Loading...
HomeMy WebLinkAbout2012-038 Human Resources - Delta Dental Claims & Administrative fees~\~ t:::] i~w ~ ~5 ~1! t ~y ~ ~~~~o ~ ,~E~~~ DELTA DENTAL SERVICE CONTRACT for ORANGE COUNTY THIS DELTA DENTAL SERVICE CONTRACT (this "Contract") is effective the lst day of January, 2012, by and among Orange County, hereinafter referred to as Contractor and Delta Dental of North Carolina, a nonprofit corporation incorporated under the laws of the State of North Carolina, hereinafter referred to as Delta Dental. WHEREAS, the Contractor wishes to provide self-funded dental benefits plans for its employees; and WHEREAS, Delta Dental is in the business of underwriting, administering, and/or marketing dental plans as a member of the Delta Dental Plans Association ("DDPA"), and wishes to facilitate the Contractor's choice of a Delta Dental Plan for its employees; and VVHEREAS, the Contractor wishes to adopt a Delta Dental PPO and/or Delta Dental Premier dental benefit plan as its self-funded dental benefits plans (collectively, the "Contractor's Dental Plan"); and WHEREAS, the Contractor wishes Delta Dental to provide all of the administrative services for the Contractor related to the Conlractor's Dental Plan, and Delta Dental wishes to perform such administrative services. NOW THEREFORE, in consideration of the mutual representations, warranties and covenants and subject to the conditions contained herein, the parties hereto agree as follows: Section I. Declarations Attached hereto as Exhibit A are the terms, conditions, plan designs, and rates of Contractor's Dental Plan. Attached hereto as Exhibit B are the terms and conditions contained in the Summary of Dental Plan Benefits and Certificate or the Contractor's Summary Plan Description approved by Delta Dental. Section II. De~nitions A. Benefit Year means the calendar year, unless the Contractor elects a different period to serve as the Benefit Year. B. Benefits means payment for Covered Services that have been selected under the Contract. C. Contract means this document, including, if applicable, any appendices, additional Declarations (successor agreements or renewals, or renewal letters now or hereafter issued or executed. Revised 09/2011 D. Copayment means the percentage of the charge, if any, that the Eligible Person must pay for Covered Services. E. Covered Services means the unique dental services selected for coverage as described in Exhibit A and subject to the terms and conditions of this Contract. F. Deductible means the amount a person and/or a family must pay toward Covered Services before Delta Dental begins paying for services under this Contract. If the Contractor has selected a Deductible, it will be indicated in Exhibit A. G. Delta Dental means Delta Dental of North Carolina, a non-profit health service plan corporation. Delta Dental is not a commercial insurance company. H. Delta Dental Plan means an individual dental benefit plan that is a member of the Delta Dental Plans Association, the nation's lazgest, most experienced system of dental health plans. I. Delta Dental PPO plus Premier means Delta Dental's national preferred provider organization that can reduce out-of-pocket expenses for Eligible Persons if they receive care from one of Delta Dental's PPO Dentists. This program has back-up coverage through the Delta Dental Premier network when treatment is received from a Non-PPO Dentist. J. Delta Dental PPO (Standard) means Delta Dental's national preferred provider organization that can reduce out-of-pocket expenses for Eligible Persons if they receive care from one of Delta Dental's PPO Dentists. K. Delta Dental Premier means Delta Dental's national fee-for-service dental benefits program. L. Dentist means a person licensed to practice dentistry in the state or country in which dental services are rendered. 1. Delta Dental PPO Dentist (PPO Dentist) means a Dentist who has signed an agreement with the Delta Dental Plan in his or her state to participate in Delta Dental PPO. PPO Dentists agree to accept Delta Dental's payment and the Eligible Person's Copayment, if any, as payment in full for Covered Services. 2. Delta Dental Premier Dentist (Premier Dentist) means a Dentist who has signed an agreement with the Delta Dental Plan in his or her state to participate in Delta Dental Premier. Premier Dentists agree to accept Delta Dental's payment and the Eligible Person's Copayment, if any, as payment in full for Covered Services. 3. Nonparticipating Dentist means a Dentist who has not signed an agreement with any Delta Dental Plan to participate in Delta Dental PPO or Delta Dental Premier. 4. Out-of-Country Dentist means a Dentist whose office is located outside of the United States and its territories. Out-of-Country Dentists are not eligible to sign participating agreements with Delta Dental, but may participate in the Passport Dental program. Revised 09/2011 2 PPO Dentists and Premier Dentists are sometimes collectively referred to herein as "Participating Dentists". Wherever a definition or provision of this Contract differs from another state's Delta Dental Plan and its agreement with a Participating Dentist, the agreement in that state with that Dentist shall be controlling. Premier Dentists, Nonparticipating Dentists, and Out-of-Country Dentists are sometimes collectively referred to herein as"Non-PPO Dentists". M. Eligible Dependent means (a) the Subscriber's legal spouse and (b) any other dependents who meet the criteria for eligibility set forth in E~chibits A and/or B. If dependent coverage has been selected, it will be indicated in Exhibit A. N. Eligible Person means any Subscriber or Eligible Dependent under this Contract. O. Maximum Approved Fee means a system used by Delta Dental to detemrine the approved fee for a given procedure for a given Participating Dentist. A fee meets Maximum Approved Fee requirements if it is the lowest o£ 1. The Submitted Amount. 2. The lowest fee regularly charged, offered, or received by an individual Dentist for a dental service or supply, irrespective of the Dentist's contractual agreement with another dental benefits organization. 3. The xnaximum fee that the local Delta Dental Plan approves for a given procedure in a given region and/or specialty, under normal circumstances, based upon applicable Delta Dental PPO or Delta Dental Premier Participating Dentist schedules and intemal procedures. Delta Dental may also approve a fee under unusual circumstances. Participating Dentists are not allowed to charge Delta Dental patients more than the Maximum Approved Fee for a Covered Service. In all cases, Delta Dental will make the final determination regarding the Ma~cimum Approved Fee for a Covered Service. P. Maximum Payment means the maximum dollaz amount Delta Dental will pay in any Benefit Year or lifetime for Covered Services. The Maximum Payment is specified in Exhibit A and Exhibit B. Q. Nonparticipating Dentist Fee means the ma~cimum fee that Delta Dental will pay per procedure for services rendered by a Nonparticipating Dentist. R. Out-of-Country Dentist Fee means the maximum fee that Delta Dental will pay per procedure for services rendered by an Out-of- Country Dentist. S. Plan means the dental coverage established for Eligible Persons pursuant to this Contract. T. Post Service Claims means claims for benefits that are not conditioned on the Eligible Person seeking advance approval, certification, or authorization to receive the full amount of any covered benefit. In other words, Post Service Claims arise when the Eligible Person receives the dental service or treatment before the claim is filed for the benefit payment. Revised 09/2011 U. PPO Dentist Schedule means the ma~cimum amount allowed per procedure for services rendered by a PPO Dentist as deternuned by that Dentist's local Delta Dental Plan. V. Premier Dentist Schedule means the maximum fee allowed per procedure for services rendered by a Premier Dentist as deternuned by that Dentist's local Delta Dental Plan. W. Predetermination means a voluntary and optiona.l process where, at the request of a Subscriber, Eligible Dependent or Dentist, Delta Dental issues a written estimate of dental benefits which may be available for a proposed dental service under the terrns of the Subscriber's coverage. Predeternunation is provided for informational purposes only and is not required in advance of obtaining dental care or as a prerequisite or condition for approval of fuhue dental benefits payment. The benefits estimate provided on a Predetermination notice is determined based on the benefits available for the Subscriber or Eligible Dependent on the date the notice is issued, and is not a guarantee of future dental benefits payment. Availability of dental benefits at the time a dental service is completed depends on factors such as, but not limited to, eligibility for benefits, annual or lifetime Maximum Payrnents, coordination of benefits, Contract and Dentist status, Contract limitations and other provisions. A request for a Predeternunation is not a claim for benefits or a preauthorization, precertification or other reservation of future benefits.. X. Processing Policies means Delta Dental's policies and guidelines used for Predeternunation and payment of claims. The Processing Policies may be amended from time to time. Y. Rate means the amount, per Subscriber and Subscriber classification, the Contractor agrees to pay Delta Dental each month. This amount, or the information necessary to compute it, is specified in Exhibit A. Z. Submitted Amount means the amount a Dentist bills to Delta. Dental for a specific treatment. A Participating Dentist cannot charge the Eligible Person for the difference between this amount and the amount Delta Dental approves for the h-eatment. AA. Subscriber means all people who are a members of the group specified in Exhibit A and aze certified as being eligible by the Contractor and are enrolled to receive Benefits under this Contract. Section III. Agreements A. Delta Dental agrees: 1. To provide all claims processing, service, and administration for a group. Delta Dental shall provide all administrative services related to the Plan, including, but not limited to (a) adjudication, processing, and payment of claims; (b) providing the Plan with access to the Delta Dental National Provider network, network development, contracting and ongoing relations with dentists with respect to the Dental Plan, and interfacing with other Delta Dental Plans for network access and development activities in other states as required by the Plan; (c) assisting the Plan with establishing underwriting standazds, if any, for the Dental Plan; (d) providing all customer service functions for the Plan and the Plan Subscribers; and (e) maintaining adequate books and records of all transactions related to the services to be provided hereunder by Delta Dental. Revised 09/2011 4 2. To make no payments from the money received from the Contractor for any services rendered to a person who is not eligible for dental benefits as defined in this Plan; provided, however, that Delta Dental receives timely information from the Contractor regazding the eligibility of each Subscriber and Eligible Dependent, as set forth in Section III.B.2. No retroactive eligibility updates, including additions and ternunations, will be accepted for an effective date more than 90 days prior to the date of receipt of the update by Delta DentaL 3. To endeavor to enlist Dentists to become Participating Dentists in sufficient number to ensure an adequate choice of Dentists, and to make periodic checks regarding the adequacy of care provided by Dentists to people covered by this Plan. Delta Dental is not required to schedule a dental appointment for an Eligible Person. 4. To contractually require each Participating Dentist to schedule and render all dental treatment provided under this Plan according to the standards of the dental profession in the community in which the dental procedures are rendered. 5. To make payments in the following manner for dental services provided to Eligible Persons. The program that is chosen by the Contractor (or its affiliates) will determine how payment is made: a. Delta Dental Premier If the Dentist is a Participating Dentist, Delta Dental will base payment on the Maximum Approved Fee. Delta Dental will send payment directly to Participating Dentists and the Eligible Person will be responsible for any applicable Copayments or Deductibles. Unless prohibited by state law, the Eligible Person will be responsible for the Maximum Approved Fee for most commonly-performed non-covered services. For other non-covered services, the Eligible Person will be responsible for the Dentist's Submitted Amount. ff the Dentist is a Nonparticipating Dentist, Delta Dental will base payment on the lesser of the Submitted Amount or the Nonparticipating Dentist Fee. Delta Dental will usually send payment to the Subscriber, who is responsible for making full payment to the Nonparticipating Dentist. The Eligible Person will be responsible for any difference between Delta Dental's payment and the Dentist's Submitted Amount. If the Dentist is an Out-of-Country Dentist, Delta Dental will base payxnent on the lesser of the Submitted Amount or the Out-of-Country Dentist Fee. Delta Dental will send payment to the Subscriber, who is responsible for making full payment to the Dentist. The Eligible Person will be responsible for any difference between Delta Dental's payment and the Dentist's Submitted Amount. b. Delta Dental PPO (Standard) To make payments for Covered Services provided to Eligible Persons based on the lesser of the Submitted Amount or the PPO Dentist Schedule. Delta Dental will send payment directly to Participating Dentists and the Eligible Person will be responsible for any applicable Copayments or Deductibles. If the Dentist is not a PPO Dentist, but is a Premier Dentist, the Eligible Person will also be responsible for any difference between the PPO Dentist Schedule and the Premier Dentist Schedule for Covered Services, in addition to Copayments or Deductibles. Unless prohibited by state law, the Eligible Person will be responsible for the Malcimum Approved Fee for most commonly-performed non-covered services. For other non-covered services, the Eligible Person will be responsible for the Dentist's Submitted Amount. For Covered Services rendered by a Nonparticipating Dentist or Out-of-Country Dentist, Delta Dental will usually send payment to the Subscriber, who is responsible for inaking full payment to the Denrist. The Eligible Person will be responsible for any difference between Delta Dental's payment and the DentisYs Submitted Amount. c. Delta Dental PPO plus Premier Revised 09/2011 To make payments for Covered Services provided to Eligible Persons based on the lesser of the Submitted Amount or the PPO Dentist Schedule. Delta Dental will send payment directly to Participating Dentists and the Eligible Person will be responsible for any applicable Copayments or Deductibles. If the Dentist is not a PPO Dentist, but is a Premier Dentist, the Eligible Person wi11 also be responsible for any difference between the PPO Dentist Schedule and the Premier Dentist Schedule for Covered Services, in addition to Copayments or Deductibles. Unless prohibited by state law, the Eligible Person will be responsible for the Maximum Approved Fee for most commonly-performed non-covered services. For other non-covered services, the Eligible Person will be responsible for the Dentist's Submitted Amount. For Covered Services rendered by a Nonparticipating Dentist or Out-of-Country Dentist, Delta Dental will usually send payxnent to the Subscriber, who is responsible for making full payment to the Dentist. The Eligible Person will be responsible for any difference between Delta Dental's payment and the Dentist's Submitted Amount. 6. Consistent with any applicable law protecting the confidentiality of a patient's health records, data, or information, to make standard reports available to Contractor at no additional charge and to provide non-standard reports for an additional charge based on the time and materials necessary to create the reports. 7. To allow the Contractor the right to audit its files, books, and records (both paper and electronic) pertaining to services provided. The Contractor will beaz the entire cost of any such audits. The Contractor may assign this right to audit to an agent, provided the agent is a licensed firm and the audit is led by an individual who holds a nationally recognized audit accreditation. Delta Dental will allow the Contractor or the Contractor's agent to audit the work areas at which services under this Contract aze performed, within 14 business days of receipt of a fully-signed Authorization, Hold Hannless and Indemnification Agreement consistent with the limitations imposed by applicable law. Where applicable, Delta Dental agrees to segregate the Contractor's records from third-party records in order to allow accurate assessment of Contractor-specific processes. Such audits will take place no more than once in a 12-month period, unless both the Contractor and Delta Dental mutually agree that there is reasonable cause to conduct an audit more frequently, in which case the Contractor will give 14 business days' written notice before such audit. During the audit, if claims samples are selected using a financially stratified methodology, the results will be extrapolated to the entire population of claixns during the audit period using a weighted average method for each category. B. Contractor Agrees: 1. To pay Delta Dental the Administrative Services Fees and Claims Payment Reimbursement amounts specified in Exhibit A as billed by Delta Dental, with no payment adjustments for updates not yet reflected on the current invoice. If payment is not received by the due date, Delta Dental shall, notify Contractor and shall have the right to suspend claims processing if payment is not received within two (2) business days from notification, have the right to suspend claims processing. Delta Dental may, at its sole option, send notification to the Contractor of an adjustment in Rates, Benefits, or Copayments to correct potential adverse group experience resulting from the following: a. Information provided upon enrollment proves to be in error; or b. Terms and provisions of the Plan are violated; or c. Invoices are not paid as billed. Delta Dental will provide the Contractor written notice 60 days prior to implementing any adjustment. If the Contractor refuses to accept this adjustment, Delta Dental may, in its sole discretion, implement the adjustment, implement an alternative adjustment acceptable to both parties, or cancel this Plan. Revised 09/201 I 6 2. To enroll as Subscribers all eligible employees or members of the Contractor or entities affiliated with it and to list, if covered, all Eligible Dependents of those employees or members to the extent required under the Plan. The Contractor will provide Delta Dental with eligibility updates to Subscribers and, if applicable, all Eligible Dependents as necessary, but no less than monthly. No retroactive eligibility updates will be accepted for an effective date more than 90 days from the date on which Delta Dental receives notification of the update. If the Contractor requests that a Subscriber's eligibility be terminated retroactively and a claim was incurred for that Subscriber or any Eligible Dependent of the Subscriber after the requested ternunation date, the Subscriber's eligibility will continue until the end of the month in which the claim was incurred. 3. To pernut Delta Dental, by its auditors or other authorized representatives, on reasonable advance written notice, to inspect the Contractor's records to verify the accuracy of Subscribers and Eligible Dependents submitted to Delta Dental. Clerical errors or delays in keeping or relaying data will not invalidate eligibility that would otherwise be validly in force or continue eligibility that would otherwise be validly ternunated, if, after discovery of the errors or delays, an equitable adjustment of the Contractor's payment can be made in a reasonable period of time not to exceed 90 days. 4. To provide each Subscriber with all required privacy notices at such intervals as are required by law, as well as a certificate or summary of benefits provided under this Plan as shown in Exhibit B. Customized benefit literature can be provided by Delta Dental to Contractor for an additional cost. 5. To collect and remit, or to cause to have collected and remitted, to Delta Dental any amounts that the Contractor's employees (or members) are required to pay to Delta Dental under this Plan or any written employment contracts, including amounts for COBRA continuation coverage. Any amounts not collected will be the responsibility of the Contractor. Should the Contractor collect any amounts paid by employees and not remit them to Delta Dental in a tunely fashion, with the result that an Eligible Person's coverage is lost, the Contractor, not Delta Dental, will be liable for any benefits to which the Eligible Person may have been entitled but for the Contractor's tardy remittance or failure to remit, unless after discovery of the errors or delays, an equitable adjustment of the Contractor's payment can be made in a reasonable period of time not to exceed 90 days. 6. To pay for any agreed upon non-standard reports based on the time and materials needed to create the reports. Section IV. General Provisions A. Independent Contractors. Dentists providing services are independent conixactors, and neither the Contractor nor Delta Dental will be liable for any act or omission of any Dentist, his or her employees or agents, or any person providing dental or other professional services under this Plan. B. Binding Effect. All Dentists and Eligible Persons, by perfornvng or receiving services under this Plan, are bound by all its terms. C. Payment Limitations. Delta Dental will make no payment for dental services if a claim for those services has not been received by Delta Dental within one year after the dental services were furnished. D. Marketin~ Materials. No materials bearing the Delta Dentallogo or other protected Delta Dental trademark, copyright, or other intellectual property will be published or distributed by the Contractor conceming this Plan unless Delta Dental approves the materials in advance. This provision shall not be construed to prohibit Contractor from publishing or distributing informal communications concerning this Plan that merely reference the involvement of Delta Dental in the administration of the Plan. E. Le~a1 Action. No action on a legal claim arising out of or related to this Plan that is not a claim for dental benefits by a Subscriber or an Eligible Dependent may be brought unti130 days after notice of the legal claim has been given to Delta Dental. In addition, no action, including a claim for dental benefits by a Subscriber or Eligible Dependent, may be brought more than three years after the claim first arose. Any Revised 09/2011 person or entity seeking to bring suit more than three years after the legal claim first arose will be deemed to have waived their right to bring suit on such legal claim. F. Indemnification. Delta Dental and Contractor to the extent pernutted by law, agree to defend, indemnify, and hold harmless the other and its directors, officers, and employees (who are acting in the course of their employment, but not as claimants) from any loss, cost, or expense (including reasonable attorney fees and court costs) resulting from or arising out of or in connection with its breach of this Plan, or any negligent act or omission of any of its directors, officers, or employees, unless liability for such act or omission is expressly assigned elsewhere in this Plan. No section of this agreement is intended to create a waiver of the Contractor's rights and privileges as a sovereign entity. G. Re~uired Information. While an Eligible Person is covered by Delta Dental, that person agrees to provide Delta Dental with any information it needs to process the claims and administer the Benefits. This includes allowing Delta Dental to have access to his or her dental records, subject, in all events, to all provisions of applicable law. H. Dispute Resolution. Delta Dental, or its delegee, will establish procedures for resolving all questions raised by a Dentist, Contractor, or an Eligible Person in regard to claims for Benefits allowed or rejected under the terms of the Plan. These procedures will be used both for the initial determination of those questions and for the resolution of disputes made on the basis of those initial deternunations. The procedures established for deternuning the entitlement and amount of Benefits to which an Eligible Person is entitled under any benefit plan sponsored by the Plan or that is regulated under the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended, will comply with ERISA Section 503, and the regulations thereunder, for providing a"full and fair review" of all benefit claims. The ERISA- required claixns procedures will be set forth in detail in the Certificate that is to be distributed to Eligible Persons and that describes the Benefits under this Plan. All deternunations made according to this procedure will be final and binding on the Dentist, the Contractor, and the Eligible Person; provided, however, that the Eligible Person may exercise his or her legal rights after this deternunation as described in the Disputed Claixns Procedure. I. Notices. Any notice required or pernutted to be given by Delta Dental will be considered given if in writing and personally delivered, or if in writing and deposited in the United States mail with postage prepaid, addressed to the Conixactor, a Dentist, or a Subscriber at the last address of record. T'his notice will be considered given when personally delivered or mailed. J. Amendment and Assienment. No agent has authority to change any part of this Contract. No changes to this Contract will be valid unless Delta Dental approves them in writing. Delta Dental sha11 have the discretion to assign its rights and responsibilities under this Contract to an affiliated entiry. If Delta Dental chooses to assign its rights and responsibilities, it sha11 assign them to an appropriately licensed entity capable of performing similar functions at similar levels as Delta Dental. Delta Dental shall serve written notice of the assignment to Contractor and said notice shall provide the name and address of the assignee. Neither this Contract nor any part of it shall be assigned by Contractor without the prior written consent of Delta Dental, and any attempt at assignment by Contractor without such consent by Delta Dental shall be null and void. Subject to the foregoing limitation, this Contract shall be binding upon the parties and their respective successors and assigns. K. Third-Party Ri ts. This Contract is entered into by and between the parties hereto solely for their benefit. Except as specifically provided herein to the contrary, the parties have not created or established any third- party beneficiary status or rights in any person or entity not a party hereto including, but not limited to, any covered person, provider, subcontractor, or other third-party, and no such third-party will have any right to enforce any right or enjoy any benefit created or established under this Contract. L. Subro~ation and Right of Reimbursement. To the extent that the Plan provides or pays benefits for Covered Services, Delta Dental is subrogated to any right the Eligible Person may have to recover from another, his or her insurer, or under his or her "Medical Payments" coverage ar any "Uninsured Motorist," "Underinsured Motorist," or other similar coverage provisions. The Eligible Person or his or her legal representative must do whatever is necessary to enable Delta Dental to exercise its rights and do nothing to prejudice them. If the Eligible Person recovers damages from any party or through any coverage named Revised 09/2011 above, the Eligible Person must reimburse Delta Dental from that recovery to the extent of payments made under the Plan. M. AssiQaunent of Benefits. Benefits to Eligible Persons are for the personal benefit of those people and cannot be transferred or assigned; provided, however, that Delta Dental may pay Participating Dentists directly on behalf of Eligible Persons. Benefits paid to Participating Dentists sha11 discharge the obligation of Delta Dental with respect to the amount of Benefits paid. N. Limitation of Services. Contractor aclmowledges and agrees that: (1) Delta Dental does not provide, direct, or control the provision of dental services to covered people (as such terms are defined by the Dental Plan); (2) the provision of contract provider infomiation in any medium by Delta Dental is not the provision of dental diagnostic or treatment services, dental advice, or health advice; (3) all decisions regarding dental services are made solely by the covered person and the practitioner rendering dental services to a covered person and the results thereof are solely within the control of the provider of such dental services providing the services and the covered person(s); and (4) Delta Dental's execution of this contract and the perfom~ance of its obligations hereunder do not constitute an undertaking by Delta Dental to render any dental services, or to assume or guarantee the results thereof to covered persons, or to guarantee that dental services will be rendered in accordance with generally accepted standards or procedures. O. Plan Fiduciary Status; Discretion. The Contractor, or a person designated by the Contractor (other than Delta Dental), shall be the "Named Fiduciary" (as defined in ERISA Section §402[a][2]) of Contractor's Dental Plan for which Delta. Dental shall provide administrative services hereunder. However, Delta Dental shall maintain authority to adjudicate claims and review all denied claims for benefits under the Dental Plan, including, but not limited to, the deternunation of covered services, interpretation of the terrns of the Dental Plan and any rules, practices, and procedures established for adjudication of claims of the Dental Plan. However, Delta Dental sha11 not have discretionary authority or control conceming the determination of eligibility for and entitlement to any benefits in accordance with the terms of the Dental Plan. Delta Dental shall not have any discretionary authority or discretionary control respecting the management of the Dental Plan itself or its assets, if any, and the Contractor retains a11 responsibility and authority, including all other fiduciary responsibility as defined in ERISA for the operation of the Dental Plan, with the exception of claims adjudication by Delta Dental as described herein. Delta Dental shall indemnify and hold harmless, the County from any and all damages, including reasonable attorney's fees, arising from or related to the negligent or improper adjudication of claims by Delta Dental. P. F~. Contractor agrees that the Contractor shall be solely responsible for funding the payment of benefits and expenses under the Contractor's Dental Plan. Q. Adjustment Procedures for Under~ayment and Overpayment of Claims. If it is determined that more or less than the correct amount has been paid under the Plan by Delta Dental, Delta Dental shall attempt, on behalf of the Contractor and the Plan, to make such adjushnents as may be necessary to have the Dental Plan pay only the amounts that are properly payable under its terms. If Delta Dental deternunes that it has, for any reason, paid a Dentist more for dental services than is provided for under the Dental Plan (the "Overpayment Amount"), Delta Dental has the right to recover the Overpayment Amount from the Dentist to which the Overpayment Amount was paid. Delta Dental will provide the Dentist with notice of the Overpayment Amount, and the basis on which Delta Dental believes that the payment made was in excess of the amount properly due under the Dental Plan, and will request that the Overpayment Amount be returned. Should the Dentist fail to return the requested Overpayment Amount, Delta Dental reserves the right to offset the Overpayment Amount from any future payments due that Dentist for dental services provided to Subscribers and/or beneficiaries under the Dental Plan, or other self-funded dental plans of sponsoring employers administered by Delta Dental; provided, however, that the amounts properly payable under any of the affected Dental Plan(s) shall be neither diminished nor enhanced by this recovery procedure. Where Overpayment Amounts are recovered by means of an offset, the Overpayment and Offset Amounts will be properly credited to, or debited from, the affected Dental Plan(s)_so that all involved Dental Plans will have been administered according to their terms and will have paid only the amount that is properly payable for the dental services provided. Revised 09/2011 9 In no event, however, will Delta Dental be required to initiate court proceedings to recover an Overpayment Amount or attempt to recover the amount of overpayment from the Contractor or any Eligible Person. Should it be determined that less than the correct amount has been paid under the Dental Plan by Delta Dental, then Delta Dental may ask the Contractor for additional funding to make up for the shortfall, and ensure that the Benefits under the Dental Plan are properly paid according to the ternLS of the Contractor's Dental Plan. In all cases, any methods utilized by Delta Dental to correct any benefit payment that has been deternuned to be more or less than the correct amount, shall only be performed when appropriate and permitted under the Plan documents or this Contract. R Rig,ht of Recoverv Due to Fraud. If Delta Dental pays for dental services that were sought or reeeived under fraudulent, false, or misleading pretenses or circumstances, pays a claim that contains false or misrepresented information, or pays a claim that is deternuned to be fraudulent due to the acts of the Contractor, Subscriber, and/or Eligible Dependent, it ma.y recover that payment from the Contractor, Subscriber, and/or Eligible Dependent. Contractor, Subscriber, and/or Eligible Dependent authorizes Delta Dental to recover any payment deternuned to be based on false, fraudulent, misleading, or misrepresented information by deducting that amount from any payments properly due to the Contractor, Subscriber, and/or Eligible Dependent. Delta Dental will provide an explanation of the payxnent being recovered at the time the deduction is made. S. Force Majeure. Neither Delta Dental (including its agents, directors, officers, and employees) nor the Plan shall be liable for delays in performance due to circumstances beyond their reasonable control. Each party shall be excused from performance under this Contract and shall have no liability to the other party for any period that it is prevented from perfornung any of its obligations (other than payment obligations), in whole or in part, as a result of delays caused by the other party or by an act of God, war, terrorism, civil unrest, civil disturbance, court order, labor dispute, or other cause beyond its reasonable control, including failures or fluctuations in electrical power, heat, light, or telecommunications, and such nonperformance shall not be a default under, or grounds for ternunation of, this Contract. T. Governin~. This Contract is governed by and interpreted under the laws of the State of North Carolina unless preempted by federal law. The parties further agree that jurisdiction and venue for any matter arising out of or pertaining to this Agreement shall be proper only in the state and federal courts located in Orange County, North Cazolina and Middle Dishict of the State of North Cazolina, and the parties hereby consent to such jurisdiction and venue. U. Compliance with Applicable Laws. The invalidity or unenforceability of any provision of this Contract shall not affect the validity or enforceability of any other provision of this Contract; each such other provision shall remain in full force and effect. V. This Contract may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same Contract. W. Le ag_lly Mandated Benefits. If any applicable law requires bmader coverage or more favorable treatment for the Subscriber or an Eligible Dependent than is provided by this Contract, that law shall control over the language of this Contract. X. A person whose eligibility is ternunated may not continue group coverage under this Contract, except as required by the continuation coverage provisions of the Consolidated Budget Reconciliation Act of 1985 (COBRA) or comparable, non-preempted state law. An affiliate of Delta Dental also may offer coverage under an individual direct payment policy to a person whose eligibility is ternunated. Y. With notice to the Contractor, Delta Dental shall have the right, in its sole discretion, to make and implement global, universal business changes that may revise provisions of this Contract without seeking or obtaining written approval from Contractor. Revised 09/2011 1 ~ Section Y. Satisfaction o HIPAA Requirements The parties have agreed and entered into a Business Associate Addendum to this Contract concerning the confidentiality of protected health information of Subscribers and Eligible Dependents as attached and incorporated by reference herein as Exhibit C. . Section Vl. Ternz and Termination This Contract will remain in full force and effect for the initial term and any renewal terms of this Contract as specified in Fxhibit A of this Contract or in a renewal letter. Delta Dental shall have the option of terminating this Contract if A. The Contractor fails to xnake a required payment by the due date; or B. Delta Dental elects to cancel pursuant to Section III (B) (1) of this Contract; or C. The Contractor fails to fiunish Delta Dental with accurate enrollment data pursuant to Section III (B) (2); or D. The Contractor permits voluntary enrollment of employees or members and their eligible dependents, unless otherwise specified in Exhibit A; or E. The Contractor refuses to allow Delta. Dental(by its auditors or other authorized representatives) to inspect the Contractor's records to verify the accuracy of the Eligible Persons. The parties shall have the option of terminating this Contract if either party breaches any material provision of this Contract or if the terminating pariy provides the other with 30 days written notice of its intent to cancel. At the expiration of the initial Contract term or any renewal term and/or in the event this Coniract is terminated for any of the precedi.ng reasons, there will be a six-month run-out period following the ternrination date. During this period, the Conlractor shall reimburse Delta Dental for all claims incurred before the terxnination date but not billed to Delta Dental until after the termination date. If applicable and specified in Exhibit A, the Contractor shall also pay Delta Dental adxnnusirative costs. Payments to Delta Dental will be made from the account established for the payment of claims pursuant to this Contract. Should these funds be insufficient, the Contractor shall make up the deficiency. ~ During the.run-out period, funds for paying claims will be transferred to Delta Dental by the Contractor in the same maruier and in accord with the same formula as had been provided prior to ternunation. At the conclusion of the six-month run-out period, all unencumbered funds remaining in the account established for payment will be returned to the Contractor without any claim thereon by Delta Dental. Delta Dental shall ha.ve no further obligation to pay claims that were submitted following the termination date for services performed prior to the ternunation date. The obligation to pay those claims shall be the obligation of the Contractor. Entire Agreement: This Contract with the attached EJChibits and Business Associate Addendum represents the entire and integrated agreement between the County and the Contractor and supersedes a11 prior negotiarions, representations or agreements, either written oral. This Agreement may be amended only by written instrument signed by both parties. Modifications may be evidenced by facsimile signatures. Revised 09/2011 11 ACCEPTED: DELTA DENTAL OF NORTH CAROLINA By: Date: Februarv 9, 2012 ORANGE COiINTY By: E 1~, ~~ ,t--~Y' ~~~ Date: ~"J " ~ 2' ~' I ~-/~ This ' strument s been approved as to technical content. Katherine Cathey, Department Direct This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. ~~~w ~ ~ Office of the Finance Director This instru ent ha en ap roved as to form and legal sufficiency. Office of.y n ey % Revised 09/201 I I Z Exhibit A Delta Dental PPO plus Premier This Contract is effective the lst day of January, 2012 A.D., by and between Orange County, hereinafter referred to as the Contractor and Delta Dental Plan of North Carolina, Inc., a North Carolina non-profit corporation, hereinafter refened to as Delta Dental. Section I. Declarations The benefits afforded are only with respect to such benefits as are indicated in this Contract. Delta Dental's liability is limited to the benefits stated herein; subject to all the terms of this Contract having reference thereto. This Declarations Section supersedes any contrary provision of the subsequent sections of this Contract. A. Effective Date of Contract Year: 12:01 A.M. Standard Time, January 1, 2012 A.D. B. First Renewal Date: January 1, 2014 C. Group Number: 8702-0001, 0999 D. Eligibility (Subscribers and dependents): All eligible employees who have met the eligibility requirements as established by the Contractor. Dependents and domesric partners of above mentioned Subscribers are also eligible. Children under age 19 are eligible for benefits regardless of student status and/or disability. Eligibility is extended to age 26 only for children who are full time students. Subscribers and eligible dependents must enroll for a minimum of 12 months. If coverage is terminated after 12 months, they may not re-enroll prior to the open enrollment that occurs at least 12 months from the date of termination. Dependents may only enroll if the Subscriber is enrolled (except under COBRA) and must be enrolled in the same plan as the Subscriber. Plan changes are only allowed during open enrollment periods, except that an election may be revoked or changed at any time if the change is the result of a qualifying event as defined under Intemal Revenue Code Section 125. A domestic partner is defined as follows: Domestic Partner - A person of the same or opposite gender, not related by blood to the employee, who is not legally married to the employee or anyone else, and who shares the following with the employee: i) an exclusive, committed relationship as provided in the Declaration of Domestic Partnership statement, 2) a residence, and 3) responsibility for each otherT"'s common welfare and financial obligations. Note: To qualify for pomestic Partner coverage, the employee and his or her pomestic Partner must meet all of the following criteria and must sign the North Carolina Association of County CommissionersT"' Risk Management Poo1T"'s Declaration of Domestic Partner status attesting that they are: a. At least 18 years old and mentally competent to consent to a civil contract, b. Not acting under force or duress, c. Not legally married to any other person and not engaged in another domestic partner relationship, d. Not related by blood, e. Engaged in an exclusive, committed relationship that has existed for at least 12 consecutive months, f. Currently reside together and intend to do so permanently, g. Responsible for each otherT"'s common welfare and either: - Are jointly responsible for their assets and debts as provided by applicable law, or - Have executed a written agreement or civil contract which defines their domestic partner relationship and their liabilities with respect to their assets and debts. - Not Medicare eligible. E. F. G. Where two legally married Subscribers are both eligible for coverage under this Contract, they may be enrolled together on one application card or separately on individual application cards, but not both. Dependent children may only be enrolled on one application card. Delta Dental will not coordinate benefits for married Subscribers who are both eligible under this Contract. Waiting Period: All new Subscribers (and their dependents, if covered above), defined as eligible Subscribers added to the covered group who are hired after the effective starting date of the Contract will be eligible for enrollment on the first day of the month following date of hire. Deductible: $50 deductible per person total per calendar year limited to a maximum deductible of $150 per family per calendar year. The deductible does not apply to diagnostic and preventive services, emergency palliative treatment, x-rays, sealants, brush biop"sy, periodontal maintenance, and orthodontic services. Covered Services: Premier Non- Dentist Participating Dentist Plan Pavs Plan Pavs Diagnostic and Preventive Services - includes exams, cleanin s, fluoride, and s ace maintainers 100% . ;, .~ ,;. ~ 100% ~ 100% Emergency Palliative Treatment - to temporarily relieve ain 1D0°~o ~ ; ~ = :_....: ~ < ~...:9 ..~ 100% l OQ% Sealants - to revent deca of permanent teeth -, ' 10U°la ;~ ~ ' 100%0 100% Brush Biopsy - to detect oral cancer ~ LOQ"/o ;: ~ ~~s~ 100% 100% Radio ra hs - X-rays ~_:100°~0 ~';, .. ~: ~~~ ~~ ~~~~ 100% ~ 100% Periodontal Maintenance - cleanings by a s ecialist ~ QO°la ~ ~ ~°, 100%0 100% Minor Restorative Services - fillings and crown g~o~« ? ~ 85% 85% re air „ ~ ~ Endodontic Services - root canals $5% '; 85%~ ~~~~ gs~/a Periodontic Services - to treat gum disease `` 85% ~.~:' : ~~ 85%0 ' ~~ 85% Oral Surgery Services - extractions and dental ;: g$o~o 85% 85% sur ery Other Basic Services - misc. services 85% .:: , 85%0 85% Ma'or Restorative Services - crowns '~~ : 50~~ ,i ~ 50% `~~ 50°/a Relines and Re airs - to bridges and dentures ; 50% 50% 50% Prosthodontic Services - includes brid es, LL implants, and dentures g ~~ 50°~ 50% 50% ~ ~ Orthodontic Services - includes braces ~ ;: 50°l0 ,:: = ~~ ~ 50% 50% ~ Orthodontic Age Limit - No Aqe Lirriit ,- No A¢e Limit No Aee Limit - Oral exams (including evaluations by a specialist) are payable twice per calendar year. - Prophylaxes (cleanings) are payable twice per calendar year. - Fluoride treatments are payable twice per calendar year for people up to age 19. - Sealants are payable once per tooth per lifetime for the occlusal surface of first and second permanent molars up to age 16. The surface must be free from decay and restorations. , - Reline and rebase of dentures are payable once in any two-year period. - Implants and implant related services are payable once per tooth in any five-year period. - Vestibuloplasty is a Covered Service. - Bitewing X-rays are payable twice per calendar year. Full mouth X-rays (which include bitewing X- rays) are payable once in any three-year period. - Porcelain and resin facings on crowns and onlays are Covered Services on posterior teeth. - Porcelain and resin facings on bridges are Covered Services on posterior teeth. - Composite resin (white) restorations are optional treatment on posterior teeth. - People with certain high-risk medical conditions may be eligible for additional prophylaxes (cleanings) or fluoride treatment. The patient should talk with his or her dentist about treatment. Enrollees can receive expert dental care when they are outside of the United States through our Passport Dental program. Passport Dental gives our enrollees access to a worldwide network of dentists and dental clinics. English-speaking operators are available around the clock to answer questions and help them schedule care. Delta Dental coverage outside of the United States is the same as Delta Dental coverage within the United States. Access to the Passport Dental program is offered through an agreement with a third party vendor, and it may not be available if that agreement terminates. H. Maximum Payment: $1,200 per person total per calendar year on all services except orthodontics. $2,000 per person total per lifetime on orthodontic services. Rate(s): Administrative Services fee: Composite -$2.80 per month per Subscriber This rate is contingent upon the enrollment of a minimum of 75 percent of the eligible members of the defined group and their eligible dependents with 50 percent of the cost paid by the Contractor. In addition to the Administrative Service Fee, the Contractor agrees to transfer to Delta Dental by electronic funds transfer (EFT) the amount of claims paid during the previous week. Invoices will be submitted to the Contractor on Monday of each week for the amount of claims paid during the previous week. The Contractor will transfer this amount to Delta Dental by the end of the following working day. October 25, 2011 Exhibit B Delta Dental PPO plus Premier Summary of Dental Plan Benefits For Group# 8702-0001, 0999 Orange County This Summary of Dental Plan Benefits should be read in conjunction with your Dental Care Certificate. Your Dental Care Certificate will provide you with additional information about your Delta Dental plan, including information about plan exclusions and limitations. The percentages below will be applied to the lesser of the dentist's submitted fee and Delta Dental's allowance for each service. Delta Dental's allowance may vary by the dentist's network participation. PLEASE NOTE - If you choose a Nonparticipating Dentist, you will be responsible for any difference between the amount Delta Dental allows and the amount the Nonparticipating Dentist charges, in addition to any Copayment or Deductible. Control Plan -De lta Dental of North Carolina Benefit Year - January 1 through December 31 Covered Services - Non- Premier Dentist participating Dentist Plan Pays Plan Pays* Diagnostic and Preventive Services - includes exams, ,~UO°1a 100%0 100% cleanin s, fluoride, and s ace maintainers Emergency Palliative Treatment - to temporarily ~~jpo~ 100% relieve ain a 100% Sealants - to revent decay of ermanent teeth 1QQ fo ' 100% 100% Brush Bio sy - to detect oral cancer '.1b0% 100% 100% Radio ra hs - X-ra s =:10~°~0 , ~ ~~ 100% ~ 100% Periodontal Maintenance - cleanin s b a specialist ;.~ , ~ i~D°~o ~~~ 100% ~~~ ~~~ 100% e Minor Restorative Services - fillin s and crown re air " $5°l 85%' ' 85% Endodontic Services - root canals $5% 85% 85% Periodontic Services - to treat um disease 8S°/u ' 85% 85% Oral Sur e Services - extractions and dental sur er 85°10 . 85% ' 85% Other Basic Services - misc. services 85% . 85% 85°/a Ma'or Restorative Services - crowns " SU°/a 50%' ` 50% Relines and Re airs - to brid es and dentures 50°~'0 ; 50% 50% Prosthodontic Services - includes bridges, implants S~dJa 50% 50% and dentures ~ Orthodontic Services - includes braces 50°/a ; 50% 50% ~ Orthodontic Age Limit - ~'No A~e:Lirtiit ~-_ ~ No Aee Limit No Aee Limit * When you receive services from a Nonparticipating Dentist, the percentages in this column indicate the portion of Delta Dental's Nonparticipating Dentist Fee that will be paid for those services. This Nonparticipating Dentist Fee may be less than what your dentist charges, which means that you will be responsible for the difference. - Oral exams (including evaluations by a specialist) are payable twice per calendar year. - Prophylaxes (cleanings) are payable twice per calendar year. Customer Service Toll-Free Number: 800-524-0149 www. DeltaDentalNC. com October 25, 2011 - Fluoride treatments are payable twice per calendar year for people up to age 19. - Sealants are payable once per tooth per lifetime for the occiusal surface of first and second permanent molars up to age 16. The surface must be free from decay and restorations. - Reline and rebase of dentures are payable once in any two-year period. - Implants and implant related services are payable once per tooth in any ftve-year period. - Vestibuloplasty is a Covered Service. - Bitewing X-rays are payable twice per calendar year. Full mouth X-rays (which include bitewing X-rays) are payable once in any three-year period. - Porcelain and resin facings on crowns and onlays are Covered Services on posterior teeth. - Porcelain and resin facings on bridges are Covered Services on posterior teeth. - Composite resin (white) restorations are optional treatment on posterior teeth. - People with certain high-risk medical conditions may be eligible for additional prophylaxes (cleanings) or fluoride treatment. The patient should talk with his or her dentist about treatment. Having Delta Dental coverage makes it easy for our enrollees to get dental care almost everywhere in the world! You can now receive expert dental care when you are outside of the United States through our Passport Dental program. This program gives you access to a worldwide network of dentists and dental clinics. English-speaking operators are available around the clock to answer questions and help you schedule care. For more information, check our Web site or contact your benefits representative to get a copy of our Passport Dental information sheet. Maximum Payment -$1,200 per person total per benefit year on all services except orthodontics. $2,000 per person total per lifetime on orthodontic services. Deductible -$50 deductible per person total per benefit year limited to a ma~cimum deductible of $150 per family per benefit year. The deductible does not apply to diagnostic and preventive services, emergency palliative treahnent, x-rays, sealants, brush biopsy, periodontal maintenance, and orthodontic services. Waiting Period - Employees who are eligible for dental benefits are covered on the first day of the month following date of hire. Eligible People -All eligible employees who have met the eligibility requirements as established by the Contractor. The Contractor and Subscriber share the cost of this plan. Benefits will cease on the last day of the month in which the employee is terminated. Dependents and domestic partners of above mentioned Subscribers are also eligible. Children under age 19 are eligible for benefits regardless of student status and/or disability. Eligibility is extended to age 26 only for children who are full time students. Subscribers and eligible dependents must enroll for a minimum of 12 months. If coverage is terminated after 12 months, they may not re-enroll prior to the open enrollment that occurs at least 12 months from the date of termination. Dependents may only enroll if the Subscriber is enrolled (except under COBRA) and must be enrolled in the same plan as the Subscriber. Plan changes are only allowed during open enrollment periods, except that an election may be revoked or changed at any time if the change is the result of a qualifying event as defined under Internal Revenue Code Section 125. A domestic partner is defined as foilows: Domestic Partner - A person of the same or opposite gender, not related by blood to the employee, who is not legally married to the employee or anyone else, and who shares the following with the employee: 1) an exclusive, committed relationship as provided in the Declaration of Domestic Partnership statement, 2) a residence, and 3) responsibility for each otherT"'s common welfare and financial obligations. Customer Service Toll-Free Number: 800-524-0149 www. DeltaDentalNC. co m October 25, 2011 Note: To qualify for pomestic Partner coverage, the employee and his or her pomestic Partner must meet all of the following criteria and must sign the North Carolina Association of County CommissionersT"' Risk Management Poo1T"'s Declaration of Domestic Partner status attesting that they are: a. At least 18 years old and mentally competent to consent to a civil contract, b. Not acting under force or duress, c. Not legally married to any other person and not engaged in another domestic partner relationship, d. Not related by blood, e. Engaged in an exclusive, committed relationship that has existed for at least 12 consecutive months, f. Currently reside together and intend to do so permanently, g. Responsible for each otherT"ss common welfare and either: - Are jointly responsible for their assets and debts as provided by applicable law, or - I-Iave executed a written agreement or civil contract which defines their domestic partner relationship and their liabilities with respect to their assets and debts. - Not Medicare eligible. Customer Service Toll-Free Number: 800-524-0149 www. DeltaDentalNC.com October 25, 2011 Exhibit B SM e a en a Our national PPO plus Premier program Welcome! Your dental program is administered by Delta Dental of North Carolina, a North Carolina nonprofit health service plan corporation. Delta Dental of North Carolina is the state's dental benefits specialist. Good oral health is a vital part of good general health, and your Delta Dental program is designed to promote regular dental visits. We encourage you to take advantage of this program by calling your Dentist today for an appointment. This Certificate, along with your Summary of Dental Plan Benefits, describes the specific benefits of your Delta Dental program and how to use them. If you have any questions about this program, please call our Customer Service department at (800) 662-8856 or access our website at www.deltadentalnc.com. You can easily verify your own benefit, claims and eligibility information online 24 hours a day, seven days a week by visiting www.deltadentalnc.com and selecting the link for our Consumer Toolkit. The Consumer Toolkit will also allow you to print claim forms and ID cards, select paperless explanation of benefits (EOBs), search our dentist directories, and read oral health tips. We look forward to serving you! ~ ~ ,~ TABLE OF CONTENTS I. Certificate ..................................................................................................................................... 2 II. Definitions ...................................................................................................................................... ..2 III. Selecting a Dentist ......................................................................................................................... ..5 N. Accessing Your Benefits ................................................................................................................ ..5 V. How Payment is Made ................................................................................................................... ..7 VI. Benefit Categories .......................................................................................................................... ..7 VII. Exclusions and Limitations ............................................................................................................ ..8 VIII. Coordination of Benefits ................................................................................................................ 12 IX. Disputed Claims Procedure ............................................................................................................ 14 X. Termination of Coverage ............................................................................................................... 15 XI. Continuation of Coverage .............................................................................................................. 16 XII. General Conditions ........................................................................................................................ 16 Note: This Certificate should be read in conjunction with the Summary of Dental Plan Benefits that is provided with the Certificate. The Swiunary of Dental Plan Benefits lists the specific provisions of your group dental Plan and supersedes any contrary provision of this Certificate. 1 Form No. 1752-NC NCPPOpIus-A 0]/2012 I. Delta Dental PPO Certificate Delta Dental of North Carolina., referred to herein as Delta Dental, issues this Certificate to you, the Subscriber. The Certificate is an easy-to-read summary of your dental benefits Plan. It reflects and is subject to the agreement between Delta Dental and your employer or organization. The benefits provided under the Plan may change if any state or federal laws change. Delta Dental agrees to provide dental benefits as described in this Certificate. All the provisions in the following pages form a part of this document as fully as if they were stated over the signature below. IN WITNESS WHEREOF, this Certificate is executed at Delta Dental's home office by an authorized o~cer. ~ • Curtis R. Ladig, CPA President and CEO Delta Dental of North Carolina II. Definitions Benefit Year Normally, the calendar year, unless your employer or organization elects a different period to serve as the Benefit Year. (See the Summary of Dental Plan Benefits for your Benefit Yeaz.) Certificate This document. Delta Dental will provide dental benefits as described in this Certificate. Any changes in this Certificate will be based on changes to the Plan. Children or Child Your natural children, stepchildren, foster children, adopted children, children by virtue of legal guardianship, or children who are residing with you during the waiting period for adoption or legal guardianship. Completion Dates Some procedures may require more than one appointment before they can be completed. Treatment is complete: • For dentures and partial dentures, on the delivery dates; • For crowns and bridgework, on the cementation dates; • For root canals and periodontal treatment, on the date of the final procedure that completes treatment. Concurrent Care Claims . Claims for benefits where an ongoing course of treatment has been agreed to by Delta Dental and/or the administrator of your Plan and the coverage for that treatment is reduced or ternunated before the treatment has been completed. A Concurrent Caze Claim may also arise if you ask the Plan to extend coverage beyond the time period or number of treatments previously agreed to. Control Plan (Delta Dental Delta Dental acts as the Control Plan for your contract. The Control Plan will provide all claims processing, service, and administration for your group. The Control Plan will be referred to as Delta Dental in this document. Copayment As provided by your Plan, the percentage of the charge, if any, that you will have to pay for Covered Services. Covered Services The unique benefits selected in your Plan. The Sux~unary of Dental Plan Benefits provided with this Certificate lists the Covered Services provided by your Plan. Deductible 'The amount.a person and/or a family must pay toward Covered Services before Delta Dental begins paying for services. The Summary of Dental Plan Benefits lists the Deductible that applies to you, if any. Form No. 1752-NC 2 NCPPOpIus-A 01l2012 Delta Dental Means Delta Dental of North Carolina, a North Cazolina nonprofit health service plan corporation providing dental benefits. Delta Dental is not a commercial insurance company. Delta Dental Plan An individual dental benefit plan that is a member of the Delta Dental Plans Association, the nation's largest, most experienced system of dental health plans. Delta Dental PPO qlus Premier Delta Dental's national preferred provider organization program that can reduce your out-of-pocket expenses if you receive care from one of Delta Dental's PPO Dentists. This program has back-up coverage through the Delta Dental Premier network when treatment is received from a Non-PPO Dentist. Delta Dental Premier Dentist A person licensed to practice dentistry in the state or jurisdiction in which dental services are rendered. • Delta Dental PPO Dentist (PPO Dentist) - a Dentist who has signed an agreement with the Delta Dental Plan in his or her state to participate in Delta Dental PPO. PPO Dentists agree to accept Delta Dental's payment and the Eligible Person's Copayment, if any, as payment in full for Covered Services. • Delta Dental Premier Dentist (Premier Dentist) - a Dentist who has signed an agreement with the Delta Dental Plan in his or her state to participate in Delta Dental Premier. Premier Dentists agree to accept the Maximum Approved Fee as payxnent in full for Covered Services. • Nonparticipating Dentist - a Dentist who has not signed an agreement with any Delta Dental Plan to participate in Delta Dental PPO or Delta Dental Premier. • Out-of-Country Dentist - a Dentist whose off'ice is located outside of the United States and its territories. Out-of-Country Dentists are not eligible to sign participating agreements with Delta Dental, but may participate in the Passport Dental program. PPO Denrists and Premier Dentists are sometimes collectively referred to herein as "Participating Dentists". Wherever a definition or provision of this Contract differs from another state's Delta Dental Plan and its agreement with a Participating Dentist, the agreement in that state with that Dentist shall be controlling. Premier Dentists, Nonparticipating Dentists, and Out- of-Country Dentists are sometimes collectively referred to herein as "Non-PPO Dentists". EliQible De~endent The Surrunary of Dental Plan Benefits will have specific information about your Plan's rules for dependent eligibility but, generally, your Eligible Dependents are: • Your legal spouse; • Your unmarried Children who have not yet reached the end of the calendar year of their 19th birthday; • Your unmarried Children who have reached the end of the calendar year of their 19th birthday and who are chiefly dependent on you for support and maintenance; • Any unxnarried Children for whom you or your legal spouse are financially responsible for medical, health, or dental care under the terms of a court decree or who have been named as alternate recipients under a qualified medical child support order; and • Your Children who have reached the end of the calendar year of their 19th birthday, but who were Form No. 1752-NC 3 NCPPOpIus-A 01/2012 Delta Dental's national fee-for-service dental benefits program that covers you when you go to a Non-PPO Dentist. at that time (and continue to be), totally and permanently disabled by a physical or mental condition and who are chiefly dependent upon you for support and maintenance. If Delta Dental asks you to do so, you must submit medical reports conf"urning your Child's initial disability within 31 days of the end of the calendar year of that Child's 19~ birthday. Thereafter, Delta Dental may request proof of your Child's continuing disability, but no more frequently than annually. Eliqible Person Any Subscriber or Eligible Dependent with coverage under the Plan. Maximum Approved Fee A system used by Delta Dental to determine the approved fee for a given procedure for a given Participating Dentist. A fee meets Maximum Approved Fee requirements if it is the lowest o£ • The Submitted Amount. • The lowest fee regularly charged, offered, or received by an individual Dentist for a dental service or supply, irrespective of the Dentist's contractual agreement with another dental benefits organization: • The maximum fee that the local Delta Dental Plan approves for a given procedure in a given region and/or specialty, under noxmal circumstances based upon applicable Participating Dentist schedules and intemal procedures. Delta Dental may also approve a fee under unusual circumstances. Participating Dentists are not allowed to charge Delta Dental patients more than the Maximum Approved Fee for a Covered Service. In a11 cases, Delta Dental will ma.ke the final detemunation regarding the Maximum Approved Fee for a Covered Service. Maximum Pavment The maximum dollaz amount Delta Dental will pay in any benefit year or lifetime for covered dental services. (See the Summary of Dental Plan Benefits.) Nonparticipating Dentist Fee The maximum fee that Delta Dental will pay per procedure for services rendered by a Nonparticipating Dentist. Out-of-Countrv Dentist Fee The maximum fee that Delta Dental will pay per procedure for services rendered by an Out-of-Country Dentist. Plan The azrangement for the provision of dental benefits to Eligible Persons established by the contract between Delta Dental and your employer or organization. Post-Service Claims Claims for benefits that are not conditioned on your seeking advance approval, certification, or authorization to receive the full amount of any covered benefit. In other words, Post-Service Claims arise when you receive the dental service or treatment before you file a claim for the benefit payment. PPO Dentist Schedule The maximum fee allowed per procedure for services rendered by a PPO Dentist as deternuned by that Dentist's local Delta Dental Plan. Premier Dentist Schedule The maximum fee allowed per procedure for services rendered by a Premier Dentist as deternuned by that Dentist's local Delta Dental Plan. Predetermination Predetermination is a voluntary, optional procedure where Delta Dental issues a written estimate of Benefits which may be available under your Plan for your proposed dental treatment. Your Dentist submits the proposed dental treatment to Delta Dental in advance of providing the treatment. Predetermination is provided for informational purposes only and is not required before you receive any dental care. It is not a prerequisite or condition for approval of future dental benefits payment. You will receive the same Benefits under your Plan whether or not a Predeterminafion is requested. The Benefits estimate provided on a Predeternunation notice is based on Benefits available on the date the notice is issued. It is not a guarantee of future Benefits or payment. Availability of Benefits at the time your treatment is completed depends on several factors such as, but not limited to, your continued eligibility for Benefits, your Form No. 1752-NC 4, NCPPOpIus-A 01 /2012 available annual or lifetime Maximum Payments, any coordination of benefits, the status of your Plan and your Dentist, your Plan's limitations and any other Plan provisions. A request for a Predeternunation is not a claim for Benefits or a preauthorization, precertification or other reservation of future Benefits. Processinq Policies Delta Dental's policies and guidelines used for Predetermination and payment of claims. The Processing Policies may be amended from time to time. Submitted Amount The amount a Dentist bills to Delta Dental for a specific treatrnent or service. Subscriber You, when your employer or organization notifies Delta Dental that you aze eligible to receive dental benefits under your employer's or organization's Plan. Summarv of Dental Plan Benefits A description of the specific provisions of your group dental Plan. The Summary of Dental Plan Benefits is, and should be read as, a part of this Certificate, and supersedes any contrary provision of this Certificate. III. Selecting a Dentist You may choose any Dentist. Your out-of-pocket costs are likely to be less if you go to a Delta Dental PPO Dentist. PPO Dentists agree to accept payment according to the PPO Denrist Schedule, and, in most cases, this results in a reduction of their fees. Delta Dental may also pay a higher percentage for Covered Services if you go to a PPO Dentist. If the Dentist you select is not a PPO Dentist, you will still be covered. Your coverage levels may be slightly lower, but you can still save money. In this case, there aze two options: • If you go to a Non-PPO Dentist who participates in Delta Dental Premier, the fee reduction is not the same as with the PPO Dentists. However, Premier Dentists agree to accept Delta Dental's Maximum Approved Fee as payment in full for Covered Services. • If you choose a Dentist who does not participate in either program, you will be responsible for any difference between Delta Dental's allowed fee and the Dentist's Submitted Amount, in addition to any Copayments and/or Deductibles. IV. Accessing Your Benefits To use your Plan, follow these steps: 1. Please read this Certificate and the Summary of Dental Plan Benefits carefully so you are familiar with the benefits, payment mechanisms, and provisions of your Plan. 2. Make an appointment with your Dentist and tell him or her that you have dental benefits coverage with Delta Dental. If your Dentist is not familiar with your Plan or has questions about the Plan, have him or her contact Delta Dental by (a) writing Delta Dental, Attention: Customer Service, P.O. Box 9089, Farnrington Hills, Michigan, 48333- 9089, or (b) calling the toll-free number, (800) 662-8856. 3. After you receive your dental treahnent, you or the dental office staff will file a claim form, completing the information portion with: a. The Subscriber's full name and address; b. The Subscriber's Member ID number; c. The name and date of birth of the person receiving dental care; d. The group's name and number. Form No. 1752-NC 5 NCPPOpIus-A Ot/2012 To verify that a Dentist is a Participating Dentist, you can use Delta Dental's online Dentist Directory at www.deltadentalnc.com or ca11(800) 662-8856. Notice of Claim Forms Delta Dental does not require special claixn forms. However, most dental offices have claim forms available. Participating Dentists will fill out and submit your claims paperwork for you. Claims and completed information requests should be mailed to: Delta Dental P.O. Box 9085 Farmington Hills, Michigan 48333-9085 Written Notice of Claim/Time of Pavment Because the amount of your benefits is not conditioned on a Predeternunation decision by Delta Dental, a11 claixns under this Plan are Post-Service Claims. Once a claim is filed, Delta Dental will decide it within 30 days of receiving the proof of loss. If there is not enough information to decide your claim, Delta Dental will notify you or your Dentist within 30 days. The norice will (a) describe the inforxnation needed, (b) explain why it is needed, (c) request an extension of time in which to decide the claim, and (d) inform you or your Dentist that the information must be received within 90 days or your claim will be denied. You will receive a copy of any notice that is sent to your Dentist. Once Delta Dental receives the requested information, it will have 30 days to decide your claim. If you or your Dentist fails to supply the requested information, Delta Dental will have no choice but to deny your claim. Once Delta Dental decides your claim, it wili notify you within five days. Proof of Loss Written proof of loss must be given within one year after such loss. If it is not reasonably possible to give written proof in the time required, the claim will not be reduced or denied solely for this reason, provided proof is filed as soon as reasonably possible. In any event, proof of loss must be given no later than one year from such time unless the claimant was legally incapacitated. Concurrent Care Claims If you have been approved for a course of treatment and that course of treatment is reduced or ternunated before it has been completed, or if you wish to extend the course of treatment beyond what was agreed upon, Form No. 1752-NC 6 NCPPOpIus-A Ot/2o12 you may file a Concurrent Care Claim seeking to restore the remainder of the treatment regimen or extend the course of treatment. All Concurrent Care Claims will be decided in sufficient time so that, if your claim is denied (in whole or in part), you can seek a review of that decision before the course of treatment is scheduled to terminate. Authorized Representative You may also appoint an authorized representative to deal with the Plan on your behalf with respect to any benefit claim you file or any review of a denied claim you wish to pursue (see the Disputed Claims Procedure section). You should contact your Human Resources department, ca11 Delta Dental's Customer Service departrnent, toll-free, at (800) 662-8856, or write them at P.O. Box 9089, Farmington Hills, Michigan, 48333-9089, to request a form to fill out designating the person you wish to appoint as your representative. While in some circuxnstances your Dentist may be treated as your authorized representative, generally only the person you have authorized on the last dated form filed with Delta Dental will be recognized. Once you have appointed an authorized representative, Delta Dental will communicate directly with your representative and will not inform you of the status of your claim You will have to get that information from your representative. If you have not designated a representative, Delta Dental will communicate with you directly. Predetermination Estimate Delta Dental recommends Predetermination before your Dentist provides any services where the total charges will exceed $200. Predeternunation is not a prerequisite to payment, but it allows claims to be processed more efficiently and allows you to know what services may be covered before your Dentist provides them. You and your Dentist should review your Predeternunation Notice before treatment. Once treatment is complete, the dental office will enter the dates of service on the Predetermination Notice and submit it to Delta Dental for payment. Questions? Questions regarding your Plan or coverage should be directed to your Human Resources deparhnent or ca11 Delta Dental's Customer Service department, toll-free, at (800) 662-8856. You may also write to Delta Dental's Customer Service department, P.O. Box 9089, Farcnington Hills, Michigan, 48333-9089. When writing to Delta Dental, please include your name, the group's name and number, the Subscriber's Member ID number, and your daytime telephone number. V. How Payment is Made If your Dentist is a Participating Dentist, Delta Dental will base payment on the Maximum Approved Fee for Covered Services. Delta Dental will send payment directly to Participating Dentists and you will be responsible for any applicable Copayments or Deductibles. Unless otherwise prohibited by state law, you will be responsible for the Maximum Approved Fee for most commonly-performed non-covered services. For other non-covered services, you will be responsible for the Dentist's Submitted Amount. If your Dentist is a Nonparticipating Dentist, Delta Dental will base payment on the Nonparticipating Dentist Fee for Covered Services. If your Dentist is an Out-of-Country Dentist, Delta Dental will base payment on the Out-of-Country Dentist Fee for Covered Services. For Covered Services rendered by a Nonparticipating Dentist or Out-of-Country Dentist, Delta Dental will usually send payxnent to the Subscriber, and you will be responsible for making full payment to the Dentist. You will be responsible for any difference between Delta Dental's payment and the Dentist's Submitted Amount. VI. Benefit Categories Important Eligible people are entitled to ONLY those benefits listed in the Summary of Dental Plan Benefits. The following is a description of various dental benefits that can be selected for a dental program. Please be certain to review the Exclusions and Limitations section regarding the benefit information listed below. Diagnostic and Preventive Services DiaQnostic and Preventive Services Services and procedures to evaluate existing conditions and/or to prevent dental abnormalities or disease. These services include examinations/evaluations, prophylaxes (cleanings), space maint~iiners, and fluoride treatments. Brush Biopsy Oral brush biopsy procedure and laboratory analysis to detect oral cancer. Using this diagnostic procedure, dentists can identify and treat abnoxrnal cells that could become cancerous, or they can detect the disease in its earliest and most treatable stage. The test is quick, accurate, and involves little or no patient discomfort. Emergency Palliative Treatment Emergency treatment to temporarily relieve pain, Sealants A resinous material applied to the occlusal surface of posterior teeth to prevent decay. Radiographs Form No. 1752-NC 7 NCPPOpIus-A 01/2012 X-rays as required for routine care or as necessary for the diagnosis of a specific condition. Basic Services Oral Surgery Services Extractions and dental surgery, including pre-operative and post-operative care. Endodontic Services The treahnent of teeth with diseased or damaged nerves (for example, root canals). Periodontic Services The treatment of diseases of the gums and supporting structures of the teeth. This includes periodontal maintenance following active therapy (teeth cleaning by a specialist). Restorative Services Services to rebuild and repair natural tooth structure damaged by disease or injury. Restorative services include: • Minor restorative services, such as amalgam (silver) fillings and composite resin (white) fillings. • Major restorative services, such as crowns, used when teeth cannot be restored with another filling material. Major Services Relines and Repairs Relines and repairs to partial and complete dentures, and repairs to bridges. Prosthodontic Services Services and appliances that replace missing natural teeth (such as bridges, endosteal implants, partial dentures, and complete dentures). Orthodontic Services Services, treatment, and procedures to correct malposed teeth (such as braces). Other Benefits The Summary of Dental Plan Benefits lists any other benefits that may have been selected. VII. Exclusions and Limitations Exclusions Delta Dental will make no payment for the following services or supplies, unless otherwise specified in the Summary of Dental Plan Benefits. All charges for the following services or supplies will be the responsibility of the Eligible Person (though the Eligible Person's payment obligation may be satisfied by insurance or some other arrangement for which he or she is eligible): 1. Services or supplies for the treatment of an occupational injury or sickness which are paid under the North Carolina Worker's Compensation Act only to the extent such services or supplies are the liability of the employee, employer or workers' compensation insurance carrier according to a final adjudication under the North Carolina Workers' Compensation Act or an order of the North Carolina Industrial Coxnmission approving a settlement agreement under the North Carolina Workers' Compensation Act. 2. Benefits or services received from any government agency, political subdivision, community agency, foundation, or similar entity. NOTE: This provision does not apply to any programs provided under Title XIX Social Security Act; that is, Medicaid. 3. Services or supplies, as detertnined by Delta Dental, for correction of congenital or developmental malformations, except that when a child covered from the moment of birth or placement in the adoptive home requires dental care associated with congenital defects and anomalies, congenital defects will be covered to the same extent an otherwise Covered Service is provided by the Plan. 4. Cosmetic surgery or dentistry for aesthetic reasons, as detennined by Delta Dental, except that when a Child covered from the moment of birth or placement in the adoptive home requires dental care associated with congenital defects and anomalies, congenital defects will be covered to the same extent an otherwise Covered Service is provided by the Plan 5. Services or appliances started before a person became eligible under this Plan. This exclusion Form No. 1752-NC $ NCPPOpIus-A 01/2012 does not apply to orthodontic treatment in progress (if a Covered Service). 6. Prescription drugs (except intramuscular injectable antibiotics), premedicarions, medicaments/ solutions, and relative analgesia. 7. General anesthesia and/or intravenous sedation for surgical procedures, unless medically necessary, or for restorative dentistry. 8. Chazges for hospitalization, laboratory tests, and histopathological examinations. 9. Charges for failure to keep a scheduled visit with the Dentist. 10. Services or supplies, as detemvned by Delta Dental, for which no valid dental need can be demonstrated. 11. Services or supplies, as determined by Delta Dental, that are investigational in nature, including services or supplies required to treat complications from investigational procedures. 12. Specialized techniques, as deternuned by Delta Dental. 13. Services or supplies, as deternuned by Delta Dental, which are not rendered in accordance with generally accepted standards of dental practice. 14. Treatment by other than a Dentist, except for services performed by a licensed dental hygienist or other dental professional as detemuned by Delta Dental under the scope of his or her license as pernutted by applicable state law. 15. Services or supplies excluded by the policies and procedures of Delta Dental, including the Processing Policies. 16. Services or supplies for which no charge is made, for which the patient is not legally obligated to pay, or for which no charge would be made in the absence of Delta Dental coverage. 17. Services or supplies received as a result of dental disease, defect, or injury due to an act of war, declared or undeclared. 18. Services or supplies that are covered under a hospital, surgicaUmedical, or prescription drug prograin. 19. Services or supplies that aze not within the categories of benefits that have been selected and that are not covered in the Plan. 20. Fluoride rinses, self-applied fluorides, or desensitizing medicaments. 21. Preventive control programs (including oral hygiene instruction, caries susceptibility tests, dietary control, tobacco counseling, home care medicaxnents, etc.). 22. Space maintainers for maintaining space due to premature loss of anterior primary teeth. 23. Lost, missing, or stolen appliances of any type and replacement or repair of orthodontic appliances or space maintainers. 24. Cosmetic dentistry, as determined by Delta Dental, except that when a Child covered from the moment of birth or placement in the adoptive home requires dental care associated with congenital defects and anomalies, congenital defects will be covered to the same extent an otherwise Covered Service is provided by the Plan. 25. Veneers. 26. Prefabricated crowns used as final restorations on permanent teeth. 27. Appliances, surgical procedures, and restorations for increasing vertical dimension; for altering, restoring, or maintaining occlusion; for replacing tooth structure loss resulting from attrition, abrasion, abfraction, or erosion; or for periodontal splinting. If orthodontic services are Covered Services, this exclusion will not apply to orthodontic services as limited by the terms and conditions of the Plan. 28. Paste-type root canal fillings on permanent teeth. 29. Replacement, repair, relines, or adjustments of occlusal guards. 30. Chemical curettage. 31. Services associated with overdentures. 32. Metal bases on removable prostheses. 33. The replacement of teeth beyond the normal complement of teeth. 34. Personalization/characteriza.tion of any service or appliance. 35. Temporary crowns used for temporization during crown or bridge fabrication. 36. Posterior bridges in conjunction with partial dentures in the same arch. Form No. 1752-NC 9 NCPPOpIus-A 01 /2012 37. Precision attachments and stress breakers. 38. Specialized implant surgical techniques, including a radiographic/surgical implant index. 39. Appliances, restorations, or services for the diagnosis or treatment of disturbances of the temporomandibular joint (TMJ). 40. Diagnostic photographs, diagnostic casts (study models), and cephalometric films, unless done for orthodontics. 41. Myofunctional therapy. 42. Mounted case analyses. Delta Dental will make no payment for the following services or supplies. Participating Dentists may not charge Eligible Persons for these services or supplies. All charges from Nonparticipating Dentists for the foilowing services or supplies will be the responsibility of the Eligible Person: 1. The completion of forms or submission of claims. 2. Consultations, when performed in conjunction with examixiations/evaluations. 3. Local anesthesia. 4. Acid etching, cement bases, cavity liners, and bases or temporary fillings. 5. Infection control. 6. Temporary crowns. 7. Gingivectomy as an aid to the placement of a restoration. 8. The correction of occlusion, when performed with prosthetics and restorations involving occlusal surfaces. 9. Diagnostic casts, when performed in conjunction with restorative or prosthodontic procedures. 10. Palliative treatment, when any other service is provided on the same date except X-rays and tests necessary to diagnose the emergency condition. 11. Post-operative X-rays, when done following any completed service or procedure. 12. Periodontal charting. 13. Pins and/or preformed posts, when done with core buildups for crowns, onlays, or inlays. 14. A pulp cap, when done with a sedative filling or any other restoration. A sedative or temporary filling, when done with pulpal debridement for the relief of acute pain before conventional root canal therapy or another endodontic procedure. The opening and draina.ge of a tooth or palliative treatment, when done by the same Dentist or dental office on the same day as completed root canal treatrnent. 15. A pulpotomy on a permanent tooth, except on a tooth with an open apex. 16. A therapeutic apical closure on a permanent tooth, except on a tooth where the root is not fully formed. 17. Retreatment of a root canal by the same Dentist or dental office within two years of the original root canal treatment. 18. A prophylaxis or full mouth debridement, when done on the same day as periodontal maintenance or scaling and root planing. 19. An occlusal adjustment, when performed on the same day as the delivery of an occlusal guard. 20. Reline, rebase, or any adjustment or repair within six months of the delivery of a partial denture. 21. Tissue conditioning, when performed on the same day as the delivery of a denture or the reline or rebase of a denture. Limitations The Benefits for the following services or supplies are limited as follows, unless otherwise specified in the Summary of Dental Plan Benefits. All charges for services or supplies that exceed these limitations will be the responsibility of the Eligible Person. All time limitations are measured from the last date of service in any Delta Dental Plan record or, at the request of your group, any dental plan record: 1. Bitewing X-rays are payable once per calendar year. Full mouth X-rays (which include bitewing X- rays) aze payable once in any five-year period. A panographic X-ray (including bitewings) is considered a full mouth X-ray. 2. Any combination of prophyla~ces (teeth cleanings) and periodontal maintenance procedures are payable twice per calendar year. 3. Oral exaininations/evaluations are only payable twice per calendar year, regardless of the Dentist's specialty. 4. Preventive fluoride treatments are payable twice per calendar year for people under age 19. Form No. 1752-NC 1 Q NCPPOpIus-A 01/2012 5. Space maintainers are payable for people under age 14. 6. Sealants are payable once per tooth per lifetime for the occlusal surface of first and second permanent molazs for people under age 16. The surface must be free from decay and restorations. 7. Cast restorations (including j ackets, crowns, and onlays) and associated procedures (such as core buildups and post substructures) are payable once in any five-year period per tooth. 8. Crowns or onlays are payable only for extensive loss of tooth structure due to caries (decay) and/or fracture. 9. Individual crowns over implants are payable at the prosthodontic benefit level. 10. Substructures, porcelain, porcelain substrate, and cast restorations are not payable for people under age 12. 11. An occlusal guard is payable once in a lifetime. 12. An interim partial denture is payable only for the replacement of permanent anterior teeth for people under age 17 or during the healing period for people age 17 and over. 13. Prosthodontic Services limitations: a. One complete upper and one complete lower denture are payable once in any five-year period. b. A removable partial denture, implant, or fixed bridge is payable once in any five-yeaz period unless the loss of additional teeth requires the construction of a new appliance. c. Fuced bridges and removable cast partial dentures are not payable for people under age 16. d. A reline or the complete replacement of denture base material is payable once in any two-year period per appliance. e. Implant removal is payable once per lifetime per tooth or area. f. Implant maintenance is payable once per calendar yeaz. 14. Orthodontic Services limitations: a. Orthodontic benefits are payable for people under age 19. b. If the treatment plan is ternunated before completion of the case for any reason, Delta Dental's obligation for payxnent of benefits ends on the last day of the month in which the patient was last treated. c. The Dentist may ternunate treatment, with written notification to Delta Dental and to the patient, for lack of patient interest and cooperation. In those cases, Delta Dental's obligation for payment of benefits ends on the last day of the month in which the patient was last treated. d. An observation and adjustment is a benefit twice in a 12-month period. 15. Delta Dental's obligation for payment of benefits ends on the last day of coverage. However, Delta Dental will make payment for Covered Services provided on or before the last day of coverage, as long as it receives a claim for those services within one year of the date of service. Failure to submit a claim within the time required does not invalida.te or reduce any claim however, if it was not reasonably possible for the claimant to file the claim within that time, provided that the claim is submitted as soon as possible and in no event, except in the absence of legal capacity of the claimant, later than one year from the time submittal of the claim is otherwise required. 16. When services in pmgress aze interrupted and completed later by another Dentist, Delta Dental will review the claim to determine the amount of payment, if any, to each Dentist. 17. Care ternunated due to the death of an Eligible Person will be paid to the limit of Delta Dental's liability for the services completed or in progress. 18. Optional treatment: If you select a more expensive service than is customarily provided, Delta Dental will make an allowance based on the fee for the customarily provided service. You are responsible for the difference in cost. Listed below are some examples of optional services. Remember, you are responsible for the difference in cost for any optional treatment. a. Overdentures - the Plan will pay only the applicable amount that it would pay for a conventional denture. b. Inlays, regardless of the material used - the Plan will pay only the applicable amount that Form No. 1752-NC 11 NCPPOpIus-A 01 /2012 it would pay for an amalgam or composite resin restoration. c. All-porcelain/ceramic bridges - the Plan will pay only the applicable amount that it would pay for a conventional fixed bridge. d. Implanbabutment supported complete or partial dentures - the Plan will pay only the applicable amount that it would pay for a conventional denture. 19. Maximuxn Payment: a. The maximum benefit payable in any one benefit year will be limited to the Maximum Payment specified in the Sumrnary of Dental Plan Benefits. b: Delta Dental's payment for Orthodontic Services will be limited to the annual or lifetime Maximum Payment specified in the Summary of Dental Plan Benefits. 20. If a Plan Deductible amount is specified in the Surnmary of Dental Plan Benefits, Delta Dental will not be obligated to pay for any services or supplies, in whole or in part, to which the Deductible applies until the Plan Deductible amount is met. 21. Processing Policies may limit Delta Dental's payment for dental services or supplies. Delta Dental will make no payment for services or supplies that exceed the following limitations. Participating Dentists may not charge Eligible Persons for these services or supplies. All charges from Nonparticipating Dentists that exceed these limitations wffl be the responsibility of the Eligible Person: 1. Amalgam and composite resin restorations by the same Dentist or dental office are payable once in any two-year period, regardless of the number or combination of restorations placed on a surface. 2. Core buildups and other substructures are payable only when needed to retain a crown on a tooth with excessive breakdown due to caries (decay) and/or fractures. 3. Recementation of a crown, onlay, inlay, space maintainer, or bridge by the same Denrist or dental office within six months of the seating date. 4. Retention pins are payable once in any two-year period. Only one substructure per tooth is a Covered Service. 5. Root planing by the same Dentist or dental office is payable once in any two-year period. 6. Periodontal surgery by the same Dentist or dental office is payable once in any three-year period. 7. A complete occlusal adjustment is payable once in any five-year period. The fee for a complete occlusal adjustment includes a11 adjustments that are necessary for a five-year period. A limited occlusal adjustment is not payable more than three times in any five-year period. The fee for a lunited occlusal adjustment includes a11 adjustments that are necessary for a six-month period 8. Tissue conditioning is not payable more than twice per arch in any three-year period. 9. The allowance for a denture repair (including reline or rebase) will not exceed half the fee for a new denture. 10. Services or supplies, as determined by Deita Dental, which are not rendered in accordance with generally accepted standards of dental practice. 11. Processing Policies may limit Delta Dental's payment for dental services or supplies. VIII. Coordination of Benefits Coordination of Benefits (COB) applies to this Plan when you or your Eligible Dependents are covered under more than one Plan. In that case, North Carolina COB rules deternune whether this Plan's benefits are determined before or after another plan's benefits. When this Plan is a Primary Plan, its benefits are deternuned before the other plan's benefits and without considering those benefits. When this Plan is a Secondary Plan, its benefits are deternuned after those of the other plan and may be reiiuced because of those benefits. When you are covered by more than two plans, this Plan may be a Primaiy Plan as to one or more of "those plans and may be a Secondary Plan as to the other plans. Which Plan is Primary? In general, this Plan is a Secondary Plan. Its benefits are deternuned after the other plan's benefits, unless: 1. The other plan has rules coordinating its benefits with this Plan's benefits; and Form No. t752-NC 1 2 NCPPOpIus-A 01 /2012 2. Those rules and this Plan's rules require that this Plan's benefits be deternuned first. Delta Dental deternunes which plan is the Primary Plan by using the first of the following rules that applies: The benefits of the plan that covers you as an employee or a Subscriber (that is, as other than a dependent) are determined before those of the plan that covers you as a dependent. This rule does not apply if you are also a Medicare beneficiary and, as a result of the rule established by Title XVIII of the Social Security Act and implementing regulations, Medicare is: a. Secondary to the plan covering you as a dependent; and b. Primary to the plan covering you as other than a dependent (for example, as a retired employee). 2. Delta Dental uses the birthday rule when more than one plan covers a dependent child of parents who aze not divorced or separated. Under this rule: a. The benefits of the plan of the parent whose birthday falls eazlier in the year are deternuned before the benefits of the plan of the parent whose birthday falls later in that year, but b. If both parents have the same birthday, the benefits of the plan that covered the parents longer are deternuned before the benefits of the plan that covered them for a shorter period of time. If the other plan does not use the birthday rule, but instead uses a rule based upon the gender of the parent, and if, as a result, the plans do not agree on the order of benefits, the other plan's rule deternunes the order of benefits. 3. When more than one plan covers a dependent child of divorced or separated parents, the child's benefits are detennined in this order: a. First, the plan of the parent with custody of the Child; b. Then, the plan of the spouse of the parent with custody of the Child; c. Then, the plan of the parent without custody of the Child; and d. Then, the plan of the spouse of the parent without custody of the Child. If the other plan does not have this rule, and if, as a result, the plans do not agree on the order of benefits, this rule is ignored. However, if tYie specific terms of a court decree state that one of the parents is responsible for the child's health care expenses, and the entity obligated to pay or provide the benefits of that parent's plan has actual knowledge of those terms, that plan's benefits aze deternuned first. The other parent's plan is the Secondary Plan. This paragraph does not apply with respect to any benefit year during which any benefits are actually paid or provided before the entity has that actual knowledge. If the specific terms of the court decree state that the parents will share custody without stating that one of the parents is responsible for the child's health care expenses, the plans covering the Child are subject to the birthday rule. 4. The benefits of a plan that covers you as an employee who is neither laid off nor retired (or as your dependent) are deternuned before those of a plan that covers you as a laid-off or retired employee (or as your dependent). ff the other plan does not have this rule, and if, as a result, the plans do not agree on the order of benefits, this rule is ignored. 5. . If your coverage is provided under a right of continuation pursuant to federal law (COBR.A) or state law and you are also covered under another plan, the benefits of the plan covering you as an employee or a Subscriber (or as your dependent) will be deternuned before the benefits under the continuation coverage. ff the other plan does not have this rule, and if, as a result, the plans do not agree on the order of benefits, this rule is ignored. 6. If none of the above rules deternunes the order of benefits, the benefits of the plan that covered you longer are detemuned before those of the Plan that covered you for the shorter term. How Delta Dental Pays as Primary Plan When Delta Dental is the Primary Plan, it will pay for Covered Services as if you had no other coverage. Form No. 1752-NC ,~ 3 NCPPOpIus-A Ot/2012 made" includes providing benefits in the form of services, in which case "payment made" means reasonable cash value of the benefits provided in the forxn of services. Right of Recovery If Delta Dental pays more than it should have paid under this COB provision, it may recover the excess from the people it has paid or for whom it has paid. Payrnent includes the reasonable cash value of any benefits provided in the forxn of services. This right of recovery is limited to two years after the date of the original claim payment, unless Delta Dental has reasonable belief that fraud or intentional misconduct occurred. IX. Disputed Claims Procedure When Delta Dental is the Secondary Plan, it will pay for Covered Services based on the amount left after the Primary Plan has paid. It will not pay more than that amount, and it will not pay more than it would have paid as the Primary Plan. Delta Dental may, however, pay less than it would have paid as the Primary Plan. When Delta Dental's payments are reduced as described above, each payxnent is reduced in proportion. The payments are then charged against any applicable benefit limit. Right to Receive and Release Needed Information Delta Dental needs certain facts to apply these COB rules, and it has the right to decide which facts it needs. It may get needed facts from, or give them to, any other organization or person. Delta Dental need not tell, or get the consent of, any person to do this. Each person claiming benefits under this Plan must give Delta Dental any facts it needs to pay the claim. Facility of Payment A payment made under another plan may include an amount that should have been paid under this Plan. If it does, Delta Dental may pay that amount to the organization that made the payment. That amount will then be treated as though it were a benefit paid under this Plan, and Delta Dental will not have to pay that amount again. The term "payment Delta Dental will notify you or your authorized representative if you receive an adverse benefit determination after your claim is filed. An adverse benefit determination is any denial, reduction, or termination of the benefit for which you filed a claim, or a failure to provide or to make payxnent (in whole or in part) of the benefit you sought. This includes any such determination based on eligibility, application of any utilization review criteria, or a determination that the item or service for which benefits are otherwise provided was experimental or investigational or was not medically necessary or appropriate. If Delta Dental informs you that the Plan will pay the benefit you sought but will not pay the total amount of medical expenses incurred, and you must make a Copayment to satisfy the balance, you may also treat that as an adverse benefit deternunation. ff you receive notice of an adverse benefit deternunation, and if you think that Delta Dental incorrectly denied a11 or part of your claim, you can take the following steps: First, you or your Dentist should contact Delta Dental's Customer Service department at their toll-free number, (800) 662-8856, and ask them to check the claim to make sure it was processed correctly. You may also mail your inquiry to the Customer Service department at P.O. Box 9089, Farmington Hills, Michigan, 48333-9089. When writing, please enclose a copy of your Explanation of Benefits and describe the problem. Be sure to include your name, your telephone number, the date, and any information you Form No. 1752-NC 14 NCPPOpIus-A 01 /2012 How Delta Dental Pays as Secondary Plan would like considered about your claim. This inquiry is not required, and it should not be considered a formal request for review of a denied claim. Delta Dental provides this opportunity for you to describe problems and submit information that might indicate that your claim was improperly denied and allow Delta Dental to correct this error quickly. Formal Disputed Claims Procedure Whether or not you have asked Delta Dental informally, as described above, to recheck its initial determination, you can submit your claim to a formal review through the Disputed Clanns Procedure described here. To request a fornial dispute of your claim, you must send your request in writing to: Dental Director Delta Dental P.O. Boz 30416 Lansing, Michigan 48909-7916 You must include your name and address, the Subscriber's Member ID number, the reason you believe your claim was wrongly denied, and any other inforniation you believe supports your claim, and indicate in your letter that you are requesting a formal dispute of your claim. You also have the right to review the Plan and any documents related to it. If you would like a record of your request and proof that it was received by Delta Dental, you should mail it certified mail, return receipt requested. You or your authorized representative should seek a review as soon as possible, but you must file your dispute within 180 days of the date on which you receive your notice of the adverse benefit determination. If you are disputing an adverse deternunation of a Concurrent Care Claim, you will have to do so as soon as possible so that you may receive a decision on review before the course of treatment you are seeking to extend ternunates. The Dental Director or any other person(s) reviewing your claim will not be the same as, nor will they be subordinate to, the person(s) who initially decided your claim. The Dental Director will grant no deference to the prior decision about your claim. Instead, he will assess the information, including any additiona.l information that you have provided, as if he were deciding the claim for the first time. The Dental Director will make his decision within 30 days of receiving your request for the review of Pre- Service Claims and within 60 days for Post-Service Claims. If your claim is denied on review (in whole or in part), you will be notified in writing. The notice of any adverse determination by the Dental Director will (a) inform you of the specific reason(s) for the denial, (b) list the pertinent Plan provision(s) on which the denial is based, (c) contain a description of any additional infoimation or material that is needed to decide the claim and an explanation of why such information is needed, (d) reference any internal rule, guideline, or protocol that was relied on in making the decision on review and inform you that a copy can be obtained upon request at no charge, (e) contain a statement that you are entitled to receive, upon request and at no cost, reasonable access to and copies of the documents, records, and other information relevant to the Dental Director's decision to deny your claim (in whole or in part), and ( fl contain a statement that you may seek to have your claim paid by bringing a civil action in court if it is denied again on dispute. If the Dental Director's adverse determination is based on an assessment of inedical or dental judgment or necessity, the notice of his adverse deternunation will e~lain the scientific or clinical judgment on which the determination was based or include a statement that a copy of the basis for that judgment can be obtained upon request at no charge. If the Dental Director consulted medical or dental experts in the appropriate specialty, the notice will contain the name(s) of those expert(s). If your claim is denied in whole or in part a.fter you have completed this required Disputed Claixns Procedure, or if Delta Dental fails to comply with any of the deadlines contained therein, you have the right to seek to have your claim paid by filing a civil action in court. However, you will not be able to do so unless you have completed the review described above. If you wish to file your claim in court, you must do so within one year of the date on which you receive notice of the fmal denial of your claim. X. Termination of Coverage Delta Dental must give your employer or organization at least 45 days advance notice of cancellation, expiration, non-renewal, or a change in rates. In the event Delta Dental chooses to terminate the Plan due to nonpayment of premium, Delta Dental will give your employer or organization notice of the termination within 45 days after the premium due date. The effective date of such ternunation shall be the first day of the period for which the prexnium is due and not paid. Form No. 1752-NC 15 NCPPOpIus-A 01 /2012 Your Delta Dental coverage may automatically terminate: • When your employer or organization advises Delta Dental to terminate your coverage. • On the first day of the month for which your employer or organization has failed to pay Delta Dental. Delta Dental will not continue eligibility for any person covered under this program beyond the eligibility ternunation date requested by your employer or organization. A person whose eligibility is terminated may not continue group coverage under this Contract, except as required by the continuation coverage provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) or comparable, non-preempted state law. XI. Continuation of Coveraqe If your employer or organization is required to comply with provisions under COBRA and the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and your coverage would otherwise end, you and/or your covered Eligible Dependents have the right under certain circumstances to continue coverage in the medical and dental plans sponsored by your employer or organization, at your expense, beyond the time coverage would normally end. When is Plan Continuation Coverage Available? Continuation coverage is available if your coverage or a covered Eligible Dependent's coverage would otherwise end because: l. Your employment ends for any reason other than your gross misconduct; 2. Your hours of work are reduced so that you are no longer a full-time employee; 3. You are divorced or legally separated; 4. You die; 5. Your Child is no longer eligible to be a covered Eligible Dependent (for example, because he or she turns 19); 6. You become enrolled in Medicare (if applicable); or 7. You are called to active duty in the anned forces of the United States. If you believe you are entitled to continuation coverage, you should contact your employer or organization to receive the appropriate docuxnentation required under the Employee Retirement Income Security Act of 1974 (ERISA). XII. General Conditions Chanae of Status You must notify Delta Dental, through your employer or organization, of any event that changes the status of an Eligible Dependent. Events that can affect the status of an Eligible Dependent include, but are not lixnited to, marriage, birth, death, divorce, and entrance into military service. In no event will retroactive updates to eligibility be accepted for an effective date more tha.n 90 days prior to receipt of the update by Delta Dental. Notwithstanding the foregoing, when no additional premium is required, a newborn child will be covered from the moment of birth, and a foster child or adopted child will be covered from the date of placement in the home, without regard to the timeliness of the update to eligibility. AssiQnment Services and/or benefit payments to Eligible Persons are for the personal benefit of those people and cannot be transferred or assigned, other than to the extent necessary to allow direct payments to Participating Dentists. . Obtaining and Releasing Information While you are covered by Delta Dental, you agree to provide Delta Dental with any information it needs to process your claims and administer your benefits. This includes allowing Delta Dental to have access to your dental records. Late Claims Submission Delta Dental will make no payment for services if a claim for those services has not been received by Delta Dental within one year following the date the services were completed. Failure to submit a claim within the time required does not invalidate or reduce any claim however, if it was not reasonably possible for the. Form No. 1752-NC 16 NCPPOpIus-A 01 /2012 claimant to file the claim within that time, provided that the claim is submitted as soon as possible and in no event, except in the absence of legal capacity of the claimant, later than one year from the time submittal of the claim is otherwise required. Dentist- Patient Relationship Eligible Persons are free to choose any Dentist. Each Dentist maintains the dentist- patient relationship with the patient and is solely responsible to the patient for dental advice and treatment and any resulting liability. Loss of Eligibility During Treatment If an Eligible Person loses eligibility while receiving dental treatrnent, only Covered Services received while that person was covered under the Plan will be payable. Certain services begun before the loss of eligibility may be covered if they are completed within a 60-day period measured from the date of termination. In those cases, Delta Dental evaluates those services in progress to determine what portion may be paid by Delta Dental. Entire Contract/Chan4es This Certificate, along with your Summary of Dental Plan Benefits, constitutes the entire contract of your Delta Dental program. No agent has the authority to change any provisions in this Certificate or the provisions of the contract on which it is based. No changes to this Certificate or the underlying contract are valid unless Delta Dental approves them in writing. Note: This Certificate and your Plan are subject to change if, in the future, federal or state laws or regulations require Delta Dental or your employer or organization to comply with such laws or regulations. Leaal Actions No action on a legal claim arising out of or related to this Certificate will be brought unti160 days after the time written proof of loss is required to be given. In addition, no action can be brought more than three years after the legal claim first arose. Any person seeking to do so will be deemed to have waived his or her right to bring suit on such legal claim. Governinq Law The group contract and/or Certificate will be governed by and interpreted under the laws of the state of North Carolina. Ri4ht of Recoverv Due to Fraud If Delta Dental pays for dental services that were sought or received under fraudulent, false, or misleading pretenses or circumstances, pays a claim that contains false or misrepresented inforn~ation, or pays a claim that is determined to be fraudulent due to the acts of the Eligible Person, it may recover that payment from the Eligible Person. The Eligible Person authorizes Delta Dental to recover any payxnent deternuned to be based on false, fraudulent, misleading, or misrepresented information by deducting that amount from any payments properly due to the Eligible Person. Delta Dental will provide an explanation of the payment being recovered at the time the deduction is made. Leaallv Mandated Benefits If any applicable law requires broader coverage or more favorable treatment for the Subscriber or an Eligible Dependent than is provided by this Certificate, that law shall control over the language of this Certificate. Any person who, with intent fo defraud or knowing that he or she is facilitating a fraud against an insurer, submits an application or files a claim confaining a fa/se or deceptive statement is guilty of insurance fraud. lnsurance fraud signi~cantly increases the cosf of healfh care. If you are aware of any false informafion submitted to Delta Dental, please call our toll-free hotline. Only anti-fraud ca/!s can be accepted on this line. ANTI-FRAUD TOLL-FREE HOTLINE: (800) 524-0147 Form No. 1752-NC 17 NCPPOpIus-A Ot/2012 Claims, Predeterminations P.O. Box 9085 Farmington Hills, MI 48333-9085 Inquiries, Review P.O. Box 9089 Farmington Hills, MI 48333-9089 An Equal Oppoitunity Employer Fortn No. 1752-NC NCPPOpIus-A Ot/2012 EXHIBIT C BUSINESS ASSOCIATE ADDENDUM THIS BUSINESS ASSOCIATE ADDENDUM ("the ADDENDUM") is an addendum to the most recently executed Agreement between Delta Dental of North Carolina ("Business Associate") and Contractor ("Plan Sponsor"). This Addendum is also entered into by and between Business Associate, the Plan Sponsor, and the Contractor's Benefit Plan as named in the Contractor's ERISA Plan documents (the "Plan"). Business Associate, the Plan Sponsor, and the Plan are sometimes coliecrively referred to herein as the "Parties." This Addendum is effective on the same date as the Contract attached hereto. I. INTRODUCTION A. WHEREAS, pursuant to the terms and conditions set forth in the Agreement, Business Associate performs, for or on behalf of the Plan, certain services described in the Agreement (the "Services'~; and B. WHEREAS, in performing the Services, Business Associate will receive, create, or access certain Protected Health Information of Participants or Beneficiaries covered under the Plan, and, accordingly, is a"Business Associate" as defined in the Privacy Rule; and C. WHEREAS, the Plan is a"Covered Entity" within the meaning of the Privacy Rule; and D. WHEREAS, the Parties desire to enter into this Addendum to comply with the provisions in the Privacy Rule requiring a Business Associate to provide adequate assurances to a Covered Entity with respect to the confidenriality of PHI. E. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby aclmowledged, the Parties hereby agree as follows: II. DEFINITIONS A. "Beneficiary" means any Individual entitled to benefits under the Plan by virtue of being a covered dependent of a Participant. B. "Business Associate" shall have the same meaning as the term "business associate" in 45 CFR 160.103. Delta Dental is a Business Associate of the Plan. C. "Covered Enrity" shall have the same meaning as the term "covered entit}~' in 45 CFR 160.103. The Plan is a Covered Enrity. D. "Designated Record SeY' shall have the same meaning as the term "designated record set" in 45 CFR 164.501 limited to a group of records maintained by or for the Plan that includes (a) enrollment, payment, and claims adjudication record of an Individual maintained by or for the Plan, (b) other Protected Health Informarion used, in whole or in part, by or for the Plan to make coverage decisions about an Individual. E. "Electronic Protected Health Information" or "EPHI" shall have the same meaning as the term "electronic protected health information," at 45 CFR 160.103, limited to the electronic protected health information that is created, received, maintained, or ttansmitted to or on behalf of the Plan. F. "ERISA" means the Employee Retirement Income Security Act of 1974, as amended. G. "HIPAA" means the Health Insurance Portability and Accountability Act of 1996, as amended. H. "HITECH Act " means the Health Information Technology for Economic and Clinical Health Act, found in the American Recovery and Reinvestment Act of 2009 at Division A, title XIII and Division B, Title IV. I. "Individual" shall have the same meaning as the term "individual" in 45 CFR 160.103, and shall include a person who qualifies as a personal representative in accordance with 45 CFR 164.502(g). Page 1 of 8 Exhibii C- Nonh Carolina - BA Addendum 92011 J. "Minimum Necessary" shall have the meaning set forth in the Health Information Technology for Economic and Clinical Health Act, § 13405(b) K. "ParticipanY' means any Individual who is an employee of the Plan Sponsor and is entitled to benefits under the Plan. L. "Plan" means the Contractor's Benefit Plan as named in the Contractor's ERISA Plan documents. Whenever reference is made in this Addendum to actions or undertakings of the Plan, to reports or information provided by the Business Associate to the Plan or to instructions to the Business Associate from the Plan, the reference to the Plan shall be to the person or entity designated in the Plan documents as having responsibility for Plan administration, or, if no designation is made therein, the Plan Sponsor. In short, the reference is to a person or enrity with authority to act or speak on behalf of the Plan. M. "Plan Sponsor" means the Contractor. The Plan Sponsor is neither a Covered Entity nor a Business Associate. N. "Privacy Rule" means the "Standards for Privacy of Individually Identi~able Health Information," at 45 CFR parts 160 and 164, subparts A and E, as promulgated pursuant to HIPAA. O. "Protected Health Information" or "PHI" shall have the same meaning as the term "protected health information" in 45 CFR 160.103, limited to the information created, received, or accessed by Business Associate from or on behalf of the Plan. P. "Required By Law" shall have the same meaning as the term "required by law" in 45 CFR 164.103. Q. "Secretar~' shall mean the Secretary of the Department of Health and Human Services, or his designee. R. "Security Rule" means the "Standards for the Security of Electronic Protected Health Information," at 45 CFR parts 160, 162 and 164, as promulgated pursuant to HII'AA. III. AGREEMENTS A. Oblieations of Business Associate. 1. Application of Security Rule and Privacy Rule to Business Associate. The administrative, physical and technical safeguards set forth in the HIPAA Security Rule at 45 CFR 164.308, 164.310, 164312, and 164.316, shall apply to Business Associate in the same manner that such sections apply to a covered entity. The additional requirements of Subtitle D of the HITECH Act (Sections 13400 through 13411) that relate to privacy or security and that are made applicable with respect to covered entities shall also be applicable to Business Associate and are hereby incorporated into this Agreement. 2. Uses and Disclosures. Business Associate shall not use or further disclose PHI other than (a) as permitted or required by this Agreement and Addendum, (b) as permitted or required by the Plan documents, (c) as permitted or required by the Pri~+acy Rule, (d) as Required by Law, (e) in a manner that would be pernussible if used or disclosed by the Plan, or (fl in a manner that would not violate the Privacy Rule or other applicable federal or state law or regulation. Business Associate may use and disclose PHI that Business Associate obtains or creates only if such use or disclosure, respecrively, is in compliance with each applicable requirement of 45 CFR 164.504(e). 3. Minimum Necessary Staadard. Business Associate shall use and disclose PHI in a manner minimally necessary to accomplish the intended purpose of the use or disclosure. Business Associate shall be responsible for making minimum necessary determinations. 4. Security. Business Associate agrees to (a) implement safeguards in accordance with the Security Rule that reasonably and appropriately protect the confidentiality, integrity, and availability of the Electronic Protected Health Information that it creates, receives, maintains, or transmits on behalf of the Plan, (b) ensure that any agent, including subcontractor, to whom Business Associate provides PHI agrees to implement reasonable and appropriate safeguards in accordance with the Security Rule to protect the PHI, and (c) report to the Plan any violation of the Security Rule of which it becomes aware. Page 2 of 8 Exhibi~ C- North Carolina - BA Adderdum 9/201 I NotiTication of Unauthorized Access, Use or Disclosure of Unsecured PHI. Business Associate shall notify Covered Entity in writing of any unauthorized access, use or disclosure of unsecured PHI as soon as reasonably possible but no later than five (5) days following the date of discovery. Such notice shall include: (a) a brief description of what happened, including the date of the breach and the date of the discovery, (b) the name(s) of the individual(s) whose PHI was used or disclosed, (c) the identity(ies) of the entity(ies)/person(s) to whom the use or disclosure was made, (d) description of the types of unsecured PHI that were disclosed, (e) the steps taken by Business Associate to discontinue and minimize the impact of any inappropriate use or disclosure. 6. Reporting. Business Associate shall report to the Plan any use or disclosure of PHI not provided for under Section III.A.2 of this Addendum of which Business Associate becomes aware. Additionally, Business Associate agrees that, to the extent practicable, it shall mitigate any harmful effect of a use or disclosure of PHI of which it becomes aware that is in violation of the requirements of Section III.A.2 of this Addendum. 7. Mitigation of Uaauthorized Access, Use or Disclosure of Unsecured PHI. Business Associate agrees that, to the extent pracricable, it shall mitigate any harmful effect resulting from any unauthorized acquisirion, use or disclosure of unsecured PHI caused by Business Associate's violation of the requirements of this Agreement or its failure to properly secure PHI in accordance with the April 17, 2009 guidelines published by the Depariment of Health and Human Services. 8. Agents and Subcontractors. Business Associate shall ensure that any subcontractors or agents to whom it provides PHI that has been created or received by Business Associate from or on behalf of the Plan agrees to the same restrictions and condirions with respect to such PHI as are applicable to Business Associate as set forth herein. Should Business Associate, at its sole discretion, enter into a written contract with such subcontractors or agents to assure that such subcontractors or agents abide by the same restrictions and conditions that apply to Business Associate with regard to PHI, Business Associate shall, upon request, provide a copy of such contract(s) to the Plan. 9. Requests for Information or Access. Business Associate shall process any requests it receives from individuals seeking access to or copies of PHI maintained by Business Associate for or on behalf of the Plan. T'he Plan hereby expressly delegates its authority regarding requests for access to Business Associate and agrees to abide by Business Associate's determinations to grant or deny access in accordance with the Privacy Rule. 10. Requests to Amend. Business Associate shall make any amendment(s) to PHI in a Designated Record Set that the Plan directs or agrees to pursuant to 45 CFR 164.526 at the request of the Plan or an Individual. The Business Associate shall make amendments as soon as administratively feasible. 11. Business Associate agrees to document disclosures of Protected Health Information, and information related to such disclosures, as would be required for Health Plan Sponsor to respond to a request by an Individual for an accounting of disclosures of Protected Health Information in accordance with 45 CFR § 164.528 and any additional regulations promulgated by the Secretary pursuant to HITECH Act § 13405(c). Business Associate agrees to implement an appropriate record keeping process that will track, at a minimum, the following information: (i) the date of the disclosure; (ii) the name of the entity or person who received the Protected Health Information, and if lrnown, the address of such entity or person; (iii) a brief description of the Protected Health Information disclosed; and (iv) a brief statement of the purpose of such disclosure which includes an explanation of the basis for such disclosure. 12. Requests for Accountings. With respect to requests for an accounting, Business Associate shall notify the Plan in writing within twenty (20) business days of any requests received by Business Associate from individuals seeking an accounting of disclosures of PHI and respond to such requests only when and as directed by the Plan. Additionally, when and as directed by the Plan, Business Associate shall provide for an accounting to the Plan or the requesting individual (as directed) of any and all disclosures of PHI made Page 3 of 8 Exhibit C- Nonh Camlina - BA Addcndum 9201 I by Business Associate on behalf of the Plan during the six years prior to the date of the request. Business Associate shall maintain and make available to the Plan, upon request, a record of all disclosures of PHI made by Business Associate, inciuding, at a minimum, the date of the disclosure, the name and address of the recipient of the PHI, a descriprion of the PHI disclosed, and the purpose of and basis for the disclosure. The accounting obligations of Business Associate hereunder shall not apply to (a) disclosures made for purposes of treahnent, payment, or health care operations (as defined in the Privacy Rule), (b) disclosures made to the individual who is requesring the accounting, (c) disclosures made prior to April 14, 2003, (d) disclosures made to law enforcement officers, conectional institutions, or for national security purposes, (e) disclosures incidental to a use or disclosure otherwise permitted or required as provided in 45 CFR 164.502, (~ pursuant to an authorization as provided in 45 CFR 164.508, (g) as part of a limited data set in accordance with 45 CFR 164.514(e). 13. Books and Records. Business Associate shall make its internal practices, books, and records relating to the use and disclosure of PHI received from the Plan, or created or received by Business Associate on behalf of the Plan, available to the Secretary and to the Plan for purposes of determining the Plan's compliance with HIPAA, the Privacy Rule, and other applicable federal and/or state law. Business Associate shall notify the Plan immediately of any such requests and shail pravide the Plan with a copy of the request and any documents or information provided in response to such requests. 14. Termination. Upon learning of any pattern of improper uses or disclosures by Business Associate that the Plan determines amounts to a material breach of Business Associate's obligations under this Addendum, the Plan shall promptly notify Business Associate in writing as to the nature and extent of such breach, and shall provide Business Associate a reasonable amount of time to cure such breach. A reasonable amount of time shall depend on the nature and extent of the breach, shall be clearly stated in the notice, but in no case shall the period for cure be less than 30 days: Notwithstanding the foregoing, should the Plan determine that the breach is incurable, or that Business Associate has repeatedly engaged in such impermissible uses or disclosures despite prior norice, the Plan may have the Plan Sponsor immediately terminate the Agreement to which this Addendum applies, upon written notice to Business Associate, without damages or liability to the Plan Sponsor or the Plan. 15. Return of PHI Upon Termination. At temunation of the Agreement, Business Associate shall retum or destroy all PHI received from the Plan, or created by Business Associate on behalf of the Plan, that Business Associate maintains in any form. Business Associate shall retain no copies of such PHI. Upon request of the Plan, Business Associate shall provide a written certification of the return and/or destruction of the PHI. ff the parties agree that the return or destruction of such PHI by Business Associate is not feasible, then Business Associate shall continue to extend the protections required hereunder to the PHI for as long as it maintains the PHI. Further, Business Associate shall limit any further use or disclosure of the PHI to those purposes that make its return or destruction infeasible. This provision shall survive the termination of this Agreement. 16. Prohibition against Sale or Marketing of PHI. Except as otherwise provided in Section 13405 of the HITECH Act, Business Associate shall not (a) directly or indirectly receive remuneration in exchange for any PHI of an individual; or (b) use or disclose PHI for any purpose related directly or indirectly to any marketing or marketing communication. B. Additional Permissible Uses and Disclosures of PHI bv Business Associate. Subject to the foregoing provisions, and in addition to the use and disclosure by Business Associate of PHI authorized elsewhere in this Addendum, Business Associate may use and disclose PHI for the following additional purposes: 1. As necessary for data aggregation purposes relating to the health care operations of the Plan, but only as separately authorized by the Plan in writing, 2. As necessary for data aggregation purposes of Business Associate, but only if the PHI is de-identified pursuant to 45 CFR 164.514, 3. For the proper internal management and administration of Business Associate, 4. To carry out the legal responsibilities of Business Associate, and Page 4 of 8 Fachibit C~- North Carolina - BA Addendum 9/201 I 5. To provide summary health information (as defined in 45 CFR 164.504) to the Plan Sponsor for the purposes of obtaining premium bids for other health insurance coverage or, if needed, to amend or terminate the Plan. For purposes (3) and (4) above, Business Associate may use or disclose PHI to third parties only if the disclosure is Required by Law, Business Associate obtains reasonable assurances from the person to whom the PHI is disclosed that it will be held confidentially and used or further disclosed only as Required by Law or for the purposes for which it was disclosed to the person, and the person to whom the disclosure is made is obligated to notify Business Associate of any instances of which that person is or becomes aware in which the confidenriality of the information has been breached. C. Oblieations of the Plan. 1. Comply With the Privacy Rule. The Plan shall comply with all the obligations imposed on Covered Entiries under the Privacy Rule with respect to the pemritted and required uses and disclosures of PHI. 2. Notice of Privacy Practices. The Plan shall provide Business Associate with a copy of its Notice of Privacy Practices, as well as any changes made to such Notice from time to time. 3. Communicate Changes in Permitted Uses and Disclosures. T'he Plan shall provide Business Associate with any changes in, or revocarion of, permission by Participants or Beneficiaries to use or disclose PHI, if such changes affect Business Associate's pernutted or required uses and disclosures of PHI. 4. Communication of Restrictions on Uses and Disclosures. The Plan shall notify Business Associate of any restriction to the use or disclosure of PHI that the Plan has agreed to. 5. Prohibirion of Employment-Related Disclosures. The Plan shall not use or disclose the PHI of any Participant or Beneficiary to the Plan Sponsor for any employment-related purposes, or in connection with any other benefit plan of the Plan Sponsor, nor shall it direct Business Associate to do so. 6. Guarantee of Individual Rights. The Plan shall ensure that Participants and Beneficiaries have the rights of access, amendment, and accounting with respect to their own PHI as set forth under the Privacy Rule. 7. Limitation on Access for Administrative Purposes. The Plan shall ensure that access to the PHI of Participants and Beneficiaries will be limited to those employees or agents of the Plan Sponsor designated in the Plan documents as being entitled to receive and use PHI in connecrion with the administrarion of the Plan, and will notify Business Associate in a timely fashion of the identity of such persons, any changes in the persons so designated, and a means for Business Associate to verify that it is in fact communicating with such persons. 8. Safeguards. The Plan shall establish or cause to be established adequate administrative, physical, and technical safeguards for protecting PHI and will provide Business Associate with sufficient information about such safeguards as wili allow Business Associate to provide the Services while respecting and maintaining the safeguards. 9. Sponsor Certification. The Plan will require that the Plan Sponsor certify that it has agreed to the obligations set forth in Section III.D below and that the Plan documents have been amended to incorporate the condirions to which the Plan Sponsor has agreed. 10. Limitation on Plan Requests of Business Associate. Except to the extent pemutted under Section III.B above, the Plan shall not ask Business Associate to use or disclose PHI in a manner that would not otherwise be permitted under the Privacy Rule if done by the Plan. D. ObliPations of the Plan Soonsor. 1. Prohibition on Employment-Related Uses and Disclosures. The Plan Sponsor shall not use or disclose the PHI of any Participant or Beneficiary for employment-related purposes or in connection with any other benefit plan of the Plan Sponsor. Page 5 of 8 Exhibil C- North Carolina - BA Adde~um 9/201 I 2. Permitted Uses and Disclosures. The Plan Sponsor shall only use or disclose the PHI of any Participant or Beneficiary as permitted or required by the Plan documents, the Privacy Rule, this Addendum, or as Required by Law. 3. Obligation to Report. The Plan Sponsor shall report to the Plan and Business Associate any use or disclosure of PHI of which it becomes aware that is inconsistent with the uses and disclosures permitted under Section III.D.2 above. 4. Cooperation for Plan Compliance. T'he Plan Sponsor shall make its internal practices, books, and records relating to the use and disclosure of PHI received from Business Associate or the Plan available to the Secretary for determining the Plan's compliance with the Privacy Rule. 5. Return of Pffi. The Plan Sponsor shall return, if feasible, all PHI received from the Plan or Business Associate when the PHI is no longer needed for the purpose(s) for which it was disclosed. 6. Amend Plan Documents. The Plan Sponsor shall amend or cause to be amended the Plan documents to (a) identify the pernutted and required uses and disclosures of PHI by the Plan Sponsor, (b) identify those of its employees or classes of employees to whom PHI may be disclosed for purposes of payment and health care operations in the normal course of Plan operarions, (c) restrict the Plan administrative functions performed by the Plan Sponsor to those employees and classes of employees identified in the Plan documents, and (d) establish an effective mechanism for resolving any instances of non-compliance with the permitted uses and disclosures by those employees and classes of employees identified in the Plan documents as being allowed to access PHI. 7. Individual Rights. The Plan Sponsor shall ensure all Participants and Beneficiaries the right to access, request amendments, and receive accounrings of disclosure of their own PHI maintained by the Plan. 8. Certification. The Plan Sponsor will certify to the Plan and Business Associate that it has fulfilled all of the obligarions set forth in Sections III.D.1-7 above. E. Security. The Parties shall work together in good faith to cooperate with each other's current and future security policies and procedures to ensure the integrity, confidentiality, and availability of PHI in a manner that complies with HIPAA and the Security Rule, as amended from time to time. F. Record Keeping. Business Associate agrees to implement an appropriate record keeping process to enable it to comply with the HIPAA requirements applicable to it under this Addendum and the Privacy Rule. G. Confidential and Proprietary Information. Business Associate may receive, create, or have access to confidenrial and/or proprietary information of the Plan Sponsor conceming its business affairs, property, products, operations, computer systems, and strategies. Business Associate agrees to hold such confidential and/or proprietary information in strict confidence, to maintain and safeguard the confidentiality of such informarion, and to use such information solely to perform the Services as required by this Agreement. Likewise, the Plan Sponsor or the Plan may receive, create, or have access to confidential and/or proprietary information of Business Associate conceming its business affairs, property, operations, computer systems, dentists, providers, and strategies. The Plan Sponsor and the Plan agree to hold such confidential and/or proprietary information in strict confidence, to maintain and safeguard the confidentiality of such information, and to use such information solely to perform their obligations as required by this Agreement. H. Amendment. Upon enactment of any law or regulation affecting the use or disclosure of PHI, or the publication of any decision of a court of the State or the United States relaring to any such law, or the publication of any interpretative policy or opinion of any government agency charged with the enforcement of any such law or regulation, Business Associate, by written notice to the Plan and the Plan Sponsor, may amend the Agreement and/or this Addendum in such manner as Business Associate detemvnes necessary to comply with such law or regulation, and the Plan and the Plan Sponsor agree to be bound by such amendment, unless within thirty (30) days of the Plan's and the Plan Sponsor's receipt of notice of such amendment the Plan and the Plan Sponsor notify Business Associate that they reject such amendment. Upon receipt of such notice of rejection, Business Associate may terminate the Agreement immediately upon written notice to the Plan and the Plan Sponsor. Page 6 of 8 Bxhibi~ C- North Carolina - BA Adde~dum 9/201 I I. Binding Effect. Except as otherwise provided herein, the terms and conditions of the Agreement shall remain in full force and effect. Additionally, the terms and conditions of this Addendum shall remain in full force and effect following ternunation of the Agreement. Indemnification by Plan or Plan Sponsor. To the extent permitted by law, the Plan and Plan Sponsor hereby agree to indemnify, defend, and hold hannless the Business Associate, its board of directors, officers, members, agents, employees, subcontractors, and personnel (the "Indemnities") from and against any and all claims, demands, suits, acrions, losses, expenses, costs (including reasonable attomey fees), obligations, damages, deficiencies, causes of action, and liabilities (collectively, "Claims") incurred by the Indemnities as a result of, or that are proatimately caused by, the negligence, intentional misconduct, willful malfeasance, fraud, or misrepresentation of Plan or Plan Sponsor, its employees, officers, subcontractors, and agents. The Plan or Plan Sponsor does not waive its sovereign immunity by entering into this contract and fully retains all immunities and defenses provided by law with respect to any action based on this contract. Business Associate shall provide prompt written notice of relevant information conceming the Claims to the Plan and Plan Sponsor. The Plan and Plan Sponsor shall provide such reasonable assistance (at Plan Sponsor's expense) as may reasonably be requested by Business Associate in connection with the defense of any Claim. Notwithstanding the foregoing: (1) Business Associate shall not settle any such Claim without the consent of the Plan Sponsor or the Plan, which consent shall not be unreasonably withheld, and (2) the indemnification obligations of Plan Sponsor and the Plan hereunder shall not extend to Claims ariributable solely to the gross negligence, intentional misconduct, or willful malfeasance of Business Associate. K. IndemniTication by Business Associate. Business Associate hereby agrees to indemnify, defend, and hold harmless the Plan Sponsor or the Plan, their board of directors, officers, members, agents, employees, subcontractors, and personnel (the "Indemnities") from and against any and all claims, demands, suits, actions, losses, expenses, costs (including reasonable attomey fees), obligations, damages, deficiencies, causes of action, and liabilities (collectively, "Claims") incurred by the Indemnities as a result of, or that are proximately caused by, the negligence, intentionai misconduct, willful malfeasance, fraud, or misrepresentation of Business Associate, its employees, officers, subcontractors, and agents; nothing in this secrion shall purport to indemnify or hold harmless a Plan fiduciary for any breach of his or her fiduciary duries under ERISA except where the Plan and/or the Plan Sponsor has delegated some or all of its responsibilities as to the Business Associate pursuant to the Contract.. The Plan Sponsor or the Plan shall provide prompt written notice of relevant information conceming the Claims to Business Associate. Business Associate shall provide such reasonable assistance (at Business Associate's expense), as may reasonably be requested by the Plan and Plan Sponsor, in connection with the defense of any Claim. Notwithstanding the foregoing: (1) neither the Plan nor the Plan Sponsor shall settle any such Claim without the consent of Business Associate, which consent shall not be unreasonably withheld, and (2) the indemnification obligations of Business Associate hereunder shall not extend to Claims amibutable solely to the negligence, gross negligence, intentional misconduct, or willful malfeasance of the Plan or the Plan Sponsor. L. Injunction. The Parties acknowledge and agree that in the event of a breach or threatened breach by Business Associate, the Plan Sponsor, or the Plan of their duries and obligations hereunder, each of the affected Parties shall be irreparably and substantially harmed, and that remedies at law will not be an adequate remedy for such breach. Accordingiy, in such event, Business Associate, the Plan Sponsor, and the Plan shall be entitled to immediate injunctive relief against such breach or threatened breach. Such rights to injunctive relief shall be in addition to, and not in limitation of, any other legal and equitable relief available to Business Associate, the Plan Sponsor, or the Plan under applicable law. M. Counterparts. This Agreement may be executed in the original or by facsimile or other electronic means in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. N. Disputes, Venue. The parties further agree that jurisdiction and venue for any matter arising out of or pertaining to this Addendum shall be proper only in the state and dederal courts located in Orange County, NHorth Carolina and the Middle District of the State of North Carolina, and the parties hereby consent to such jurisdiction and venue. O. Waiver. The failure of the Plan Sponsor to require compliance by the Business Associate with any provisions fo this agreement or the waiver by the Plan Sponsor of any breach of this agreement shall not Page 7 of 8 Ezhibi~ C- North Carolina - BA Adde~um 9/2011 constitute a waiver of any claim for damages by the Plan Sponsor for any breach of this agreement or a waiver of any other required compliance. This agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by the parties. Page 8 of 8 Erhibit C- North Carolina - BA Addendum 9/201 I