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Important Information

The Affordable Care Act and You

The Affordable Care Act (ACA) requires applicable large employers to make affordable coverage available to their employees or risk
paying a penalty. Although the individual mandate is no longer effective beginning January 1, 2020, it is important that you under-
stand your options for health insurance coverage. You may consider these options below:

• Enroll in a medical plan offered by Aerovironment or another group plan
• Purchase coverage through a health insurance marketplace
• Enroll in coverage through a government-sponsored program if eligible

Because Aerovironment ’s medical plans are considered affordable and meet minimum value under the Affordable Care Act, you
will not generally see lower premiums or out-of-pocket costs through the marketplace. In addition, employer contributions to your
medical benefits will be lost if you choose to purchase coverage through the marketplace, and your portion of medical premiums
will no longer be paid via payroll deductions on a pre-tax basis.

For more information on your coverage options, please visit www.healthcare.gov.

Annual Notices

ERISA and various other state and federal laws require that employers provide disclosure and annual notices to their plan partici-
pants. AeroVironment has posted all federally required annual notices on My_AV_Benefits for you to download and read at your
convenience. The following is a list of the annual notices:
• Medicare Part D Notice of Creditable Coverage
• HIPAA Notice of Privacy Practices
• Women's Health and Cancer Rights Act (WHCRA)
• Newborns’ and Mothers’ Health Protection Act
• Special Enrollment Rights
• Medicaid & Children’s Health Insurance Program
• Grandfathered Plan

Summary of Benefits and Coverage (SBC)

Health insurance issuers and group health plans are required to provide you with an easy-to-understand summary about your
health plan’s benefits and coverage, referred to as a Summary of Benefits and Coverage (SBC). This guide is designed to help you
understand the medical plan options offered to you by AeroVironment. Please refer to the SBC and carrier contracts provided by
Anthem Blue Cross for additional plan details.

Grandfathered Status Disclosure

This AeroVironment, Inc. Employee Benefit Plan (Plan) believes that the Anthem Blue Cross PPO and EPO Medical Plans are
“grandfathered health plans” under the Patient Protection and Affordable Care Act (the Affordable Care Act). As permitted by the
Affordable Care Act, grandfathered health plans can preserve certain basic health coverage that was already in effect when that law
was enacted. Being a grandfathered health plan means that this Plan may not include certain consumer protections of the Afforda-
ble Care Act that apply to other plans. For example, the requirement for the provision of preventive health services without any
cost sharing. However, grandfathered health plans must comply with certain other consumer protections in the Affordable Care
Act. For example, the elimination of lifetime limits on benefits. Questions regarding which protections apply and which protections
do not apply to a grandfathered health plan and what might cause a plan to change from grandfathered health plan status can be
directed to the plan administrator at:

AeroVironment, Inc.
900 Innovators Way
Simi Valley
Phone: (805) 520-8350

You may also contact the Employee Benefits Security Administration, U.S. Department of Labor at 1-866-444-3272 or
www.dol.gov/ebsa/healthreform. This website has a table summarizing which protections do and do not apply to grandfathered
health plans.

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