Universal Health Services, Inc.
UniFLEX: Flexible Benefits for Individual Needs

What is UniFLEX?

UniFLEX is a flexible benefits package offered to employees that is comprised of two types of benefits: healthcare and income protection.

What is the philosophy behind UniFLEX and the other benefits offered by UHS?

The UniFLEX benefits program supports our commitment to Service Excellence by offering flexible, competitive and comprehensive programs. By competitive, we mean that our benefits compare well within our industry and market place. By flexible, we mean that you can select benefits that are right for you at any stage in your life. By comprehensive, we mean that UniFLEX benefits offer access to providers, affordability and a variety of coverage. We are also committed to providing you with quality service and with information and tools to make well-informed benefits decisions.

Who is Eligible for UniFLEX?

You are eligible for UniFLEX if you are a UHS employee who is regularly scheduled to work at least twenty (20) hours a week and are not a member of a collective bargaining group. You are eligible, however, if you are covered by a collective bargaining agreement that includes eligibility for these benefits.

When Do Benefits Become Effective?

Benefits become effective thirty (30) days after your date of hire.

How Does UniFLEX Work?

When you are hired, you will receive a personalized enrollment worksheet that reflects your benefit choices and related cost. UniFLEX offers a wide range of healthcare, life insurance and disability benefits to help meet the diverse needs of UHS employees and their families.

What Does Coverage Cost?

UHS pays a substantial portion of the cost of benefits by contributing to medical, dental and income protection benefits such as life insurance. Generally, the higher the benefit level, the higher the cost. You also have the option to decline certain benefits or to select coverage at a lower level than the UHS allowance for that benefit.

If the cost of your benefit choices is more than the allowance you received from UHS, you will pay the difference. If the cost of your choices is less than your allowance, you will receive the leftover dollars as taxable cash in your pay during the year.

Your contributions, if any, are paid with pre-tax deductions from your paycheck before federal, Social Security, and most state taxes are withheld. This helps lower your taxable income and your cost for coverage. Four insurance coverage options- supplemental life, dependent life, short-term disability and long-term disability are paid with post-tax contributions.

What Are the Health Benefits Choices?

• United Healthcare preferred provider organization feature
• Preventive care benefits
• Lifetime maximum of $1,000,000
• Prescription drug discounts at local pharmacies and a mail-order service

At some locations, Health maintenance organization (HMO) and preferred provider organization (PPO) options are available.

Dental. UniFLEX offers two dental plans that differ in deductibles, co-payments and annual maximum allowances. The two plans cover: (1) preventive care such as oral exams, (2) basic services like fillings, (3) major services such as crowns and (4) orthodontic services.

Vision. UniFLEX offers a vision plan. After a small deductible, the plan will pay 100% for the following services if you use a participating doctor: (1) vision exam, (2) clear lenses, (3) frames and (4) contact lenses. Benefits are also available if you use a non-member doctor and reimbursement is based on a fee schedule.

What are the income protection choices?

Life Insurance. UniFLEX offers basic life insurance of $10,000 or one times your annual base pay, plus four options of supplemental life insurance coverage which insures the employee's life ranging from $10,000 to four times your annual base pay (to a maximum of $500,000).

Automatic Death and Dismemberment. Coverage for an amount equal to your annual base pay is automatic. The benefit is paid to your beneficiary if you die from accidental injury. A schedule of benefits applies in the case of severe injury. There is also a comprehensive worldwide emergency assistance service at no additional cost.

Personal Accident Insurance (PAI). UniFLEX lets you purchase $25,000 to $300,000 of accident insurance for yourself and/or your family. If you purchase coverage for your spouse and children, they will be covered for a percentage of your coverage.

Dependent Life Insurance. UniFLEX provides three options: $35,000/$15,000, $25,000/$10,000 or $10,000/$2,000 for your spouse and/or children.

Short-Term Disability (STD). Coverage provides financial protection if you become ill or injured and unable to work starting on your eighth day of disability and continuing for up to twelve (12) or twenty-five (25) weeks depending on the plan you choose. The benefit pays 60% of your base pay - up to $1,000 per week - offset by any other income you receive, including company paid time off (PTO) benefits and long-term disability coverage.

Long-Term Disability (LTD). Coverage provides financial protection if you become ill or injured and are unable to work for an extended period of time. This benefit pays up to 60% of your monthly base pay.

UniFLEX provides two plans from which to choose. The difference between the plans is the waiting period, the time you are required to wait before your disability payments begin. Your choices are ninety (90) days or one hundred and eighty (180) days.

Are Investment Options Available, Separate From UniFLEX?

Yes. There are three available options:

UHS Retirement Savings Plan. You may join the UHS Retirement Savings Plan, which is a qualified 401(k) plan, and defer one percent (1%) to twenty-five percent (25%) of your pay on a pre-tax basis to save for your retirement. UHS also matches a portion of your savings. You may join the plan after your first thirty (30) days of employment if you are at least twenty-one (21) years of age and are regularly scheduled to work at least twenty (20) hours per week. The plan is designed to offer flexibility and diversification in your investment choices. Accounts are valued daily and are designed to allow you to choose from a multitude of investment options.

Employee Stock Purchase Plan. The UHS Employee Stock Purchase Plan offers employees the chance to purchase company common stock at a ten percent (10%) discount, giving you the opportunity to share in the success of UHS. You may join the plan after your first thirty (30) days of employment if you:

• Are not a member of a collective bargaining group
• Have attained the age of majority in your state of residence
• Are regularly scheduled to work at least twenty (20) hours per week.

You may invest twenty ($20) per month up to one-thousand ($1,000) per month through convenient payroll deductions.

Flexible Spending Accounts. FSAs allow you to set aside UniFLEX dollars and your own pre-tax dollars to cover qualified expenses that you would normally pay with post-tax dollars. You may set aside up to three thousand ($3,000) per year in a Healthcare FSA to pay for eligible expenses for yourself or dependents. These expenses could be medical, dental and vision expenses not covered by your benefit plans. You may also set aside up to five thousand ($5,000) per year in a Dependent Care FSA to pay for eligible day care or dependent care expenses for children or adults.

Field Personnel

For field personnel, the benefits are the same except for the following:

Paid Time Off (PTO)

The PTO policy combines a benefited employee's (regularly scheduled to work 20 hours or more per week) vacation and sick time accruals into one program. PTO hours can be used for religious observances and other elective holidays.

Approved educational leave, bereavement leave and jury duty may be used in addition to PTO days and the PTO account will not be charged with this time off.

This policy is designed to give you more flexibility in scheduling time away from work, reward outstanding attendance and increase availability of paid time off for extended illness. This policy was also developed to provide advance scheduling to enable optimum staffing.

Note: If you have questions about any of these benefits, call your Human Resources Department or the UHS Benefits Line at (800) 782-4049. This information summarizes UniFLEX, the Retirement Savings Plan, and the Employee Stock Purchase Plan. It is neither a contract nor a promise of employment. The information is subject to change at any time at the discretion of UHS. More detailed benefits information is provided in the UNiFLEX Workbook, Summary Plan Descriptions and plan documents available in your Human Resource Department. If there are inconsistencies between this online summary and the official plan documents and insurance contracts, the documents and contracts shall govern.