2011 Open Enrollment Presentation

1. 2011 Open Enrollment Presentation

2. 2011 Overview The open enrollment period is from November 8 – November 21, 2010. • Enrollment elections will be made through the ADP Health & Welfare system • The benefit plans you select during Open Enrollment will become effective on January 1, and will remain in effect for the entire 2011 calendar year • Only changes consistent with the family status change will be allowed during the year and must be made within 31 days of the event. Examples of family status changes are: Marriage Birth or Adoption Divorce Death Dependent ceasing to be eligible or becoming eligible Job loss of spouse Change in job status (e.g., full-time to part-time) 2

3. 2011 Health Care Reform Changes • Coverage for Dependents up to Age 26 • Can be covered under medical plans even if they are: • Not enrolled in school • Married (spouse and children of dependents cannot be covered) • Not financially dependent on or residing with their parents  • Extended open enrollment period • Enroll during Open Enrollment (Nov. 8 – Nov. 21) • Enroll Nov. 22 – December 6th by completing and submitting form on Valassisbenefits.com • Elimination of Lifetime Maximum Cap • overall lifetime maximum • specified organ transplant lifetime

4. 2011 Health Care Reform Changes • Flexible Spending Account/HSA Changes • Over the Counter Drugs and Medicines - Beginning on January 1, 2011, certain over-the-counter (OTC) medicines, such as allergy medication, digestive aids, and cough, cold, and flu medications, will require a prescription to be considered for reimbursement from an FSA or as an eligible medical expense under an HSA • Health Care FSA Debit CardsHealth care debit cards cannot be used to purchase OTC drugs and medicines—even with a prescription—after December 31, 2010. FSA participants can pay for these items and submit a claim for reimbursement along with a doctor’s prescription.

5. Future Health Care Reform Changes • To help finance health care reform, the new law will impose a 40 percent excise tax on "Cadillac" plans starting in 2018. • Based on average annual cost projections, it is estimated that this tax could affect Valassis as early as the first year of implementation • To avoid significant tax penalties, Valassis is making program changes beginning in 2011 to moderate future cost increases and avoid this excise tax.

6. 2011 Benefit Plan Changes • Elimination of the Basic PPO and Cigna HMO Plans • Current plan members may remain in the plan through 2010 and may add eligible dependents to their coverage through December 31, 2010. • Associates currently enrolled in these plans will need to make new medical plan elections for 2011 during open enrollment. • Buy-Up PPO Plan Changes • The Buy-Up PPO plan will be renamed the Traditional PPO plan. The benefits offered under this plan include an increase to the deductibles and out-of-pocket maximums as well as a decrease in co-insurance.

7. 2011 Benefit Plan Changes • Prescription Drug Plan Changes • Our prescription drug plan vendor will be changing to Caremark/CVS beginning on January 1, 2011. We will also be increasing the minimum and maximums for formulary and non-formulary prescription drugs effective January 1, 2011 • Mail Order Prescriptions and Rx overrides will be transferred • Dispense as Written Change (DAW) • Health Choice Savings Plan/HSA Accounts • Eliminating company match for first year participants • Beginning on January 1, 2011 The Affordable Care Act requires that any distributions taken from a Health Savings Account for participants under age 65 that are not considered qualified medical expenses will be includable in your gross income and subject to an additional 20% tax penalty. Prior to 2011, the penalty was 10%.

8. 2011 Benefit Plan Changes • Associate Contributions • New Full-Time Associate Three Tier Rate Structure: • Base salary $25K or less ($12.01 or less per hour) • Base salary greater than $25K but less than $100K • Base salary $100k or greater • Removed Director and above level requirement • Includes two year average sales commissions/bonuses • Expanding the network for the dental Basic and Buy-Up PPO to the new Radius Network • Vision plan with the same plan design and lower associate premiums

9. Passive Enrollment for 2011

10. Medical Plans Valassis offers associates two choices in medical plans Blue Cross Traditional PPO Plan Blue Cross Health Choice Savings Plan

11. BCBS Traditional PPO Medical Plan Changes • Formerly the Buy-Up PPO Plan • Elimination of overall lifetime maximum and lifetime organ transplant maximum • Increased deductible • Increased out-of-pocket maximum • Decreased co-insurance 11

12. The Traditional PPO Plan Highlights

13. Prescription Drug Plan Changes • Caremark/CVS is the new carrier for 2011 • Very little impact on number of network providers • New identification card • Minimum and maximums for formulary and non-formulary coinsurance • Automatic transfer of active mail order prescriptions and physician authorizations • DAW - When a brand name drug is requested by you or your physician and a generic is available, you will be charged the difference between the brand and generic cost of the drug plus the generic co-pay. Previously, this penalty was only applied when you requested the brand name drug.

14. Prescription Plan – Traditional PPO

15. Health Choice Savings High Deductible Health Plan There are two parts to the Health Choice Savings Plan: • High Deductible Health Plan • Health Savings Account (H.S.A.) • In-network preventive care is covered at 100% (not subject to deductible) • Your remaining eligible medical expenses, including prescriptions are subject to a high deductible (in-network - $2,000 individual, $4,000 individual plus one and family) • Once deductible is met, the plan covers eligible in-network expenses, including prescriptions at 100% • Important note for individual plus one and family contracts: the full deductible of $4,000 must be met before any services are paid at 100% (other than preventive services) 15

16. Health Choice Savings PlanHealth Savings Account (H.S.A.) • WageWorks will administer the Health Savings Account (H.S.A.) • You will receive a debit card to use for eligible expenses. • The H.S.A. allows you to save pre-tax for current and future medical expenses. • If you plan right and put enough in your health savings account to cover your deductible, your plan expenses will be minimal. • You must set up an account with WageWorks and PNC in order to make contributions to your H.S.A. account. • Due to IRS regulations, funds cannot be accessed until they are deposited into your account. 16

17. Prescription Plan – Health Choice Savings 17

18. Health Choice Savings Account • The actual bank account is with PNC. • The balance in your account earns interest. • Once you have $1,000 in your account, if you choose, you can invest the money in a number of investments, such as money market, bond funds, and stock funds through PNC. • The account is used like a flexible spending account for eligible medical expenses except it rolls over from year to year, earns tax-free interest and is portable (you take it with you if you leave Valassis). • Your H.S.A. goes with you no matter where you go: • You don’t have to be enrolled in a high deductible health plan to withdraw money from H.S.A. • You can use H.S.A. even when you switch employers or retire. 18

19. Health Choice Savings Account • If you withdraw money and do not use it for medical expenses, you are subject to a 20% tax penalty plus normal taxation per IRS regulations. • You can also set up a Limited Purpose Flexible Spending Account (F.S.A) for dental and vision expenses only. This balance must be used by December 31 of each year and is not portable; however, it allows for additional pre-tax savings for eligible expenses. • If you have a 2010 Health Care Flexible Spending Account, you must use all of your funds no later than December 31, 2010 in order to be eligible to make contributions to your H.S.A account. • Go to www.wageworks.com/employee/calculators.htm to estimate your qualified medical expenses and determine how much you may want to put in your H.S.A. account. 19

20. Health Savings Account 2011 MaximumContribution Limits 20

21. Medical Contributions Full-Time Associates (Monthly) New three-tier rate structure for 2011 Our $298 average monthly family coverage price for our 2011 Traditional PPO plan is in-line with the 2010 national average of $299 as reported by the Kaiser Family Foundation 2010 survey of Employer Health Plans. Associates making over $100,000 and part-time associates will continue to contribute more to the cost of insurance. 21

22. Blue Cross Website www.HCBO.com • Use the cost estimator (Coverage Advisor) to help you determine which medical plan is right for you • Review claims information • Complete a health risk assessment • Get information on specific medical conditions • Find an in-network provider 22

23. Dependent Eligibility Requirements • Your spouse, civil union partner and qualified domestic partner (see Valassis Domestic Partner Declaration on www.valassisbenefits.com for requirements) • Your unmarried children under age 19 • Your children up to age 26 for medical/prescription drug coverage only • Your unmarried children from age 19 to 25 if they are full-time students and depend on you for primary support • Children who become mentally or physically dependent before reaching the maximum age of eligibility noted above, if they depend on you for support and maintenance • Children include your natural children, legally adopted children, stepchildren and children you support who live with you in a parent-child relationship (must be supported by a legal guardianship) • The requirements for domestic partner coverage have changed for 2011 23

24. Dependent Audit • ADP will be auditing dependents to ensure that they are eligible for the Valassis benefit plans • As part of the audit, you will be required to provide marriage, birth, adoption or legal guardian certificates, student verification and/or tax records to show proof of eligibility • Associates with life status events will need to provide this documentation to prove dependent eligibility • If you have questions about whether or not a dependent is eligible, contact your HR Representative or the Associate Resource Center at 1-877-238-6847 • If an ineligible dependent is discovered during the audit process, you will have to pay back any claims cost incurred and you may be subject to disciplinary action, up to and including termination 24

25. Dental Plans Full-time and eligible part-time associates can participate, contributions will differ based on status Cigna Dental Plans Basic PPO Plan Buy-Up PPO Plan DMO Plan Those choosing the DMO plan must choose a DMO dentist and receive all services from that dentist (or coordinated by that dentist) Available in most areas of the country

26. Cigna Dental Plans – Radius Network There are three ways to find a Radius PPO network dentist in your area: Go to the online provider directory on www.cigna.com. • Click “Provider Directory” at the top of the page. • Click “Dentist”. Enter your search criteria – location, name, etc. • Next, select the CIGNA Dental DPPO and in the drop down box, select “Radius Network” Call Cigna at 800.CIGNA24 (800.244.6224) • Use the automated Dental Office Locator or speak to a customer service representative for help locating a Radius Network dentist or specialist. You can also request a customized directory based on the type of dentist you are looking for in your area. Call your current dentist to see if he or she participates • When you call, be sure to ask if your dentist participates in the CIGNA Dental Radius Network.

27. Cigna Dental Plans

28. Cigna Dental Plans • Review your claims, get pre-treatment estimate forms, educational material and much, much more on myCigna.com. Monthly Contributions for Buy-Up, Basic, and DMO Plans 28

29. EyeMed/Lenscrafters Vision Lower associate premiums with no change in plan benefits 29

30. Life Insurance and AD&D 30

31. Life Insurance and AD&D • Sun Life will continue to be the carrier for the Valassis life plans. • Basic life and AD&D coverage are provided at no cost and are bundled (if you elect basic, AD&D is automatically included). • You can waive basic and AD&D coverage. • Avoids taxation of basic life benefit over $50,000, most people do not waive this benefit as the taxation is minimal • No credit for waiving • At age 70, basic, AD&D and voluntary life insurance benefits are reduced to 65% of the full coverage and at age 75, to 50% of the full coverage • Evidence of insurability (EOI) requirements for life insurance plans: • Can increase current coverage during open enrollment and life status events by one level without evidence of insurability • EOI required for voluntary life plan if coverage increases by more than one level or the benefit exceeds $400,000 31

32. Disability Insurance • Sun Life will continue to be the carrier for the Valassis disability plans • Associates are responsible for paying their health care/life insurance premiums while on disability leave in order to continue coverage 32

33. Flexible Spending Accounts Valassis offers three types of Flexible Spending Accounts • Health Care Flexible Spending Account (Traditional PPO) • Limited Purpose Flexible Spending Account (Health Choice Savings Plan) • Dependent Care Flexible Spending Account Advantages • You lower your taxable income • Your other Valassis benefits are not affected • You realize additional savings

34. Flexible Spending Accounts 34

35. Flexible Spending Accounts Flexible Spending Accounts add value and convenience to your health care and dependent care expenditures. They also reduce your tax bill. Here is an example of possible tax savings with an FSA. * Potential tax savings shown for demonstration only. Actual savings will vary based on your individual tax situation. Please consult a tax professional for more information.

36. Flexible Spending Accounts Flexible Spending Accounts have a use it or lose it provision so be sure to budget wisely Remember, you have until March 15, 2012 to incur expenses under the health care flexible spending account. If you don’t exhaust your balance before the end of the extension period, you will not be reimbursed. You have until April 30, 2012 to submit your expenses for reimbursement See www.valassisbenefits.com for qualified expenses If you need to order additional cards, you can order them on www.wageworks.com Please review your statements carefully to determine if WageWorks needs receipts to substantiate debit card transactions. If your account balance is at 75% of your total annual election and WageWorks is waiting for receipts, you cannot use your card or receive payment until you provide the receipts to WageWorks

37. Purchased Vacation • Salaried full-time associates are eligible • You can purchase from 2 – 5 days depending on years of service and vacation accrual • If you are purchasing vacation for the plan year you must obtain approval from your leader • Forms are available at www.valassisbenefits.com • Approved forms need to submitted to your local HR representative or to the Associate Resource Center (ARC) for Shared Mail, Marketing, and Sales Associates • An approved form must be submitted in order to take purchased vacation • The cost is based on your October 1 benefit base rate (for sales associates the average of your last two full years commission is added to base salary) • If you terminate, you will be paid out accrued, unused time • No changes can be made to election mid-year 37

38. Don’t Forget these Benefits! • Employee assistance services are available through LifeWorks, visit www.lifeworks.com or call 1-888-267-8126 • Parenting Resources • Marriage and Family Resources • Legal/Financial Resources • Caring for the Elderly • Dependent and Elder Care Referral Services • Gain access to a local network of attorneys by electing Met Law/Hyatt legal plan. Visit www.legalplans.com for information on services covered. • Purchase voluntary benefits and receive discounts on products and services you purchase everyday at www.beneplace.com • Commuter benefits allow you to pay for eligible commuting expenses with pre-tax dollars. Visit www.getwageworks.com/valassis for more information. • Adoption Assistance 38

39. Open Enrollment Next Steps • Open Enrollment Kits – will be mailed to your home prior to the beginning of open enrollment • You must make elections no later than November 21st in order to be covered for benefits for 2011 • You have three enrollment options: • Enroll online at www.valassisbenefits.com • Contact the ADP solution center at 1-877-4VCI-BEN to enroll via telephone • Ward Services Enrollment (Shared Mail Associates) • Call 1-800-673-6472 to speak to an enrollment counselor (Spanish-speaking representatives are available) • Meet with an enrollment counselor at your branch location (Spanish-speaking representatives are available) 39

40. Open Enrollment Next Steps • Payroll Deductions – the first 2011 benefit payroll deductions will come out of associates checks on January 6th • Read your open enrollment brochure and visit www.valassisbenefits.com for more detailed information on all benefit plans • If you are a new hire you will be asked to enroll first for your 2010 benefits and then enroll for 2011 • Questions? – Your local human resources representative or contact the Associate Resource Center at 1-877-238-6847 40