New Tribune Co. Benefits Information & Update

From: Tribune Communications
Sent: Friday, September 30, 2011 8:56 AM
Subject: Message from Mike Bourgon/New Benefits Information & Update

Starting today, you’ll be getting regular updates filled with information about Tribune’s upcoming Open Enrollment Process and the company’s new medical benefit plans with Blue Cross Blue Shield. These updates are designed to help you make an informed decision about which plan is best for you and your family, so be on the look-out for online webinars, brochures, mailings to your home and, of course, additional emails. You can also follow us on twitter--@TribBenefits.

After last week’s announcement of our shift to Blue Cross Blue Shield, several of you asked about the cost of medical premiums for the PPO and the BlueEdge^SM HSA plans, and we know that’s an important factor in which plan you choose.

Some background information might be helpful here. Tribune covers approximately 70% of the cost of providing employees with medical benefits. Over the last three years, even as the cost of medical care in the U.S. rose more than 9% annually, PPO medical plan premiums for Tribune employees increased only modestly—up an average of 3% annually (in 2010, premiums didn’t increase at all). During this same timeframe, PPO medical premiums across the country increased an average of 10% annually.

As has been widely reported recently, medical costs are expected to rise again sharply in 2012 and our projected PPO plan expenditures reflect this expectation. As a result, PPO premiums for next year are increasing about 9.5%. We recognize that this is not an insignificant increase, and we continue to look for opportunities to keep our medical coverage affordable for you and to provide you with a choice of plans in 2012.

That’s part of the reason we’re introducing the BlueEdge^SM HSA plan. Benefits under the BlueEdge^SM HSA plan are similar to the standard PPO, and though the deductibles are higher, the premiums are significantly less expensive—in some cases, more than 40% lower than the PPO rates. The HSA plan also includes a Health Savings Account (partially funded by the company) to which you can contribute money on a pre-tax basis to help cover out-of-pocket healthcare expenses and meet deductibles. Over the next several weeks, we’ll provide you with more detailed information about the BlueEdge^SM HSA, along with specific examples of how it will work, and how you can maximize your pre-tax contributions and derive the most from your benefits under the plan.

So, to recap, when you enroll for your benefits for 2012, you’ll have a choice between two new Blue Cross Blue Shield medical plans:

· PPO – a traditional plan, offering participants a higher level of benefits for using network doctors and hospitals.

· BlueEdge^SM HSA – a high deductible PPO plan that includes a Health Savings Account (HSA).

Attached are the bi-weekly 2012 premiums for both medical plans, as well as rates for the dental and vision plans. Please note that these rates apply to non-union employees. Rates for union-represented employees are subject to collective bargaining and may be different.

If you have questions, please contact the Benefits Service Center at 800/872-2222, and be sure to keep looking for more information on our benefit plans in the weeks ahead.

Mike Bourgon

VP/Human Resources