Welcome to KentuckyOne Health

1. New Hire Benefits 2014 Welcome to KentuckyOne Health

2. CHI Healthy Spirit Program • Welcome to CHI/KentuckyOne Health! • We want to partner with you and your family for good health and financial well-being • That’s why we created the Healthy Spirit Program • Purpose of the program: to raise the level of the overall well-being of CHI employees and their families

3. CHI Healthy Spirit Program How the Healthy Spirit Program can make a difference in your life: • Provides you competitive and affordable benefits • Educates you and your family about what it takes to build financial security for your life • Offers comprehensive medical plan options • Provides tools and resources to help improve fitness and overall wellness for you and your family • Supports lower income families by offering the Health Care Assistance Program

4. Today’s agenda • Healthy Spirit Program: • Eligibility • Review of CHI benefit plans • Healthy Spirit Wellness Program • What you need to do Tip Watch throughout the presentation for the tip boxes to learn more about your CHI benefits.

5. Eligibility

6. Eligibility • You: • Full-time: regularly scheduled to work 36+ hoursper pay period; or • Part-time: regularly scheduled to work 20 - 35 hoursper pay period • Adult dependents: • Your spouse of the opposite sex who is legally married to you OR • Any otheradult of the opposite or same sex that is financially supported by you and lives with you

7. Eligibility • Child dependents: • Up to age 26 • Includes child dependents of eligible adult dependents • Physically and mentally handicapped children who are unmarried and financially dependent on you as long as they became disabled prior to age 26 and were added and approved as a disabled dependent on your employer-sponsored health care plan continuously since reaching age 26

8. Dependent Verification • If you add a dependent to the CHI medical, dental and/or vision plans, you will receive an audit notice and will be required to provide documentation. • Unverified dependents will not be eligible for coverage. • The audit notice will be sent to your home shortly after you enroll in your benefits • The notice will include instructions and a list of options for supporting documentation Tip Be sure to return your dependent audit notice by the deadline or else your dependents may not be eligible for coverage.

9. CHI Health Benefits

10. CHI Health Benefits • CHI Health Benefits: • Medical and Prescription • Healthy Spirit Wellness Program • Dental • Vision

11. Medical Plan Options • Terms to Know • Copayment: a flat-dollar amount you are required to pay for a covered service • Coinsurance: the percentage of the cost that is your responsibility • Covered Services: services that are covered under the CHI Medical Plan – refer to theSummary Plan Description for the comprehensive list • Deductible: the amount you have to pay before the plan begins to pay for a portion of the costs • Clinically integrated network: a network within the CHI Medical Plan of health care providers, facilities and ancillary services collaborating to improve the health of CHI employees and dependents • In-Network: refers to a national network of providers within the CHI Medical Plan • Out-of- Network: refers to providers that are not within the CHI Medical Plan network • Out-of-Pocket Maximum: the annual maximum amount you will pay for services through the CHI Medical Plan

12. Medical Plan Options • Our Clinically Integrated Network: KentuckyOne Health Partners • Clinically integrated networks shift the focus from traditional sick care to proactive well care • Supports our focus on improving the health of people and communities around us • Our local clinically integrated network, referred to as KentuckyOne Health Partners, is the preferred network with the highest level of benefits in the CHI Medical Plan • If you seek care from a provider within the KentuckyOne HealthPartners,your out-of-pocket costs may be lower • More importantly your care will be better coordinated through shared data, better communication, streamlined services, avoidance of duplicate services, etc.

13. Medical Plan Options Our Clinically Integrated Network: KentuckyOne Health Partners • A more holistic approach to your health and wellness through your primary care physician and other network providers • Your primary care physician functions as your “primary care medical home” – a central hub for your medical care • Whether you have a chronic illness or you are relatively healthy, your primary care medical home can help you manage your health • If you enroll in the CHI Medical Plan, you must designate a primary care physician (PCP) • Designation must be a family practitioner, pediatrician, an internal medicine physician or a corresponding mid-level provider (nurse practitioner or physician assistant) preferably within the local KentuckyOne Health Partners

14. Medical Plan Options If you enroll in a CHI Medical Plan,please designate a provider…

15. Medical Plan Options • What does the KentuckyOne Health PartnersNetwork do for you? • Holistic approach through coordination of more effective, safe and efficient care • Encourages you to be more proactive in your own care • Health information is accessible to any provider within the local network responsible for your care • Health benefits, such as: better care results, fewer hospital admissions for chronic diseases, etc. • Ensures the right care is provided at the right time

16. Medical Plan Options • While on the enrollment website… See if your doctor is within our local clinically integrated network. Tip You can also search for network providers through the My Healthy Spirit website

17. Medical Plan Options • Your CHI Medical Plan options: • Integrated Core • Integrated Basic • Integrated High Deductible with Health Savings Account (HD/HSA)

18. Medical Plan Options

19. Medical Plan Options • Integrated Core and Integrated Basic Options • Special feature for these two medical plan options – Health Reimbursement Account • Only funded by CHI - $500 for employee only coverage; $1,000 for all other coverage levels • Debit card with your health reimbursement funds will be sent from HealthEquity • Helps you pay for your eligible health care expenses • Once the account is depleted, you are responsible for your portion of any health care expenses • You cannot contribute to the account • Unused funds do not roll over into the next plan year

20. Medical Plan Options • Integrated High Deductible with Health Savings Account (HD/HSA) • Must meet the deductible before the plan begins to pay for medical AND prescription expenses (preventive medical care is the exception which is covered at 100%) • Once deductible is met, you and CHI share in the cost of services (coinsurance) • Once out-of-pocket maximum is met, CHI pays 100% for the rest of the year for covered services – including prescriptions • Family deductible and works differently than the Integrated Core and Integrated Basic Planoptions – family must meet entire family deductible before the plan benefits begin • Similarly the family out-of-pocket maximum must also be met before plan pays 100 percent

21. Medical Plan Options • HD/HSA option includes a health savings account

22. Medical Plan Options • Health Savings Account (HSA) Want to calculate how much to contribute? Use the online calculator at www.healthequity.com/ed/chi under “Tools & Forms”

23. Medical Plan Options • Health Savings Account (HSA) • Eligibility (per IRS) • Must be enrolled in a qualified medical plan – such as the HD/HSA • Have no other medical coverage – including Medicare or a spouse’s plan • You and your family cannot be enrolled in a general health care flexible spending account, including a spouse’s flexible spending account – you can enroll in the CHI limited health care flexible spending account • You cannot be claimed on someone else’s tax return

24. Medical Plan Options • Transferring Your HSA Funds • You can keep your HSA funds with your current administrator or roll over your funds to the CHI HSA • If you enroll in the HD/HSA, your before-tax HSA contributions will go to the CHI HSA through HealthEquity • Want to transfer? • Download Transfer/Rollover Form at www.healthequity.com/form • Complete the form and submit it to HealthEquity via mail or fax

25. Medical Plan Options • Prescription Coverage

26. Medical Plan Options • Things to Consider: Prescription Coverage • If you fill a brand-name prescription when a generic equivalent is available, you will pay: • Brand-name coinsurance +difference between generic and brand-name amount • Maintenance medications must be filled using the mail order pharmacy or a CHI-owned retail pharmacy • All prescriptions filled from a CHI-owned pharmacy will cost you 50% less than the copay/coinsurance you will pay for the same drug filled at a local retail pharmacy

27. Medical Plan Options • Contraceptives - Women’s Preventive Health Mandate • Our prescription drug and health plan administrators are required to work directly with you if you would like to access these services and/or prescription drugs at no cost to you: • Medical services: Patient education and counseling on contraceptives, administration of certain contraceptives (such as the insertion of IUD’s or injections) and women’s sterilization procedures • Prescription drugs: Generic contraceptives, over-the-counter contraceptives with a doctor’s prescription and multi-source brand contraceptives (when a doctor determines it medically necessary)

28. There is no obligation to participate Program is free and confidential Available to all employees, even those not enrolled in the medical plan Spouses enrolled in CHI’s Medical Plan can also participate in the program The Healthy Spirit wellness incentive is earned per quarter CHI partners with Preventure to help manage our wellness program Healthy Spirit Wellness Program

29. Tools available include: Personal Health Assessment Biometrics screenings Health and wellness workshops Health coaching Disease/condition management Variety of trackers and logs Activity tracking devices Mobile technology Fitness club discounts Quarterly themed challenges Healthy Spirit Wellness Program Tip Watch the video on My Healthy Spirit to learn more about the Healthy Spirit Wellness Program

30. Helping You Manage Your Health Condition For employees who are managing chronic conditions: • If you have a chronic disease or health condition, your care can be managed by a “lifestyle coach” and your information will be highly confidential • You may be invited to join a disease or chronic condition program • Free, confidential and voluntary for participants of CHI’s Medical Plan • Spouses participating in the CHI medical plan also can take advantage of this program • Children with asthma or diabetes participating in the CHI Medical Plan also may participate

31. Dental Plan Options • Your CHI Dental Plan options: • Core • PPO • CHI Dental Plan is administered by MetLife

32. Dental Plan Options Dental: PPO and Core options

33. Vision Plan Vision Plan through EyeMed Note: Out-of-network coverage is also available if you see a provider who is not in the EyeMed Select network.

34. CHI Financial Well-being Benefits

35. CHI Financial Well-being Benefits • CHI Financial Well-being Benefits: • Flexible spending accounts • Disability • Life insurance • Retirement savings • Tuition reimbursement • Adoption assistance

36. Flexible Spending Accounts Flexible spending accounts • A flexible spending account allows you to set aside before-tax money from your paycheck to pay for eligible health care or dependent care expenses • Three types of flexible spending accounts: • Health care flexible spending account – helps you pay for certain health care expenses, such as deductibles or prescriptions. You cannot enroll in this type of flexible spending account if you enroll in the HD/HSA medical plan option. • Limited purpose post-deductible health care flexible spending account – if you enroll in the HD/HSA medical plan option, you can contribute to this limited account for eligible dental and vision expenses. Once yourHD/HSA deductible is met, you can use the account to reimburse yourself for eligible medical, dental or vision expenses paid out of pocket. • Dependent care flexible spending account – helps you pay for certain dependent care expenses, such as daycare.

37. Flexible Spending Accounts Using your health care flexible spending account debit card You will receive a debit card from HealthEquity when you enroll The debit card allows you to purchase eligible health care items without paying out of pocket The card is loaded with the total available balance from your health care flexible spending account selection The card comes with instructions on how to use it

38. Flexible Spending Accounts Things to Consider: Flexible Spending Accounts • You can use your 2014 flexible spending account funds for expenses incurred through March 15, 2015 • Expenses must be submitted to HealthEquity by March 31, 2015 • Learn more about the flexible spending accounts at www.healthequity.com/ed/chi • General flexible spending accounts overview • List of eligible expenses • Flexible spending accounts tax savings worksheet • If you enroll in a flexible spending account, you can check your flexible spending account balance and submit for reimbursement through the HealthEquity website or mobile application

39. Disability Insurance • Automatically enrolled in short-term disability • Benefits begin after a 7-day elimination period – must use paid time off • Provides 80% of your base pay for 5 weeks after the 7-day elimination period and then provides 60% for remaining 20 weeks, if approved • If eligible for long-term disability: • Available for full-time employees • Provides 60% of your base pay if you are disabled beyond 26 weeks

40. Life Insurance • Will be automatically enrolled in: • Basic life and AD&D – twotimes base pay • Business travel accident – three times base pay • Have the option to enroll in: • Supplemental life for you – up to five times base pay (up to a combined maximum with basic life of $750,000) • Supplemental life for your spouse – up to $200,000 • Supplemental life for your children – up to $20,000per child • Evidence of insurability may be required • For you: amounts over three times base pay or $500,000 whichever is less • For your spouse: amounts over $50,000 • Remember to designate your beneficiary

41. Retirement Plans CHI 401(k) Retirement Savings Plan • You can make pre-tax and Roth after-tax contributions, up to IRS maximum • If you do not elect a contribution rate, you will be automatically enrolled in the plan at a 4 percent pre-tax contribution rate • CHI will match your contribution 100% on the first 1% + 50% on the next 5% of eligible pay. If you contribute at least 6% of eligible pay, that means CHI will provide a maximum rate of match of 3.5% of pay • You are eligible for the match the first pay period after you have been paid for 1,000 hours • You can choose to opt out of the plan, increase or decrease your contributions at any time Tip You can learn more about the CHI 401(k) Retirement Savings Plan by watching the retirement video on My Healthy Spirit website

42. Retirement Plans • CHI may also make an annual employer contribution of 2.5%* of eligible pay ($1,000 minimum) to your 401(k) plan account regardless if you contribute any of your pay if: • You must have been paid for at least 1,000 hours prior to the end of year; and • You must be employed on the last day of the year • Contributions will generally be made to your 401(k) plan account after the close of the year end that you are receiving a credit • If you save at least 6% of your own pay, CHI would contribute up to an additional 6% to your 401(k) account • To become fully vested for both matching contributions and the annual employer contribution you must have completed three years of vesting service (1,000 paid hours of service each year) *Note: Employees of CHI Physician Services (CHIPS) and Mountain Management are not eligible for annual employer contribution.

43. Retirement Plans • CHI 457(b) Non-qualified Deferred Compensation Plan is available to certain employees whose base pay rate is equal to or greater than $115,000 OR who is a Physician status (regardless of pay) • Allows for additional employee contributions to be deferred on a pre-tax basis up to the allowable IRS maximum limit • Is subject to the risk of creditors claims should CHI become insolvent • Eligible participant should consider maximizing contributions under the CHI 401(k) plan • Investment options are similar to what is offered under the CHI 401(k) plan with the exception of the Self-Directed Brokerage Window which cannot be legally offered under this plan

44. Tuition Assistance • Tuition Assistance • Annual reimbursement up to $3,000 for full-time employees and $1,500 for part-time employees. • After the course is completed, you are committed to maintaining employment with our organization for 12 months from the date the reimbursement is paid or you will have to repay the total tuition reimbursement amount.

45. Adoption Assistance • Adoption Assistance • Annual reimbursement will be $4,000 for full-time employees and $2,000 for part-time employees. There is no additional reimbursements beyond the annual reimbursement listed above.

46. Other Benefits

47. Employee Assistance Program • Employee Assistance Program is available to your and your family free of charge • The program provides access to confidential, professional counseling that can make it easier to cope with a variety of personal issues and life changes • Program is available 24/7 • ValueOptions is the administrator

48. Next Steps

49. Next Steps • Things to consider before you enroll: • Evaluate your needs. • What benefits and services did you pay for and use this past year? • What do you expect to need for the near future? • Could you use the HD/HSA medical plan option to help save on taxes and build up savings for medical care you may need over the longer term? • Look at your medical and prescription claims history online using your medical and prescription administrator’s websites. There is also a medical expense estimator tool available on the enrollment website.

50. Next Steps • Things to consider before you enroll: • If you are interested in possibly selecting the HD/HSA, consider the following: • Review the HD/HSA plan to make sure you understand how it works • Visit the HealthEquity website, www.healthequity.com/ed/chi, to understand how the HSA can be used to build medical savings for the future expenses • Determine how much you can afford to save from your paycheck into the HSA (remember CHI is contributing too!) • Watch your mail for details about the steps to log in to the enrollment website • While on the enrollment site, take a moment to enroll in the CHI 401(k) Plan • Visit the My Healthy Spirit website to learn more about the CHI benefits available to you, including our benefits video library