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August 26, 2014

UNION COALITION LEADERSHIP

Dear Union Leaders:

A number of our employees and union representatives have written to us over a concern that the
University will be changing provisions for specialty drugs associated with several of our medical plans.
This is not the case; there are no plans to change specialty drug provisions for these plans. One rumor
expressed that these prescription plans would change as of September 1
st
. No such plan changes have
been approved, nor do we expect the changes people have written to us about to be implemented any time
in the foreseeable future.

We have a great concern for individuals who may need to use specialty drugs and are committed to
assuring these drugs are as accessible and affordable as possible within our plans. We use various
subsidies (like pay banding), the size of our plans and leverage in the marketplace to provide some of the
lowest rates available anywhere to our employees and plan participants that are most in need of medical
services.

From what we can see, this is how the misinformation around changes to these prescription drug
programs may have started. Each year the University assesses its Health and Welfare Benefit programs
and produces a number of potential plan adjustments that are designed to minimize the impact of medical
cost increases for the University and its employees. During the July 24
th
Union Coalition meeting, as part
of our regular information sharing, a specific item dealing with advancing a new model for prescription
drugs was discussed among approximately 10 other ideas for plan changes -- this is far from any of our
normal decision making or implementation processes. It is important to note that items like this typically
take years to go from the idea phase to implementation in our system. Again, a change to current
prescription drug payment programs was put forth as a discussion item and there are no active plans to
implement it. Wed appreciate it if you would share this information with your membership to allay any
concerns they may have.

Please contact me if you have any questions.

Sincerely,
Dwaine B. Duckett
Vice President for Human Resources
cc: Mike Baptista
Peter Chester