Elements Newsletter

Retirement Plan Quarterly Interest Rate Update

In the Q1 Elements newsletter, we mentioned we would be changing the way the interest rate used to calculate lump sum payments for the Chevron Phillips Chemical Company Retirement Plan is determined — from a monthly to quarterly basis — and displaying the quarterly interest rate on our Benefitium.com website. We have subsequently determined that for the period July 1, 2008 through June 1, 2009, we will have to use the "BETTER OF" either the quarterly interest rate assumption we will ultimately use, or the monthly adjusted interest rate we've been using. As such, we will not display the quarterly interest rate assumption on Benefitium.com until the second quarter of 2009. In the meantime, you can logon to http://www.irs.gov/retirement/article/0,,id=96450,00.html to review the applicable 30-year Treasury constant maturity rate used to determine lump sum benefits.

Claims Resolution — What To Do If a Health Care Claim Is Denied

Sometimes a health care claim is denied in part or in whole. It could be for a variety of reasons. Perhaps the claim was filed incorrectly or is incomplete. Perhaps the claim was for a service that you think should have been covered. Or maybe you’ve reached a plan limit for a specific service or benefit. In any case, there are steps you can take to make sure your claim is processed fairly and accurately — and resubmitted for review if appropriate.

First, make sure your claim is filed properly in the first place. If a participating provider is submitting the claim for you, make sure your insurance information on file is current and accurate. If you’re submitting the claim yourself, make sure you use the correct, current claim form and attach all required documentation.

If a claim is denied, the Explanation of Benefits (EOB) you receive should tell you why, although the description may be brief and hard to understand. The EOB will provide instructions on who to contact for further information. It’s a good idea to follow those instructions first — sometimes a simple inquiry to the claims administrator can resolve the issue. If not, you may want to file a formal claims appeal.

Filing an appeal does not guarantee that your claim will be approved. But it does give you an opportunity to resubmit your claim, add additional supporting information, and receive a fair review by people not involved in denying the claim the first time. This article will guide you through the appeals process.

Time Frames for Claims Appeals

By law there are specific time frames that apply to both you and the claims administrator when reviewing and appealing claims. It’s important to follow these guidelines, since your appeal can be denied if you miss a deadline. The following chart summarizes the time frames, which vary by type of claim. A more detailed discussion can be found in the General Information chapter of the Benefit Summaries on www.benefitium.com.

The chart uses some formal language that’s part of the established rules. Don’t get thrown off by the language. "Notice of Extension" just means that the claims administrator needs more time to process the claim. "Claims Determination" means that the claim has been accepted or denied by the claims administrator. An "Appeal" is a request for review and reconsideration. And "Adverse Benefit Determination" means that the claim has been denied, in whole or in part.

In the chart, the shaded rows indicate how long the claims administrator has to act. The non-shaded rows show how long you have to respond to the claims administrator’s action.

Health Care Claims (applies to medical, prescription drug, EAP/behavioral health, dental & health care FSA claims)
	Urgent Care Claims (claims where delay could threaten life or health or cause severe pain)	Pre-Service Claims (claims that require approval before care is given)	Post-Service Claims (claims that are submitted for payment after care is given)
Claims Administrator Notice of Extension or Request for Additional Information	24 hours	15 days	30 days
Your Time Frame to Respond to Request for Additional Information	48 hours	45 days	45 days
Claims Administrator Notice of Initial Claims Determination	72 hours (may be given orally, followed by written or electronic notice within 3 days)	15 days	30 days
Your Time Frame to Request a First Level Appeal (“Standard Review”) of an Adverse Benefit Determination	180 days (can be expedited)	180 days	180 days
Claims Administrator Notice of Adverse Benefit Determination on Standard Review	36 hours	15 days	30 days
Your Time Frame to Request a Second Level Appeal (“Final Standard Review”) of an Adverse Benefit Determination	60 days (can be expedited)	60 days	60 days
Claims Administrator Notice of Adverse Benefit Determination on Final Standard Review	36 hours	15 days	30 days
Your Time Frame to Request an External Review* of an Adverse Benefit Determination (applies to medical claims only)	60 days (can be expedited)	60 days	60 days
External Review Organization Notice of Benefits Determination	30 days (5 days if expedited)	30 days	30 days

Notice of Adverse Benefit Determination

If a claims administrator denies your formal claim, you’ll be sent a detailed notice. You should pay close attention to this notice because it tells you why the claim was denied and possible steps you can take to request reconsideration. In general, the notice will tell you:

• The specific reasons for the denial;
• Any specific plan provisions relevant to the denial;
• If applicable, any additional information needed to process the claim;
• Any additional appeal steps you can take and the related time frames, including your right to bring suit in a federal court after exhausting other appeal procedures;
• Any applicable internal rules or guidelines the claims administrator followed in making the denial; and
• If the denial was based on a medical necessity or experimental treatment or similar exclusion, the scientific explanation for the denial.

Appealing an Adverse Benefit Determination

When you file an appeal, try to respond directly to the specific reasons for the denial that were given in the notice you received. You have the right to:

• Submit written comments, documents and records relating to the claim;
• Request free of charge reasonable access to, and copies of, all documents, records and other information relevant to the claim;
• Receive a fair review that takes into account all information you submit, regardless of whether the information was submitted or considered in a previous claims determination;
• Receive a fair review that is not based on the previous determination and is made by people not involved in the previous determination;
• If the appeal involves a medical judgment, receive a review by an independent health care professional not involved in the previous determination;
• Be given the names of any medical or vocational experts involved in the benefits determination; and
• In the case of an urgent care claim, receive an expedited review.

Appealing Other Benefit Claims

There are similar processes in place for appealing denials of other benefit claims for the disability, life, AD&PL, dependent care FSA, 401(k) and retirement plans. The time frames are a little different and there’s generally only one level of appeal. We don’t have room to discuss those processes here, but the details can be found in the General Information chapter of the Benefit Summaries on www.benefitium.com.

Life Events — What To Do When

Certain life events that happen during the year can affect your benefits. You get married or divorced, you have a new child in the family. Depending on the event, you may be able to add, change or drop a benefits plan, or add or drop dependent coverage. But you need to do so in a timely manner, or else you’ll have to wait.

Generally you must notify the Chevron Phillips Chemical Benefits Service Center of the event within 31 days to make a change. If you don’t, you may have to wait until the next open enrollment period to make any changes. In some situations, a Special Enrollment may be allowed.

What’s a Life Event?

A life event, also known as a "qualified status change," is a change in your or another family member’s status that allows — or requires — you to change a benefits plan enrollment. Qualified status changes include the following kinds of changes:

Type of Change	Examples
Change in your family’s composition (gaining or losing an eligible dependent)	Gaining or losing a spouse due to marriage or divorce Adding a child due to birth, adoption or placement for adoption Death of a spouse or child
Change in dependent eligibility	Your child no longer satisfies the requirements for eligibility (unmarried dependent under age 19, or unmarried dependent age 19-25 who is a full-time student dependent on you for financial support)
Change in employment status or work hours by you, your spouse or your child	Depending on the change, you or your dependent may be newly eligible for benefits, or may no longer be eligible for benefits If you and/or your spouse and dependent child are covered by your spouse’s employer’s plan and that coverage ends or the features/costs of that plan change significantly, you may change your Chevron Phillips Chemical benefits elections
Going on or returning from a leave of absence	Depending on whether the leave is paid or unpaid, you may need to arrange for direct payment of premiums, or suspend your benefits coverage
Change in place of residence or work site by you, your spouse or your child	The change in location may affect your access to participating providers in the medical plan and allow you to change your medical plan option if appropriate
Court-ordered medical child support order	A Qualified Medical Child Support Order (QMCSO) requires you to provide medical coverage for a child
Access to other medical plans	You or a dependent become eligible for or lose eligibility for Medicare or Medicaid You or a dependent become eligible for benefit continuation through COBRA

What You Need To Do

Contact the Chevron Phillips Chemical Benefits Service Center at 1-800-446-1422 if you experience a life event such as the ones shown above. Even if you’re not sure whether the benefits elections can be changed, it’s a good idea to make the call. You must call within 31 days of the life event (or 60 days if the event is becoming eligible for COBRA).

During a plan year, you may only make a change in your plan elections if the change in your election is consistent with the qualifying status change. For example, if you are enrolled in the Core Plan medical option (which requires you to use only Aetna network providers) and you move to a location which does not have a sufficient number of participating network providers, you would be allowed to change medical plan options to the Cost-Saver Plan. You would not be allowed to change your dental plan option (from the Preventive Plan to the Comprehensive Plan, or vice versa) because the relocation doesn’t affect your choice of dental providers.

Special Enrollment Rights

If you and/or your dependents are not covered under a Chevron Phillips Chemical health care plan and you acquire a new dependent as a result of marriage, birth, legal adoption or placement for adoption, you have special enrollment rights. You may also have special rights if you did not enroll yourself and/or your eligible dependents in a Chevron Phillips Chemical health care plan when you were first eligible because you and/or your dependents had existing health coverage under another plan at the time of initial eligibility, and that other coverage has now ended due to loss of eligibility or another reason (other than your failure to pay timely premiums).

To take advantage of the special enrollment right, you must enroll within 31 days of the event that triggers the special enrollment right. Coverage will be effective on the date of the event, provided you timely enroll.

Effects on Other Benefits

Life events such as the ones we’ve been discussing are most likely to affect your elections for the health care plans. However, you should consider possible impact on your other benefit plans as well.

Basic and Supplemental Life Insurance and Accidental Death/Personal Loss Insurance: Are your beneficiary designations up to date? If your family composition has changed, is the total amount of coverage you have elected adequate for your family’s needs? Do you need to add supplemental coverage for your spouse and/or dependent children?

Long-Term Disability Plan: If you’re not currently enrolled and your family has expanded, do you need this coverage to provide income should you become disabled?

401(k) Savings and Profit Sharing Plan: Are your beneficiary designations up to date? If your family composition has changed, are you saving enough to properly support your family during retirement?

Aetna Aexcel At-A-Glance: Because special health concerns require special attention

Aetna Aexcel is a network of top-performing specialists who can give you high-quality specialized care. When you enroll in an Aetna plan option – and you reside in an Aexcel area – you can visit an Aetna Aexcel Specialist. Your plan pays a higher benefit for Aexcel visits, which means you save money.

Cardiology Cardiothoracic Surgery Gastroenterology General Surgery Neurology Neurosurgery

Obstetrics and Gynecology Orthopedic Surgery ENT or Otolaryngology Plastic Surgery (medically necessary) Urology Vascular Surgery

Aexcel selection criteria

Aetna Aexcel specialists are those specialists nationwide who meet Aetna’s stringent qualifications of excellence. To create Aexcel, Aetna evaluated doctors within 12 specialty areas on a variety of measures including diagnosis, lab tests, surgery, pharmacy and follow-up care.

Aetna then reviewed and rated their:

• Case volume;
• Clinical performance;
• 30-day hospital readmission rates and rates of unexpected health complications/adverse health events during hospital care;
• Other specialty-specific measures of treatment shown to improve outcomes; and
• Overall cost efficiency compared to the adjusted average for all comparable specialists in their regions.

Only those specialists who received the top rating are awarded the Aetna Aexcel designation.

Find an Aexcel specialist

Log into www.aetna.com/docfind/, click "Find A Specialist" and enter your home zip code and state. Then click Start Search. Now follow these 4 easy steps:

Step 1: enter your home zip code and the distance you are willing to travel to seek care from a specialist.

Step 2: click "Medical" to specify the type of search you wish to perform.

Step 3: select the type of specialist you wish to see.

Step 4: select the plan category Aetna Aexcel, then select the plan in which you’re enrolled.

For more information, call Aetna Member Services at 1-800-451-0326.

Health for Life

Allergy and Asthma Awareness Month

Allergies and asthma affect five million American children under age 18. Asthma is a major cause of emergency room visits, hospitalizations and missed school days. This May, Allergy and Asthma Awareness Month will call attention to the impact of allergies and asthma on our children today.

Asthma is a chronic inflammatory lung disease that causes episodes of shortness of breath, wheezing, coughing and chest tightness. One out of every ten children in the nation has asthma. Although asthma cannot always be prevented, it can usually be controlled.

"Allergies and asthma result from a combination of a person’s environment and genetic factors. We don’t always know what causes them," said JoAnn Nora, Public Health Educator, but over the past 15 years, we have learned much more about allergy and asthma triggers. The triggers that can set off allergies and asthma attacks are:

• Smoke, especially tobacco smoke
• Animal dander (small particles from fur, hair, feathers or skin)
• Mold
• Dust mites (microscopic animals that live in dust)
• Cockroaches and their droppings
• Viruses
• Sulfites (chemicals used in some soft drinks and processed foods to keep them fresh)

To reach a proper diagnosis, health care providers take a detailed history and use skin tests to look for allergic triggers. They also assess smoking status and overall health. If pollen, smoking or a pet might be triggering symptoms, steps can be taken to avoid exposure.

Elimination of the cause beats any medication people may receive. If pollen is the cause, for example, patients should avoid gardens, parks and the countryside during pollen season. If the house-dust mite is responsible, mattresses should be enclosed in air-tight plastic covers, and the house should be kept as free of dust as possible.

Once diagnosed with allergies and/or asthma, it’s important to stick with one health care provider, because the better your health care provider knows your history, the better he or she can effectively treat your condition.

Treatment plans have greatly improved. Developing an on-going, comprehensive treatment plan for allergies and/or asthma should include:

• Assessment and monitoring of symptoms
• Control of environmental factors to limit exposure to allergens and other triggers
• Use of appropriate medication(s)
• Education of the patient and family in asthma care

"Think positive," encouraged JoAnn Nora. "A good health care provider can help you find your triggers. Then, he or she will explain how the right medication can help prevent allergies and asthma attacks and how you can limit your exposure to germs and other triggers. There is no cure yet for allergies and asthma, but most patients can live nearly symptom-free lives."

Did You Know?

10 Interesting Health and Safety Facts

1. About 3.9 million employees are disabled at work in any given year.
2. One work related injury occurs every 8 seconds.
3. Accidental overdose of iron pills is the leading cause of poisoning deaths among children.
4. Fire kills more Americans each year than ALL other natural disasters combined.
5. Nature requires over 5 years to get rid of a cigarette butt.
6. The energy needed to make 1 new aluminum can makes 20 recycled ones.
7. About 8 out of every 10 adults will have a back injury in their lives.
8. On average about 400 people die from excess heat (heat stroke) each year.
9. Occupational skin diseases cost $1 billion annually in worker comp costs claims.
10. Of the 42,000 traffic fatalities in recent years, 41% were alcohol related.

Face-to-Face Training Courses Filling Fast

Looking to improve your teamwork, collaboration, conflict resolution and prioritization skills? Don’t miss out on your opportunity to attend one of Chevron Phillips Chemical’s face-to-face training sessions being held in July. All classes are taught by seasoned instructors with proven, real-world experience in the subjects they teach.

Scheduled training sessions include:

Thursday, July 10, 2008

Introduction to Petrochemicals – Taught by Dr. Bill Leffler and Dr. Don Burdick, Petroleum Institute for Continuing Education (PEICE), this one day course includes an introduction to the chemistry of petrochemicals, chemical processes, and a discussion of the major chemicals that Chevron Phillips Chemical produces. The course is largely based on the book, Petrochemicals in Nontechnical Language, authored by Dr. Bill Leffler and Dr. Don Burdick.

Wednesday, July 16, 2008

Managing Multiple Projects – This one day course from SkillPath Seminars is designed for those who would like to improve their ability to manage time and accomplish priorities. In this course, you will learn proven techniques, guidelines and strategies for staying on top of even the most demanding schedule of competing priorities and multiple projects.

Tuesday, July 22, 2008

Teamwork: Developing a Collaborative Mindset - This one day interactive course from Advanced Business Learning, Inc. introduces skills to help participants collaborate to contribute their talents fully in creating and implementing rich solutions. Participants will leave with an understanding of the effect of different mindsets on team performance and recognize the need for collaboration.

Wednesday, July 23, 2008

Conflict Resolution* – In this one day interactive course from Advanced Business Learning, Inc., participants will learn proven versatility skills for identifying various work styles, then adapting their own behavior to communicate and work more effectively with direct reports and coworkers. They will also learn how to take a collaborative, win-win approach to conflict resolution. *Conducted at the Cedar Bayou facility.

We encourage you to talk to your supervisor about which instructor-led courses may be right for you. You can enroll in any instructor-led course through Chevron Phillips Chemical’s Learning Management System (LMS) found at http://lms.cpchem.net. Once you register, your supervisor will be asked to approve the registration via LMS before you are placed on the class roster. Once approved in LMS by your supervisor, you will receive an enrollment e-mail confirmation that will include the course logistics.

For registration instructions and additional information on courses, visit nSight > Departments > Human Resources > Learning & Development > Instructor Led Training.

Email Added to Emergency Check-In Options

Hurricanes, tropical storms, environmental/security emergencies or plant incidents can impact your ability to report to work. In an emergency situation, your family and personal safety takes precedence over work duties; yet, it is still vital to keep the Company aware of your situation and availability. Chevron Phillips Chemical wants to make it easy for you to communicate with the Company during an emergency. So starting this hurricane season, if you are unable to report to work due to an emergency and/or crisis situation, you now have two options for checking in.

Check-In By Phone

You can contact the All Employee Check-In Hotline at 800-801-4253. Operators will gather information such as reliable contact numbers and your current location. You must keep the Hotline informed if there are any changes to the initial information provided.

Check-In By Email

You can make contact with the All Employee Check-In call center by sending an email to cpchem@us.crawco.com. At a minimum you should provide the following in your email:

• First/last name
• Work location
• Contact phone number in your current location
• Home status
• Family status

It’s important to remember that both the Employee Check-in Hotline and email address can be used by employees, their families, contractors and friends to report the whereabouts of another employee or contractor

Where to Find Information

In the event of an emergency, a crisis information web page (www.cpchem.us) will be activated. It will include emergency phone numbers, plant status updates and emergency/disaster relief policies. If you do not have Internet access, continue to call your facility’s emergency information phone number at least once a day for updates.

When to Return to Work

Employees should return to an evacuated area as instructed, or when permitted by governing authority or Company management. Local management may grant additional time off with pay for those employees whose primary residence suffered severe damage. Employees who do not return to work or are not granted additional time off with pay will either be charged with vacation hours or placed on leave of absence without pay. Non-exempt and hourly employees who check in with management may be able to make up such time within the same work week, provided work is available.

Failure to Report Your Whereabouts

It is each employee’s responsibility to advise management of their inability to report to work. Those employees who do not report to management or who do not return to work in a timely fashion, and have not received management approval, will be placed on leave of absence without pay and will be subject to disciplinary action up to and including discharge at the discretion of local management.

How to Pitch In

We strongly encourage you to do everything within your power to initiate contact with your management or others to determine how you can help in the clean-up process. Depending on the severity of the situation, the Company may also ask you to relocate, work at alternate locations or perform duties not related to your primary job. The goal is to safely resume operations as quickly as possible. To do so will require flexibility from everyone.

Help with Personal Issues Related to a Crisis

Emergency situations are highly stressful. Should you feel the need for assistance from a licensed professional, you and your dependents have access to free and confidential counseling services through Chevron Phillips Chemical’s Employee Assistance Program. For lost insurance cards, doctor referrals and other benefits related questions, contact the Chevron Phillips Chemical Benefits Service Center at 800-446-1422.

Know Your Status

Each facility/location has an emergency evacuation plan in place that outlines critical and non-critical personnel. Review your facility’s plan and know what your assignments are. Ask questions now. Additionally, the Company’s corporate Emergency Disaster Evacuation Plan* outlines emergency procedures that must be followed by all employees.

Know Before You Go

Last year, Chevron Phillips Chemical employees took 11,000 business trips around the globe. Because our goal is to keep employees safe beyond the workplace, Chevron Phillips Chemical implemented the Travel Security Program. The Travel Security Program strives to ensure a traveler’s safety and security by providing a means to communicate and assist employees during their travels. The Travel Security Program, owned by Global Security and delivered in partnership with Control Risks, offers three services to Chevron Phillips Chemical employees:

Control Risks’ Travel Tracker

Through Travel Tracker, the Company can easily locate and communicate with employees traveling for business. Upon a completed reservation, Control Risks is provided with the traveler’s itinerary, full name and contact information in order to monitor the employee’s travel.

Monitoring travel allows the Company to provide information and support to travelers in the event of an incident. For example, in August 2006 there was a security threat in London that caused significant travel delays. Travel Tracker made it easy for Global Security to contact travelers in that region and advise them to make alternative arrangements to avoid spending three to five days trapped in an airport.

Travel Risk and Information Services

When it comes to travel safety, it’s important to "know before you go." Crime rates, political instability and even a country’s attitude towards Americans, can all play a role in your security en route and on the ground. Global Security is available to discuss travel security issues and help employees prepare for their trip. Employees can also access Control Risks directly to do their own research.

Control Risks offers online Country Risk Forecasts and City Briefs free of charge to all Chevron Phillips Chemical employees. To access the site, visit www.crg-online.com from the Company network. This service is available for personal travel as well.

• Country Risk Forecast – Provides valuable information about more than 200 countries, is updated daily and analyzes global political, security and travel risk developments.
• CityBrief – Provides travel and security focused guidelines on more than 320 major international business destinations. Information includes areas to avoid in the city center, hotel and embassy details, security considerations, practical information and helpful facts.

Control Risks 24/7 Travel Support Center

This 24-hour security and incident management support service is based at the Control Risks operations center in London. The Travel Support Center provides access to experienced consultants dedicated exclusively to Chevron Phillips Chemical. These consultants can be accessed via telephone or email. The Travel Support Center provides urgent and non-urgent security, travel advice and support to management and Company employees traveling, living and working abroad. The Travel Support Center is a reliable single point of contact for your security needs.

Travel Support Center Contact Info:

Phone: 44 20 7939 8637

Email: cr24@control-risks.com

For additional travel security information, visit nSight > Departments > Environment, Health & Safety > Global Security.