5.5 PREFERRED PROVIDER PROGRAM The Trust has entered into a contract with a hospital facility and a network of physicians and other medical providers to provide services and supplies to Participants at preferred rates, which reduce a Participant’s out-of-pocket expenses and reduce the overall cost to the Plan. While contracts provide for preferred rates, they do not allow for discrimination with regard to provided services. The Preferred Provider program provides a nationwide network of medical providers. Services through that network are payable at 80% of Covered Expenses. Services outside that network are payable at 70% of Covered Expenses. To locate a Preferred Provider in your area, please go online to www.959trusts.com and click on “Find Network Providers” or you may contact the Trust Customer Service Office. The hospital Preferred Provider Program applies to Hospital emergency room, inpatient Hospital services, outpatient Hospital services, surgical services including maternity care, and home health services. Covered Expenses at a Preferred Provider hospital are payable at 80%. Covered Expenses at a non-Preferred Provider hospital in the Anchorage area are payable at 70% of the rate negotiated with the Preferred Provider for the same service after the $1,000 deductible has been applied (see the shaded box below). Because the rates negotiated with a Preferred Provider are normally lower than the rates charged by a non-Preferred Provider, the Participant will normally pay more than 30% of the total charges billed by a non-Preferred Provider. If the service is not available from a Preferred Provider, or if the service is provided outside the Anchorage area, Covered Expenses at a non-Preferred Provider are payable at 70%. There is a separate, additional $1,000 deductible applied to each inpatient out-of-network hospital admission, in addition to the calendar year deductible. This out-of-network hospital deductible does not apply toward the Annual Out-of-Pocket Limit. This out-of-network hospital deductible may be waived in the event of an Emergency hospital admission. HOSPITALS IN ALASKA In Anchorage. If a Participant goes to a hospital in Anchorage that is not part of the Preferred Provider Program, the reimbursement rate of 70% of the Preferred Provider rate, and the additional $1,000 inpatient deductible, will apply to each scheduled non-Preferred Provider hospital admission. Outside Anchorage. If a Participant goes to an out-of-network hospital in Alaska that is located outside of Anchorage, the reimbursement rate of 70% will apply, however, the additional $1,000 deductible will not apply. HOSPITALS OUTSIDE OF ALASKA If a Participant goes to an out-of-network hospital outside of Alaska, the reimbursement rate will be 70% and will apply to each hospital admission and outpatient procedure.