Health & Welfare

Medical Benefits

At AvalonBay, your medical benefits are administered by CareFirst Blue Cross/Blue Shield (BC/BS)--one of the largest health care organizations in the United States, serving more than 4 million people nationwide. Under this plan, you have the choice of participating in either the Preferred Provider Option or the Exclusive Provider Option.

Preferred Provider Option (PPO)
The PPO combines the economies of managed medical care with the freedom of choice found in traditional indemnity medical plans. Features of this plan include:

• No requirement that you use a primary care physician to manage your health care
• No referral needed for care by a specialist
• Emergency care covered anytime, anywhere
• Wide choice of in-network physicians and hospitals
• Coverage when you use an out-of-network provider
• Coverage when you are traveling and for dependents who live away from home

Exclusive Provider Option (EPO)
To get the full range of medical care at the lowest possible cost, you can choose to enroll in the EPO. Features of the EPO include:

• No requirement that you use a primary care physician to manage your health care
• No referral needed for care by a specialist
• No annual deductibles--you pay only a modest copay for most care
• Hospitalization and surgery are covered at 100% after a per admission deductible
• Benefits are available only when you use a preferred provider--except in plan-approved emergencies, there are no out-of-network benefits
• Emergency care is covered (at in-network rates) anywhere, anytime
• No claim forms to complete

Prescription Drug Benefits

Regardless of the BC/BS plan in which you enroll, you have prescription drug coverage, with a co-pay, depending on the type of drug prescribed.

Dental Benefits

Your AvalonBay dental benefits are administered by the Aetna. You have the choice of participating in either the Dental Preferred Provider Option (PPO) or the Dental Maintenance Organization (DMO). Both plans provide benefits for preventive and diagnostic services, minor therapeutic and restorative services, periodontic and major restorative services, and orthodontic services.

Under this plan, you and your covered dependents can obtain your dental care from any dentist you choose. Features of this plan include:

• No requirement to use a primary care dentist
• Coverage when you use out-of-network dentists
• Maximum annual benefit limit of $1,500 per person

This plan allows you to obtain the same full range of dental care at a much lower out-of-pocket cost. Features of this plan include:

• Network primary care dentist is required
• No annual deductibles
• Benefits are only available when you use a preferred provider -- there are no out-of-network benefits
• No maximum annual benefit limit

Vision Benefits

You may choose to enroll in our Vision Service Plan (VSP). VSP is a nationwide network of optometrists and ophthalmologists. The plan works like a preferred provider organization and offers benefits whether you use doctors within the network or outside the network. The plan provides benefits for regular eye examinations, glasses or contact lenses and laser vision care.

Life and AD&D Benefits

We offer a variety of benefits designed to provide financial protection for you and your beneficiaries in the event you become disabled or die. These benefits, which include life and accidental death and dismemberment (AD&D) insurance and business travel accident insurance, are fully paid by the company. In addition, you may purchase voluntary supplemental life and AD&D insurance for yourself and your dependents.

Disability Benefits

We offer the additional financial security of disability insurance fully paid by the company. Your short-term and long-term disability plans replace a percentage of your regular pay if you are unable to work for an extended period of time because of illness or injury. Your disability benefits provide valuable income protection for you and your family.

Spending Accounts

We offer two flexible spending account options. The health care spending account enables you to use pretax dollars to pay many of your out-of-pocket health care costs. The dependent care spending account allows you to use pretax dollars to pay work-related day care costs for eligible dependents.

Spending accounts are easy to use, and work much like a checking account. Each pay period, the contribution you have specified is deducted from your paycheck and deposited in a special account. As you incur and pay eligible expenses, you file claims to be reimbursed from the account. The advantage is the tax savings. Your contributions are not subject to Social Security, federal or most state income taxes. For most people this means a potential tax savings of 22.65% (15% federal, 7.65% Social Security) to 40% or more of the amount of their contributions.

Health Care Account

You can use the health care account to reimburse yourself for medical expenses incurred by you and your dependents (defined as anyone you claim as a dependent for income tax purposes) that are not covered by your health insurance plans. Eligible expenses include:

• Deductibles, copays, and coinsurance under your (and/or your spouse's) medical, dental and vision plans
• Costs in excess of health plan limits such as those for orthodontia or eyeglasses or contact lenses
• Expenses that are not covered by your insurance, such as hearing aids

Dependent Care Account

If you are a single parent or married and your spouse also works outside the home, you can use the dependent care account to reimburse eligible expenses for work-related day care for eligible dependents. Eligible expenses include the costs of:

• Nursery schools, day camps and licensed day care centers
• Care provided in your home or someone else's--the caregiver can't be one of your dependents or a child age 18 or younger
• Housekeeping services that routinely include the care of an eligible dependent

For this account, your eligible dependents are your children age 12 or younger and members of your household, of any age, who are physically or mentally unable to care for themselves and dependent on you for at least half their support.