2019 Annual Enrollment Guide - For Active Employees - Baxter

Annual Enrollment Guide
For Active Employees

Enroll in Your Benefits
WHEN: Between 8 a.m. Central Standard Time on Monday, October 29,
2018, and midnight Central Standard Time on Friday, November 9, 2018.
You can make changes throughout the Annual Enrollment period.
Elections completed as of the close of the enrollment period will take
 effect January 1, 2019 and continue through December 31, 2019.

WHERE: www.MyBenefitsAtBaxter.com

HOW: Log in to www.MyBenefitsAtBaxter.com or call 1-844-249-8581
(English) or 1-844-249-8803 (Spanish) and follow the prompts to speak
with a Baxter Employee Benefit Center (BEBC) representative. Service
representatives are available to take your call Monday through Friday
from 8 a.m. to 5 p.m. Central Standard Time.
Inside This Guide

2019 Benefit Changes .................... 4
                                               2019 Annual Enrollment
Medical Plan Options...................... 6   Begins: Monday, October 29, 2018, at 8 a.m. Central Standard Time

Prescription Drug Coverage for                 Ends: Friday, November 9, 2018, at midnight Central Standard Time
the PPO, POS and BTO Plans ........ 9          Enroll online at
Dental Plan Options...................... 11

Other Benefits You Can Elect ........12        Enrollment Deadline
                                               After November 9, 2018, you can change elections only if you have a qualifying life
Notices about Your Benefits                    event such as marriage, adoption or birth of a child, divorce, death of a covered
Coverage and Rights ......................15   dependent or a change in your spouse’s or domestic partner’s employment status.
                                               Changes due to a qualifying life event must be made made within 31 days.

Your benefits represent a valuable portion of your total
compensation package at Baxter. Each year during Annual
Enrollment, you have the opportunity to review your benefit
elections and make changes to meet your needs and the needs
of your dependents. This Enrollment Guide will help you make
decisions on the following benefits for 2019:
• Medical Coverage
• Dental Coverage
• Flexible Spending Accounts
• Long-Term Disability Plus Insurance
• Supplemental Life Insurance
• Personal Accident Insurance
• Voluntary Benefits

 If You Are on Leave of Absence
 During Annual Enrollment, you can only make changes to your medical and
 dental coverage. When you return to active work, you can complete your
 other benefit elections, if eligible. Changes can be made by logging in to
 www.MyBenefitsAtBaxter.com within 31 days of your return to active work.

 The Affordable Care Act requires employers to send IRS Form 1095-C, an annual
 statement, to all employees eligible for coverage. The statement includes a
 description of the medical insurance available to them, the coverage they have
 enrolled in for 2018 and cost information. Employees may receive multiple forms
 if they were offered coverage by more than one employer and a separate
 1095-B form if they are covered under an insured plan (HMO). These IRS forms
 will be sent in January 2019. Be sure to review your covered dependent names and
 Social Security Numbers listed on www.MyBenefitsAtBaxter.com for accuracy to
 ensure proper reporting of healthcare coverage. To sign-up for e-delivery of your
 Form 1095, login to www.MyBenefitsAtBaxter.com and go to “At Your Fingertips”
 and select the IRS Form 1095 (ACA Reporting) link.

2019 Benefit Changes

Consistent with our goal to align our benefits with the marketplace, the following changes have been made for the
upcoming year:

 Benefit              What’s Changing
 Medical Plans        • PPO, POS, BCO and BTO: Applied Behavior Analysis (ABA) therapy for treatment of Autism Spectrum
                        Disorder will now be offered. Coverage for this and certain other behavioral health outpatient services will
                        be contingent upon pre-authorization and treatment review. See Page 8 for more details.
                      • Wisconsin Residents: Your BCBSIL PPO network will be replaced with the Blue Preferred POS provider
                        network. The new network provides greater discounts when you receive care, and you will likely have
                        access to the same providers you do with the PPO network. See Page 6 for more details.
                      • There are changes to HMO premiums. Visit www.MyBenefitsAtBaxter.com for details on premiums and
                        plan design.

 Flexible Spending    • Healthcare FSA: We are changing from a grace period to a carry over approach. Starting with the 2019
 Account (FSA)          plan year, you can carry over a maximum of $500 in unused funds into the next plan year. See Page 12 for
                        more details.
                      • Healthcare and Dependent Care FSA: The grace period for incurring claims will be removed. The deadline
                        for incurring claims will now be December 31 of the plan year, and the deadline for submitting claims will
                        continue to be March 31 of the following year. See Page 12 for more details.
                      • To comply with IRS limits, the maximum contribution rate for the healthcare FSA will be increased from
                        $2,600 to $2,650.

 Medical              • Medical contribution rates for the PPO will remain flat for 2019. Contribution rates for other plans
 Contribution Rates     may increase. The new employee contribution rates for your benefits can be found online at
                        www.MyBenefitsAtBaxter.com beginning October 29. Please note that your costs depend on the plan
                        you choose and the number of eligible dependents you cover.

Summary of Benefits and Coverage                                      New ID Cards
A summary of each medical plan offered is available to                If you are enrolled in the PPO, BTO or BCO medical plans,
help you understand and evaluate your medical insurance               you will receive a new medical ID card with updated
choices. The summaries can be found online at                         language on preauthorization. Additionally, if you reside in
www.MyBenefitsAtBaxter.com. Additionally, you may                     Wisconsin and are enrolled in the PPO medical plan option,
request a paper copy by calling the Baxter HRCentral                  your new ID card will show your new provider network
Support at 1-844-249-8581 (English) or 1-844-249-8803                 (Blue Preferred POS). If you switch medical plans or enroll
(Spanish) and following the prompts to the BEBC.                      in a medical or dental plan for the first time, you will also
                                                                      receive a new ID card. New plan ID cards will be mailed
                                                                      to your home by January 1, 2019.

Who’s Eligible?                                                         What Happens If You Don’t Enroll?
You and the following family members are eligible for the               If you are         If you do not enroll:
Baxter benefits* outlined in this guide:                                currently
                                                                        enrolled in:
•    Your spouse.
                                                                        Medical            • Your current election, if available,
•    Your domestic partner of the same or opposite gender.
                                                                        Coverage             will continue for 2019.
     If you intend to enroll a domestic partner and/or the                                 • If your current election is NOT
     children of a domestic partner, call HRCentral Support                                  available, you will default to the PPO
     at 1-844-249-8581 (English) or 1-844-249-8803                                           (Preferred Provider Option) or the
     (Spanish) and follow the prompts to the BEBC.                                           Blue Preferred POS (if you reside in
                                                                                             Wisconsin). If the PPO is not available,
•    Your children, including the children of your domestic
                                                                                             you will default to the BTO (Baxter
     partner, under age 26, are eligible for medical, dental,
                                                                                             Traditional Option).
     life, and personal accident insurance coverage.                                       • If you have never elected medical
* Short- and Long-Term Disability benefits are available only to you.
                                                                                             benefits, you will not default into
                                                                        Dental Coverage • Your current election, if available,
    Dependent Eligibility Audit                                                           will continue for 2019.
    Baxter conducts dependent eligibility audits on an                                  • If your current election is NOT
    ongoing basis. This means that if one or more of                                      available, you will default to the
                                                                                          Basic Dental Plan.
    your dependents are enrolled in Baxter benefits, you
                                                                                        • If you have never elected dental
    are required to provide proof of their eligibility for
                                                                                          benefits, you will not default into
    coverage (such as a birth certificate or a marriage
    license). Please ensure the family members you are
    covering are eligible for coverage and make changes                 Supplemental       • Your current elections will continue
                                                                        Life, Long-          for 2019.
    as needed. If you participated in Baxter’s Dependent
                                                                        Term Disability,
    Eligibility Audit in the past and received a confirmation
                                                                        and Personal
    letter, your verification process for those dependents
    is complete. If you enroll a new dependent, or if you               Insurance
    did not previously participate in the audit, you are
    required to provide the necessary documentation                     Healthcare and     • Your current elections will NOT
    for each dependent shortly after the start of the plan              Dependent Care       continue for 2019. These accounts must
    year. Additional information will be mailed to your                 FSAs                 be elected each year per IRS rules.
    home after Annual Enrollment. For a complete list of
    eligible dependents, see the Medical Summary Plan
    Description (SPD) under Plan Information at

Medical Plan Options

Preferred Provider Option (PPO)                                 and reside in Wisconsin, you will be automatically enrolled
                                                                in the Blue Preferred POS provider network, unless you
The PPO, offered through Blue Cross and Blue Shield of
                                                                make changes to your medical coverage during Annual
Illinois (BCBSIL), is available to employees who reside in
                                                                Enrollment. You will also receive a new ID card with the
PPO coverage areas. The PPO gives you access to one of
                                                                Blue Preferred POS network name. A letter explaining
the nation’s largest networks of doctors, hospitals and other
                                                                these changes will be sent before the Annual Enrollment
healthcare facilities. While you can see any doctor, you will
                                                                period begins.
pay lower out-of-pocket costs when you go to doctors and
facilities in the PPO network.                                  To find a doctor in the the Blue Preferred POS network,
                                                                visit www.bcbsil.com and use the Provider Finder ® tool.
To find a doctor in the PPO, visit www.bcbsil.com and use
the Provider Finder ® tool. If you are prompted to enter an
alpha prefix, enter BXE.                                          BCBS Cost Estimator Tool
                                                                  There’s a lot to think about when deciding where to
Wisconsin Residents — Blue Preferred POS
                                                                  get health care. Prices can differ substantially from
Your PPO provider network will be replaced with the               one provider to another, even for the same procedure.
Blue Preferred POS provider network, effective                    The BCBSIL Provider Finder® tool available through
January 1, 2019. The new network provides greater                 Blue Access for Members(SM) (BAM) is available to help
discounts when you receive care in-network. You will likely       make you a smarter health care shopper by allowing
have access to the same providers that are in the PPO             you to check costs before your appointment. Go to
because most providers currently used by our members              www.bcbsil.com, click Member Services, then Log
participate in both networks. When you seek care in               Into My Account and enter your credentials. (Or, click
Wisconsin from doctors and facilities in the Blue Preferred       the Register Now link if you are a new BAM user.
POS, you will pay lower out-of-pocket costs than if you go        Note, you will need your BCBSIL ID card to register.)
outside of the network. Wisconsin doctors and facilities not      Click, Find a Doctor or Hospital under the Doctors &
in the Blue Preferred POS are covered at the out of network       Hospitals tab, then click Find a cost. Once you select
benefit level. If you seek care outside of Wisconsin, you         your search criteria, you can compare estimated
can access the BCBSIL PPO network and will pay lower              out-of-pocket costs for medical services, view patient
out-of-pocket costs than if you use a provider outside of         feedback and find a network physician, specialist or
the PPO network. If you are currently enrolled in the PPO         hospital. It’s easy, immediate and secure.

Key Features of the PPO Plan*
 Plan Feature                           In-Network Services                                Out-of-Network Services

 Annual Deductible

 Employee                               $500                                               $1,000

 Employee + Family                      $1,000                                             $2,000

 Annual Out-of-Pocket Maximum (including deductible and copays)

 Employee                               $2,725                                             $5,450

 Employee + Family                      $5,450                                             $10,900

 Preventive Care

 Routine Preventive Care,               Plan pays 100%                                     Not covered

 Mammogram and Pap Tests                Plan pays 100%                                     Plan pays 60% after you meet the deductible

 Office Visits

 Primary Care Physician                 Plan pays 100% after $20 copay                     Plan pays 60% after you meet the deductible

 Specialist                             Plan pays 100% after $35 copay                     Plan pays 60% after you meet the deductible

 Hospital and Surgery Services

 Emergency Care                         Plan pays 80% after you meet the deductible        Plan pays 80% after you meet the in-network
                                        and $100 copay (copay waived if admitted)          deductible and $100 copay (copay waived if admitted);
                                                                                           if not a true emergency, plan pays 60% after you meet
                                                                                           the out-of-network deductible and copay

 Inpatient Hospitalization              Plan pays 80% after you meet the deductible        Plan pays 60% after you meet the deductible

 Outpatient Surgery                     Plan pays 80% after you meet the deductible        Plan pays 60% after you meet the deductible

 Diagnostic X-Ray and Laboratory        Plan pays 80%                                      Plan pays 60% after you meet the deductible

 Mental Health and Substance Abuse

 Inpatient                              Plan pays 80% after you meet the deductible        Plan pays 60% after you meet the deductible

 Outpatient – Office Visits             Plan pays 100% after $20 copay per visit           Plan pays 60% after you meet the deductible
 (including Group Therapy)

Percentages (%) shown represent the percentage of eligible charges the Plan will pay for covered services. The eligible charge may be less than the
actual billed charges. You are responsible for any expenses in excess of the eligible charge for services by an out of network provider. PPO network
providers agree to accept negotiated fees and not bill for charges in excess of those fees.

*Plan design is the same for the Blue Preferred POS.

Baxter Traditional Option (BTO)                                       Behavioral Health Outpatient Pre-Authorization
If you live outside the PPO or POS coverage area, the BTO             Certain behavioral health outpatient services will require
will be available to you. The BTO gives you the flexibility to        pre-authorization and medical review before benefits can
go to any doctor, hospital or other provider and pays 80% of          be determined. These services include:
your eligible charges once you meet the deductible ($500
                                                                      •   Applied Behavior Analysis (ABA)
individual, $1000 family). You are then responsible for any
portion of payment not covered by the plan up to the                  •   Electroconvulsive Therapy (ECT)
out-of-pocket maximum. Eligible preventive care is                    •   Intensive Outpatient Program (IOP)
covered at 100%. For more information on the BTO,
visit www.MyBenefitsAtBaxter.com.                                     •   Repetitive Transcranial Magnetic Stimulation (rTMS)

                                                                      •   Psychological testing/neuropsychological testing
Baxter Catastrophic Option (BCO)
                                                                      For more information on ABA or behavioral health
The BCO is available to all employees. This high deductible
                                                                      outpatient services pre-authorization, call BCBSIL
option, with a low premium cost, provides medical coverage
                                                                      Customer Service at 1-800-851-7498.
in case you or an eligible family member develops a major
illness or suffers a serious accident. Once you meet the
                                                                      If You Live Outside a Plan’s Coverage Area
plan’s deductible limit ($5,000 individual, $10,000 family),
the plan pays 100% of eligible medical and prescription               If you live outside of a geographic area covered by a
drug charges. For more information on the BCO, visit                  medical or dental plan, but still wish to enroll in one
www.MyBenefitsAtBaxter.com.                                           of these plans, you may request to do so during
                                                                      Annual Enrollment.
Health Maintenance Organization (HMO) Options                         To enroll online:
To find out if an HMO is available in your location or for            1. Select one of the medical or dental plans
details on plan design changes for Baxter’s HMO offerings,               listed on your enrollment worksheet at
visit www.MyBenefitsAtBaxter.com.                                        www.MyBenefitsAtBaxter.com. Save your
                                                                         elections and print your confirmation statement.
Applied Behavior Analysis (ABA) Treatment                                This step is necessary because requests for a plan
ABA for treatment of Autism Spectrum Disorder will be                    outside a coverage area are subject to approval.
offered effective January 1, 2019. Under the PPO or POS               2. Go to Resource Library, print the Opt-In Appeal Form:
plan, services provided by an in-network provider will be                2019, complete and return it to the BEBC. Forms must
covered at 100% after a $20 copay. Under the BTO and BCO                 be received no later than November 9, 2018.
plan, deductible and coinsurance apply. Benefit coverage
will be contingent upon medical review. To initiate treatment,        3. The plan administrator will determine if your request
the provider must submit clinical forms to BCBSIL to                     will be approved. If your request is denied, you will be
confirm:                                                                 enrolled in the plan(s) you elected in Step 1.

•       Autism diagnosis by an appropriate diagnostician;             Note: If you opted into coverage last year, please review
                                                                      your coverage options carefully as opt-in elections do not
•       Provider is qualified to conduct ABA services;                carry over from year to year.
•       Initial treatment plan meets medical necessity.

    Pre-Certification and Verification
    It is your responsibility to verify medical necessity and understand your benefits. You can request a predetermination
    review for a recommended procedure or test to make sure it meets the plan’s medical necessity criteria. Additionally, if you
    are covered under Baxter’s PPO, POS, BTO or BCO plans, you are required to “pre-certify” at least one business day before
    or within 48 hours following an emergency admission or for any inpatient admissions, residential treatment center care,
    skilled nursing care, private duty nursing, home healthcare. Certain outpatient medical and behavioral health care services
    also require medical review before services are provided. For more information on your benefit coverage, pre-certification
    requirements, or predetermination review, call BCBSIL Customer Service at 1-800-985-6241.

Prescription Drug Coverage

When you enroll in either the PPO, POS or BTO medical               There is a separate prescription drug out-of-pocket
plan option, you receive prescription drug coverage through         maximum: $2,000 individual/$4,000 family.
CVS Caremark. Under the BCO, your prescription drug
                                                                    Baxter partners with CVS Caremark to provide utilization
claims are covered under the medical plan after you meet
                                                                    management programs such as prior authorization,
the deductible. If you are in an HMO, your prescription drug
                                                                    quantity limits, and clinical step therapy for select drugs to
coverage is provided through the HMO.
                                                                    ensure cost-effective and safe use of drugs.

Prescription Drug Coverage for the PPO,                             For additional information on covered drugs and utilization
POS and BTO Plans                                                   management programs, call CVS Caremark at
Generic drugs are covered at the lowest copayment (Tier             1-866-282-3463.
1). Brand-name drugs that have been selected by CVS
Caremark for their clinical and cost-effectiveness are                Drugs determined as “non-formulary” based on
considered preferred (Tier 2) and cost you more than                  the prescription claims administrator’s current
generics, but less than non-preferred brands. Brand-name              formulary are not covered by the Plan. Additionally,
drugs that are considered non-preferred (Tier 3)                      effective January 1, 2019, the current prescription drug
cost more than preferred brands. In most cases, Tier 3                formulary will be changed to include the Advanced
non-preferred brand drugs have different brand or generic             Control Specialty Drug Formulary (ACSF). Additional
drug alternatives in Tiers 1 and 2 that treat the same                exclusions or changes in tiering may apply for some
condition, are more clinically effective and cost less.               specialty drugs. Most current specialty drug utilizers
                                                                      will be grandfathered and allowed to continue their
The copay / coinsurance structure is as follows:
                                                                      current specialty drugs. If you are impacted by this
Key Features of Baxter’s Prescription                                 change, you will receive a letter from CVS Caremark
                                                                      prior to the change advising you of the change and other
Drug Coverage
                                                                      preferred formulary options.
 Type of                 Retail Amount         Mail Order Amount
 Prescription Drug       You Pay*              You Pay*

 Tier 1 - Generic        $10                   $20

 Tier 2 - Brand          25% coinsurance       20% coinsurance
 name preferred          ($25minimum/          ($50 minimum/
 (when a generic         $75 maximum)          $150 maximum)
 equivalent is not

 Tier 3 - Brand          40% coinsurance       $40% coinsurance
 name                    ($50 minimum/         ($100 minimum/
 non-preferred           $115 maximum)         $230 maximum)
 (when a generic
 equivalent is not

 Brand name              $10, plus the         $20, plus the
 (preferred or non-      difference in         difference in cost
 preferred) when a       cost between          between the brand
 generic equivalent      the brand name        name and generic
 is available            and generic           equivalent

* The amount you pay will not exceed the drug cost.

Employee Assistance Plan –                                  BeWell@Baxter
Help when you need it                                       One way to get and stay healthy is to receive regular
The EAP provides you and your family members with up        checkups and routine health screenings. Routine,
to three free counseling sessions for help with a wide      in-network preventive and wellness care are covered
variety of issues, including marital differences, stress,   at 100% in the PPO, POS and BTO plans. This includes
financial, legal, child or elder care issues and work-      adult physical exams, well-baby and well-child care,
related concerns. The EAP network includes more than        mammograms, Pap tests and colonoscopies.
50,000 providers nationwide who can offer you the right
                                                            Through your medical plan, you may have access
care in a manner that is comfortable and convenient
                                                            to fitness center discounts and other programs like
for you: face-to-face, online or by phone. To talk to
                                                            smoking cessation and weight management resources
someone confidentially about your concerns, call the
                                                            that encourage you to stay active and healthy.
toll-free number, 1-877-361-4658 anytime
                                                            Check with your medical plan for details. For more
or go to Beacon Health Options website:
                                                            information, visit the BeWell@Baxter intranet site by
                                                            selecting “BeWell@Baxter” from the “Life & Career”
                                                            drop-down menu on the Baxter intranet homepage.

                                                            You also have access to the Personal Wellness
                                                            Profile Tool. Through this tool, you can confidentially
                                                            review your health status and identify and set goals
                                                            for improvement. For more information or to access
                                                            the tool, visit the BeWell@Baxter intranet site.
                                                            Refer to Personal Wellness Profile or go to

Basic and Basic Plus Dental Plan Options

Finding a Dentist – Under the Basic and Basic Plus                             DHMO (if available in your location) –
plans, you can use any dentist and receive the same level                      Cigna will continue to be the Dental HMO (DHMO) vendor.
of benefits whether the dentist is in or out of network.                       Your plan design features will remain the same for 2019
However, your costs will likely be less when you use an in-                    (as shown in the chart below). Under the DHMO, you must
network dentist because Cigna negotiates better rates with                     select a network dentist. The DHMO covers most dental
these providers. The network of providers that contract with                   expenses at contracted rates with no deductible or annual
Cigna is one of the largest in the country. That means there                   limit. Preventive care, general services and orthodontia
is a good chance that your dental providers will be in the                     are covered according to a schedule of benefits. For details,
network. To find a participating dental provider, visit                        visit www.MyBenefitsAtBaxter.com. To find a participating
www.cigna.com and use the Find A Doctor tool.                                  dental center, visit www.cigna.com and use the
                                                                               Find A Doctor tool.
Key Features of the Dental Plan Options

 Service                         Basic Dental*                          Basic Dental Plus*                  DHMO

 Annual Deductible                                                                                          No annual deductible; $5 copay
                                                                                                            applies to all office visits
 Employee                        $150                                   $125                                None
 Employee + Family               $300                                   $250                                None

 Preventive                      Plan pays 100% of reasonable           Plan pays 100% of reasonable        Plan pays 100%
                                 and customary charges                  and customary charges

 Basic                           Plan pays 65% of reasonable            Plan pays 80% of reasonable         Plan pays 100%
 (Endodontics, fillings, oral    and customary charges after            and customary charges after
 surgery, periodontics)          deductible                             deductible

 Major                           Plan pays 50% of reasonable            Plan pays 50% of reasonable         Plan pays 60%
 (Crowns, prosthodontics,        and customary charges after            and customary charges after         (denture repairs 100%;
 implants)                       deductible                             deductible                          implants are not covered)

 Orthodontia                     No coverage                            Plan pays 50% of reasonable and     Plan pays 50%
                                                                        customary charges up to $1,500      (no maximum benefits)
                                                                        per person, per lifetime**

 Annual Benefit                  $2,000                                 $2,000                              No maximum
 Maximum, per person

* Charges for services provided by a Cigna network provider are based on negotiated rates.
** Spouses, domestic partners and dependent children over age 19 are not eligible for orthodontia.

Other Benefits You Can Elect

Healthcare and Dependent Care Flexible                          and view IRS Publications 502 (healthcare) and 503
Spending Accounts (FSAs)                                        (dependent care).

You can save on taxes using pre-tax money you’ve set            Note: Dependent Care Flexible Spending Accounts are
aside in these accounts to pay for eligible expenses.           “use it or lose it” accounts per IRS guidelines — meaning
The maximum amount you can contribute in 2019 to the            you forfeit any unclaimed funds remaining in your account
Healthcare FSA is $2,650, and the maximum amount you            after the claim deadline. WageWorks, Baxter’s FSA vendor,
can contribute to the Dependent Care FSA is $5,000              has tools to help you estimate your annual expenses (visit
(some restrictions may apply if you are married).               https://www.wageworks.com/employees/open-
                                                                enrollment-center/ for details).
You can use your Healthcare FSA for eligible healthcare
expenses not covered by your medical, dental or vision
                                                                Life, Personal Accident, and Disability
plans, including deductibles, copays and coinsurance
amounts, as well as many common healthcare purchases
(e.g., saline solution and first-aid supplies). Over-the-       For details, go to www.MyBenefitsAtBaxter.com. Rates
counter medicines (e.g. Claritin, Advil, cough syrups) are      will be shown on your online Annual Enrollment worksheet.
not considered eligible expenses unless accompanied by
a prescription.
                                                                Disability Insurance – Rebranding to Lincoln
                                                                Financial Group
Your Dependent Care FSA can be used for child care
                                                                As you may know, effective May 1, 2018, our disability
services for your eligible dependent children under age 13,
                                                                insurance plan carrier and administrator, Liberty Life
or for services to care for other qualified dependent family
                                                                Assurance Company of Boston is now a wholly owned
members (e.g., elder care). Please note that you cannot
                                                                subsidiary of The Lincoln National Life Insurance Company,
use your Dependent Care FSA to cover your dependent’s
                                                                a Lincoln Financial Group Company. Over the next 12
healthcare costs.
                                                                months, your disability benefits and communications
New Healthcare FSA Carry Over Feature: Starting with            marketed as Liberty Mutual Insurance will be rebranded
the 2019 plan year, you can carry over a maximum of $500        to the Lincoln Financial brand. This change does not
from your Healthcare FSA account into the next plan year.       affect your how your disability benefits are designed
The amount you can carryover over is determined as of           or administered.
March 31 of the following year. This new carry over feature
does not apply to the Dependent Care FSA.                       Commuter Benefits
For example, if you contribute $2,650 to your Healthcare        Through the commuter benefits program, administered by
FSA for 2019, but only incurred $2,000 in eligible medical      WageWorks, you can use pre-tax funds to pay for parking
expenses by December 31, 2019, you have left $650 in            and public transit — such as train, subway, UberPool, bus
unused funds. After the 2019 claims submission deadline         or vanpool-as part of their daily commute to work.
(March 31, 2020), you will carry over $500, and you will
                                                                You can contribute up to a maximum of $260 Pre-Tax
forfeit the remaining $150. You can use the $500 carry over
                                                                dollars per month for transit and eligible vanpools and
amount for eligible medical expenses during the remainder
                                                                up to a maximum of $260 Pre-Tax dollars per month for
of 2020 or for future plan years.
                                                                qualified parking (as of 2018). These limits may change for
Grace Period Changes: When the current year ends on             2019. Any monthly orders that are over $260 will have the
December 31, 2018, you will have a grace period of 2½           difference deducted on a Post-Tax basis.
months (until March 15, 2019) to incur eligible claims.
                                                                You can sign up and manage your commuter
For the 2019 plan year and ongoing, the grace period for
                                                                benefits account at the WageWorks website:
incurring claims will be removed. Instead, beginning with
                                                                https://www.wageworks.com/employees at any time.
2019 elections, your deadline for incurring eligible expenses
                                                                There’s no special enrollment period, however, you must
will be December 31, 2019.
                                                                sign up by the 10th of the month prior to when you want to
Claims Submission Deadline: Claims for eligible expenses        use benefits. For example, you must sign up by November
must be submitted by March 31 of the following plan year.       10th for December passes. You can also set up recurring
For a comprehensive list of eligible expenses, see the SPD      elections and payments.
at www.MyBenefitsAtBaxter.com or visit www.irs.gov
                                                                Learn more about commuter benefits at

Voluntary Benefits                                                            IIP Reminder
Through YouDecide, an external vendor, you have the                           Are you preparing for your financial future? To have the
opportunity to enroll in the following employee-paid benefits                 amount of income you’ll need in retirement, you’ll likely
through convenient payroll deductions.1                                       have to save some of the income you earn while you are
                                                                              working. Baxter’s IIP (401(k) Plan) provides an easy and
• Vision Insurance
                                                                              efficient way to do that by offering great benefits such as:
• Legal Benefits
                                                                              •   Reduced income taxes when you make before-tax
• Long Term Care Insurance                                                        contributions;

• Auto Insurance                                                              •   Matching contributions from Baxter to help your account
                                                                                  grow faster;
• Homeowners Insurance
                                                                              •   Total control over how much to save and how to invest.
• Pet Insurance
                                                                              The earlier you start saving, the longer your money can
If you would like to enroll in Vision Insurance, Legal Benefits
                                                                              remain invested before you need it. Time can make a big
and/or Long Term Care Insurance, you must do so during
                                                                              difference in how much money you might end up with at
Annual Enrollment. Coverage will begin on January 1,
                                                                              retirement, so start today!
2019. If you are currently enrolled in Vision, Legal and/or
Long Term Care, your election and covered dependents                          Already saving in the 401(k) Plan? Give your account a
will continue for the benefit year starting January 1, 2019.                  “checkup” to make sure your contributions and your
You can enroll in Auto, Homeowners and/or Pet Insurance                       investments are still in line with your goals and your
benefits anytime during the year.                                             remaining time before retirement. The IIP website has
                                                                              tools like, MyOrangeMoney, to help you determine if you
For plan and rate information, to enroll, disenroll, or
                                                                              are on track.
to make any changes to your Voluntary Benefits, visit
                                                                              Employee Stock Purchase Plan (ESPP)
    Baxter does not sponsor, endorse or have any responsibility for           The ESPP allows you the opportunity to purchase Baxter
    these benefits. Baxter’s sole involvement with these benefits is to
                                                                              common stock each month at a 15 percent discount (up to
    withhold the cost of any benefits that you choose to purchase from
    your paycheck, on an after-tax basis, and transmit the payments to        15 percent of base pay and sales commissions) through
    the applicable provider. Any questions that you have about the benefits   convenient payroll deductions with no brokerage fees.
    must be directed to the provider. For additional information, see the     The money deducted from your eligible pay is placed into an
    materials from the providers of these benefits.
                                                                              account for you and, at the end of each month, used to buy
                                                                              shares of Baxter stock. For more information on how the
                                                                              plan works and how to enroll, search for ESPP
                                                                              on BaxCentral.

Employee Discounts
Name or update your beneficiaries for your
                                                            You and your family have the opportunity to save money
retirement account today!                                   on a range of products and services such as electronics,
Designating beneficiaries for your 401k IIP savings plan    fitness center memberships, movie tickets, flowers, gifts,
helps make sure that in the event of your death, your       books and music through Baxter’s employee discount
wishes are being followed. That’s because it can ensure     program. Visit www.YouDecide.com/Baxter for more
the savings you’ve worked so hard to accumulate             details and offers. You will be prompted to create a
are passed along to the right people. Designating a         username and password.
beneficiary is easy. Don’t wait! Do it Today!
                                                            In addition, you also have access to other corporate
• Log on to your account at baxteriip.voya.com              discounts on items such as cellular phones and travel-
                                                            related services. For more details, search for
• From the Personal Information menu, click
                                                            “Voluntary Benefits & Employee Discounts” on the
  Beneficiary Information, then Add/Edit Beneficiary.
                                                            Baxter intranet (BaxCentral).
• You can also make your designation over the
  phone by calling HRCentral Support at
  1-844-249-8581 (English) or 1-844-249-8803
  (Spanish) and following the prompts to speak
  directly with a Voya representative.

Once you add your information online, you can easily
manage and make changes to it in the event of life
changes in the future such as marriage, birth of a child,
or divorce. Your new election will override any existing
elections you may have on file.

If you have questions or need assistance you can call
HRCentral Support at 1-844-249-8581 (English) or
1-844-249-8803 (Spanish) and follow the prompts
to speak directly with a Voya representative.

Please make sure to verify that you have the most up to
date beneficiary on all your coverages including life and
pension, if applicable.

Notices About Your Benefits Coverage and Rights

For more information on these notices, go                         Notice of Grandfathered Plan Status
www.MyBenefitsAtBaxter.com and click on
                                                                  For the 2019 Plan Year, the BCO option remains a
Resource Library for the Summary Plan Descriptions.
                                                                  “grandfathered health plan” under the Patient Protection
If you have questions, call HRCentral Support at
                                                                  and Affordable Care Act (the Affordable Care Act). All
1-844-249-8581 (English) or 1-844-249-8803 (Spanish)
                                                                  other options under the Baxter Medical Plan are no longer
and follow the prompts to speak with a Baxter Employee
                                                                  grandfathered health plans. As permitted by the Affordable
Benefit Center (BEBC) representative.
                                                                  Care Act, a grandfathered healthcare plan can preserve
                                                                  certain basic healthcare coverage that was already in
HIPAA Privacy Notice
                                                                  effect when that law was enacted. Being a grandfathered
Under the Health Insurance Portability and Accountability         healthcare plan means that your plan may not include
Act of 1996 (HIPAA), the Baxter plans are required to provide     certain consumer protections of the Affordable Care Act
you with a HIPAA Notice of Privacy Practices (“Notice”)           that apply to other plans; for example, the requirement for
at the time of your enrollment in the plan, and at certain        the provision of preventive healthcare services without any
other times. In addition, the plan is required to periodically    cost sharing. However, grandfathered healthcare plans
notify you of the availability of the Notice and provide you      must comply with certain other consumer protections in
with information on how to obtain a copy of the Notice.           the Affordable Care Act; for example, the elimination of
You may request a copy of the plan’s Notice by visiting           lifetime limits on benefits.
www.MyBenefitsAtBaxter.com and clicking on
Resource Library. To the extent that the plan contains            Questions regarding which protections apply and which
benefits other than those covered under HIPAA’s privacy           protections do not apply to a grandfathered healthcare
rule, this reminder pertains only to those healthcare             plan and what might cause a plan to change from
benefits that are covered under HIPAA’s privacy rules.            grandfathered healthcare plan status can be directed to
A copy of the latest notice is included in this mailing.          the plan administrator.
                                                                  You may also contact the Employee Benefits Security
Women’s Health and Cancer Rights Act of 1998                      Administration, U.S. Department of Labor at
The Women’s Health and Cancer Rights Act of 1998 requires         1-866-444-3272 or www.dol.gov/ebsa/healthreform.
Baxter to advise you annually of the following benefits.          This website has a table summarizing which protections
Your Baxter medical plan provides for mastectomy-related          do and do not apply to grandfathered healthcare plans.
services, including reconstruction and surgery to achieve
symmetry between the breasts. It also provides for
mastectomy-related prostheses and provides for services
to address complications resulting from a mastectomy,
including lymphedema. For more information, consult
your medical plan’s member services department.

Notice of Special Enrollment Rights —
Children’s Health Insurance Program (“CHIP”)
Effective April 1, 2010, if you and your eligible dependents
are not already enrolled in Baxter’s medical plan, you may
enroll yourself and your eligible dependents if (1) you or your
dependents lose coverage under a state Medicaid or CHIP,
or (2) you or your dependents become eligible for premium
assistance under the state Medicaid or CHIP, as long as you
request enrollment no more than 60 days from the date of
the Medicaid/CHIP event.

Baxter International Inc.   This guide provides highlights of your Baxter benefits for the 2019 plan year. Please keep
One Baxter Parkway          this guide with your Summary Plan Descriptions (SPD) and other important papers. This
Deerfield, Illinois 60015   guide is not your SPD. For a copy of your SPD, log in to www.MyBenefitsAtBaxter.com
                            and click on Resource Library. This guide is based on official plan documents. If there is
                            any discrepancy between this guide and the official documents, the official documents will
                            govern. Nothing in this guide says or implies that participation in the plans described is a
                            guarantee of continued employment with Baxter, nor is it a guarantee that the plans will
                            remain unchanged in the future. Baxter reserves the right to suspend, amend or terminate
                            these plans at any time. For questions about your benefits, call HRCentral Support at
                            1-844-249-8581 (English) or 1-844-249-8803 (Spanish) and follow the prompts to the BEBC.

BAX AE A1 (19)
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