5-ATTACHMENT E - Medical HDHP Benefits Program.pdf

Austin ISD Account #392418 Group #392419 - HDHP Plan January 1, 2025

Managed Health Care Pharmacy Benefits

Blue Cross and Blue Shield of Texas, a Division of Health

Care Service Corporation, a Mutual Legal Reserve

Company, an Independent Licensee of the Blue Cross and

Blue Shield Association

Form No. TOC-CB-0804 Page A

TABLE OF CONTENTS

Page No.

Schedule(s) of Coverage(s) Enclosure

Introduction 1

Who Gets Benefits 4

How the Plan Works 9

Utilization Management 12

Claim Filing and Appeals Procedures 18

Eligible Expenses, Payment Obligations, and Benefits 30

Covered Medical Services 32

Medical Limitations and Exclusions 49

Definitions 53

Pharmacy Benefits 69

General Provisions 82

Amendments

Notices

SCHEDULE OF COVERAGE

Page AForm No. PPOHSA‐GROUP#392419‐0125

Plan Provisions In‐Network Benefits Out‐of‐Network Benefits

Deductibles

• Calendar Year Deductible Applies to all Eligible Expenses

$1,800 – per individual

$3,600 – per family

$5,000 – per individual

$10,000 – per family

Out‐of‐Pocket Maximum Includes Calendar Year Deductible

$5,400 – per individual

$10,800 – per family

$10,000 – per individual

$20,000 – per family

Inpatient Hospital Expenses

All usual Hospital services and supplies, including semiprivate room, intensive care, and coronary care units.

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

No penalty for failure to obtain Prior Authorization for services

$250 penalty for failure to obtain Prior Authorization for services

Medical‐Surgical Expenses

• Office visit/consultation including lab and x‐rays

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

• Inpatient visits and Certain Diagnostic Procedures

• Home Infusion Therapy

• Physician surgical services in any setting

• In‐Vitro Fertilization Services (Limited to $50,000 lifetime maximum)

• Independent Lab & X‐ray

• Allergy Injections (without office visit)

Extended Care Expenses

(Certain services will require Prior Authorization.)

• Skilled Nursing Facility 80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

60 visits maximum per Calendar Year

• Home Health Care 80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

60 visits maximum per Calendar Year

• Hospice Care 100% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

Unlimited

Page BForm No. PPOHSA‐GROUP#392419‐0125

Out‐of‐Network BenefitsIn‐Network BenefitsPlan Provisions

Mental Health Care/Serious Mental Illness/Treatment of Substance Use Disorder (SUD)

(Certain services will require Prior Authorization.)

Inpatient Services

• Hospital Services (facility) 80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

• Behavioral Health Practitioner Services

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

Outpatient Services

• Behavioral Health Practitioner Expenses (office setting)

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

• Other Outpatient Services 80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

Emergency Care

Accidental Injury & Emergency Care (including Accidental Injury, Emergency and non‐emergency Care for Behavioral Health Services)

• Facility Charges 80% of Allowable Amount after Calendar Year Deductible

• Lab & X‐ray without emergency room or treatment room

80% of Allowable Amount after Calendar Year Deductible

• Physician Charges 80% of Allowable Amount after Calendar Year Deductible

Non‐Emergency Care

• Facility Charges 80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

• Physician Charges 80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

Urgent Care Services

• Urgent Care Center visit including lab & x‐ray services (excluding Certain Diagnostic Procedures)

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

Ambulance Services 80% of Allowable Amount after Calendar Year Deductible

Retail Health Clinic 80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

Page CForm No. PPOHSA‐GROUP#392419‐0125

Out‐of‐Network BenefitsIn‐Network BenefitsPlan Provisions

Telehealth

• Primary Care telehealth/telemedicine visit/consultation

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

• Primary Care telehealth/telemedicine visit/consultation for treatment of Behavioral Health

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

• Specialty telehealth/telemedicine visit/consultation

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

Virtual Visit

• Medical 90% of Allowable Amount after Calendar Year Deductible

Not Applicable

• Behavioral Health 90% of Allowable Amount after Calendar Year Deductible

Not Applicable

Preventive Care Services

• Evidence‐based items or services that have in effect a rating of “A” or “B” in the current recommendations of the United States Preventive Services Task Force (“USPSTF”)

100% of Allowable Amount 50% of Allowable Amount after Calendar Year Deductible

• Immunizations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention (“CDC”) with respect to the individual involved

• Evidence‐informed preventive care and screenings provided for in the comprehensive guidelines supported by the Health Resources and Services Administration (“HRSA”) for infants, children, and adolescents

• With respect to women, such additional preventive care and screenings, not described in the first bullet above, as provided for in comprehensive guidelines supported by the HRSA

• Routine physical examinations, well baby care, immunizations and routine lab

• Routine X‐Rays, Routine EKG, Routine Diagnostic Medical Procedures (Independent Lab & X‐Ray Provider)

Page DForm No. PPOHSA‐GROUP#392419‐0125

Out‐of‐Network BenefitsIn‐Network BenefitsPlan Provisions

Preventive Care Services (Cont'd)

• Colonoscopy Professional (physician charges)

100% of Allowable Amount 50% of Allowable Amount after Calendar Year Deductible

• Colonoscopy facility charges

• Healthy diet counseling and obesity screening/counseling

• Immunizations Birth up to age 6 100% of Allowable Amount 100% of Allowable Amount

Other Routine Services

• Routine X‐Rays, Routine EKG, Routine Diagnostic Medical Procedures, routine digital rectal exam, routine prostate test

100% of Allowable Amount 50% of Allowable Amount after Calendar Year Deductible

• Annual Hearing Examination

• Annual Vision Examination

Speech and Hearing Services*

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

1 per ear per 36‐month period for hearing aids

* Benefits for Autism Spectrum Disorder will not apply towards and are not subject to any speech services visits maximum.

Chiropractic Services

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

60 visits maximum per Calendar Year combined with Occupational Therapy and Physical Therapy

Occupational Therapy

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

60 visits maximum per Calendar Year combined with Chiropractic Services and Physical Therapy

Physical Medicine Services**

80% of Allowable Amount after Calendar Year Deductible

50% of Allowable Amount after Calendar Year Deductible

60 visits maximum per Calendar Year combined with Chiropractic Services and Occupational Therapy

** Benefits for Autism Spectrum Disorder will not apply towards and are not subject to any Physical Medicine Services visits maximum.

Form No. PPOHSA‐GROUP#392419‐0125 Page E

PHARMACY BENEFITS

Plan Provisions Participating Pharmacy Non‐Participating Pharmacy

Retail Pharmacy 30 day supply with 1 Co‐Share Amount per 30-day supply at a Participating Pharmacy

80% of Allowable Amount after Calendar Year Deductible – Generic

Drug

80% of Allowable Amount* after Calendar Year Deductible – Preferred

Brand Name Drug

80% of Allowable Amount* after Calendar Year Deductible –

Non‐Preferred Brand Name Drug

50% of Allowable Amount after Calendar Year Deductible

Extended Retail Prescription Drug Supply (if allowed by the Prescription Order) - one Co‐Share Amount per 90-day supply, up to a 90-day supply

80% of Allowable Amount after Calendar Year Deductible – Generic

Drug

80% of Allowable Amount* after Calendar Year Deductible – Preferred

Brand Name Drug

80% of Allowable Amount* after Calendar Year Deductible –

Non‐Preferred Brand Name Drug

50% of Allowable Amount after Calendar Year Deductible

Preventive Drugs (Anaphylaxis Agents, Antianginal, Substance Abuse Disorder Agents, and Diabetes Medications Hypoglycemia Agents)

100% of Allowable Amount 50% of Allowable Amount after Calendar Year Deductible

Other Preventive Drugs 80% of Allowable Amount– Generic Drug

80% of Allowable Amount* – Preferred Brand Name Drug

80% of Allowable Amount* – Non‐Preferred Brand Name Drug

50% of Allowable Amount after Calendar Year Deductible

Specialty Pharmacy Program

Specialty Drugs ‐ limited to a Specialty Pharmacy Provider

Coverage for Specialty Drugs are limited to a 30-day supply.

However, some Specialty Drugs have FDA approved dosing regimens exceeding the 30-day supply limited and may be allowed greater than a 30 day‐supply, if allowed by your plan benefits.

Specialty Pharmacy Provider

80% of Allowable Amount after Calendar Year Deductible – Generic

Drug

80% of Allowable Amount* after Calendar Year Deductible – Preferred

Brand Name Drug

80% of Allowable Amount* after Calendar Year Deductible –

Non‐Preferred Brand Name Drug

Not Covered

Form No. PPOHSA‐GROUP#392419‐0125 Page F

Mail Service Prescription Mail‐Order Pharmacy

Mail‐Order Program One Co‐Share Amount per 90 day supply up to a 90‐day supply only

80% of Allowable Amount after Calendar Year Deductible – Generic

Drug

80% of Allowable Amount* after Calendar Year Deductible – Preferred

Brand Name Drug

80% of Allowable Amount* after Calendar Year Deductible –

Non‐Preferred Brand Name Drug

Not Covered

Plan Provisions Participating Pharmacy Non‐Participating Pharmacy

Select Vaccinations Obtained through Participating Pharmacies**

Select Participating Pharmacy ‐ 100% of Allowable Amount

Any other Participating Pharmacy ‐ 50% of Allowable Amount after

Calendar Year Deductible

Not Covered

Fertility Drugs Lifetime Maximum

$50,000

Prior Authorization Provision Applies

Step Therapy Provision Applies

Limitations on Quantities Dispensed

Applies

Diabetes Supplies are available under the Pharmacy Benefits portion of your Plan. All provisions of this portion of the Plan will apply including any Deductibles and Co‐Share Amounts, and any pricing differences.

Contraceptive drugs and devices obtained from a Participating Pharmacy that are identified on the BCBSTX website under Contraceptive ‐ Pharmacy information (referenced in the medical portion of the Plan as part of Benefits for Preventive Care Services) will not be subject to Deductibles, Copayment Amounts and Co‐Share Amounts.

Additional contraceptive drugs are covered under the Pharmacy portion of the Plan and are subject to the applicable Deductibles and Co‐Share Amounts, and any pricing differences.

Additional contraceptive devices are covered under the Pharmacy portion of the Plan and are subject to the applicable Deductibles and Co‐Share Amounts, and any pricing differences.

Tobacco cessation drugs (including both prescription and over‐the‐counter drugs) prescribed by a Health Care Practitioner are covered at no cost share and will not be subject to Deductibles, Copayment Amounts and Co‐Share Amounts for two 90‐day treatment regimens per benefit period as required by the United States Preventive Services Task Force as referenced in the Preventive Care subsection of the PHARMACY BENEFITS portion of the Plan.

* If you receive a Preferred Brand Name Drug or a Non‐Preferred Brand Name Drug when a Generic Drug is available, you may incur additional costs. Refer to the Pharmacy Benefits portion of this Benefit Booklet for details.

** Select Participating Pharmacies that have contracted with BCBSTX to provide this service may have age, scheduling, or other requirements that will apply, so you are encouraged to contact them in advance. Vaccinations at all other participating pharmacies will be payable at the non‐participating benefit level. Childhood immunizations subject to state regulations are not available under this pharmacy benefit. Refer to your BCBSTX medical coverage for benefits available for childhood immunizations. A Select Participating Pharmacy is a Pharmacy that has specifically contracted with BCBSTX to administer vaccinations to Participants. Not all Participating Pharmacies are Select Participating Pharmacies.

NOTE: In the How Member Payment is Determined subsection of the PHARMACY BENEFITS section, an explanation of how the prescription drug products are separated into tiers is shown.

Form No. PPOHSA‐GROUP#392419‐0125 Page G

Dependent Eligibility

Dependent Child Age Limit to age 26.

Dependent children are eligible for Maternity Care benefits.

Preexisting Conditions

Preexisting conditions are covered immediately.

Form No. PPOHSA‐GROUP#392419‐0125 Page 1

INTRODUCTION

This Plan is offered by your Employer as one of the benefits of your employment. The benefits provided are intended to assist you with many of your health care expenses for Medically Necessary services and supplies. Coverage under this Plan is provided regardless of your race, color, national origin, disability, age, sex, gender identity or sexual orientation. There are provisions throughout this Benefit Booklet that affect your health care coverage. It is important that you read the Benefit Booklet carefully so you will be aware of the benefits and requirements of this Plan.

The defined terms in this Benefit Booklet are capitalized and shown in the appropriate provision in the Benefit Booklet or in the DEFINITIONS section of the Benefit Booklet. Whenever these terms are used, the meaning is consistent with the definition given. Terms in italics may be section headings describing provisions or they may be defined terms.

The terms “you” and “your” as used in this Benefit Booklet refer to the Employee.

Managed Health Care ‐ In‐Network Benefits

To receive In‐Network Benefits as indicated on your Schedule of Coverage, you must choose Providers within the Network for all care (other than for emergencies). The Network has been established by BCBSTX and consists of Physicians, Specialty Care Providers, Hospitals, and other health care facilities to serve Participants throughout the Network Plan Service Area. Refer to your Provider directory or visit the BCBSTX website at www.bcbstx.com to make your selections. The listing may change occasionally, so make sure the Providers you select are still Network Providers. An updated directory will be available at least annually. You may access our website, www.bcbstx.com, for the most current listing to assist you in locating a Provider.

If you choose a Network Provider, the Provider will bill the Claim Administrator ‐ not you ‐ for services provided.

The Provider has agreed to accept as payment in full the least of...

• The billed charges, or

• The Allowable Amount as determined by the Claim Administrator, or

• Other contractually determined payment amounts.

You are responsible for paying any Deductibles and Co‐Share Amounts. The Deductibles and Co‐Share will be applied to the Out‐of‐Pocket Maximum. You may be required to pay for limited or non‐covered services. No claim forms are required.

Managed Health Care ‐ Out‐of‐Network Benefits

If you choose Out‐of‐Network Providers, only Out‐of‐Network Benefits will be available. If you go to a Provider outside the Network, benefits will be paid at the Out‐of‐Network Benefits level. If you choose a health care Provider outside the Network, you may have to submit claims for the services provided.

You will be responsible for paying�

• Billed charges above the Allowable Amount as determined by the Claim Administrator,

• Co‐Share Amounts and Deductibles, which will be applied to the Out‐of‐Pocket Maximum,

• Limited or non‐covered services, and

• Failure to obtain Prior Authorization penalty.

Form No. PPOHSA‐GROUP#392419‐0125 Page 2

Pharmacy Benefits

Benefits are provided for those Covered Drugs as explained in the PHARMACY BENEFITS section and shown on your Schedule of Coverage in this Benefit Booklet. The amount of your payment under the Plan depends on whether:

• the Prescription Order is filled at a Participating Pharmacy or at a non‐Participating Pharmacy, or through the mail‐order program; or

• the Prescription Order is filled by a provider contracting with BCBSTX; or

• a Generic Drug is dispensed; or

• a Preferred or Non‐Preferred Brand Name Drug is dispensed; or

• a Specialty Drug is dispensed.

Important Contact Information

Resource Contact Information Accessible Hours

Customer Service Helpline 1‐800‐521‐2227 Monday – Friday 8:00 a.m. – 8:00 p.m.

Website www.bcbstx.com 24 hours a day 7 days a week

Medical Prior Authorization Helpline 1‐800‐441‐9188 Monday – Friday

6:00 a.m. – 6:00 p.m.

Mental Health/Substance Use Disorder Prior

Authorization Helpline 1‐800‐528‐7264 24 hours a day

7 days a week

Customer Service Helpline

Customer Service Representatives can:

• Identify your Plan Service Area

• Give you information about Network and ParPlan and other Providers contracting with BCBSTX

• Distribute claim forms

• Answer your questions on claims

• Assist you in identifying a Network Provider (but will not recommend specific Network Providers)

• Provide information on the features of the Plan

• Record comments about Providers

• Assist you with questions regarding the PHARMACY BENEFITS

BCBSTX Website

Visit the BCBSTX website at www.bcbstx.com for information about BCBSTX, access to forms referenced in this Benefit Booklet, and much more.

Mental Health/Substance Use Disorder Prior Authorization Helpline

To satisfy Prior Authorization requirements for Participants seeking treatment for Behavioral Health Services, Mental Health Care, Serious Mental Illness, and Substance Use Disorder, you, your Behavioral Health Practitioner, or a family member may call the Mental Health/Substance Use Disorder Prior Authorization Helpline at any time, day or night.

Form No. PPOHSA‐GROUP#392419‐0125 Page 3

Medical Prior Authorization Helpline

To satisfy all medical Prior Authorization requirements for inpatient Hospital Admissions, Extended Care Expenses, or Home Infusion Therapy, call the Medical Prior Authorization Helpline.

Form No. PPOHSA‐GROUP#392419‐0125 Page 4

WHO GETS BENEFITS

Eligibility Requirements for Coverage

The Eligibility Date is the date a person becomes eligible to be covered under the Plan. A person becomes eligible to be covered when the person becomes an Employee or a Dependent and is in a class eligible to be covered under the Plan as determined by your Employer or the Plan Administrator. The Eligibility Date is:

1. The date the Employee, including any Dependents to be covered, completes the Waiting Period, if any, for coverage;

2. Described in the Dependent Enrollment Period subsection for a new Dependent of an Employee already having coverage under the Plan.

No eligibility rules or variations in rates will be imposed based on your health status, medical condition, claims experience, receipt of health care, medical history, genetic information, evidence of insurability, disability, or any other health status related factor. Coverage under this Plan is provided regardless of your race, color, national origin, disability, age, sex, gender identity or sexual orientation. Variations in the administration, processes or benefits of this Plan that are based on clinically indicated reasonable medical management practices, or are part of permitted wellness incentives, disincentives and/or other programs do not constitute discrimination.

Employee Eligibility

Any person eligible under this Plan as determined by your Employer or the Plan Administrator and covered by the Employer's previous Health Benefit Plan on the date prior to the Plan Effective Date, including any person who has continued group coverage under applicable federal or state law, is eligible on the Plan Effective Date. Otherwise, you are eligible for coverage under the Plan when you satisfy the definition of an Employee and you reside or work in the Plan Service Area as determined by your Employer or the Plan Administrator.

Dependent Eligibility

If you apply for coverage, you may include your Dependents. Eligible Dependents are:

1. Your spouse or your Domestic Partner;

2. A child under the limiting age shown in your Schedule of Coverage;

3. A child of your child who is your Dependent for federal income tax purposes at the time application for coverage of the child is made;

4. Any other child included as an eligible Dependent under the Plan.

A detailed description of Dependent is in the DEFINITIONS section of this Benefit Booklet. An Employee must be covered first in order to cover their eligible Dependents. No Dependent shall be covered hereunder prior to the Employee's Effective Date. If you are a school district Employee who is eligible for coverage under this Plan and your spouse or Domestic Partner is also eligible for coverage under this same Plan, your spouse or Domestic Partner may elect whether to be treated under the Plan as an Employee or your Dependent.

Effective Dates of Coverage

In order for an Employee's coverage to take effect, the Employee must submit written enrollment for coverage for himself and any Dependents. The Effective Date is the date the coverage for a Participant actually begins.

The Effective Date under the Plan is shown on your Identification Card. It may be different from the Eligibility Date.

Timely Applications

It is important that your application for coverage under the Plan is received timely by the Claim Administrator through the Plan Administrator.

Form No. PPOHSA‐GROUP#392419‐0125 Page 5

If you apply for coverage and make the required contributions for yourself or for yourself and your eligible Dependents and if you:

1. Are eligible on the Plan Effective Date and the application is received by the Claim Administrator through the Plan Administrator prior to or within 31 days following such date, your coverage will become effective on the Plan Effective Date;

2. Enroll for coverage for yourself or for yourself and your Dependents during an Open Enrollment Period, coverage shall become effective on the Plan Anniversary Date; or

3. Become eligible after the Plan Effective Date and if the application is received by the Claim Administrator through the Plan Administrator within the first 31 days following your Eligibility Date, the coverage will become effective in accordance with eligibility information provided by your Employer.

Effective Dates ‐ Delay of Benefits Provided

Coverage becomes effective for you and/or your Dependents on the Plan Effective Date upon completion of an application for coverage. If you or your eligible Dependent(s) are confined in a Hospital or Facility Other Provider on the Plan Effective Date, your coverage is effective on the Plan Effective Date. However, if this Plan is replacing a discontinued Health Benefit Plan or self‐funded Health Benefit Plan, benefits for any Employee or Dependent may be delayed until the expiration of any applicable extension of benefits provided by the previous Health Benefit Plan or self‐funded Health Benefit Plan.

Effective Dates ‐ Late Enrollee

If your application is not received within 31 days from the Eligibility Date, you will be considered a Late Enrollee.

You will become eligible to apply for coverage during your Employer's next Open Enrollment Period. Your coverage will become effective on the Plan Anniversary Date.

Loss of Other Health Insurance Coverage

An Employee who is eligible, but not enrolled for coverage under the terms of the Plan (and/or a Dependent, if the Dependent is eligible, but not enrolled for coverage under such terms) shall become eligible to apply for coverage if each of the following conditions is met:

1. The Employee or Dependent was covered under a Health Benefit Plan, self‐funded Health Benefit Plan, or had other health insurance coverage at the time this coverage was previously offered; and

2. Coverage was declined under this Plan in writing, on the basis of coverage under another Health Benefit Plan or self‐funded Health Benefit Plan; and

3. There is a loss of coverage under such prior Health Benefit Plan or self‐funded Health Benefit Plan as a result of:

a. Exhaustion of continuation under Title X of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985, as amended; or

b. Cessation of Dependent status (such as divorce or attaining the maximum age to be eligible as a dependent child under the Plan), termination of employment, a reduction in the number of hours of employment, or employer contributions toward such coverage were terminated; or

c. Termination of the other plan's coverage, a situation in which an individual incurs a claim that would meet or exceed a lifetime limit on all benefits, a situation in which the other plan no longer offers any benefits to the class of similarly situated individuals that include you or your Dependent, or, in the case of coverage offered through an HMO, you or your Dependent no longer reside, live, or work in the service area of that HMO and no other benefit option is available; and

4. You request to enroll no later than 31 days after the date coverage ends under the prior Health Benefit Plan or self‐funded Health Benefit Plan or, in the event of the attainment of a lifetime limit on all benefits, the request to enroll is made not later than 31 days after a claim is denied due to the attainment of a lifetime limit on all benefits. Coverage will become effective the first day of the Plan Month following receipt of the application by the Claim Administrator through the Plan Administrator.

Form No. PPOHSA‐GROUP#392419‐0125 Page 6

If all conditions described above are not met, you will be considered a Late Enrollee.

Loss of Governmental Coverage An individual who is eligible to enroll and who has lost coverage under Medicaid (Title XIX of the Social Security Act), other than coverage consisting solely of benefits under Section 1928 of that Act (42 U.S.C.

Section 1396s) or under the Children's Health Insurance Program (CHIP), Chapter 62, Health and Safety Code, is not a Late Enrollee provided appropriate enrollment application/change forms and applicable contributions are received by the Claim Administrator within sixty (60) days after the date on which such individual loses coverage. Coverage will be effective the day after prior coverage terminated.

Health Insurance Premium Payment (HIPP) Reimbursement Program An individual who is eligible to enroll and who is a recipient of medical assistance under the Medicaid Program or enrolled in CHIP, and who is a participant in the HIPP Reimbursement Program may enroll with no enrollment period restrictions. If the individual is not eligible unless a family member is enrolled, both the individual and family member may enroll. The Effective Date of Coverage is on the first day of the month after the Claim Administrator receives

(i) written notice from the Texas Health and Human Services Commission, or (ii) enrollment forms, from you, provided such forms and applicable contributions are received by the Claim Administrator within sixty (60) days after the date the individual becomes eligible for participation in the HIPP Reimbursement Program.

Dependent Enrollment Period

1. Special Enrollment Period for Newborn Children

Coverage of a newborn child will be automatic for the first 31 days following the birth of your newborn child.

For coverage to continue beyond this time, you must notify the Claim Administrator through the Plan Administrator within 31 days of birth and pay any required contributions within that 31‐day period or a period consistent with the next billing cycle. Coverage will become effective on the date of birth. If the Claim Administrator is notified through the Plan Administrator after that 31‐day period, the newborn child's coverage will become effective on the Plan Anniversary Date following the Employer's next Open Enrollment Period.

2. Special Enrollment Period for Adopted Children or Children Involved in a Suit for Adoption Coverage of an adopted child or child involved in a suit for adoption will be automatic for the first 31 days following the adoption or date on which a suit for adoption is sought. For coverage to continue beyond this time, the Claim Administrator through the Plan Administrator must receive all necessary forms and the required contributions within the 31‐day period or a period consistent with the next billing cycle. Coverage will become effective on the date of adoption or date on which a suit for adoption is sought. If you notify the Claim Administrator through the Plan Administrator after that 31‐day period, the child's coverage will become effective on the Plan Anniversary Date following the Employer's next Open Enrollment Period.

3. Court Ordered Dependent Children If a court has ordered an Employee to provide coverage for a child, coverage will be automatic for the first 31 days after the date your Employer receives notification of the court order. To continue coverage beyond the 31 days, the Claim Administrator through the Plan Administrator must receive all necessary forms and the required contributions within the 31‐day period. If you notify the Claim Administrator through the Plan Administrator after that 31‐day period, the Dependent child's coverage will become effective on the Plan Anniversary Date following your Employer's next Open Enrollment Period.

4. Other Dependents Written application must be received within 31 days of the date that a spouse or Domestic Partner or child first qualifies as a Dependent. If the written application is received within 31 days, coverage will become effective on the date the child or spouse or Domestic Partner first becomes an eligible Dependent. If application is not made within the initial 31 days, then your Dependent's coverage will become effective on the Plan Anniversary Date following your Employer's next Open Enrollment Period.

If you ask that your Dependent be provided health care coverage after having canceled their coverage while your Dependent was still entitled to coverage, your Dependent's coverage will become effective in accordance with the provisions of the Plan.

Form No. PPOHSA‐GROUP#392419‐0125 Page 7

In no event will your Dependent's coverage become effective prior to your Effective Date.

Other Employee Enrollment Period

1. As a special enrollment period event, if you acquire a Dependent through birth, adoption, or through suit for adoption, and you previously declined coverage for reasons other than under Loss of Other Health Insurance Coverage, as described above, you may apply for coverage for yourself, your spouse or Domestic Partner, and a newborn child, adopted child, or child involved in a suit for adoption. If the written application is received within 31 days of the birth, adoption, or suit for adoption, coverage for the child, you, or your spouse or Domestic Partner will become effective on the date of the birth, adoption, or date suit for adoption is sought.

If you marry or enter into a Domestic Partnership and you previously declined coverage for reasons other than under Loss of Other Health Insurance Coverage as described above, you may apply for coverage for yourself and your spouse or Domestic Partner. If the written application is received within 31 days of the marriage or establishment of a Domestic Partnership, coverage for you and your spouse or Domestic Partner will become effective on the first day of the month following receipt of the application by the Claim Administrator through the Plan Administrator.

2. If you are required to provide coverage for a child as described in Court Ordered Dependent Children above, and you previously declined coverage for reasons other than under Loss of Other Health Insurance Coverage, you may apply for coverage for yourself. If the written application is received within 31 days of the date your Employer receives notification of the court order, coverage for you will become effective on the date your Employer receives notification of the court order.

Enrollment Application/Change Form

Use this form to...

• Notify the Plan of a change to your name

• Add Dependents

• Drop Dependents

• Cancel all or a portion of your coverage

• Notify the Plan of all changes in address for yourself and your Dependents. An address change may result in benefit changes for you and your Dependents if you move out of the Plan Service Area of the Network.

You may obtain this form from your Employer, or by calling the Claim Administrator's Customer Service Helpline telephone number shown in this Benefit Booklet or on your Identification Card, or by accessing the BCBSTX website.

If a Dependent's address and zip code are different from yours, be sure to indicate this information on the form. After you have completed the form, return it to your Employer.

Changes In Your Family

You should promptly notify the Claim Administrator through the Plan Administrator in the event of a birth or follow the instructions below when events, such as but not limited to, the following take place:

• If you are adding a Dependent due to marriage or establishment of a Domestic Partnership, adoption, or a child being involved in a suit for which an adoption of the child is sought, or your Employer receives a court order to provide health coverage for a Participant's child or your spouse, you must submit an Enrollment Application/Change Form and the coverage of the Dependent will become effective as described in Dependent Enrollment Period.

• When you divorce or terminate a Domestic Partnership or your child reaches the age indicated on your Schedule of Coverage as “Dependent Child Age Limit,” or a Participant in your family dies, coverage under the Plan terminates in accordance with the Termination of Coverage provisions selected by your Employer.

Form No. PPOHSA‐GROUP#392419‐0125 Page 8

Notify your Employer promptly if any of these events occur. Benefits for expenses incurred after termination are not available. If your Dependent's coverage is terminated, refund of contributions will not be made for any period before the date of notification. If benefits are paid prior to notification to the Claim Administrator by the Plan Administrator, refunds will be requested.

Please refer to the Continuation of Group Coverage ‐ Federal subsection in this Benefit Booklet for additional information.

Form No. PPOHSA‐GROUP#392419‐0125 Page 9

HOW THE PLAN WORKS

Allowable Amount

The Allowable Amount is the maximum amount of benefits the Claim Administrator will pay for Eligible Expenses you incur under the Plan. The Claim Administrator has established an Allowable Amount for Medically Necessary services, supplies, and procedures provided by Providers that have contracted with the Claim Administrator or any other Blue Cross and/or Blue Shield Plan, and Providers that have not contracted with the Claim Administrator or any other Blue Cross and/or Blue Shield Plan. When you choose to receive services, supplies, or care from a Provider that does not contract with the Claim Administrator, you will be responsible for any difference between the Claim Administrator's Allowable Amount and the amount charged by the non‐contracting Provider. You will also be responsible for charges for services, supplies, and procedures limited or not covered under the Plan, any applicable Deductibles and Co‐Share Amounts.

Review the definition of Allowable Amount in the DEFINITIONS section of this Benefit Booklet to understand the guidelines used by the Claim Administrator.

Case Management

Under certain circumstances, the Plan allows the Claim Administrator the flexibility to offer benefits for expenses which are not otherwise Eligible Expenses. The Claim Administrator, at its sole discretion, may offer such benefits if:

• The Participant, their family, and the Physician agree;

• Benefits are cost effective; and

• The Claim Administrator anticipates future expenditures for Eligible Expenses which may be reduced by such benefits.

Any decision by the Claim Administrator to provide such benefits shall be made on a case‐by‐case basis. The case coordinator for the Claim Administrator will initiate case management in appropriate situations.

Freedom of Choice

Each time you need medical care, you can choose to:

See a Network Provider See an Out‐of‐Network Provider

ParPlan Provider (refer to ParPlan, below, for more information)

Out‐of‐Network Provider (not a contracting

Provider)

• You receive the higher level of benefits (In‐Network Benefits)

• You are not required to file claim forms

• You are not balance billed;

Network Providers will not bill for costs exceeding the Claim Administrator's Allowable Amount for covered services

• Your Provider will obtain Prior Authorization for necessary services

• You receive the lower level of benefits (Out‐of‐Network Benefits)

• You are not required to file claim forms in most cases;

ParPlan Providers will usually file claims for you

• You are not balance billed;

ParPlan Providers will not bill for costs exceeding the Claim Administrator's Allowable Amount for covered services

• In most cases, ParPlan Providers will obtain Prior Authorization for necessary services

• You receive Out‐of‐Network Benefits (the lower level of benefits)

• You are required to file your own claim forms

• You may be billed for charges exceeding the Claim Administrator's Allowable Amount for covered services

• You must obtain Prior Authorization for necessary services

Form No. PPOHSA‐GROUP#392419‐0125 Page 10

Identification Card

The Identification Card tells Providers that you are entitled to benefits under your Employer's Health Benefit Plan.

The card offers a convenient way of providing important information specific to your coverage including, but not limited to, the following:

• Your Subscriber identification number. This unique identification number is preceded by a three character alpha prefix that identifies Blue Cross and Blue Shield of Texas as your Claim Administrator.

• Your group number. This is the number assigned to identify your Employer's Health Benefit Plan with the Claim Administrator.

• Important telephone numbers.

Always remember to carry your Identification Card with you and present it to your Providers or Participating Pharmacies when receiving health care services or supplies.

Please remember that any time a change in your family takes place it may be necessary for a new Identification Card to be issued to you (refer to the WHO GETS BENEFITS section for instructions when changes are made). Upon receipt of the change in information, the Claim Administrator will provide a new Identification Card.

Unauthorized, Fraudulent, Improper, or Abusive Use of Identification Cards

1. The unauthorized, fraudulent, improper, or abusive use of Identification Cards issued to you and your covered Dependents will include, but not be limited to, the following actions, when intentional:

a. Use of the Identification Card prior to your Effective Date;

b. Use of the Identification Card after your date of termination of coverage under the Plan;

c. Obtaining prescription drugs or other benefits for persons not covered under the Plan;

d. Obtaining prescription drugs or other benefits that are not covered under the Plan;

e. Obtaining Covered Drugs for resale or for use by any person other than the person for whom the

Prescription Order is written, even though the person is otherwise covered under the Plan;

f. Obtaining Covered Drugs without a Prescription Order or through the use of a forged or altered Prescription

Order;

g. Obtaining quantities of prescription drugs in excess of Medically Necessary or prudent standards of use or in circumvention of the quantity limitations of the Plan;

h. Obtaining prescription drugs using Prescription Orders for the same drugs from multiple Providers;

i. Obtaining prescription drugs from multiple Pharmacies through use of the same Prescription Order.

2. The fraudulent or intentionally unauthorized, abusive, or other improper use of Identification Cards by any Participant can result in, but is not limited to, the following sanctions being applied to all Participants covered under your coverage:

a. Denial of benefits;

b. Cancellation of coverage under the Plan for all Participants under your coverage;

c. Recoupment from you or any of your covered Dependents of any benefit payments made;

d. Pre‐approval of drug purchases and medical services for all Participants receiving benefits under your coverage;

e. Notice to proper authorities of potential violations of law or professional ethics.

Medical Necessity

All services and supplies for which benefits are available under the Plan must be Medically Necessary as determined by the Claim Administrator. Charges for services and supplies which the Claim Administrator determines are not Medically Necessary will not be eligible for benefit consideration and may not be used to satisfy Deductibles or to apply to the Out‐of‐Pocket Maximum.

Form No. PPOHSA‐GROUP#392419‐0125 Page 11

ParPlan

When you consult a Physician or Professional Other Provider who does not participate in the Network, you should inquire if they participate in the Claim Administrator's ParPlan…a simple direct‐payment arrangement. If the Physician or Professional Other Provider participates in the ParPlan, they agree to:

• File all claims for you,

• Accept the Claim Administrator's Allowable Amount determination as payment for Medically Necessary services, and

• Not bill you for services over the Allowable Amount determination.

You will receive Out‐of‐Network Benefits and be responsible for:

• Any Deductibles,

• Co‐Share Amounts, and

• Services that are limited or not covered under the Plan.

NOTE: If you have a question regarding a Physician's or Professional Other Provider's participation in the ParPlan, please contact the Claim Administrator's Customer Service Helpline.

Preexisting Conditions Provision

Benefits for Eligible Expenses incurred for treatment of a preexisting condition will be available immediately with no preexisting condition Waiting Period.

Specialty Care Providers

A wide range of Specialty Care Providers is included in the Network. When you need a specialist's care, In‐Network Benefits will be available, but only if you use a Network Provider.

There may be occasions however, when you need the services of an Out‐of‐Network Provider. This could occur if you have a complex medical problem that cannot be taken care of by a Network Provider.

• If the services you require are not available from Network Providers, In‐Network Benefits will be provided when you use Out‐of‐Network Providers.

• If you elect to see an Out‐of‐Network Provider and if the services could have been provided by a Network Provider, only Out‐of‐Network Benefits will be available.

Use of Non‐Contracting Providers

When you choose to receive services, supplies, or care from a Provider that does not contract with BCBSTX (a non‐contracting Provider), you receive Out‐of‐Network Benefits (the lower level of benefits). Benefits for covered services will be reimbursed based on the BCBSTX non‐contracting Allowable Amount, which in most cases is less than the Allowable Amount applicable for BCBSTX contracted Providers. Please see the definition of non‐contracting Allowable Amount in the DEFINITIONS section of this Benefit Booklet. The non‐contracted Provider is not required to accept the BCBSTX non‐contracting Allowable Amount as payment in full and may balance bill you for the difference between the BCBSTX non‐contracting Allowable Amount and the non‐contracting Provider's billed charges. You will be responsible for this balance bill amount, which may be considerable. You will also be responsible for charges for services, supplies, and procedures limited or not covered under the Plan, any applicable Deductibles and Co‐Share Amounts.

Form No. PPOHSA‐GROUP#392419‐0125 Page 12

UTILIZATION MANAGEMENT

Utilization Management

Utilization management may be referred to as Medical Necessity reviews, utilization review (UR) or medical management reviews. A Medical Necessity review for a procedure/service, inpatient admission, and length of stay is based on BCBSTX medical policy and/or level of care review criteria. Medical Necessity reviews may occur prior to services rendered, during the course of care, or after care has been completed for a Post‐Service Medical Necessity Review. Some services may require a Prior Authorization before the start of services, while other services will be subject to a Post‐Service Medical Necessity Review. If requested, services normally subject to a Post‐Service Medical Necessity Review may be reviewed for Medical Necessity prior to the service through a Recommended Clinical Review.

Refer to the definition of Medical Necessity or Medically Necessary in the DEFINITIONS section of this Benefit Booklet for additional information regarding any limitations and/or special conditions pertaining to your benefits.

Prior Authorization Requirements

Prior Authorization establishes in advance the Medical Necessity or Experimental/Investigational nature of certain care and services covered under this Plan. It ensures that the care and services described below for which you have obtained Prior Authorization will not be denied on the basis of Medical Necessity or Experimental/Investigational.

However, Prior Authorization does not guarantee payment of benefits.

Coverage is always subject to other requirements of the Plan, such as limitations and exclusions, payment of contributions, and eligibility at the time care and services are provided.

The following types of services require Prior Authorization:

• All inpatient Hospital Admissions,

• Extended Care Expenses,

• Home Health,

• Home Infusion Therapy,

• Home Hospice,

• Transplants and transplant evaluations,

• Outpatient Surgery performed at a Hospital or Ambulatory Surgical Facility for Out‐of‐Network services only,

• Non‐emergency Air Ambulance: Fixed Wing, Please refer to Fixed‐Wing Air Ambulance definition in the DEFINITIONS section of this Benefit Booklet.

Cardiac (heart related):

- Cardiology advanced imaging,

- Cardiology - lipid apheresis, Ears, Nose and Throat (ENT):

- Bone conduction hearing aids,

- Cochlear implant,

- Nasal and sinus surgery, Gastroenterology (Stomach):

- Gastric electrical stimulation (GES), Neurology:

- Deep brain stimulation,

- Sacral nerve neuromodulation/stimulation, Form No. PPOHSA‐GROUP#392419‐0125 Page 13

Orthopedic (Musculoskeletal):

- MSK - joint and spine surgery,

- MSK - pain management, Pain Management:

- Occipital nerve stimulation, Radiology:

- Advanced Imaging, Sleep Medicine:

- Sleep studies, Positive airway pressure (PAP) therapy and supply, Therapy compliance monitoring, Surgical Procedures:

- Outpatient Surgery Jaw,

- Outpatient Breast,

- Surgical deactivation of headache trigger sites, Specialty Pharmacy:

- Specialty Pharmacy Medications covered by Medical Benefits including Infusion Site of Care, Medical Oncology & Supportive Care and Provider Administered Drug Therapies, Wound Care:

- Hyperbaric oxygen (HBO2) therapy‐systemic.

• All inpatient treatment of Mental Health Care/Serious Mental Illness including partial hospitalization programs and treatment received at Residential Treatment Centers,

• All inpatient treatment of Substance Use Disorder (SUD) including partial hospitalization programs and treatment received at Residential Treatment Centers, and

• If you transfer to another facility or to or from a specialty unit within the facility.

• The following outpatient treatment of Mental Health Care, Serious Mental Illness and Substance Use Disorder

(SUD):

- Psychological Testing or Neuropsychological Testing in some cases (BCBSTX will notify your Provider if Prior Authorization is required for these testing services),

- Applied Behavioral Analysis (Please see coverage details as described in the Benefits for Autism Spectrum Disorder in the COVERED MEDICAL SERVICES section of this Benefit Booklet),

- Electroconvulsive therapy,

- Intensive Outpatient Program, and

- Repetitive Transcranial Magnetic Stimulation.

For specific details about the Prior Authorization requirement for the above referenced outpatient procedures/services, please call Customer Service at the number on the back of your Identification Card. BCBSTX reserves the right to no longer require Prior Authorization during the Calendar Year. Updates to the list of services requiring Prior Authorization may be confirmed by calling Customer Service.

In‐Network Benefits will be available if you use a Network Provider or Network Specialty Care Provider. In‐Network Providers will obtain Prior Authorization of services for you, when required.

If you elect to use Out‐of‐Network Providers for services and supplies available In‐Network, Out‐of‐Network Benefits will be paid.

Form No. PPOHSA‐GROUP#392419‐0125 Page 14

However, if care is not available from Network Providers as determined by the Claim Administrator, and the Claim Administrator acknowledges your visit to an Out‐of‐Network Provider prior to the visit, In‐Network Benefits will be paid; otherwise, Out‐of‐Network Benefits will be paid and the claim will have to be resubmitted for review and adjusted, if appropriate.

Your Network Provider is required to obtain Prior Authorization for inpatient Hospital admissions.