1

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Group 1 Medical Rates

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Group 2

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Group 2 Medical Rates

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*Eligible for employees taking the Blue Cross Plans *Create your Teladoc Profile on January 1st, 2019

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*Eligible for employees taking the Blue Cross Plans *Create your Teladoc Profile on January 1st, 2019

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Ameritas Dental Plan

Dental Rates

*No Change in Dental Rates

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Ameritas Vision Plan

Vision Rates

*No Change in Vision Rates

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Basic Life Insurance (Employer Paid) Class 1 – Corporate, Therapy and Administrator employees

Class 2 – Director of Nursing & Assistant Director of Nursing

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Class 3 – All other Employees

*Notes – Benefit amount reduces to 65% at age 65 & to 50% at age 70

Voluntary Life

*Notes - Age Rated, Benefit amount reduces to 50% at age 70 Accidental Death & Dismemberment Coverage – Rate $.03/$1,000 - Employees can elect increments of 10K (not to exceed 5 times earnings to a maximum of 250K). Spouses can elect 5k to 50k in increments of 5K. Children can elect 5K, 10K or 15K. This coverage is 100% voluntary and has no conversion or portability. The amount of AD&D coverage you elect does NOT have to match your Voluntary Life Amount. You can buy Accidental Death & Dismemberment coverage as an individual product. You do not have to have Voluntary life to purchase this coverage.

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Voluntary Life Rates

*Existing Employees who currently have Symetra Voluntary Life can increase their life amount by $10,000 each year at open enrollment, not to exceed the guaranteed issue amount.

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Short Term Disability

Long Term Disability

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Worksite Products Critical Illness

Pays a Lump Sum Benefit in Increments of $5,000 from $5,000 to $30,000

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Critical Illness Rates (Semi-Monthly Rates)

Pays a Lump Sum Benefit in Increments of $5,000 from $5,000 to $30,000

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Accident

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Accident Rates

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Hospital Indemnity

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Hospital Indemnity Rates

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UNIVERSAL LIFE + LONG TERM CARE

*Benefit Counselors will be at your facility during open enrollment

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Bronze High Deductible Health Plan

*Reminder: You can enroll in the Bronze High Deductible Plan and do not have to use the HSA feature.

What is an HSA Account?

• If you enroll in the High Deductible

Health Plan (HDHP), you have the option to contribute to a Health Savings Account (HSA) which allows pay roll deduction on a pre-tax basis, and can be used for out-of-pocket medical expenses. See information below.

• HSA – Personal savings account that helps employees to reimburse qualified medical expenses by pre-taxing out of pocket medical expenses. (Sec 213)

• Unused annual balances are carried forward.

• Your account is portable when you leave or retire from Daybreak.

• Use dollars for any family member, even if single coverage.

• 2019 Dollar limits: Single $3,500, Family $7,000, >55 years old can add an additional $1,000.

• HSA Bank includes a debit card. No bank fees.

• Triple Tax Benefit – Contributions, account growth and withdrawals are all pre-taxed and not taxable at the qualified time of reimbursement.

• 84% of large employers expect to offer HSA’s in 2019. Currently 22% National Business on Health.

• During Open Enrollment, our Benefits Call Center will assist you with answering any questions about this HSA feature.

• This Health Savings Account (HSA) is voluntary and only available if you enroll in the Bronze: High Deductible Health Plan (HDHP).

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Important Legal Notices

*Notices are available through the Daybreak benefits portal at www.daybreakbenefits.com or call: 866-617-1461

Important Legal Notices Affecting Your Health Plan Coverage

IMPORTANT NOTICE: This document is provided to help employers understand the compliance obligations for Health & Welfare benefit plans, but it may not take into account all the circumstances relevant to a particular plan or situation. It is not exhaustive and is not a substitute for legal advice.

• The Women’s Health Cancer Rights Act of 1998 (WHCRA) • Newborns Act Disclosure- Federal • Notice of Special Enrollment Rights • Patient Protection Model Disclosure • Michelle’s Law Disclosure • Prescription Drug Coverage and Medicare • Children’s Health Insurance Program (CHIP)

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Next Steps

OPEN ENROLLMENT IS COMING (OCTOBER 1st - NOVEMBER 9TH) Daybreak Venture's Annual Enrollment period allows you a once-a-year opportunity to review your various benefits offerings and to make any changes for the upcoming year. You can add or remove benefits, dependents, amounts of insurance, and more. Information about the new 2019 benefit programs and changes are outlined below. Any changes that you wish to make to your health and welfare plans can be done during the Annual Enrollment period from October 1st through November 9th. Mark your calendars!!! As you review these benefit changes, you may have specific questions. You can contact our benefit call center at www.daybreakbenefits.com or call: 866-617-1461. Daybreak Benefit Center representatives are available Monday - Friday, 7am - 10pm Central Time. To login online the Username format is the first initial of your first name + up to the first six characters of your last name + last four digits of your SSN. Your password has been reset for open enrollment and the format is your date of birth in the following format: YYYYMMDD

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Notes:

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*Disclaimer

The information contained in this summary should in no way be construed as a promise or guarantee of employment. The company reserves the right to modify, amend, suspend, or terminate any plan at any time for any reason. If there is a conflict between the information in the brochure and the actual plan documents or policies, the documents or policies will always govern. Complete details about the benefits can be obtained by reviewing current plan descriptions, contracts, certificates, policies and plan documents available from your HR department. This guide is intended to fully comply with the requirements under the Employee Retirement Income Security Act (ERISA) as a Summary of Material Modifications and should be kept with your most recent Summary Plan Description (SPD).