2012 National Agreement An Overview of Key Provisions

1. 2012 National Agreement An Overview of Key Provisions October 2012

2. Spirit of the National Agreement “[T]his Agreement continues to set forth new ways to work and new ways to provide care. It enables each person to engage her/his full range of skills, experiences, and abilities to continually improve service, patient care and performance.…Engagement in Partnership is not optional, but the way that Kaiser Permanente does business.” - 2010 National Agreement

3. How the Agreement Supports KP Strategy For more information, see www.lmpartnership.org/tools/2012-national-agreement-overview

4. Benefits and Economics: Highlights • No change in current benefits for life of the agreement • Retiree health liability solution • California wages/ATB: 3% per year • Regions Outside California wages/ATB: 2% per year • PSP – up to 3% of payroll for meeting regional goals • Dental max improved from $1,000- $1,200 • 401K auto-enrollment and optimization (also applies to 403(b)) • Employee education for effective use of benefits • Standardization and simplification of benefits

5. Total Health: Highlights • Commitment to help KP employees become the healthiest in the industry • Rewards employees for the collective achievement of lowered chronic disease risk factors, including body mass index (BMI), smoking, cholesterol levels, blood pressure and workplace injury rates • Total Health Program Incentive to promote participation in updated risk screenings, completion of the Total Health Assessment, and maintenance or improvement on key health risks, if there are savings • Tracking and reporting of results

6. Improving the Partnership: Highlights • Continued learning, development and assessment of UBTs • Increased sponsor accountability, with more support for sponsors and greater accountability for co-leads • Regional LMP Councils to develop plans to reduce variation in resources for partnership • KP contributions to LMP Trust as follows: • California: $6 million in 2012; $4 million in 2013; $2 million in 2014 • National: $10 million in 2012; $11 million in 2013; $12 million in 2014 • Aggressive targets for growth of high-performing UBTs:

7. Workforce of the Future: Highlights • Joint workforce planning and development: • Continued and enhanced development of career tracks • More integrated workforce planning, with labor engagement • Establish priorities and reduce barriers to training • Education trusts/funding: • Continue annual contributions of $19 million to two educational trusts (Ben Hudnall Memorial Trust and SEIU Education Fund) • Outside grant funding to be identified and publicized • Hard-to-fill positions: Regional implementation plans in June 2013 • Scope of practice: Joint committees in each region with six months of ratification

8. Growth of KP and the Unions: Highlights • Recommendations for growth of KP include: • Replicate the Senior Workgroup on Growth at the regional level • Promote total health for membership growth • Improve the member experience for retention/growth • Inform people throughout KP of activities, trends and results that support growth • Recommendations for union growth include: • Provide training for KP Labor Relations and HR representatives, and consistent application of union campaign processes • Reaffirm the National Agreement language on new positions and minimizing use of temporary workers and subcontractors • Form committee to identify additional growth opportunities for unions inside KP

9. Tracking and Monitoring NA Deliverables