WIXLIB

2018 healthcare benefits for retirees age 65 and olderwho retired under the 2005 or later agreements betweenCaterpillar and the UAW (and/or eligible spouses/partners)Welcome!In the event that the content of this presentation or any representations made by any person regarding the plans conflict with or areinconsistent with the provisions of the plan documents, the provisions of the plan documents are controlling. To the fullest extentpermitted by law, Caterpillar Inc. reserves the right to amend, modify, suspend, replace or terminate any of its plans, policies orprograms, in whole or in part, at any time and for any reason, by appropriate company action.

What’s Changing? New contract ratified March 27, 2017. Caterpillar is also extending samebenefit changes to previous retirees who retired under 2005 and lateragreements, unless they opt out. You will be enrolled in the same healthcare benefit plan that managementretirees age 65 and older participate in today. A new Health Reimbursement Arrangement (HRA) will be available tohelp fund your healthcare coverage. OneExchange will help you find and enroll in coverage that works for you.

Health Reimbursement ArrangementCaterpillar providesannual benefit dollars( 3,000 each perretiree and spouse)Benefit dollars aredeposited into HealthReimbursementArrangement (HRA)accountRetiree purchaseshealth insurance tosupplement Medicareand may use theHRA forreimbursement of: Premiums (Part B also) Eligible medical expensesUnused amountsroll over fromyear to year

Comparison Example (using 2017 data)2017 Options - Caterpillar Plan (UAW)2017 Options - One ExchangePlanCost to Retiree(HighestCoverage)Cost to Retiree(AverageCoverage)CaterpillarPPO PlanCaterpillarEPO PlanMedicare Part A 0 0Medicare Part A 0 0Medicare Part B 134 134Medicare Part B 134 134Caterpillar Premium 284 284Medical with Rx 164 36Average Monthly OOP 122 68Dental 48 23Total Monthly Cost to Retiree 540 486Vision 14 14Average Annual Med BReimbursement( 99.50)( 99.50)Average Monthly OOPwithout Rx 0 93Net Monthly Cost to Retiree 440.50 385.50Average Annual Cost 4,320 3,600 5,284 4,626Caterpillar Annual HRAAllowance 3,000 3,000 110 50 1,320 600PlanTotal Annual Cost to RetireeNet Monthly CostTotal Annual CostPotential annual savings of over 4,600

Introducing OneExchange

Helping You Prepare For YourUpcoming Medicare EnrollmentSeptember 5, 2017 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.

OneExchange Who We Are Your Future Coverage OneExchange – For Your Benefit A Deeper Dive – Benefit Advisors,Private Exchange, Optimize Savings Health Reimbursement for You Next Steps Questions and Answers 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.7

OneExchange Health Insurance Marketplace9 out of 10Retirees reported they wouldwork with OneExchange againNo fees forOur serviceThis will be our12th annualenrollment seasonTowers WatsonOVER1.7 millionRetirees served across560 employersFounded in 2004Licensed advisor providesguidance andongoing advocacyPersonalized options with plans from anationwide network of insurersMore Choice, More Flexibility– Better Value 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.8

OneExchange Service CentersOperating hours:Monday – Friday, 7:00 a.m. until 8:00 p.m. Central TimeSalt Lake City,UTPhoenix, AZDallas, TX100% Domestic WorkforceNo Outsourcing! 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.9

Plans and InsurersMedicareAdvantageMedicare Supplement(Medigap)Prescription Drug(Part D)Dental and Vision Plans Available 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.10

Your Future Coverage 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.

Your Future CoverageHow Medicare coverage worksPrimary CoverageMedicare A and BAdditional Coverage (your choice)* Medicare Advantage withPrescription Drug (MAPD) or* Medigap Prescription DrugOptional Coverage (your choice) Dental Plans Vision Plans 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.12

Your Medicare OptionsOption 1:Medicare Advantage with Prescription Drug coverage (MAPD)HMOMAPDPPO* Note that Medicare Advantage plans are generally network based plans. 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.13

Your Medicare OptionsOption 2:Medicare Supplement Insurance (Medigap) Part D Prescription Drug planMEDIGAPPLANPART DPDPNote: You may need to pay your first premium when you enroll in coverage. 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.14

Medicare Supplement Insurance (Medigap) – Lettered PoliciesMedicare Supplement Insurance (Medigap) PoliciesBenefitsABCDFGKLMNMedicare Part A coinsuranceand hospital costs (up to anadditional 365 days afterMedicare benefits are used)100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Medicare Part B coinsuranceor copayment100% 100% 100% 100% 100% 100%50%75%100% 100%Blood (first 3 pints)100% 100% 100% 100% 100% 100%50%75%100% 100%Part A hospice carecoinsurance or copayment100% 100% 100% 100% 100% 100%50%75%100% 100%Skilled nursing facility carecoinsurance100% 100% 100% 100%50%75%100% 100%100% 100% 100% 100% 100%50%75%50%100%80%80%Part A deductiblePart B deductible100%100%100% 100%Part B excess chargesForeign travel emergency(up to plan limits)80%Source: CMS80%80%80%Out-of-Pocketlimit in 2017 5,120 2,560 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.15

Part D Plans – 5 Tiers of Co-PaysA prescription drug plan will typically break the formulary into“tiers.” The tiers correspond to the copayment or coinsurancethe beneficiary will pay.Cost-sharing increases with the tier number.Tier 1 is the least expensive, tier 4 or 5 is the most expensive.Tier descriptions: Tier 1 - preferred generic Tier 2 - non-preferred generic Tier 3 - preferred brand Tier 4 - non-preferred brand Tier 5 - specialty drugs or injectable medicine 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.16

Medicare Prescription Drug Coverage 2018You pay 35% of Brand Nameand 44% of Generics untilyour out of pocket costsreach 5000 Pharmaceuticalcontributions will counttowards the 5000 TrOOPYou Pay Full Retail UntilDeductible is Met 2017 0 to 405DeductiblePayments made by insurance company todiscount drugs DO NOT count towards TrOOPInitialCoverageCoverageGapInsurance payments counttowards Coverage GapYou pay copays for yourplan coverage for the first 3750 in actual costs ofMedications 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.Only 25% reachDonut HoleCatastrophicCoverageOnly 4% reachCatastrophicYou Pay 3.35 forGenerics and 8.35for Brand Name or 5%- whichever is greater17

A Deeper Dive Into Our Process 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.

The OneExchange processConsultativeProcessSimplifiedSelection 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.EffortlessEnrollmentOngoingAdvocacy19

EducationFor those retirees losing group coverage(retired beginning March 27, 2017)Getting Started Guide:Prepare for your enrollmentPre-existing conditions will notlimit your plan selection*Make an appointment to enrollCall Toll Free *Except end-stage renal disease 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.20

EducationEnrollment/Advantage Guide:Understand your options Review Medicare basics What to expect during yourenrollment call FAQs Appointment confirmationCall Toll Free to pillar 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.21

Benefit Advisors Licensed / Certified / AppointedOneExchange University Average age 43Objective & unbiased100% domestic workforceBenefit advisors are available:Monday – Friday, 7:00 AM. until 8:00 PM Central Time 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.22

Decision Support ToolsPrescription Profilermedicare.oneexchange.com/caterpillar24/7 access to your informationLoad in your prescriptions –Shorten your time on the phone with us! 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.23

Decision Support ToolsHelp Me Choose comparison tool 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.24

Enrollment ProcessTwo Step Process:1. Benefit Advisors Benefit Advisors can discusscoverage options withanyone2. Application Data Processors Telephonic enrollment100% of calls are recorded 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.25

Enrollment ProcessSelection Confirmation Letter Review the plan(s) thatyou selected The selection confirmationletter will be sent shortlyafter you enroll. This letter confirms thatyour applications havebeen submitted. 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.26

Personal GuidanceAn Ongoing Advocate Navigation Enrollment Prescriptionchanges Affordability concerns Reimbursement issues Late enrollment HRA Annual plan reviewThe plans you select continue on year to year. No need tore-enroll in the fall unless you want to make a plan change. 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.27

Health Reimbursement Arrangement (HRA) 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.28

Health Reimbursement ArrangementTax-free account used to reimburseyou for eligible health care expenses —you pay first and then get reimbursedIf you are eligible, Caterpillar will makean annual contribution to a HealthReimbursement Account (HRA)You may use HRA funding toreimburse yourself for eligiblemedical, prescription drug, dental, visionand Medicare part B premiums, as wellas eligible out-of-pocket healthcareexpenses 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.Your HRA fundingwill be availableJanuary 1, 2018Unused funds DO rollover29

Qualify for your Health Reimbursement ArrangementENROLL IN A PLAN THROUGH ONEEXCHANGE BEFORE THE END OFYOUR ENROLLMENT PERIODDECEMBER 31, 2017TO HAVE ACCESS TO YOUR HEALTH REIMBURSEMENT ARRANGEMENT(HRA)We recommend you schedule a call to enroll.You can also go online to investigate your options once the enrollmentperiod begins. 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.30

Health Reimbursement ArrangementYou may be reimbursed up to the amount available in your HRA! 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.31