HANNAFORD BENEFITS WORKBOOK

2008

Here’s your guide to 2008

Hannaford health benefits. Please use this workbook, along with the additional information and resources on the Hannaford Advantage Web site to make the best choices for you and your family. The Web site gives you more specifics on 2008 health benefit options, a tool to help you choose a medical option, a tour of your Hannaford benefits and much more. Be sure to visit the “Choose Your Benefits” section on the site.

2008WHAT’S NEW IN

Hannaford has worked to ensure very few changes to our health and wellness benefits in 2008. This year’s options have given all Han-naford associates who are eligible for health benefits an excellent chance to learn more about the plan and take advantage of the op-portunities it provides.

When associates manage their own health and wellbeing, every-one wins. It means our workplace is more productive, everyone leads a healthier, more active life and it

manages health care and insurance costs for you and for Hannaford.

Think about ways you could improve your health this year. If you want to lose weight, quit smoking or just get a better handle on your overall health, this plan gives you every opportunity to succeed. Take a look through this book and discover the opportunities that are available to you in 2008.

WHAT’S NEW IN 2008?Unlike years past, which have included major changes, such as switching vendors, leadership has kept the plan mostly the same — with a few changes — while maintaining low costs.

Compared to Hannaford’s competitors and other businesses in the retail industry, Hannaford has managed to keep its health care costs much low-er than average. National health care cost trends show a 9% increase for health care costs. In the Northeast, the increase is considerably higher — around 12%. This year many associates will not see an increase in premium

costs. You can help manage costs by improving your own good health and wellbeing, which can potentially earn you out-of-pocket savings during plan year 2008.

Take a look at what’s new in 2008:

PROVIDERS OF DISTINCTION (AETNA)n Providers of Distinction are the fastest way to safer, better care Hannaford encourages you to visit high quality physicians in your area for routine* and specialty care. Under Aetna options, when you use a Provider of Distinction (POD), you’re eligible for significant savings. Aetna PODs rep-resent the best providers in a geographic area. Aetna has studied the health care system in the northeast and includes the top physicians and specialists who provide high quality and efficient services in this program in order to promote better care and outcomes for you and your dependents.

Also in 2008, Aetna has added non-emergency laboratory services to the POD network. This means that if you’re having any diagnostic or routine blood tests or other lab work that doesn’t arise from an emergency medi-cal situation or inpatient hospitalization, you must have the work done at a participating POD lab in order to receive the most enhanced value of your health benefit. Hannaford health benefits will pay POD lab services at a 90% rate. If you use another in-network lab that is not a POD, you will receive a benefit of 80% for these services. Services obtained at an out-of-network laboratory will receive a benefit of 60%.

n For more about Providers of Distinction see page 11, visit www.aetna.com or call Aetna toll free at (877) 266-2872

* Routine POD’s apply to State of Maine only.

FEW PLAN CHANGES MAKE 2008 A GREAT YEAR TO MANAGE YOUR

HEALTH BENEFITS

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ELIGIBILITY HANNAFORD FOR THESE OPTIONS SERVICE REQUIRED

FULL-TIME HOURLY 60 days n Aetna: Deductible 500 & 1000

OR SALARIED & Healthfund

PART-TIME SALARIED Co-pay if in ME & NH

n CDPHN if in NY/VT n Empire BC co-pay if in MA/VT/ Northern NY* n Opt out credit ($5/wk) for FT only

PART-TIME FLEX 90 days for access; n Aetna: Deductible 500 & 1000

(must average 28+ hours one year for company- Healthfund

per week in month prior subsidized rates Co-pay if in ME & NH

to enrollment and each month thereafter) n CDPHN if in NY/VT n Empire BC co-pay if in MA/VT/ Northern NY*

PART-TIME DEFINED No Company subsidy n Aetna: Deductible 500 & 1000

(must average 20–27.99 hours Co-pay if in ME & NH

per week; only if you were enrolled and have maintained n CDPHN if in NY/VTdefined health benefits n Empire BC co-pay if in MA/VT/since 12/31/2006) Northern NY*

* Plattsburgh, Massena, Carmel and Watertown, NY

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If you are full-time hourly or salaried, or part-time salaried

or flexible part-time, you can choose to enroll the following

dependents:

1) CHILD, UP TO AGE 19 OR THROUGH

AGE 24 IF A FULL-TIME STUDENT. A child is generally defined as your direct, unmarried offspring, stepchild, legally adopted or foster child whom you claim annually as a dependent on your federal income tax return. Many associates are divorced and directly responsible for their children’s health coverage even though the other parent claims the tax exemption for them. In cases like this, you may enroll a dependent you don’t claim on your tax return if you provide documen-tation (divorce decree) that you are legally responsible for the child/ren’s coverage.

2) SPOUSE OR DOMESTIC PARTNER. Spouse is defined as your legal spouse. Domestic part-ners are generally defined as two unmarried adults who live together in a long-term relationship similar to marriage, share joint responsibility for their welfare and are financially interdependent. They must share a residence for at least 12 consecutive months and may not be related by blood.

If you want to cover a domestic partner in 2008, you must enroll in Aetna 500 or 1000, or, if you work in Mas-sachusetts, you may also select the Empire BC co-pay option. You must complete the required paperwork and obtain approval of your domestic partner status from the Benefits Department. For more information, call the Benefits Department.

Hannaford will actively verify your dependent eligibil-ity, as well as your indicated smoking status and your spouse surcharge election, through independent audits.

FREE HELP FROM ON-SITE HANNAFORD WELLNESS PROFESSIONALS AND AN EMPLOYEE ASSISTANCE PROGRAM (EAP) — total assistance for you and your dependents: Every Hannaford location has a wellness professional, usually a registered nurse. They can provide you with free and confidential, weekly health care services, including health screenings, such as blood pressure checks, as well as help finding the right medical care or nutrition and fitness plan. Please check for their availability on the Wellness Bulletin Board.

Your Hannaford EAP through AETNA offers free help for finding child care or preschools, parenting issues, assistance with legal and/or financial is-sues (a free, 30-minute consultation), counseling for family conflict, de-pression, marital issues, substance abuse, work/life balance and reducing stress. You can receive referrals and in some cases, a discount on usual fees for local legal providers in the Aetna network. Call (800) 682-0367.

Also, every option has a 24-hour healthline you can call toll-free to speak with a nurse about health-related issues. These services can save you out-of-pocket costs by helping you consider all your options before seeking out the best care for your situation.

DON’T FORGET THE MEDICAL BENEFIT AUDIT PROGRAMUnder any medical option, you are rewarded for discovering errors in your medical bills if they result in recovery of overpaid funds. You will receive 50% of the amount recovered up to a maximum of $500 per treatment. If you think you have found an overpayment, contact your ARM, Benefits Coordinator or HR Representative to find out how to collect your reward.

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10PROVIDERS OF DISTINCTION AETNA OPTIONS — primary care in Maine and all specialists: Any service billed through a des-ignated Provider of Distinction for primary care will be covered at 85% (Maine only). Specialist Providers of Distinction will be covered at the 80% level (70% for in-network specialist who is not a Provider of Distinc-tion; 50% for out-of-network specialist). Specialties covered include:

• Cardiology (except pediatric)• Gastroenterology• Gynecology• Orthopedics• Neurology (except pediatric)• Urology• Cardiothoracic surgery• General surgery• Obstetrics (except high risk)• Otolaryngology (ear, nose and throat)• Neurosurgery• Vascular surgery

These coverage levels apply to Aetna deductible, Co-pay and Healthfund options.

See www.aetna.com/docfind/custom/hannaford for a list of Providers of Distinction.

CENTERS OF EXCELLENCE FOR ORGAN TRANS-PLANTS, COMPLEX CANCER AND GASTRIC BYPASS: For coverage, you and your enrolled dependents must participate in the Centers of Excellence program for organ transplants, complex cancer (brain, liver, esophageal, pancreatic and stomach) and approved gastric bypass surgeries. These centers have significant medical expertise in treating these conditions and performing these surgeries. For more infor-mation, contact Aetna, Empire BC or CDPHN.

RATES AND SPOUSE SURCHARGE: Your weekly rates de-pend upon your FT/PT classification or category. Your rates can be found on pp. 17-18.

If you choose to enroll a spouse or domestic partner who has access to employer-subsidized health coverage, you will be charged a spouse sur-charge of $20/week to cover them under any Hannaford medical option. If your spouse or domestic partner does not have access to employer-subsidized insurance, you will be required to provide an employer-signed affidavit (from your spouse’s employer) to enroll them without the addi-tional $20 charge. This does not apply if your spouse or domestic partner works for Hannaford, is unemployed or self-employed.

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