2012 Benefits Enrollment Guide

Welcome to Open Enrollment for your 2012 Benefits!

Elections you make during open enrollment will become effective January 1, 2012.

Anchor Drilling Fluids USA, Inc. offers you and your eligible family members a comprehensive and valuable benefits program. We encourage you to take the time to educate yourself about your options and choose the best coverage for you and your family.

Who is Eligible?

If you are an Anchor Drilling Fluids USA, Inc. full-time employee (working 32 or more hours per week) you are eligible to enroll in the benefits described in this guide. In addition, your spouse and dependent children are also eligible. Dependent children include biological children, step-children, and children you are the court appointed guardian of. Dependent children are now eligible to stay on our plan until they are 26 years of age.

How to Enroll

If there is no change to your current enrollment, completion of the enrollment forms are unnecessary. If you do wish to make benefit election changes, then please complete the appropriate form found in this packet and fax to Diane or Gwen @ 918-583-0594.

When to Enroll

The open enrollment period runs from November 21, 2011 through December 21, 2011. The benefits you elect during open enrollment will be effective from January 1, 2012 through December 31, 2012. All enrollments/changes must be faxed to Diane or Gwen @ 918-583-0594. Note: All eligible payroll deductions will be withheld pretax from your paycheck as directed by Sec. 125 of the IRS code, unless you notify HR in writing that you wish not to participate prior to Jan 1, 2012.

How to Make Changes

Unless you have a qualified change in status, you cannot make changes to the benefits you elect until the next open enrollment period. For definition of a qualified change in status please contact Human Resources.

Medical and Prescription Drugs

Anchor Drilling Fluids is pleased to announce that there are no changes to our health plans. There is a small increase in payroll deductions and they are listed below the summary of benefits.

Services
/ Current
In-Network / Current
Out-of-Network
Annual Deductible
- Individual
- Family / $500 per year
$1,000 per year / $500 per year
$1,000 per year
Out-of-Pocket Max. (includes annual deductible)
Individual
Family / $3,000 per year
$6,000 per year / $6,000 per year
$12,000 per year
Benefits Coinsurance – The amount UHC Pays / 80% after deductible / 60% after deductible
Lifetime Maximum / $5,000,000
Office Visit
-PCP
-Specialty / $20 copayment per visit
$20 Copayment per visit / 60% after deductible
60% after deductible
Preventive Care / 100% coverage / 60% after deductible
Urgent Care
Emergency Room
Hospitalization / $50 copayment per visit
$100 copayment per visit
Deductible + 20% / Deductible + 60%
$100 copayment per visit
Deductible + 40%
Prescription Drugs
- Tier 1
- Tier 2
- Tier3
- Tier 4
Mail Order Pharmacy / $10
$30
$50
$100
90 day supply for 2 copays / N/A
N/A
N/A
N/A
N/A

*If above plan does not work for you and your dependents due to the area in which you live, please contact Human Resources for other available options.

Total Monthly Premium / Anchor Drilling Fluids Paid Portion / Employee Paid Portion
Monthly
Employee Only / $502.17 / $331.39 / $170.78
Employee & Spouse / $1104.77 / $719.11 / $385.66
Employee & Children / $929.01 / $596.62 / $332.40
Employee & Family / $1606.93 / $1002.45 / $604.48
Last year’s deductions per month were as follows: EE only-$160.93, Empl+Sp-$314.48, Empl+Ch-$364.00, Family-$572.97

There are no plan changes to our Delta Dental Plan that is illustrated below. Please also see attached benefit summary.

Services
/ In Network / Out of Network
Annual Deductible
Individual
Family
Deductible Waived for Preventive / $50 Per Year
$100 Per Year
Yes / $50 Per Year
$100 Per Year
Yes
Preventive & Diagnostic Services / 100% / 100%
Basic Services / 80% / 80%
Major Services / 50% / 50%
Annual Maximum / $1,000
Orthodontia Eligibility / Dependent children to age 19
Orthodontia Coinsurane / 50% / 50%
Orthodontia Lifetime Maximum / $1,000 per lifetime
Total Monthly Premium / Anchor Drilling Fluids Paid Portion / Employee Paid Portion
Monthly
Employee Only / $19.04 / $8.95 / $10.09
Employee & Spouse / $38.06 / $26.27 / $11.79
Employee & Children / $53.78 / $36.04 / $17.74
Employee & Family / $72.80 / $47.69 / $25.11

When you are enrolled in our medical plan you also receive vision benefits. If you utilize the services of a provider listed in the Preferred Provider Directory, your benefits include routine vision exams covered by a $20 copay. (1 covered visit each 24 months)

Anchor Drilling Fluids USA, Inc. provides full-time employees with short and long-term disability income benefits, and pays the full cost of this coverage. In the event you become disabled from a non work-related injury or sickness, disability income benefits are provided as a source of income. You are not eligible to receive short-term disability benefits if you are receiving workers’ compensation benefits.

/ Short-term Disability / Long-term Disability
Benefits Begin / After 7 days of disability / After 90 days of disability
Benefits Payable / 12 weeks / Normal Retirement Age
Percentage of Income Replaced / 60% / 60%

Anchor Drilling Fluids USA, Inc. provides full-time employees with Group life and accidental death and dismemberment (AD&D) insurance, and pays the full cost of this benefit. Employee and dependent supplemental life insurance coverage may be purchased by the employee if the employee/dependent provide evidence of insurability for additional coverage. Contact Human Resources at 918-583-7701 for additional details if you are interested or to update your beneficiary.

Please see attached information on our 401(K) plan.

NOTICES

Adding Dependent Children during Open Enrollment who were not previously eligible

Anchor Drilling employees will now be able to add dependent children up to 26 years of age to their medical plan due to the Patient Protection and Affordable Care Act (PPACA). The law allows dependent children to be added to group health plans only and is not extended to any other offered benefits including dental and vision plans.

Under the new law, a dependent child does not have to maintain full-time student status in order to be eligible for medical insurance. Other factors that may not be used to determine eligibility for the Plan include:

1.  Child’s financial dependency/marital status

2.  Residency

3.  Employment

However, we can deny enrollment of any dependent children who are applying during this special enrollment if they are eligible for coverage through their own employers’ group health plan. The new law also does not require coverage to be extended to the child of a dependent child.

If you have a child who meets the eligibility requirements and would like to add them to your health and/or dental plan, please complete a United Healthcare application and return it to Diane or Gwen by December 31, 2011. The effective date of coverage for the dependent will be January 1, 2012.

The information in this Enrollment Guide is presented for illustrative purposes and is based on information provided by the employer. The text contained in this Guide was taken from various summary plan descriptions and benefit information. While every effort was taken to accurately report your benefits, discrepancies or errors are always possible. In case of discrepancy between the Guide and the actual plan documents the actual plan documents will prevail. All information is confidential, pursuant to the Health Insurance Portability and Accountability Act of 1996. If you have any questions about your Guide, contact Human Resources.

IMPORTANT INFORMATION

HEALTHCARE REFORM

This group health plan believes this plan is a ‘‘grandfathered health plan’’ under the Patient Protection and Affordable Care Act (the Affordable Care Act). As permitted by the Affordable Care Act, a grandfathered health plan can preserve certain basic health coverage that was already in effect when that law was enacted. Being a grandfathered health plan means that your plan may not include certain consumer protections of the Affordable Care Act that apply to other plans, for example, the requirement for the provision of preventive health services without any cost sharing. However, grandfathered health plans must comply with certain other consumer protections in the Affordable Care Act, for example, the elimination of lifetime limits on benefits.

Questions regarding which protections apply and which protections do not apply to a grandfathered health plan and what might cause a plan to change from grandfathered health plan status can be directed to the plan administrator at Anchor Drilling Fluids at 1-918-583-7701. You may also contact the Employee Benefits Security Administration, U.S. Department of Labor at 1–866–444–3272 or www.dol.gov/ebsa/healthreform. This Web site has a table summarizing which protections do and do not apply to grandfathered health plans. You may also contact the U.S. Department of Health and Human Services at www.healthreform.gov.

Medicaid and the Children’s Health Insurance Program (CHIP) Offer Free or Low-Cost Health Coverage to Children and Families

If you are eligible for health coverage from your employer, but are unable to afford the premiums, the state of Oklahoma does have premium assistance programs that can help pay for coverage. These States use funds from their Medicaid or CHIP programs to help people who are eligible for employer-sponsored health coverage, but need assistance in paying their health premiums.

If you or your dependents are already enrolled in Medicaid or CHIP and you live in Oklahoma, you can contact your Medicaid or your CHIP office to find out if premium assistance is available.

If you or your dependents are NOT currently enrolled in Medicaid or CHIP, and you think you or any of your dependents might be eligible for either of these programs, you can contact your Oklahoma’s Medicaid or CHIP office or dial 1-888-KIDS NOW or www.insurekidsnow.gov to find out how to apply. If you qualify, you can ask the state of Oklahoma about the Insure Oklahoma plan.

Once it is determined that your or your dependents are eligible for premium assistance under Medicaid or CHIP, your employer’s plan is required to permit you and your dependents to enroll on the plan-as long as you and your dependents are eligible, but are not already enrolled in the employer’s plan. This is called a “special enrollment” opportunity, and you must request coverage within 60 days of being determined eligible for premium assistance.

If you live in Oklahoma, you may be eligible for premium assistance. Please see contact information below for further details and eligibility.

Oklahoma/Medicaid info:

Website: http://www.insureoklahoma.org

Phone: 1-888-365-3742