Subject: Important Update: Our Employee Health Benefits Transition - Effective July 1, 2025

Dear Colleagues,

We are writing to share important information about upcoming changes to our employee health benefits program. Effective July 1, 2025, we will be transitioning from Horizon Blue Cross Blue Shield of New Jersey in the State Employee Health Benefits Program (SEHBP) to a direct partnership with Horizon Blue Cross Blue Shield of New Jersey. We want to assure you that maintaining your healthcare quality while ensuring long-term sustainability has been our top priority throughout this decision process.

Why We're Making This Change

Over the past several years, we've experienced unpredictable and significant rate increases under the SEHBP that have created budgetary challenges. After careful evaluation with our benefits consultants, we've determined that establishing a direct relationship with Horizon will:

• Provide more predictable costs for both the district and you
• Protect against the erratic rate changes we've experienced
• Allow us to maintain high-quality healthcare coverage
• Give us more control over our benefits program

What This Means For You - The Important Details

Medical Coverage: We are pleased to confirm that this transition will involve minimal disruption to your medical care. Horizon has committed to providing us with plans that are equal to or better than the current SEHBP plans that they will now administer directly:

• Your provider network remains exactly the same as your current SEHBP plan
• You can continue seeing your same doctors without interruption
• Your ID number will remain unchanged
• The new plans will mirror our current SEHBP medical plans
• Coverage levels for in-network and out-of-network care will remain the same

Prescription Coverage: Our prescription plan will now be administered through Horizon's partner, Prime Therapeutics:

• While most medications will be covered similarly, there may be some differences in the prescription formulary
• We've created a user-friendly tool on our new benefits website that allows you to check your current prescriptions against the new formulary
• We strongly encourage all employees to review their current medications on the Prime Therapeutics website to verify coverage and tiers
• While this change is necessary for cost management, we understand it may have an impact on your experience
• Our benefits team is ready to provide personalized support for anyone with prescription coverage questions and support

Comprehensive Support Throughout This Transition

We understand that benefit changes can cause concern, and we're committed to supporting you:

      1. New Benefits Website: We've launched a comprehensive central hub resource center at https://c2mb.ajg.com/fairlawnboe (or scan the QR code). This website will include:

• Step-by-step guides for checking your prescriptions
• Plan comparison tools
• Frequently asked questions
• Contact information for support
• Communications related to the benefits program during the transition

       2. Video Overview: We have provided a video update explaining the changes, which may be accessed here.

       3. Information Sessions: We will host evening virtual information sessions for you to learn more and ask questions directly. Dates and times will be announced soon.

       4. Personal Support: Arthur J. Gallagher & Co. is dedicated to making this transition as smooth as possible. Your Arthur J. Gallagher & Co. dedicated service team representatives' contact information is available here to provide personalized assistance with any healthcare concerns or questions, as well as resources to help you understand the new plans and how they will affect you.

Our Commitment to You

We want to personally assure you that we've worked diligently to ensure this transition maintains the quality healthcare you deserve while creating long-term stability. Your well-being remains our highest priority.

In the coming weeks, you'll receive:

• Details about our virtual information sessions and resource webinars
• Your personalized enrollment information
• Additional guides to help you understand your new benefits

We appreciate your understanding and cooperation as we implement these changes to enhance the sustainability of our benefits program. Please stay tuned for further communications, including detailed plan information and support resources.

Thank you for your dedication to our students and district.