Depomed 2011-11-22 updated Presentation2

Employee Benefits Overview 2011 : 

November 10, 2011 Employee Benefits Overview 2011

Welcome: 

Welcome Employee Benefits Overview 2011 Eligibility Summary of Health Plans Health Savings Account Flexible Spending Account (FSA) Employee Assistance Program Life and Disability Plans Long Term Care Insurance Employee Contributions Page 1

Employee Eligibility: 

Employee Eligibility Who is Eligible for Coverage All full-time regular employees working 30+ hours each week Spouse or Domestic Partner Dependent Children to age 26 When is Coverage Effective Your Date of Hire When can I make Changes to My Benefits New Hires have 30 days to elect coverage; coverage is binding until the next open enrollment period unless you have a Qualified Lifestyle Change What is a Qualified Lifestyle Change Marriage Divorce Birth/Adoption of a Child Loss of Coverage due to termination or reduction in hours Page 2

Summary Anthem Medical Benefits: 

Summary Anthem Medical Benefits Page 3 Coverage PPO HMO Lumenos HSA (CDHP) Network Non Network Network Only Network Non Network Deductible Individual Family $150 $450 $150 $450 None $1,250 $2,500 $1,250 $2,500 Coinsurance 90% 70% None 90% 70% Out of Pocket Max. Individual Family $2,000 $4,000 $6,000 $12,000 $1,500 $3,000 $2,500 $5,000 $5,000 $10,000 Office Visit/ Specialist $10 30% $10 10% 30% Laboratory/X-Rays 10% 30% No Charge 10% 30% Emergency $100 $100 $100 10% 10% Hospital Inpatient $500/admit $500/admit No Charge 10% 30% RX (30 day Supply) Generic $10 $10 + 50% $10 $10 30% Brand $25 $25 + 50% $25 $30 30% Non-Formulary $40 $40 + 50% $40 $50 30% Self injectables 20% 20% 20% 30% 30%

Lumenos HSA Medical Insurance Plan: 

Lumenos HSA Medical Insurance Plan What is an HSA An HSA is the Health Savings Account that allows you to set aside tax-free dollars to pay for qualified health care expenses Medical Care Expenses Prescriptions Dental Expenses Vision Expenses COBRA Premiums Long Term Care Insurance – Upon Retirement Unused dollars roll over into the next year (no use it or lose it rule ) Your account balance earns tax-free interest* You own your HSA – it moves with you if you change jobs or health plans *Contributions & earned interest are taxable income in: AL, CA, NH, NJ, & TN Page 4

Lumenos HSA Medical Insurance Plan: 

Lumenos HSA Medical Insurance Plan What is an HSA (continued) Withdrawals for qualified health care expenses are tax free Distributions from an HSA for non-qualified expenses will be included in your gross income and may be subject to an additional 20% tax penalty HSA may transfer to the surviving spouse tax free After turning Age 65, HSA dollars may be withdrawn for any purpose, paying only normal income taxes without penalty Page 5

Lumenos HSA Medical Insurance Plan: 

Lumenos HSA Medical Insurance Plan Who is Eligible to Participate in the HSA You must be enrolled in a high-deductible health plan to be eligible for an HSA Lumenos HSA PPO 90/70 You must not be enrolled in another health plan You must not be enrolled in Medicare You must not be claimed as a dependent by anyone Page 6

Lumenos HSA Medical Insurance Plan: 

Lumenos HSA Medical Insurance Plan How to Set Up the HSA Account Anthem Blue Cross partners with Mellon Bank to administer your HSA Once you have enrolled in the HSA plan, you will be issued a “Welcome Kit” with instructions on how to activate your account Register at www.anthem.com Activate your HSA Account Once your account is activated, you may begin to make contributions Mellon Bank will issue you a Debit Card and Checks to pay for your eligible expenses Page 7

Lumenos HSA Medical Insurance Plan: 

Lumenos HSA Medical Insurance Plan HSA Contributions Depomed will make contributions to your HSA account and You may also make contributions to be used toward your High Deductible PPO plan You May Contribute to the HSA Account Tax-free - through payroll deductions or Post-tax - by personal check Depomed Contributes 70% of your Annual Deductible Individual - $875 and Family - $1,750 Contributions are made per pay period throughout the year IRS Maximum Allowed Amount Individual - $3,100 and Family - $6,250 If you are 55 years of age or older the IRS will allow a catch up contribution of $1,000 Page 8

Lumenos HSA Medical Insurance Plan: 

Lumenos HSA Medical Insurance Plan Visiting the Doctor Notify your doctor’s office that you have changed insurance plans to a high deductible health plan Your deductible will be waived for preventive care (all other expenses are subject to the plan deductible, including prescriptions) You are not required to pay at the time of visit Request that your doctor submit your claim to your insurance provider first You will pay your portion of the claim once you have received the EOB from Anthem that explains what you owe Page 9

Summary Anthem Vision Benefits : 

Summary Anthem Vision Benefits When enrolled in Anthem, you are covered for Anthem Vision and will use your Anthem Medical ID Card at the time of service Anthem uses the Eyemed Vision Network Including: Optometrist and Retail Providers such as Lens-Crafters, Costco, and Sears $25 Exam Copay Benefit Frequency Exams/Lenses – Once Every 12 months Frames - Once Every 24 months $130 Frame Allowance Contact Lenses - Once Every 12 months $130 Allowance Elective Medically Necessary – Covered at 100% When utilizing an out of network provider members will be reimbursed the maximum allowed amount for that service Page 10

Summary Kaiser Medical Benefits: 

Summary Kaiser Medical Benefits Page 11 Coverage HMO Deductible Individual Family None Coinsurance None Out of Pocket Max. Individual Family $1,500 $3,000 Office Visit/ Specialist $10 Laboratory/X-Ray No Charge Emergency $50 Hospital Inpatient $100/day RX (30 day supply) Generic $10 Brand $20

Summary Kaiser Vision Benefits: 

Summary Kaiser Vision Benefits When enrolled in Kaiser, you are covered for Kaiser Vision $10 Copay Benefit Frequency Exams/Lenses – Once Every 12 months No charge for lenses Frames - Once Every 24 months $125 Frame Allowance Contact Lenses - Once Every 12 months $125 Contact Lens Allowance Page 12

Summary of Dental Benefits: 

Summary of Dental Benefits Direct Dental First Dollar Dental Plan No Deductible or Frequency Limits $1,500 Annual Maximum Per Person Page 13 Cost of Care Plan Pays Patient Pays 100% of First 300 $300 $0 80% of Next $300 $240 $60 60% of the last $1,600 $960 $640 Total Cost of Care $1,500 $700 Plan Benefits apply to Preventive, Basic, Major and Orthodontic Services Participants may choose from a nationwide network of PPO dentists to receive an average discount of 20% to 30% on dental fees Participants will receive an ID card 3 weeks after enrollment Present at time of service Member Services (877) 878-3384

Flexible Spending Account: 

Flexible Spending Account Administered through ADP Plan Year – January 1, 2012 through December 31, 2012 The FSA Account allows you to set aside money on a pre-tax basis to pay for eligible Health Care or Dependent Care expenses Health Care – $6,000 Maximum Dependent Care - $5,000 Maximu m How to submit your expenses Log on to www.flexdirect.com to register and review your account information, submit expenses, and check claims status You may also fax your claims to (866) 392-4090 You have until March 31, 2013 to submit expenses incurred in 2012 Use it or Lose it Rule: Monies left in your account after March 31 st will be lost - you will not receive these monies back Page 14

Flexible Spending Account: 

Flexible Spending Account Health Care Expenses Office Visit Copays, Deductibles Prescription Drugs Dental Services – Including Orthodontia Eyeglasses and Contacts Laser Eye Surgeries Hearing Aids and Batteries Page 15 Sample List of Eligible Expenses Dependent Care Expenses Child Care in your home or someone else’s Day Care Center that meets all state and local licensing requirements Pre-school expenses Summer day camp Note: Both parents must be working, attending school or seeking employment to be eligible

Summary of Employee Assistance Program: 

Summary of Employee Assistance Program Services provided through UNUM Work Life Balance Services are Confidential 3 face to face counseling sessions per incident per year Resources: Legal Financial Consultation Child and Elder Care Referral Assistance for a Variety of Personal or Work Related Issues Unlimited Web Access at ( www.lifebalance.net ) TOLL Free 24-hour access (800) 854-1446 Page 16

Summary of Life and Disability Coverage: 

Summary of Life and Disability Coverage Life and AD&D Employee: 2x annual salary to a maximum of $600,000 Spouse: $5,000 Child: $2,000 Short -Term Disability 60% of weekly earnings up to $3,233 30 day elimination period Long-Term Disability 60% of monthly earnings up to $14,000 90 day elimination period All Benefits are paid 100% by Depomed Page 17

Summary of Long Term Care Coverage: 

Summary of Long Term Care Coverage Long Term Care Base Plan Paid 100% by Depomed 90 day elimination period 3 year duration Facility Based Care - $2,000 per month up to $72,000 per lifetime Family Home Care – 75% of Facility Based Care Long Term Care Buy Up Option Employee Paid (additional coverage) You may purchase additional Long Term Care Coverage for yourself, spouse or parents Employees - No medical questions asked for up to a $6,000/month policy – when first eligible Spouse and Parents are subject to full medical underwriting 90 day elimination period Available Options 6 years or unlimited durations available Facility based Care up to $8,000 per mo Home, Community-Based and Immediate Family Member Care Rider Inflation Protection Rider Page 18

EMPLOYEE CONTRIBUTIONS 2011: 

EMPLOYEE CONTRIBUTIONS 2011 Page 19 MONTHLY CONTRIBUTIONS Coverage Tier Anthem HMO - CA Anthem PPO Anthem HSA Kaiser HMO - CA Direct Dental Employee Only $78.02 $87.79 $52.89 $20.14 $4.45 Employee + Spouse $171.31 $192.80 $115.44 $40.28 $9.49 Employee + Child(ren) $140.44 $158.02 $94.81 $36.26 $10.11 Employee + Family $241.60 $271.88 $162.68 $60.43 $16.22

FSA and Lumenos HSA Medical Insurance Plan Open Enrollment : 

FSA and Lumenos HSA Medical Insurance Plan Open Enrollment Open Enrollment for the FSA and Lumenos HSA Medical Insurance Plan will begin November 21 st and close December 5 th Anthem will conduct a Lumenos HSA Plan Open Enrollment Meeting on November 14 th at 2:00 pm and a Web-X on November 18 th at 2:00 pm You have until December 5 , 2011 to return your elections for the FSA or Lumenos HSA Medical Insurance Plan to Kristen Hickman in Human Resources The effective Date of Coverage is January 1, 2012 *Depomed’s Regular Open Enrollment will be in May of 2012 Page 20

Slide 21: 

QUESTIONS Page 21