2017 Benefits Enrollment Guide - Annual Enrollment October 19 - November 2, 2016 Cengage Learning Benefits January 1 - December 31, 2017

 
2017 Benefits Enrollment Guide - Annual Enrollment October 19 - November 2, 2016 Cengage Learning Benefits January 1 - December 31, 2017
2017 Benefits Enrollment Guide
Annual Enrollment               Cengage Learning Benefits
October 19 – November 2, 2016   January 1 – December 31, 2017

                                    Engaged with you | cengage.com
2017 Benefits Enrollment Guide - Annual Enrollment October 19 - November 2, 2016 Cengage Learning Benefits January 1 - December 31, 2017
SAVINGS                                       LIFE AND    LEGAL    RESOURCES

Table of Contents
                                                  ENROLL   MEDICAL   PRESCRIPTION ACCOUNTS    DENTAL       VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

         WHAT TO KNOW FOR ANNUAL ENROLLMENT
          2017 Annual enrollment highlights                           How to find what
          ALEX®, your virtual benefits advisor                        you’re looking for
          Actions you need to take                                    Want to get to a topic quickly?
          Enrollment steps                                            Throughout this eGuide you
         HEALTH CARE BENEFITS                                         can click on:
          Medical benefits                                              Icons (at the top of each page)
          Prescription drug benefits
                                                                        Web addresses
          Your cost: Medical and prescription drug plan
          Health Savings Account (HSA)                                  Section references
          Flexible Spending Account (FSA) – Health Care
                                                                         avigator buttons (at the
                                                                        N
          Flexible Spending Account (FSA) – Limited Health Care
                                                                        bottom of each page)
          Flexible Spending Account (FSA) – Dependent Care
          Dental benefits                                             You’ll get moved to that section
          Vision benefits                                             or page automatically.
         DISABILITY BENEFITS

         LIFE AND AD&D INSURANCE

         LEGAL EXPENSE INSURANCE

         AETNA RESOURCES

         AETNA WELLNESS PROGRAMS
         10 TIPS TO MAKE THE MOST OF YOUR HEALTH PLAN

         ELIGIBILITY

         OTHER BENEFITS INFORMATION AND LEGAL DISCLOSURES

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2017 Benefits Enrollment Guide - Annual Enrollment October 19 - November 2, 2016 Cengage Learning Benefits January 1 - December 31, 2017
SAVINGS                                     LIFE AND    LEGAL    RESOURCES

Annual Enrollment
                                                  ENROLL   MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY        AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

highlights

What to know for Annual Enrollment:
October 19 – November 2
Cengage Learning remains committed to offering             PLAN DESIGN CHANGES: Aetna will continue to be             –A
                                                                                                                         etna Navigator: Provides 24/7 access to a world
you and your family a benefits package that                our medical, dental and pharmacy provider. The                   of health and benefits-related information and
promotes your health and well-being. From cost-            only plan design change this year will be for the                tools at www.aetna.com. Register and log in to
effective health care coverage and no-cost wellness        EPO medical plan. The deductible for this plan will              check on claims, find in-network providers, get cost
programs, to savings accounts and extra coverage           increase from $150/$300 to $200/$400 (individual/                estimates, use your member discounts and more!
options, you’ll get the support you need to live           family) and the specialist copay will increase by $5.       READY, SET, ENROLL! Starting Wednesday, October
your healthiest life. This eGuide introduces you to        All other plan designs will remain unchanged. Only          19th, go to https://HR.cengage.com > Benefits
all of the benefits available to you during the 2017       one limit will increase for 2017, the HSA limit for         Service Center at Empyrean and click on the 2017
calendar year. Here are some highlights:                   an individual will increase from $3,350 to $3,400.          Annual Enrollment button to get started. If you
 ACTIVE ENROLLMENT is required for medical                All others remain the same.                                 have questions regarding enrollment, contact
 benefits and Flexible Spending Accounts (FSAs).           SUPPORT AND TOOLS TO MAKE IT EASIER: In                    the Benefits Services Center at 1-877-965-CLHR
 This means you must actively enroll in a medical          addition to this 2017 Benefits Enrollment Guide,            (2547), Option 2, then Option 1.
 plan and/or elect one or both FSAs in order to            there are several other tools available to help you
 have these benefits during 2017. Your remaining           navigate your benefits:
 2016 benefit elections (dental, vision, life, A&D,        –A
                                                             lex, Your Virtual Benefits Advisor, is available
 LTD and Legal insurance) will carry over to 2017            to help you understand your enrollment options
 if you don’t take any action.                               and choose the plans that are best for you and
 PLAN COSTS: You and Cengage share in the cost              your family. To have a conversation with ALEX,                         Questions?
 of the overall medical plan expenses, which are             visit https://www.myalex.com/cengage/2017.                             Call 1-877-965-CLHR (2547)
 increasing in 2017. Remember, the medical plans           – Aetna Health Programs Site: We’ve partnered                           One number, multiple services
 that provide the highest benefit, such as the EPO           with Aetna to create a Cengage-specific site where
 and PPO+ plans, have the highest premium costs.             you can learn all about the latest and greatest
 The Company will continue to absorb the majority            Aetna tools and resources. CLICK HERE to check
 of medical plan costs, up to 70-75% on average.             out the “Helpful Programs” and “Member Tools”
 There will be no cost increases for any other plans.        tabs for information on what’s available to you.

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2017 Benefits Enrollment Guide - Annual Enrollment October 19 - November 2, 2016 Cengage Learning Benefits January 1 - December 31, 2017
SAVINGS                                  LIFE AND    LEGAL    RESOURCES

 NEW! ALEX, your
                                                   ENROLL   MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

 virtual benefits advisor

CHOOSING a medical plan is an important decision. Let ALEX
help guide you. Understand your options, know how your
benefits will work and make the best choice for you and your
family. Be sure to have a conversation with ALEX before
you enroll!

HI! I’M ALEX!
Let me ask: Does picking out your benefits ever feel a little
overwhelming? Yeah, it’s a lot of information. Here’s how                    ALEX can help
this works:
                                                                             you make
You’ll answer some questions and I’ll show you some numbers.
We’ll go through all of your choices together, one by one. At the            sense of it all!
end, you’ll know what works best for you so you can make an
informed decision about your benefits. You’ll learn things like:
 What that “insurance” word means
 How to compare premium costs
 How your deductible works
 How your expenses are covered
  ow to estimate your possible tax savings from
 H
 having an HSA if you decide to enroll in the HDHP
Let’s talk before you make your choices. We’ll cover
your medical, dental and prescription drug options,
and I’ll show you how to enroll. Easy as pie! Visit
www.myalex.com/cengage/2017 to get started.

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2017 Benefits Enrollment Guide - Annual Enrollment October 19 - November 2, 2016 Cengage Learning Benefits January 1 - December 31, 2017
SAVINGS                                    LIFE AND    LEGAL    RESOURCES

 Actions you need
                                                    ENROLL    MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL    VISION    DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

 to take now

                                                  ACTION                                         WHEN                                       WHERE

                       Review this 2017 Annual Benefits Enrollment Guide             Before you enroll                     You’re doing it now!

                       Have a conversation with ALEX                                 Before you enroll                     www.myalex.com/cengage/2017

                       Enroll in your 2017 benefits plans                            Between October 19                    https://hr.cengage.com > Benefits
                                                                                     and November 2                        Service Center at Empyrean

                       Print your 2017 Confirmation Statement                        Immediately after enrolling, but      https://hr.cengage.com > Benefits
                                                                                     no later than November 2              Service Center at Empyrean

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SAVINGS                                     LIFE AND    LEGAL    RESOURCES

Enrolling online
                                                  ENROLL   MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL      VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

is simple

Visit the Cengage Benefits Service Center to enroll at                                 STEP 4: Review your elections. This will present you with each plan you
https://hr.cengage.com from October 19 – November 2                                    are enrolled in and the dependent(s) who is/are covered by the plan.
Active enrollment is required for medical benefits and Flexible Spending               To make a change, click the Change button. Within this review, check that
Accounts (FSAs). This means you must actively enroll in a medical plan                 your Working Spouse/Domestic Partner Premium is correct. If Evidence
and/or elect one or both FSAs in order to have these benefits during 2017.             of Insurability (EOI) is needed on any life plan, be sure to complete the
Your remaining 2016 benefit elections (dental, vision, life, A&D, LTD and Legal        online EOI form.
insurance) will carry over to 2017 if you don’t take any action.                       STEP 5: Add/check your life insurance beneficiary(ies)
STEPS TO ENROLL ONLINE                                                                 to ensure they are current. If you haven’t designated
First, review your current benefit choices as well as your personal needs              any, be sure to do so now.
for 2017. Use ALEX at www.myalex.com/cengage/2017 to help you choose
                                                                                       STEP 6: Complete your final review to be sure your elections
the most cost effective plan for you and your family. Then, enroll online by
                                                                                       have been captured correctly and the right dependents are
following these steps:
                                                                                       covered. The edit pencil to the right allows you to go back
STEP 1: Log on to https://hr.cengage.com from work or home and click                   and change any election or dependent coverage.
on the Benefit Service Center Empyrean button in the left menu.
                                                                                       STEP 7: Click the Submit and/or Accept button(s) to finalize
STEP 2: Click on My Benefits then choose Annual Enrollment. You will be                your elections.
presented with a Dependent Eligibility Verification page. If you are adding
                                                                                       STEP 8: Review and print your online Confirmation Statement
a dependent, indicate the method you will use to provide the verification
                                                                                       once you’ve completed your enrollment. Your printed
documents and click Next to continue.
                                                                                       statement will be important should any discrepancies arise.
STEP 3: Verify your information then click Next to verify your dependent’s
information and the plans they are currently enrolled in. If updates are needed,
make the change(s) as you proceed through the enrollment process.

  You will be issued new Aetna ID cards for 2017 only if you
  elect to change your plan or are a new participant in 2017.
  Medical, Rx and dental benefit information will be on one
  card, as applicable.

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Medical benefits
                                                  ENROLL   MEDICAL   PRESCRIPTION ACCOUNTS     DENTAL    VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

In this Medical Benefits section, you will learn about the four different plans       or make financial arrangements with your provider. As your HSA account
offered by Cengage for 2017. Each plan is addressed separately starting with          increases in value, it provides a potential source of cash to cover these
the High Deductible Health Plan (HDHP).                                               services.

HOW THE PLANS WORK – THE HDHP                                                         Out of Pocket Maximum (OOPM): The HDHP offers the lowest OOPM of all
THE HDHP  is the only plan that combines medical coverage with a company              four medical plans. The OOPM is the most you will pay in any one calendar
funded Health Savings Account (HSA). Once you meet the high deductible,               year for medical expenses. Once you hit the OOPM, which is $5,000/$10,000
$1,300/$2,600 (employee/family), you pay 10% of the cost for most in-network          (employee/family), all other medical expenses are paid at 100% for the rest
care and prescriptions or 40% for most out-of-network care and prescriptions.         of the calendar year.
The HDHP covers in-network preventive care at 100%, with no deductible
required. It also provides protection against catastrophic medical expenses           RX Preventive Program: If you use medication for certain conditions such as
in the form of an out-of-pocket maximum, which is the lowest of all other             high blood pressure, high cholesterol, diabetes, asthma or osteoporosis, the
medical plans offered.                                                                HDHP deductible may be waived for your preventive prescription through the
                                                                                      RX Preventive Program. For a full listing of eligible medications, CLICK HERE.
OTHER PLAN HIGHLIGHTS:
Health Savings Account (HSA): As noted above, the HDHP plan is the                    Limited Health Care FSA: If you are enrolled in the HDHP/HSA plan, and
only plan that offers an HSA to which the Company contributes. When you               also choose to enroll in a Health Care Flexible Spending Account (FSA), you
enroll in the HDHP you will be automatically enrolled in an HSA. Cengage will         must select the LIMITED FSA option. Per government regulations, if you have
contribute to your HSA in quarterly increments in 2017 for an annual total            an HSA, you are only able to use an FSA for dental and vision expenses, not
of $650 (employee only) and $1,300 (employee plus one or family). Since the           medical, until your HDHP deductible is met. See the FSA: Limited Health Care
funding is spread over four quarters, you will only receive $162.50 or $325           section in this guide for additional information.
per quarter, depending on the coverage level you choose. This means that
                                                                                      Visit the Medical Overview page in this guide for a more detailed breakdown
you won’t have all of the Company contributions in your account in January,
                                                                                      of all plan features.
plan carefully. You may also make your own pre-tax contributions, another
attractive feature of the HSA. Many employees will put their premium savings
from their old plan directly into their HSA via payroll deduction. For more
                                                                                         Is this plan for you? You may want to consider the HDHP if you like:
information on the HSA, see the HSA section in this guide.
                                                                                              etting free money from Cengage Learning deposited into a tax-free
                                                                                             G
No Copays: This plan does not have the certainty of specific copays. This                    savings account that you can use to pay for current or future medical
means when you go to the doctor’s office, hospital, urgent care, emergency                   expenses
room or fill a prescription, you’ll have to pay the full amount until you reach               he freedom to use any health care provider and the option to save
                                                                                             T
your annual deductible, $1,300/$2,600 (employee/family) and then you’ll be                   money when you use in-network providers
responsible for the applicable coinsurance. As a result, you will want to be
                                                                                             A plan with the lowest cost that still offers comprehensive coverage
sure you have the means to pay for the full deductible and any coinsurance

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SAVINGS                                    LIFE AND    LEGAL    RESOURCES

One plan,
                                                  ENROLL     MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION     DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

different needs

SEE HOW THE HDHP COULD WORK FOR YOU:
                                                                               Meet the MacDonald family                                   Meet Dan and Mary
             Meet Mike                                                         MARCI AND JOHN, AGES 30 AND 35,                             ACTIVE OLDER ADULTS,
             AGE 25                                                            AND THEIR CHILDREN ERIN AND JACK,                           AGES 56 AND 59
             SINGLE                                                            AGES 4 AND 6                                                PEAK EARNERS
             HEALTHY AND FITNESS-MINDED                                        TWO-CAREER FAMILY                                           HEALTH CONSCIOUS
             GOAL: SAVE MONEY                                                  GOAL: KEEP EVERYONE HEALTHY                                 GOAL: SAVE AND INVEST FOR RETIREMENT

Mike is in good shape and works hard to stay that          With two kids and two careers, Marci and John stay          Dan and Mary are looking forward to retirement,
way. He’s in good health but wants a safety net,           busy. Their focus is on today, but they like to plan        but they’re not there yet. New ways to save and
just in case. Coverage for routine preventive care         ahead. Anything they can do to save money and               invest interest them, along with having protection
is important to him, and so is having money for            meet their family’s needs is important to them.             against high medical expenses. When they looked
unexpected health expenses. The HDHP meets                 With growing children and their own health care             at the HDHP, they liked what they saw.
his needs and then some — all for a low monthly            costs, they need a plan that can keep up — and              When Dan enrolled, he contributed the IRS-allowed
contribution.                                              the HDHP is up to the task.                                 maximum. He was also able to make a catch-up
He especially likes the idea of getting $650 in free       The MacDonalds pay nothing for preventive care.             contribution of $1,000 since he’s over age 55. Dan
money from Cengage Learning added to his Health            They know that their other health care costs will           is growing his account with the future in mind, but
Savings Account (HSA). He figures the sooner he            generally add up to meet the deductible each year,          still has funds available to meet current expenses.
can start contributing to an HSA, the more money           so plan benefits will kick in when they need them           When they retire, they’ll be able to use their HSA
he’ll have set aside for when he really needs it. He       most. Meanwhile, Marci and John are saving for              for health care premiums and expenses, including
can pay the few medical bills he has out of his own        college and retirement at the same time. They like          prescription drugs.
pocket for now and let his account grow for the            that the company is depositing $1,300 into the HSA          Extras: Both Dan and Mary take medication
future.                                                    and some of Marci’s pay is going into the HSA on a          for high blood pressure. With the Rx Preventive
                                                           pre-tax basis for future medical expenses — saving          Program, they don’t have to meet the deductible
Extras: Mike is just starting out in his career, so he
                                                           them money on taxes.                                        first, they just pay the 10% coinsurance. Mary also
watches his spending. He plans to use the Aetna
fitness discount to save on his gym’s membership           Extras: The HDHP premiums are significantly less            has a heart condition that sometimes requires
fee, and the HDHP’s 100% preventive care benefit           than Marci’s previous plan. She’s depositing the            hospitalizations. With the assurance of the yearly
is just what he needs to stay up-to-date on routine        difference in premium costs into her HSA.                   out-of-pocket maximum, they know that once
exams and screenings.                                                                                                  Mary’s out-of-pocket expenses reach $5,000, any
                                                                                                                       additional expenses she incurs will be paid at 100%

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2017 Benefits Enrollment Guide - Annual Enrollment October 19 - November 2, 2016 Cengage Learning Benefits January 1 - December 31, 2017
SAVINGS                                  LIFE AND    LEGAL    RESOURCES

Medical benefits
                                                  ENROLL    MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

HOW THE PLANS WORK — THE PPOS AND EPO
THE PPO PLAN AND THE PPO+ PLANS   are traditional PPO plans. You receive free
preventive care (in-network) and pay a copay for most in-network office visits,
with no deductible required. While the office copays are the same, the PPO+
plan has higher premiums but provides a higher level of benefit (you pay 10%
in-network and 30% out-of-network) compared to the PPO plan (you pay 20%
in-network and 40% out-of-network). These plans also have prescription coverage.

  Is this plan for you? You may want to consider one of the PPO plans
  if you want:
    A lower deductible than the HDHP
     he freedom to use any health care provider and the option to
    T
    save money when you use in-network providers
     o pay a flat dollar amount (copay) for most doctors’ office visits
    T
    without first meeting a deductible

THE EPO PLAN gives  you access to an extensive nationwide provider network.
The plan offers free preventive care and 100% coinsurance for in-network
services after a $200 individual/$400 family deductible or applicable required
copays. Similar to an HMO, the plan has no out-of-network coverage except
in emergency situations. This plan also has prescription coverage; however,
there is no out-of-network coverage for pharmacy.

  Is this plan for you? You may want to consider the EPO plan if you:
     ant a plan that covers most expenses at 100% after your
    W
    deductible is met even if it means paying the highest premium
    Plan to only use in-network providers
     o not cover dependents who live outside your plan’s network
    D
    area and use out-of-network providers

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SAVINGS                                              LIFE AND      LEGAL    RESOURCES

Medical overview
                                                        ENROLL      MEDICAL    PRESCRIPTION ACCOUNTS      DENTAL      VISION     DISABILITY         AD&D       EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

          COMPARE THE MEDICAL PLANS                                            HDHP                     PPO                     PPO+                         EPO
          Preventive care                                 In-network           You pay 0%               You pay 0%              You pay 0%                   You pay 0%
                                                          Out-of-network       You pay 40%              You pay 40%             You pay 30%                  No coverage
                                                                               (after deductible)       (after deductible)      (after deductible)
          Copayments                                      In-network           N/A                      $30 (primary)           $30 (primary)                $25 (primary)
                                                                                                        $45 (specialist)        $45 (specialist)             $45 (specialist)
                                                                                                                                                             $500 (hospital)
                                                          Out-of-network       N/A                      N/A                     N/A                          No coverage
          Deductible                                      In-network           $1,300/$2,600   1
                                                                                                        $500/$1,000   2
                                                                                                                                $300/$600     2
                                                                                                                                                             $200/$4002
          (individual/family)                             Out-of-network       $1,300/$2,6001           $1,000/$2,0002          $600/$1,2002                 N/A
          Coinsurance                                     In-network           You pay 10%              You pay 20%             You pay 10%                  You pay 0%
                                                          Out-of-network       You pay 40%              You pay 40%             You pay 30%                  No coverage
          Emergency room visits                           In-network           You pay 10%              $150                    $150                         $150
                                                                               (after deductible)
                                                          Out-of-network       You pay 10%              $150                    $150                         $150
                                                                               (after deductible)
          Urgent care visits                              In-network           You pay 10%              $35                     $35                          $30
                                                                               (after deductible)
                                                          Out-of-network       You pay 40%              You pay 40%             You pay 30%                  No coverage
                                                                               (after deductible)       (after deductible)      (after deductible)
          Out-of-pocket maximum                           In-network           $5,000/$10,0003          $6,000/$12,0003         $6,000/$12,0003              $6,000/$12,000
          (individual/family; includes deductible,
          coinsurance, medical and pharmacy copays)       Out-of-network       $5,000/$10,000      3
                                                                                                        $6,000/$12,000     3
                                                                                                                                $6,000/$12,000       3
                                                                                                                                                             N/A

          Lifetime maximum                                In-network           Unlimited                Unlimited               Unlimited                    Unlimited
                                                          Out-of-network       Unlimited                Unlimited               Unlimited                    N/A
      1
           he family deductible amount, which applies to employee + 1 or family, can be satisfied by one family member or a combination of family members. This means the family deductible
          T
          needs to be met before any family member will have benefits paid (except preventive care). Eligible expenses are applied to both the in-network and out-of-network deductible.
      2
        T he family deductible amount can be satisfied by any combination of family members, but an individual can never satisfy more than his/her own individual amount. Eligible expenses
         are applied to both the in-network and out-of-network deductible.
      3
         Eligible expenses are applied separately towards the in-network and out-of-network out-of-pocket maximum. If you enroll in the HDHP, the $5,000 out-of-pocket maximum applies
          to each individual, regardless if you’re in an individual plan, employee plus one or family plan.

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SAVINGS                                          LIFE AND      LEGAL    RESOURCES

Prescription drug
                                                        ENROLL       MEDICAL   PRESCRIPTION ACCOUNTS      DENTAL      VISION     DISABILITY     AD&D       EXPENSE   & WELLNESS    ELIGIBILITY   NOTICES

benefits

 If you enroll in a medical plan, you and your covered dependents automatically                      will differ depending on your medication’s prescription tier (generic,
 receive prescription drug coverage through Aetna. You’ll be able to fill                            formulary brand or non-formulary brand) and how you fill your prescription
 short-term prescriptions at many participating retail pharmacies.                                   (retail pharmacy or mail service), as shown in the following charts.
 Your level of prescription drug coverage and out-of-pocket expenses

                                             HDHP                                        PPO                                       PPO+                                          EPO
                                            You pay                                    You pay                                    You pay                                       You pay
 RETAIL PHARMACY (UP TO 30-DAY SUPPLY)
 Generic

 In-network                 10% coinsurance, after combined            $10 copay                                   $10 copay                                 $10 copay
                            medical/prescription deductible*
 Out-of-network             40% coinsurance, after combined            $50/$100 deductible (individual/            $50/$100 deductible (individual/          No coverage
                            medical/prescription deductible*           family) then 50% coinsurance                family) then 50% coinsurance
 Formulary Brand

 In-network                 10% coinsurance, after combined            20% coinsurance;                            20% coinsurance;                          20% coinsurance;
                            medical/prescription deductible*           $25 minimum, $75 maximum                    $25 minimum, $75 maximum                  $25 minimum, $75 maximum
 Out-of-network             40% coinsurance, after combined            $50/$100 deductible (individual/            $50/$100 deductible (individual/          No coverage
                            medical/prescription deductible*           family) then 50% coinsurance                family) then 50% coinsurance
 Non-Formulary Brand

 In-network                 10% coinsurance, after combined            35% coinsurance;                            35% coinsurance;                          35% coinsurance;
                            medical/prescription deductible*           $40 minimum, $125 maximum                   $40 minimum, $125 maximum                 $40 minimum, $125 maximum
 Out-of-network             40% coinsurance, after combined            $50/$100 deductible (individual/            $50/$100 deductible (individual/          No coverage
                            medical/prescription deductible*           family) then 50% coinsurance                family) then 50% coinsurance

*You pay the full discounted cost of your prescription drugs until you meet the combined medical/prescription drug HDHP deductible of $1,300 (individual) or $2,600 (family).

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SAVINGS                                          LIFE AND      LEGAL    RESOURCES

Prescription drug
                                                         ENROLL       MEDICAL   PRESCRIPTION ACCOUNTS      DENTAL      VISION     DISABILITY     AD&D       EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

benefits

For long-term prescriptions, you will be able to use Aetna’s convenient mail-order drug service, Aetna Rx Home Delivery®, and enjoy the convenience
of delivery via U.S. mail. This service allows you to order three months worth of your prescription for the price of 2 months or less. In addition, through
Aetna’s partnership with CVS Caremark®, your long-term prescriptions can also be filled and picked up at a local CVS pharmacy® store.

                                           HDHP                                    PPO                                    PPO+                                    EPO
                                          You pay                                You pay                                You pay                                 You pay
 MAIL SERVICE OR CVS PHARMACY ONLY (UP TO 90-DAY SUPPLY)
 Generic

 In-network only            10% coinsurance, after combined        $20 copay                              $20 copay                              $20 copay
                            medical/prescription deductible*
 Formulary Brand

 In-network only            10% coinsurance, after combined        20% coinsurance;                       20% coinsurance;                       20% coinsurance;
                            medical/prescription deductible*       $50 minimum, $125 maximum              $50 minimum, $125 maximum              $50 minimum, $125 maximum
 Non-Formulary Brand

 In-network only            10% coinsurance, after combined        35% coinsurance;                       35% coinsurance;                       35% coinsurance;
                            medical/prescription deductible*       $80 minimum, $175 maximum              $80 minimum, $175 maximum              $80 minimum, $175 maximum

*You pay the full discounted cost of your prescription drugs until you meet the combined medical/prescription drug HDHP deductible of $1,300 (individual) or $2,600 (family).

NEW WAYS TO SAVE ON Rx
As an Aetna member, you’ll be able to take advantage of:

 SAVE A COPAY® PROGRAM: When you switch from selected brand-name                                    x PREVENTIVE PROGRAM (HDHP ONLY): If you enroll in the HDHP and you
                                                                                                    R
 drugs to their preferred generic counterparts, you’ll pay no copays for three                      use medication for certain conditions such as high blood pressure, high
 months. (Note: If you are enrolled in the HDHP, you’ll need to meet your                           cholesterol, diabetes, asthma or osteoporosis through the Rx Preventive
 deductible first before you can save a coinsurance through this program.)                          Program, you will pay just the HDHP’s applicable coinsurance for your
  AINTENANCE CHOICE: For your long-term prescription needs, Aetna’s
 M                                                                                                  eligible prescriptions — no deductible required.
 mail-order drug service allows you to order three months’ worth of your                             ETNA Rx CHECK® PROGRAM: This program analyzes prescription claims to
                                                                                                    A
 prescription for the price of two months. While you will still be able to                          let your doctor know about opportunities for better drug safety and cost
 choose the convenience of delivery via U.S. mail, now you will also be able                        savings through the use of generic equivalents and other alternatives.
 to pick up your long-term medication at a local CVS pharmacy store.

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SAVINGS                                  LIFE AND    LEGAL    RESOURCES

Your cost: Medical
                                                  ENROLL     MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

and prescription
drug plan

You and Cengage Learning share in the cost                 COVERED DEPENDENTS                                        PAY BAND
of your medical and prescription drug coverage.            We offer three tiers of coverage: employee only,          In order to ensure health care is affordable to
The Company covers on average 70% to 75%                   employee plus one dependent and family. The               everyone, Cengage Learning uses four pay bands
of your total health care premiums while your              more dependents you cover on the plan, the higher         to determine bi-weekly employee contributions
paycheck contributions cover the remaining                 your bi-weekly paycheck deductions will be.               for our medical plans. Where you fit within the
25% to 30%. Your bi-weekly paycheck deductions             WORKING SPOUSE/DOMESTIC PARTNER PREMIUMS
                                                                                                                     pay bands is based upon your base salary (plus
for medical and prescription drug coverage will            In addition, if you cover a spouse or domestic            an average of commissions paid over the prior
vary depending upon:                                       partner who has access to medical coverage                two years, if applicable).
 The plan you choose                                      through his or her own employer but still opts to be
                                                           covered by Cengage Learning’s medical plan, you
 The number of dependents covered
                                                           will pay an additional $25 bi-weekly. If applicable,
 Your pay band                                            the working spouse/domestic partner premium will
PLAN CHOICE
                                                           be added to the bi-weekly amounts shown on the
As a general rule, plans that are designed to have         next page.
higher levels of benefit at the point of service           DOMESTIC PARTNER
will cost more out of your paycheck. The EPO plan          If you cover a domestic partner and/or child(ren)
has the highest paycheck deductions and the                of a domestic partner, the portion of your medical
HDHP has the lowest.                                       premium attributed to those dependents must
When you enroll in the HDHP, Cengage Learning              be deducted on a post-tax basis. Also, the portion
will help to fund your Health Savings Account              of the premium paid by Cengage Learning for
(HSA) in quarterly increments for an annual total          domestic partners and their child(ren) is treated
of $650 (employee only) or $1,300 (employee plus           as taxable. Please note, if you enroll in the HDHP,
one or family).                                            you can use funds from your HSA to pay for
                                                           domestic partner and their child(ren)’s expenses
                                                           only if they are a tax dependent.

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SAVINGS                                    LIFE AND    LEGAL    RESOURCES

Your cost: Medical
                                                  ENROLL   MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL    VISION    DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

and prescription
drug plan

                                                   BI-WEEKLY PAYCHECK DEDUCTIONS — MEDICAL

                                                    HIGH DEDUCTIBLE HEALTH PLAN (HDHP)
                                                    Pay Band                    Employee Only    Employee + 1*    Family*
                                                    < $30,000                   $49.29           $97.77           $147.29
                                                    $30,000 – $59,999           $53.57           $106.27          $160.10
                                                    $60,000 – $89,999           $57.86           $114.77          $172.91
                                                    $90,000 +                   $62.15           $123.28          $185.72
                                                    PPO PLAN
                                                    Pay Band                    Employee Only    Employee + 1*    Family*

                                                    < $30,000                   $57.19           $113.45          $170.91
                                                    $30,000 – $59,999           $62.16           $123.31          $185.77
                                                    $60,000 – $89,999           $67.14           $133.18          $200.63
                                                    $90,000 +                   $72.11           $143.04          $215.50
                                                    PPO+ PLAN
                                                    Pay Band                    Employee Only    Employee + 1*    Family*                    * Add $25 bi-weekly
                                                    < $30,000                   $79.01           $156.72          $236.11                       deduction if working
                                                    $30,000 – $59,999           $85.87           $170.35          $256.64                       spouse/domestic partner
                                                                                                                                                premium applies.
                                                    $60,000 – $89,999           $92.75           $183.98          $277.17
                                                    $90,000 +                   $99.62           $197.61          $297.70
                                                    EPO PLAN
                                                    Pay Band                    Employee Only    Employee + 1*    Family*

                                                    < $30,000                   $105.15          $208.59          $314.24
                                                    $30,000 – $59,999           $114.30          $226.73          $341.57
                                                    $60,000 – $89,999           $123.44          $244.87          $368.89
                                                    $90,000 +                   $132.59          $263.00          $396.22

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SAVINGS                                  LIFE AND      LEGAL    RESOURCES

Health Savings
                                                  ENROLL    MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY     AD&D       EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Account with
WageWorks®

If you enroll in the High Deductible Health Plan           of $1,000 during 2017. You may change the amount          To manage your account, you’ll be able
(HDHP), you will be automatically signed up for            of your contribution, or stop or start contributions      to access information and tools at the
a Health Savings Account (HSA) administered                at any time during the year, through the enrollment       WageWorks website via https://hr.cengage.com.
by WageWorks with the account located at BNY               system.
                                                                                                                     GROWING YOUR ACCOUNT
Mellon Bank during the online enrollment process.          If you choose to contribute to your account, funds        There’s no “use it or lose it” with an HSA. Unused
Here’s how an HSA works:                                   will be withdrawn from your paycheck — before             funds roll over year to year and earn interest. The
CONTRIBUTIONS                                              taxes are withheld — and deposited to your account        money in your account is yours to keep even if you
An HSA lets you set aside pre-tax money to pay             on a bi-weekly basis.                                     change companies, switch medical plans or retire.
for current and future health care expenses.               USING YOUR ACCOUNT                                        Once your balance reaches $1,000, you’ll be able
EMPLOYER CONTRIBUTIONS                                     You can use your WageWorks HSA to pay everyday            to start investing in no-load mutual funds to grow
If you enroll in the HDHP, Cengage Learning                qualified medical expenses, or let your account           your account even more.
will contribute funds to your HSA in quarterly             grow for future expenses, even those in retirement.
increments during 2017 with an annual total of                                                                       What is a qualified medical expense?
                                                           Your HSA is easy to use. You’ll get a WageWorks
$650 (employee only) or $1,300 (employee plus one                                                                    This is an expense that the IRS allows to be paid from an
                                                           Healthcare Card with your account, if you don’t
or family). Funding will be available in your account                                                                HSA. Examples are deductibles, coinsurance, copayments
                                                           already have one, that you can use like a debit
on or before the 8th of the funding month. Funding                                                                   and other types of covered medical expenses. For a
                                                           card to pay qualified expenses. Or if you prefer,
months will be January, April, July and October.                                                                     complete list (IRS Publication 502), visit www.irs.gov and
                                                           you can choose to pay your provider online or             click on “Forms and Publications” or call 1-800-829-3676.
To be eligible for quarterly company funding in            pay expenses out of pocket and either file a claim
the HDHP, you must be actively employed on                 for reimbursement or file no claim and let your           You can use your HSA to pay for the eligible expenses of
                                                                                                                     a qualifying child or relative who is enrolled in a HDHP.
the first of the month during which the quarterly          savings grow.
                                                                                                                     Generally, a qualifying child or relative is:
funding is provided.                                       If you have both an HSA and an HSA-Compatible
                                                                                                                       Your spouse
EMPLOYEE CONTRIBUTIONS                                     Flexible Spending Account, your WageWorks
You can also choose to contribute to your HSA,             Healthcare Card will be associated with both                 our child(ren) under the age of 24, if a full-time student
                                                                                                                       Y
                                                                                                                       or under age 19 if not a student
up to IRS limits. For 2017, these limits will be           accounts. Because it’s a “smart” card it will know
$3,400 if you have employee only coverage or               what charges can be paid from the HSA and what               our child(ren) over the age of 24 who are a tax dependent
                                                                                                                       Y
$6,750 if you have employee plus one or family             can only be paid through the limited FSA account.            our domestic partner if they are a tax dependent
                                                                                                                       Y
coverage. The IRS limits include all employer and          See page 17 for more on an HSA and Limited FSA.              our domestic partner’s child(ren) if they are a tax
                                                                                                                       Y
employee contributions. If you are age 55 or over,                                                                     dependent, subject to the age limits above
you may make an additional “catch-up” contribution

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SAVINGS                                  LIFE AND    LEGAL    RESOURCES

Flexible Spending
                                                  ENROLL     MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Account:
Health Care

You may choose to participate in the Health Care           YOUR COST
Flexible Spending Account (FSA) administered               If you choose to participate in the FSA, your             DEADLINE FOR REIMBURSEMENT
by WageWorks. An FSA enables you to pay eligible           pre-tax paycheck deductions will depend on                Any FSA expenses incurred in the 2017
out-of-pocket health care expenses with pre-tax            the annual amount you choose to contribute.               calendar year must be submitted for
dollars. When you enroll, you decide how much                                                                        reimbursement by March 31, 2018. Funds
                                                           ELIGIBLE EXPENSES                                         remaining in your Health Care FSA may be
pre-tax money you want to contribute for the
                                                           You may use your FSA to pay or reimburse                  carried over into your 2018 Health Care FSA,
year. Then, your contributions come out of your
                                                           eligible expenses for medical, pharmacy, dental,          up to a maximum of $500. Any remaining funds
paycheck before taxes, thereby lowering your
                                                           vision or hearing care costs for you and your             over $500 will be forfeited. If you have a carryover
taxable income.
                                                           qualifying tax dependents. If you are enrolled in the     and you are not making an election for the
You may contribute up to $2,550 to a Health Care           HDHP, certain limitations apply. See next page for        subsequent year, the maximum length of time
FSA. Your FSA elections cannot be changed or               more information.                                         for the carryover is one year.
discontinued at any time during the plan year              To find out if an expense is eligible, you can call
unless you have a qualified family status change.          WageWorks at 1-877-965-2547, option 2. You also
Also, enrollment in and changes to your FSA due            may visit Wageworks via https://hr.cengage.com.
to a qualified status change are not permitted in
November and December.

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SAVINGS                                  LIFE AND    LEGAL    RESOURCES

Flexible Spending
                                                  ENROLL    MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Account: Limited
Health Care

IF YOU ENROLL IN THE HDHP                                  To view account balances, payments and other transactions,
Individuals enrolled in the HDHP with an HSA are           visit https://hr.cengage.com to access the WageWorks website.
subject to certain IRS limits when it comes to the
                                                           Keep in mind that funds remaining in your Health Care
Health Care FSA. If you enroll in the HDHP with HSA,
                                                           FSA may be carried over to the next calendar year up
you may only enroll in an HSA-Compatible or Limited
                                                           to a maximum of $500. Any remaining funds over $500
FSA during Annual Enrollment. You may contribute
                                                           will be forfeited.
up to a maximum of $2,550 to this account.
Before you’ve met your HDHP deductible, you can              Use the FSA calculator at
use your Limited FSA to pay for eligible dental and          www.fsaworks4me.com so
vision expenses only.                                        you can “use it and not lose it!”
Once you meet your HDHP deductible, the Limited              The FSA calculator can help you
FSA can work like a regular FSA. You may use it for          set the right contribution amount
any eligible health care expense, not just dental            to your Health Care FSA. This is
and vision expenses. To get started, you’ll need             important because any funds
to provide proof that you’ve met the deductible.             not used in 2017 and left in your
Here’s how:                                                  account after March 31, 2018
                                                             must be forfeited (except the
  isit https://hr.cengage.com to access the
 V                                                           $500 carryover).
 WageWorks website
 Log in to your account and click on Help
 Click on HSA/HDHP Deductible Form
 Download, print and complete the form
  ax or mail the form to WageWorks along with
 F
 proof that you’ve met the plan deductible. This can
 be the Explanation of Benefits (EOB) statement
 you receive once a claim has been processed. The
 EOB will show that you’ve met your deductible

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SAVINGS                                  LIFE AND    LEGAL    RESOURCES

Flexible Spending
                                                  ENROLL   MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Account:
WageWorks Card

WAGEWORKS HEALTHCARE CARD                                        If you are newly enrolling in the Health Care FSA for
When you elect an FSA, you’ll receive a WageWorks                2017 or your existing card has expired, you will receive
Healthcare Card that works like a debit card. The                your card directly in the mail from WageWorks.
WageWorks Visa® Healthcare Card makes funds                      ONE CARD DOES IT ALL
immediately available to you for payment of eligible health      If you have both an HSA and a Limited FSA, your current
care services, goods and prescriptions at health care            card will be aligned to both accounts or you’ll receive your
providers, pharmacies and drugstores. This reduces the           WageWorks Healthcare Card that will be associated with
need to submit receipts and wait for reimbursement. You          both accounts. It will work like a debit card. You can
can also use your card wherever it’s accepted to pay for         use it to pay directly for eligible dental and vision expenses
eligible over-the-counter (OTC) items. Eligible OTC items        for you and your dependents through your Limited FSA, as
must have a doctor’s prescription. In order to accept the        well as your eligible medical expenses through your HSA.
card, a merchant must have an IRS-qualified system that
can automatically verify transactions at checkout.
When you use your card for an eligible item or service,
the money is taken directly from your account, so there’s
no need to submit paper receipts or be reimbursed. For
those transactions that can be verified at checkout, you’ll
just need to save your receipts for the IRS, and your own
records. In instances where WageWorks cannot verify the
card transactions using other means, you will be asked to
provide a receipt.
If you are currently enrolled in the Health Care FSA in 2016
and received a card, this card will continue to be valid in
2017 assuming you enroll in the Health Care FSA and your
card has not expired. Your new FSA election amount will
automatically be on the card for the new plan year.

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SAVINGS                                  LIFE AND    LEGAL    RESOURCES

Flexible Spending
                                                  ENROLL     MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Account:
Dependent Care

You may choose to participate in the Dependent             YOUR COST                                                 DEADLINE FOR REIMBURSEMENT
Care Flexible Spending Account (FSA) administered          If you choose to participate in the FSA, your             Any FSA expenses incurred in the 2017
by WageWorks. An FSA enables you to pay eligible           pre-tax paycheck deductions will depend on                calendar year must be submitted for
out-of-pocket child or elder care expenses with            the annual amount you choose to contribute.               reimbursement by March 31, 2018. All excess
pre-tax dollars. When you enroll, you decide how                                                                     funds in your Dependent Care FSA account
                                                           ELIGIBLE EXPENSES
much pre-tax money you want to contribute for                                                                        will be forfeited. There is no carryover for the
                                                           You may use your Dependent Care FSA to pay
the year. Then, your contributions come out of                                                                       Dependent Care so calculate your need carefully.
                                                           or reimburse eligible expenses for qualifying
your paycheck before taxes, thereby lowering your
                                                           dependents under age 13 and for an older disabled
taxable income.
                                                           tax dependent who lives with you. The child or
You may contribute up to $5,000 to a Dependent             elder care must be necessary in order for both you
Care FSA ($2,500 if married and filing taxes               and your spouse to work or attend school full-time.
separately) per calendar year. Keep in mind that           To find out if an expense is eligible, you can call
the $5,000 limit includes amounts contributed              WageWorks at 1-877-965-2547, option 2. You also
to other employers’ programs by you and/or your            may visit Wageworks via https://hr.cengage.com.
spouse/domestic partner. Amounts contributed
above this limit could result in a forfeiture of the
excess amount under this plan. Please consult
with your tax advisor.

Keep in mind your FSA elections cannot
be changed or discontinued at any time
during the plan year unless you have a
qualified family status change. Also,
enrollment in and changes to your FSA
due to a qualified status change are not
permitted in November and December.

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SAVINGS                                  LIFE AND    LEGAL    RESOURCES

Dental benefits
                                                  ENROLL   MEDICAL   PRESCRIPTION ACCOUNTS   DENTAL   VISION   DISABILITY     AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Cengage Learning offers three dental plan options administered by Aetna.               CONFIRM YOUR DENTIST’S PARTICIPATION IN AETNA’S NETWORK
You may choose one of the following dental plans:                                      Aetna has one of America’s largest provider networks. Confirm your
                                                                                       dentist participates by visiting www.aetna.com/docfind. Search for a
THE DENTAL PPO AND PPO+ PLANS                                                          dentist by name or specialty and location, and when prompted to
These plans offer you the flexibility to visit any licensed dental provider in or      Select a Plan choose:
out of the Aetna dental network. Preventive care is generally covered at 100%
under both plans, with no required copay. For other services, once you meet            For the Dental PPO and PPO+ plans choose Dental PPO/PDN with PPO II
the deductible, the plan pays a percentage of covered services until you               For the Dental DMO plan choose DMO®/DNO
reach an annual or lifetime maximum. Similar to the medical PPO plans, your            You also may call the Aetna Concierge at 1-877-965-CLHR (2547),
out-of-pocket costs are generally lower when you visit an in-network dentist.          option 2 to confirm that your dentist is in the network. The chart
Out-of-network dentists can bill you for the balance remaining after insurance         on the next page highlights the main benefits for each of the
has paid, which means you will pay the additional amount.                              dental offerings.
THE DMO PLAN
This plan, available in most states, offers free preventive care and provides
100% coverage of other in-network services after you pay the required copay.
This plan is similar to a medical HMO plan. When you enroll in the DMO, you
and each enrolled dependent must select a Primary Care Dentist (PCD) from
the Aetna DMO network. Make sure you have your PCD’s name and primary
office code available when you are ready to enroll. When you need services,
in order to have any coverage, you must go to the PCD on record at Aetna.
You are able to change your PCD by calling Aetna by the 15th of the month
and the change will be effective on the 1st of the following month. Emergency
services may be exempt from this provision.
There’s no annual deductible, no annual maximum dollar benefit limit and
no claim forms to file. Each time you need dental care, you must visit your
PCD or a dental specialist referred by your PCD.
If you visit dentists outside the DMO network, or without a PCD referral, the
plan will pay no benefits. Some PPO network dentists also participate in the
DMO network so you may find that you don’t have to switch dentists if you
want to move to the DMO.

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SAVINGS                                        LIFE AND    LEGAL       RESOURCES

Dental benefits
                                                      ENROLL      MEDICAL   PRESCRIPTION ACCOUNTS    DENTAL       VISION   DISABILITY      AD&D     EXPENSE      & WELLNESS   ELIGIBILITY   NOTICES

     DENTAL PLANS COMPARISONS
                                                    DENTAL PPO                                 DENTAL PPO+                                 DENTAL DMO
                                              (In- and Out-of-Network)                    (In- and Out-of-Network)                       (In-Network Only)
    Deductible                       $100                                        $50                                         None
    Annual maximum                   $1,000                                      $2,000                                      Unlimited
    Out-of-network coverage          Yes                                         Yes                                         None
    Preventive care                  Plan pays 100% (no deductible)              Plan pays 100% (no deductible)              Plan pays 100% (no deductible)
    Basic services                   Plan pays 50%, after the deductible         Plan pays 80%, after the deductible
                                                                                                                             See the copay schedule available
    Major services                   Plan pays 25%, after the deductible         Plan pays 50%, after the deductible         in the “Resources” section on the
                                                                                                                             Benefits Service Center site at
    Orthodontia                      Not covered                                 Plan pays 50%, after separate $50           https://hr.cengage.com
                                                                                 deductible; $2,000 lifetime maximum

    YOUR COST: DENTAL PLAN
    You and Cengage Learning share in the cost of your dental coverage. Your
    dental plan cost per paycheck will vary depending on the plan you choose
                                                                                                           Simple Steps To Better Dental Health® is an online wellness
    and how many dependents you cover. The dental plan premiums will not
                                                                                                           program that offers information on:
    increase for 2017. Keep in mind, if you cover a domestic partner and/or
    child(ren) of a domestic partner, the portion of your dental premium                                      Preventing problems with regular dental care
    attributed to those dependents must be deducted on a post-tax basis,                                       onditions and treatments such as impacted teeth, bad breath
                                                                                                              C
    and the portion of the premiums paid by Cengage Learning is treated as
                                                                                                              and cold sores
    taxable income.
                                                                                                              A wide range of other dental topics
                               BI-WEEKLY PAYCHECK DEDUCTIONS                                               There’s also an “Ask the Dentist” feature, a Parents’ Guide to oral health
    WHO IS COVERED          DENTAL PPO               DENTAL PPO+             DENTAL DMO                    for babies and children, videos and interactive tools, and much more.
    Employee Only           $2.96                    $9.52                   $1.25
                                                                                                           Click here to visit Simple Steps To Better Dental Health.
    Employee +1             $6.52                    $19.68                  $2.57
    Family                  $10.67                   $30.50                  $4.65

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SAVINGS                                   LIFE AND       LEGAL    RESOURCES

Vision benefits
                                                         ENROLL     MEDICAL    PRESCRIPTION ACCOUNTS   DENTAL    VISION   DISABILITY     AD&D        EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Your medical plan covers one routine eye exam annually. Visit www.aetna.com                     YOUR COST: VISION SERVICE PLAN (VSP)
to see if your vision care provider is in the Aetna network.                                    You pay 100% of the discounted cost per paycheck for VSP vision
                                                                                                benefits. VSP premiums will not increase for 2017. Your VSP cost per
You also have the option of choosing more comprehensive vision coverage
                                                                                                paycheck will vary depending on how many dependents are covered.
through Vision Service Plan (VSP). If you elect coverage under VSP, your
                                                                                                Keep in mind, if you cover a domestic partner and/or children of a domestic
benefits will include:
                                                                                                partner, the portion of your vision premium attributed to those dependents
  Exams and lenses every calendar year                                                         must be deducted on a post-tax basis.
  Frames every other calendar year
                                                                                                   WHO IS COVERED           BI-WEEKLY PAYCHECK DEDUCTIONS
                                 IN-NETWORK                       OUT-OF-NETWORK                 Employee Only                               $4.24

Eye exams               $10 copay                          Up to $40 reimbursement               Employee +1                                 $8.47

Single vision lenses    $25 copay                          Up to $40 reimbursement               Family                                      $12.71

Bifocal lenses          $25 copay                          Up to $60 reimbursement
Eyeglass frames         $25 copay limited to one frame     $50 reimbursement for one
                        every two years*                   frame every two years*

Contact lenses          Up to $105 allowance per year      Up to $105 allowance per year
                        for elective lenses                for elective lenses

LASIK discount          Discounts available through        N/A
                        contracted surgery centers
* Frame allowance is up to $150 every two years; 20% discount on any amount over $150.
   In any given year, the plan will pay for either frames or contact lenses but not both.

NETWORK UPDATE
The VSP network has been expanded and offers you even more provider
options. The network will include the Retail Chain Provider Program.
Participating providers in this program include: VSP partners such as
Costco® Optical, Eye Care Centers of America, Inc.TM (ECCA includes
Visionworks, Eyemasters, Hour Eyes, etc.), Pearle Vision and other
quality retail chains. Visit https://www.vsp.com to find a vision care
provider in the VSP network.

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SAVINGS                                           LIFE AND    LEGAL    RESOURCES

Disability benefits
                                                  ENROLL     MEDICAL    PRESCRIPTION ACCOUNTS      DENTAL      VISION    DISABILITY       AD&D     EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Cengage Learning provides you with both                    LONG-TERM DISABILITY (LTD)                                        LTD BUY-UP
Short-Term and Long-Term Disability Insurance              Cengage Learning provides Basic LTD coverage of                   You also have the option to purchase
policies, administered by Matrix.                          50% of your pay, up to a maximum of $10,000 a                     additional LTD coverage so that your total
                                                           month. While Basic LTD premiums are paid for by                   coverage is 60% of your pay, up to $10,000
SHORT-TERM DISABILITY (STD)                                the Company, this premium is considered taxable                   per month.
STD coverage is available at no cost to you.               income to employees. This approach allows the                     YOUR COST: LTD BUY-UP
Here’s how it works:                                       benefits under Basic LTD coverage to be paid                      If you choose the LTD Buy-Up option, your
  enefits begin on the eighth consecutive
 B                                                         tax-free, so you can receive the maximum benefit                  cost will vary based upon your annual base pay
 calendar day of an approved disability.                   amount when you need it most, as shown in the                     (plus an average of commissions paid over the prior
 If you have less than five years of service, you         chart below.                                                      two years, if applicable). The premium is calculated
  receive a benefit of 80% pay replacement, for a                                        TAX-EFFICIENT LTD PLAN              by the benefits enrollment system using $0.159
  total of 25 weeks, after a one-week elimination           Annual income
                                                                                                                             per $100 of your annual income, divided over
                                                                                                    $65,000
  period.                                                                                                                    26 paychecks.
                                                            Benefit percentage                        50%
 If you have five years of service or more, you            Annual benefit—Gross                    $32,500
  receive 100% pay replacement for six weeks after
                                                            Annual benefit—Net                      $32,500
  a one-week elimination period, then 80% pay               (no taxation)
  replacement thereafter, for a total of 25 weeks.
                                                            Annual Company                            $103                                SAMPLE LTD BUY-UP CALCULATION
                                                            premium (post-tax)                                                        USING GROSS ANNUAL INCOME OF $50,000:
                                                            Estimated Annual                          $31
                                                            Employee Tax on                                                                    $50,000/$100 = $500
                                                            Company premium*                                                           gross annual income per $100 of coverage
                                                           * A ssumes a 30% tax bracket and an LTD rate of $0.159 per
                                                              $100 of covered payroll (post-tax).                                      $500 x $0.159 = $79.50 cost per year

                                                                                                                                         $79.50/26 paychecks = $3.06
                                                                                                                                               cost per bi-weekly paycheck

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SAVINGS                                            LIFE AND      LEGAL    RESOURCES

Life and AD&D                                     ENROLL     MEDICAL     PRESCRIPTION ACCOUNTS       DENTAL       VISION   DISABILITY       AD&D       EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Insurance

LIFE INSURANCE                                             YOUR COST: SUPPLEMENTAL LIFE INSURANCE
Cengage Learning offers several life insurance             PLAN — EMPLOYEE
options including Employee Basic Life Insurance,           The Supplemental Life Insurance plan is available
Employee Supplemental Life Insurance, Spouse/              to you at a group discounted rate and you will pay
Domestic Partner Life Insurance and Child Life             100% of the cost of coverage on a post-tax basis.
Insurance. All life insurance policies are administered    If you elect Supplemental Life Insurance, your cost                           Designate your beneficiaries
by Reliance Standard Life Insurance.                       will vary based upon:                                                         You will be prompted to make your
                                                                                                                                         beneficiary designation(s) for Life and
                                                              our base salary (plus an average of commissions
                                                             Y
BASIC LIFE INSURANCE — EMPLOYEE                                                                                                          AD&D Insurance when you enroll online
                                                             paid over the prior two years, if applicable)
Cengage Learning provides Company-paid Basic                                                                                             through the Cengage Benefits Service
Life Insurance equal to 1x your annual base pay              The amount of supplemental life insurance elected                          Center site at https://hr.cengage.com.
(plus an average of commissions paid over the prior          Your age
two years, if applicable), up to $400,000, at no cost
to you. In accordance with IRS rules, the amount of         EMPLOYEE AGE            ANNUAL RATE PER $1,000
Company-paid employee life premium for insurance            < 25 years                           $0.432
                                                                                                                                        Sample calculation using gross annual income
over $50,000 must be treated as taxable income,             25–29 years                          $0.468                                    of $50,000, supplemental life insurance
and will be added to your bi-weekly paychecks               30–34 years                          $0.552                                        amount 2x income and age 35:
and annual W-2 as additional earnings. You should
consult your tax advisor for additional information.
                                                            35–39 years                          $0.732                                              $50,000 x 2 = $100,000
                                                            40–44 years                          $0.960                                         supplemental life insurance amount
SUPPLEMENTAL LIFE INSURANCE — EMPLOYEE                                                                                                               $100,000/$1,000 = $100
                                                            45-49 years                          $1.536
If you would like additional life insurance coverage,                                                                                     amount of life insurance per $1,000 of coverage
                                                            50–54 years                          $2.472
you may purchase Supplemental Life Insurance
up to 5x your annual base pay (plus an average              55–59 years                          $4.140                                              $100 x $0.732 = $73.20
                                                                                                                                                      annual cost of life insurance
of commissions paid over the prior two years,               60–64 years                          $6.516
if applicable), up to a combined Basic and                                                                                                    $73.20/26 paychecks = $2.82
                                                            65–69 years                          $10.944
                                                                                                                                               bi-weekly payroll deduction (post tax)
Supplemental maximum of $1.5 million.
                                                            70+ years*                           $19.956
Evidence of Insurability (EOI) may be required.

                                                           * F or employees age 70 and over, the actual life benefit is
                                                              subject to reduction, see plan document for details.

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SAVINGS                                          LIFE AND     LEGAL    RESOURCES

Life and AD&D                                       ENROLL     MEDICAL     PRESCRIPTION ACCOUNTS       DENTAL       VISION   DISABILITY     AD&D      EXPENSE   & WELLNESS   ELIGIBILITY   NOTICES

Insurance

LIFE INSURANCE                                                                                                                     CHILD LIFE INSURANCE
SPOUSE/DOMESTIC PARTNER LIFE INSURANCE                        EMPLOYEE AGE            ANNUAL RATE PER $1,000                       You also have the option to purchase life
You also have the option to purchase life insurance                                                                                insurance for your child(ren) and/or the child(ren)
                                                              < 25 years                           $0.540
for your spouse/domestic partner. Coverage is                                                                                      of your spouse/domestic partner. Under Child
                                                              25–29 years                          $0.528
available for purchase in the following amounts:                                                                                   Life Insurance, you may cover children who are
                                                              30–34 years                          $0.648                          at least 14 days old through age 25. Please note
 • $5,000       • $25,000      • $75,000     • $150,000
                                                              35–39 years                          $0.888                          that you must purchase Supplemental Employee
 • $10,000      • $50,000      • $100,000
                                                              40–44 years                          $1.200                          Life Insurance to be eligible to purchase Child
                                                                                                                                   Life Insurance. Evidence of Insurability (EOI) is not
Your Spouse/Domestic Partner Life Insurance                   45-49 years                          $1.884
                                                                                                                                   required for this coverage. The Child Life Insurance
coverage amount cannot exceed your employee                   50–54 years                          $3.072                          plan is available to you at a group discounted rate
Basic and Supplemental Life Insurance coverage                55–59 years                          $5.256                          and you will pay 100% of the cost of coverage on
amount if you elect coverage of $75,000 or
                                                              60–64 years                          $8.256                          a post-tax basis. Coverage is available for purchase
greater. If you are enrolling in a spouse/domestic
                                                              65–69 years                         $13.572                          in the following amounts:
partner coverage amount that is greater than
your current level, Evidence of Insurability (EOI)            70+ years*                          $25.284                      YOUR COST: CHILD LIFE INSURANCE
is required and you will be directed to an online            * F or employees age 70 and over, the actual life benefit is        AMOUNT OF INSURANCE               BI-WEEKLY DEDUCTIONS
EOI application when you enroll in this benefit. If             subject to reduction, see plan document for details.
                                                                                                                                            $ 5,000                              $0.37
you need a paper copy, you can print it from the
Resource link at the top of the enrollment screen.            Sample calculation using Spouse/Domestic                                      $ 7,500                              $0.55
                                                               Partner Life Insurance amount $100,000                                       $10,000                              $0.74
                                                                        and employee age 35.
YOUR COST: SPOUSE/DOMESTIC PARTNER LIFE INSURANCE
The Spouse/Domestic Partner Life Insurance plan is                       $100,000/$1,000 = $100
available to you at a group discounted rate and you            amount of life insurance per $1,000 of coverage
will pay 100% of the cost of coverage on a post-tax
basis. Should you elect Spouse/Domestic Partner
                                                                         $100 x $0.888 = $88.80
                                                                           annual cost of life insurance
Life Insurance, your cost will vary based upon the
amount of coverage elected and your age.                            $88.80/26 paychecks = $3.42
                                                                     bi-weekly payroll deduction (post tax)

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