2019 New Hire Enrollment Guide

START HERE! Use this guide to learn about your options for 2019.

3 Healthcare Lingo

4 Important Dates and Deadlines

5 Take These Steps to Enroll

6 Your Benefit Options at a Glance

8 Primary Medical Plans — HSA and HSA Plus Plans

9 Plan Details

10 Kaiser Plus Plan

10 Kaiser HMO and HMSA HMO Plans

11 McKesson Medical Plan Carriers by State

12 5 Reasons to Love the Health Savings Account

13 Health Savings Account Tips

14 Which Plan Is Right for You?

16 How Prescription Drug Coverage Works

20 Flexible Spending Accounts

21 Flexible Spending Account Tips

22 Dental

23 Vision

24 Life and Accidental Death & Dismemberment

25 Long Term Disability

26 Enrolling Your Spouse/Domestic Partner

27 Tools of the Trade

28 What to Expect When Enrolling Your Dependents

29 Contact Information

What’s Inside

2

Healthcare Lingo

The allowed amount is how much healthcare providers can charge for the services your plan covers.

Healthcare-speak can sometimes be confusing. Before comparing your enrollment options, get to know these common terms so you can understand how each plan works.

A copay is the fixed amount you pay for a covered healthcare service.

Doctors, hospitals and service providers that don’t contract with your plan are called out-of-network providers. You usually pay more when you use an out-of-network provider.

Your annual deductible is the amount you pay for office visits, prescription drugs and other covered services before your plan begins sharing the cost.

An EOB is a summary of services used, what your plan paid and how much you owe your healthcare provider.

The most you pay in a year for healthcare services is called the out-of-pocket maximum. After you reach the out-of-pocket maximum, the plan covers 100% of eligible services for the remainder of the plan year.

Coinsurance is the percentage you and your plan each pay when you’re sharing costs. Coinsurance kicks in after you meet your annual deductible.

Doctors, hospitals and service providers that contract with your plan are called in-network providers. You usually pay less when you use an in-network provider.

The medical premium is the amount deducted from your paychecks to pay for your medical coverage. Your deduction comes out of your paychecks before taxes.*

* The cost of coverage for a domestic partner comes out of your paycheck after taxes.

Allowed Amount

Copay

Out-of-Network Provider

Annual Deductible

Explanation of Benefits (EOB)

Out-of-Pocket Maximum

Coinsurance

In-Network Provider

Medical Premium

STOP

3

You need to enroll by the deadline on your Welcome Letter if you want any of these benefits in 2019:

Choose your coverage on UPoint at digital.alight.com/mckesson.

Medical, dental and vision coverage

Flexible spending accounts (FSAs)

Long term disability (LTD)

Supplemental life and accidental death &

dismemberment (AD&D)

The last day to spend the money you put in a 2019 McKesson healthcare and/or dependent care FSA is December 31, 2019.

If you enroll in the HSA, HSA Plus or Kaiser Plus plan, activate your health savings account as soon as possible on the Fidelity website at www.netbenefits.com. You won’t be able to use your account until it’s activated.

You need to activate your health savings account within 90 days of the day your coverage starts to get your contributions for 2019 (and McKesson’s if you enroll in the HSA Plus or Kaiser Plus plan).

The last day to submit your 2019 healthcare and dependent care FSA claims is March 31, 2020. Submit your claims to WageWorks at www.wageworks.com.

Health Savings Account McKesson Flexible Spending Accounts

Important Dates and Deadlines

Life Changes

If you have a qualified status change such as a marriage or the birth of a child, you have 31 days to change your coverage on UPoint at digital.alight.com/mckesson > Life Changes.

On UPoint, you can also learn about Health Insurance Portability and Accountability Act (HIPAA) Special Enrollment Rights that allow you to enroll in coverage outside of Annual Enrollment if you qualify.

Enroll

December 31

2019

March 31

2020 90days

4

McKesson Flexible Spending Accounts

Take These Steps to Enroll

Log On to UPointGo to digital.alight.com/mckesson and enter your username and password. If it’s your first time on UPoint, click Log On > Register as a New User and follow the prompts.

You can also access your UPoint account from McKNet — Pay & Benefits > Benefit Plans & Wellness > UPoint.

Choose Your Benefits• Go to Action Needed! > Make Your

Enrollment Choices or Enroll Now > Review and Enroll.

• Choose your medical, dental and vision coverage.

• When choosing your medical plan, select Yes or No in the Employed Spouse/Domestic Partner Surcharge field if you plan to enroll your spouse/domestic partner.

• Enter an annual contribution amount for your health savings account and/or FSA.

• Provide Social Security Numbers for your covered dependents.

• Set your beneficiaries.

Select “Complete Enrollment” or “Quit”Select:

Complete Enrollment — to save your choices and complete your enrollment.

• Print the “Submitted Successfully” message and reference number as confirmation.

• If you gave your email address on UPoint, you get a confirmation email.

• If you need to give Evidence of Insurability (EOI), a “Submitted Successfully - Required Follow-Ups” page appears, and you get a confirmation number. You can print this page as confirmation.

Quit — to cancel your choices.

• You see a “Canceled Successfully” message.

• You have until the deadline on your Welcome Letter to make new choices.

After enrolling, activate your health savings account with Fidelity at www.netbenefits.com. You only have to activate it once, not every year.

Enroll on UPoint

Check off this list to complete your enrollment.

5

Your Benefit Options at a Glance

Medical PlansIn all states except Hawaii:

• HSA plan

• HSA Plus plan

In limited locations:

• Kaiser Plus plan

• Kaiser HMO plan

• HMSA HMO plan

DentalCigna Dental plans

• PPO

• PPO Plus

• DHMO

Long Term Disability (LTD) CoverageYou pay 30% of the cost for LTD coverage. McKesson pays the other 70%. LTD provides up to 60% of your covered pay (up to $25,000 a month) if you’re out of work more than 180 days due to a disability.

You're eligible for health and wellness benefits if you're a regular employee scheduled to work 30 or more hours each week.

Vision

Vision Service Plan (VSP) plans

• VSP

• VSP Plus

Flexible Spending Accounts (FSAs)• HSA-compatible healthcare FSA

• Standard healthcare FSA

• Dependent care FSA

Supplemental Life and Accidental Death & Dismemberment Insurance (Life and AD&D)

• Employee: $10,000 to $1.5 million (or eight times your pay, whichever is less)

• Spouse/domestic partner: $20,000 to $400,000

• Child(ren): $5,000 to $25,000 per child (in $5,000 increments)

6

When Your Coverage BeginsIf you’re a new full-time or part-time employee scheduled to work 30 or more hours a week, your coverage begins the first day of the calendar month following your date of hire (as long as you enroll by the deadline on your Welcome Letter).

If you’re hired more than 31 days before McKesson’s Annual Enrollment period (generally in early November), you’ll need to enroll twice this year:

• Once by the deadline on your Welcome Letter for coverage this year.

• Again during Annual Enrollment to choose your benefits for 2020.

Your new medical, prescription drug and dental ID cards should arrive in the mail a few weeks after you enroll. You can also view/print a temporary ID on your carrier’s website.

Find your carrier’s contact information at www.mckesson.com/totalrewardslibrary > Contacts.

You're automatically enrolled in life and accidental death and dismemberment, and short term disability coverage. This coverage is paid for by McKesson.

What happens if I don’t enroll by the deadline?

You'll need to wait until the next Annual Enrollment period to choose your benefits, unless you have a qualified status change in 2019.

7

Primary Medical Plans — HSA and HSA Plus Plans

Plan Features • Comprehensive coverage for medical care and

prescription medicines.

• You can visit any doctor you like. You get the best deal on your healthcare by using in-network providers.

• A health savings account to help you pay eligible expenses.

• An annual deductible you pay for eligible expenses before coinsurance kicks in.

• Coinsurance after meeting your annual dedutible. When coinsurance kicks in:

- You pay 20% of the eligible cost and the plan pays 80% for in-network care or services.

- You pay 40% of the eligible cost and the plan pays 60% for out-of-network care or services.

- You pay 100% of the difference in cost between out-of-network provider charges and eligible charges.

• Preventive care and medications on the HSA Preventive Therapy Drug List are covered at 100% when you use in-network providers.

• Out-of-pocket maximums limit how much you pay for medical and prescription medication expenses per year. An out-of-pocket maximum is the most you pay in a year for healthcare services.

What's the “Plus” in HSA Plus?The HSA Plus plan comes with a McKesson contribution to your health savings account. The contribution puts the word “plus” in the plan's name. In this case, the “plus” doesn’t mean “better plan” or “first class,” it simply means that McKesson chips in between $750-$1,500 to your health savings account in 2019 depending on who you cover.

Coverage for a Variety of ServicesThe HSA and HSA Plus plans cover a variety of health services, such as chiropractic care, acupuncture, addiction treatment, infertility treatment, speech therapy, physical therapy and applied behavior analysis (ABA) therapy. See what else is covered in the Summary of Benefits and Coverage (SBC) at Total Rewards Library > Plan Documents.

Click Choose to select your medical plan for 2019.

As Seen on UPoint

TIP Always use in-network providers when possible. Out-of-network providers can charge you for the difference between their charges and what your plan covers.

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The HSA plan has lower monthly premiums in exchange for a higher annual deductible and out-of-pocket maximum, while the HSA Plus plan has higher monthly premiums but comes with a McKesson contribution to your health savings account. Consider all the factors that make each plan unique, including premiums, deductibles and out-of-pocket maximums, so you can choose the plan that’s right for you. Use the charts below.

HSA plan

Health savings accountAnnual

deductible

Coinsurance out-of-pocket maximum

Out-of-pocket maximum

EE contribution

**

McKesson contribution

In-networkOut-of-

networkIn-

network***Out-of-

network

EE* $0-$3,500 $0 $3,500 $2,750 $5,500 $6,250 $9,000

EE + SP/DP* or Child(ren)

$0-$7,000 $0 $5,250 $4,125 $8,250 $9,375 $13,500

EE + Family

$0-$7,000 $0 $7,000 $5,500 $11,000 $12,500 $18,000

HSA Plus plan

Health savings accountAnnual

deductible

Coinsurance out-of-pocket maximum

Out-of-pocket maximum

EE contribution

**

McKesson contribution

In-networkOut-of-

networkIn-

network***Out-of-

network

EE* $0-$2,750 $750 $2,125 $2,500 $5,000 $4,625 $7,125

EE + SP/DP* or Child(ren)

$0-$5,900 $1,100 $3,175 $3,750 $7,500 $6,925 $10,675

EE + Family

$0-$5,500 $1,500 $4,250 $5,000 $10,000 $9,250 $14,250

* EE = employee. SP/DP = spouse/domestic partner. ** Putting money in a health savings account is voluntary. You choose how much to put in, up to the annual IRS limit shown in the chart. You can put in up to 1/12

of the annual limit each month. If you’re age 55 or older in 2019, you can make catch-up contributions of up to $1,000 ($83.33 per month). Avoid tax penalties by making sure you don’t put more in your account than the IRS monthly or annual limit. McKesson and Fidelity don’t monitor your contributions for you. For more information on health savings accounts, go to Total Rewards Library > Health Savings Account > Health Savings Account FAQs.

*** If you enroll in EE + SP/DP, EE + Child(ren) or EE + Family coverage, your plan has an out-of-pocket maximum of $6,850 per individual. This means no one covered by your plan pays more than $6,850 a year for in-network services.

Plan Details

Save on Your McKesson Medical Premiums with Vitality Take care of your health and save money by participating in our voluntary wellness program, powered by Vitality. When you complete healthy activities, you can earn savings up to $250 per month on your McKesson medical premiums. Learn more at www.mckesson.com/totalrewardslibrary > Healthcare Benefits > How to Save on Medical Premiums.

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The plan covers 100% of your preventive care, including certain prescription medications. You pay the full cost of non-preventive care out of pocket until you meet the annual deductible of:

• $2,125 Employee Only

• $4,250 Employee + Spouse/Domestic Partner or Employee + Child(ren)*

• $4,250 Employee + Family*

You pay coinsurance after meeting your annual deductible.

You pay coinsurance until meeting your annual out-of-pocket maximum. Once you meet the out-of-pocket maximum, the plan pays 100% of your eligible expenses for the rest of the year.

McKesson contributes $750-$1,500 to your health savings account in 2019, depending on who's covered.

Kaiser Permanente is your in-network provider. Although you don't have coverage at out-of-network providers in most cases, emergency and urgent care is covered everywhere in the world.

Kaiser Permanente administers the plan’s prescription medication coverage. Go to https://my.kp.org/mckessoncorp > Understanding your costs for more information.

The Kaiser Plus plan is a high-deductible HMO plan available in California, Colorado, Georgia, the Mid-Atlantic states, Oregon and Southwest Washington. This plan gives you the opportunity to contribute to a health savings account and works like this:

Use the Health Plan Comparison Charts on UPoint, the enrollment website, to get a side-by-side look at what the Kaiser Plus, HSA and HSA Plus plans cover.

* If you enroll in Employee + Spouse/Domestic Partner, Employee + Child(ren) or Employee + Family coverage, you have an embedded individual annual deductible of $2,700. This means if a person meets the $2,700 individual deductible, that person will begin paying coinsurance for covered services even if the total annual deductible hasn’t been met.

Kaiser Plus Plan

If you live in Hawaii, you can choose between two HMO plans:

• Kaiser HMO plan

• HMSA HMO plan

With these plans, you:

• Have a copay (a fixed dollar amount) for office visits and a coinsurance amount for certain services.

• Pay higher premiums in exchange for lower out-of-pocket costs.

• Don't have coverage for out-of-network providers, except in emergencies.

Use the Health Plan Comparison Charts on UPoint to get a side-by-side look at what the two HMO plans cover.

Kaiser HMO and HMSA HMO PlansKaiser HMO and HMSA HMO Plans

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At McKesson, we offer one medical plan carrier per state for our primary medical plans, the HSA and HSA Plus. You can enroll in the Kaiser Plus plan where Kaiser Permanente is available. In Hawaii, you can choose between two HMO plans. Check the map to see the carrier for the state you live in.

AK

WA

OR

CA

NV

ID

MT

WY

UT

AZ NM

CO

ND

SD

NEIA

MO

AR

LA

MS AL

FL

GA

SC

NCTN

IL

WI

MN

MI

INOH

KYVA

WV

PA

NY

VTNH

ME

MA

RICT

NJDE

MD

KS

OK

TX

HI

* In the state of Washington, the Kaiser Plus plan is only available in Southwest Washington.

Aetna Anthem Cigna Kaiser Permanente* HMSA

McKesson Medical Plan Carriers by State

DC

11

* As of 2019, California and New Jersey tax the money you and McKesson put in a health savings account. If you live in one of these states, you may need to pay state income tax on the money you and McKesson contribute to your health savings account.

** As of 2019, New Hampshire and Tennessee tax health savings account interest and earnings. If you live in one of these states, talk to your tax advisor or contact Fidelity for more guidance.

5 Reasons to Love the Health Savings Account

You call the shots when it comes to spending, investing or saving the money in your health savings account.

McKesson contributes to your account each year if you enroll in the HSA Plus or Kaiser Plus plan. If you're wondering, the word “Plus” in these names simply means you get a health savings account with the plan, plus McKesson contributes to your health savings account:

You get three tax breaks.

You keep the money in your account whether you change medical plans, leave McKesson or retire.

You can invest the money in your account to help meet long-term financial goals and build a nest egg for healthcare expenses in retirement.

First breakYou may pay less taxes by lowering your taxable income with before-tax or tax-deductible contributions to your account.*

Second breakYou aren’t taxed on withdrawals you make to pay eligible healthcare expenses.

Third breakYour account’s earnings and interest aren’t taxed, unless you live in one of the few states that taxes them.**

1.

4.

3.

2.

5.

$750 Employee Only

$1,100 Employee + Spouse/Domestic Partner or Child(ren)

$1,500 Employee + Family

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Health Savings Account Checklist

Complete each of the steps below to make the most of your health savings account.

Set a Contribution Amount Each YearAfter choosing the HSA, HSA Plus or Kaiser Plus plan, set a contribution amount for your health savings account on UPoint. Be sure to set a contribution amount each year during Annual Enrollment. You can start, stop or change your contributions at any time on UPoint.

Activate Your Account OnceActivate your health savings account online with Fidelity at www.netbenefits.com. You only have to activate it once, not every year.

Know the Limits The IRS limits how much you can put in your health savings account per month and per year. Keep in mind that any contribution McKesson makes to your health savings account also counts toward the IRS limits below.

Read IRS Publication 969 and Form 8889 at https://www.irs.gov/pub/irs-pdf/p969.pdf for more information about health savings account limits. You can also contact Fidelity or your tax advisor.

2019 IRS Health Savings Account Contribution Limits

CoverageMcKesson

Annual ContributionYour Monthly

Contribution LimitYour Annual

Contribution Limit

HSA Plan

EE Only $0 $291.66 $3,500

EE + SP/DP or EE + Child(ren)or EE + Family

$0 $583.33 $7,000

HSA Plus and Kaiser Plus Plans

EE Only $750 $229.16 $2,750

EE + SP/DP or EE + Child(ren) $1,100 $491.66 $5,900

EE + Family $1,500 $458.33 $5,500

If you're age 55 or older in 2019, you can make catch-up contributions of up to $1,000 ($83.33 per month).

Health Savings Account Tips

Enrolling in the HSA Plus or Kaiser Plus plan? Activate your health savings account with Fidelity even if you don't want to contribute to your account. That way, you can get McKesson's annual contribution.

• You need to activate your health savings account within the first 90 days of coverage to get McKesson’s contribution for 2019.

• If your 2019 coverage starts on January 1, you have until March 31, 2019 to activate your account.

Learn more about health savings accounts at www.mckesson.com/totalrewardslibrary > Health Savings Account > Health Savings Account FAQs.

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Your healthcare needs are unique. The plan that works for your coworker may not be the right fit for you. Below are examples of how our plans can work with different healthcare needs. Use these examples to see which plan may be the best match for you.

Which Is the Right Plan for You?

Christine • Is single and only covers herself.

• Sees the doctor for annual physicals.

• Wants the lowest monthly premiums possible.

• Plans to contribute as much as she can to her health savings account.

She chooses: HSA plan

Here’s why:• Christine wants to save and invest the money in her health

savings account — after all, she gets to keep her account even if she changes medical plans, leaves McKesson or retires.

• The HSA plan has the lowest premiums of all the McKesson medical plans.

• Christine can use the money she saves on monthly premiums to contribute to her health savings account. She wants to contribute as much as she can to her account to pay for any unexpected healthcare needs with before-tax dollars.

Marcus • Wants to avoid the employed spouse/domestic partner

surcharge (p. 26). His wife has access to medical coverage at work. That's why they decide that he'll enroll in a McKesson medical plan with Employee Only coverage and she'll enroll in a medical plan through her work.

• Has diabetes and sees the doctor often.

• Contributed to a health savings account with another employer for three years. He plans to roll over his balance to a health savings account with McKesson and contribute before-tax deductions from his paycheck.

He chooses: HSA plan

Here’s why:• The HSA plan has the lowest premiums of all the

McKesson medical plans, especially for Employee Only coverage. Because Marcus doesn't cover his wife, he doesn't pay the employed spouse/domestic partner surcharge.

• He has enough money in his health savings account to cover his medical needs, but he's planning to pay for those out of pocket. He wants to focus his health savings account on investing and saving for healthcare needs in retirement. If there's a medical emergency, he can use his health savings account to cover his annual deductible and out-of-pocket maximum.

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Which Is the Right Plan for You?

Octavio • Covers his son.

• Needs shoulder surgery, so he wants a plan with a lower annual deductible to help him share the costs.

• Plans to contribute to a health savings account in 2019.

He chooses: HSA Plus plan

Here’s why:• The HSA Plus plan has the lowest annual deductible of all

McKesson plans. He really likes the lower annual deductible because he can meet it faster. As soon as Octavio meets the deductible, coinsurance kicks in and he begins sharing costs with the plan.

• McKesson contributes $1,100 to Octavio's health savings account, which he can use to pay eligible expenses he has from his surgery.

Lenore • Covers her husband and their two children.

• Needs prescriptions to manage her high blood pressure and takes her kids to the pediatrician frequently.

• Plans to contribute to a health savings account in 2019.

She chooses: HSA Plus plan

Here’s why:• She wants a lower annual deductible.

• McKesson contributes $1,500 to her health savings account that she can use to pay her eligible out-of-pocket expenses.

• Lenore doesn't pay the employed spouse/domestic partner surcharge because her husband isn't eligible for medical coverage at his job.

Looking for more examples like these? Check out Choose a Medical Plan That Fits on McKNet or the Total Rewards Library (www.mckesson.com/totalrewardslibrary).

15

How Prescription Drug Coverage Works

You have a prescription benefits administrator. That’s CVS Caremark if you enroll in the HSA or HSA Plus plan.

You need to use pharmacies that accept your coverage.

• Only pharmacies within the CVS network accept your coverage. The CVS network includes hundreds of retail pharmacies, such as Health Mart® and Walmart®.

• Out-of-network pharmacies don’t accept your coverage and you pay the full cost of your prescription medicines.

Prescription medicines count toward the annual deductible. You pay for prescription medicines until you meet your medical plan’s annual deductible. When you meet the deductible, coinsurance kicks in and you and the plan start sharing costs.

Prescription Coverage

Before Meeting the Annual Deductible After Meeting the Annual Deductible

• You pay the cost for prescription medicines until you meet your medical plan's annual deductible.

• When your prescription medicine is on the HSA Preventive Therapy Drug List (p. 17), the plan shares the cost with you even if you haven’t met your deductible.

You and the plan start sharing the cost for prescription medicines.

Prescription Medications on the HSA Preventive Therapy Drug List (p. 17)

Generic medications — Plan pays 100%.

Preferred brand name medications — You pay half the normal coinsurance without having to meet your annual deductible.

Generic medications — Plan pays 100%.

Preferred brand name medications — You pay half the normal coinsurance.

Prescription Medications not on the HSA Preventive Therapy Drug List (p. 17)

Generic medications — You pay 100%.

Preferred brand name medications — You pay 100%.

Non-preferred brand name medications — You pay 100%.

Generic medications — You pay 20%, plan pays 80%.

Preferred brand name medications — You pay 20%, plan pays 80%.

Non-preferred brand name medications — You pay 40%, plan pays 60%.

Any health savings account money you use to pay for prescription medicines counts toward your annual deductible.

Any health savings account money you use to pay for prescription medicines counts toward your annual out-of-pocket maximum.

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How Prescription Drug Coverage Works

HSA Preventive Therapy Drug List

If you’re an HSA or HSA Plus plan member, certain preventive generic medications on the HSA Preventive Therapy Drug List may be covered 100% without having to meet an annual deductible. That means certain generic prescriptions may be available to you at no cost. These preventive generic medications include those prescribed for you:

• In response to risk factors for a disease.*

• To prevent the recurrence of a disease from which you have recovered.

• As part of procedures providing preventive care services, such as smoking-cessation and weight-loss programs.

* In some cases, if risk factors are high enough, you may be given a preventive prescription although you haven’t been diagnosed with the disease or show symptoms of the disease.

Support for Chronic Conditions

If you or a family member enrolled in your medical plan take prescription medicines for asthma, diabetes, heart disease, high blood pressure or high cholesterol, you can work with a condition support manager. The support manager can help you understand your condition, answer questions and help you follow your doctor’s treatment.

Medical Plan Carrier

Condition Support Manager

Phone Number

AetnaAetna In

Touch Care877.286.3900

Anthem Condition Care 866.820.0763

CignaPersonal

Health Team800.244.6224

See If Your Prescription Medication Is on the List

The lists below show medicines you can get at a discount through the HSA and HSA Plus plans. Before enrolling, you can check if a medication prescribed for you (or a family member you expect to enroll) is available at a lower price.

HSA Preventive Therapy Drug ListThese are generic medicines available at no cost to you. See the list.

Performance Drug List These are preferred brand-name medicines available at half the normal coinsurance without having to meet your annual deductible. See the list.

Comprehensive Specialty Pharmacy Drug List These are specialty medicines (used for rare and expensive illnesses and treatments) available at discounted prices. See the list.

$0 1/2

Coi

nsu

ran

ce

Discount

If you're using a printed copy of this guide, you can find the drug lists on the Total Rewards Library at www.mckesson.com/totalrewardslibrary > Healthcare Benefits > Costs, Pharmacies and Medication Lists.

17

How Prescription Drug Coverage Works

Coverage with You in Mind Medicines that are effective and priced right? Yes, please! In the HSA and HSA Plus plans, your prescription drug coverage helps you get medicine through a process called step therapy. Step therapy requires you to use generic alternatives before brand names within the same class of drugs. You have coverage for more expensive prescription medicines, but only if your doctor and CVS Caremark agree that there’s a medical reason a lower-priced medicine isn’t effective for your condition. You and your doctor make the final decisions about which medications are right for you.

Following step therapy rules and the Center for Disease Control’s best practice guidelines for opioid care help ensure you get the most appropriate and cost-effective treatment.

How Step Therapy Works at the Pharmacy

If you submit a prescription to CVS Caremark’s mail order pharmacy that doesn’t meet step therapy requirements, the pharmacy won’t fill your prescription. You’ll be notified by mail.

If you’re required to try a preferred medication, you have the following options:

The pharmacist enters your prescription in the CVS Caremark computer system.

For certain conditions, step therapy requires you to try preferred prescription medications before other medicines to treat the same condition.

If your prescription doesn’t require you to try a preferred medication first, the pharmacist fills your prescription.

You or your pharmacist can call your doctor to:

Change your prescription to a medication preferred by step therapy.

Or

Ask your doctor to request a medical necessity exception from CVS Caremark. There may be a wait depending on how quickly CVS Caremark can determine whether to grant the exception.

If your prescription requires you to try a preferred medication first and your prescription is for another medication, you’re required to try the medication preferred by step therapy first.

Other medications may be considered second or third step medicines in the step therapy process. If your prescription is for a second or third step therapy medication and you haven’t used the first step therapy medication, you’re required to try the first step therapy (cost-effective) medication — see below.

If your exception isn’t approved by your doctor and CVS Caremark, you can pay the full price for your second or third choice medication.*

* If you purchase a brand name medicine that is part of the step therapy program and a first or second step therapy medication is available, you pay the full cost of that brand name medicine. The brand name medicine is covered only when your doctor and CVS Caremark agree that there’s a medical reason a lower-priced medicine isn’t appropriate for your condition. If you purchase a brand name medicine that isn’t part of the step therapy program and a generic equivalent is available, you pay the difference in cost between the generic and the brand name medicine. For example, if you choose to purchase a preferred brand name medicine that costs $65 and the generic medicine cost is $20, you pay $45 out of pocket before the plan coverage applies to the purchase. In this example, you would pay the $45 difference in price plus 20% coinsurance ($4) on the remaining $20 for a total out-of-pocket cost of $49. If you purchase a brand name medicine that isn’t part of step therapy and a generic equivalent is unavailable, coinsurance applies after meeting your annual deductible. For example, if you purchase a preferred brand name medicine that costs $65, you pay the full $65 cost for the medicine. Once you meet your annual deductible, you pay $13 in coinsurance (20%).

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Register on the CVS Caremark WebsiteGo to www.caremark.com > Register now to sign up and:

• Estimate prescription medication costs.

• Order a refill.

• Get details about the mail order and specialty pharmacies.

• Use the pharmacy locator to find in-network pharmacies near you.

Family members 19 years old or older enrolled in your plan can have their own secure accounts on the CVS Caremark website.

Download the CVS Caremark AppDownload it at www.caremark.com to access your prescription medication benefits on the go. The app is free, but standard mobile phone carrier and data usage charges apply.

Mail Order Program You can fill your prescriptions — up to a 90-day supply — at CVS Caremark’s mail order pharmacy or at any retail pharmacy in CVS Caremark’s network. Visit www.caremark.com to order your prescriptions online.

How Prescription Drug Coverage Works

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Flexible spending accounts (FSAs) let you use before-tax dollars to pay eligible expenses. You fund the account with paycheck deductions throughout the year. See which accounts are available to you and how you can use them in the chart below.

Healthcare FSAsDependent Care FSA

HSA-compatible healthcare FSA Standard healthcare FSA

Eligible expenses

Dental and vision, including deductible and coinsurance amounts

Medical, prescription medication, dental and vision, including deductible and

coinsurance amountsChild care and elder care

Available to • HSA plan members

• HSA Plus plan members

• Kaiser Plus plan members

• All benefit eligible employees in Hawaii

• All benefit eligible employees who waive medical coverage

All benefit eligible employees

Annual contribution amounts

$100 - $2,650 $100 - $2,650 $100 - $5,000

Your money is available to use

When your coverage starts When your coverage startsAs your account is funded with the deductions from

your paycheck

Why choose this account

• You want to use before-tax dollars to pay for eligible dental and vision expenses right away. You can use your annual contribution when your coverage starts.

• You want to save the money in your health savings account.

• You want to lower your taxable income.

• You want to use before-tax dollars to pay for eligible medical, dental and vision expenses right away. You can use your annual contribution when your coverage starts.

• You live in Hawaii, or you waived medical coverage, and want to use before-tax dollars to save on out-of-pocket expenses.

• You want to lower your taxable income.

• You want to use before-tax dollars to pay for eligible child care and elder care expenses. You can use the money you contribute as you put it in.

• You want to lower your taxable income.

Unused 2019 FSA dollars don’t carry over to 2020. December 31, 2019 is the last day to spend your 2019 FSA dollars.

March 31, 2020 is the last day to submit 2019 FSA claims to WageWorks.

Flexible Spending Accounts

What's the difference between a healthcare FSA and a health savings account?

Healthcare FSA Health Savings Account

Account dollars carry over year to year

No Yes

Contribution limits

$2,650 per year

• $3,500 per year Employee Only coverage

• $7,000 per year Family coverage

AvailabilityIn full when

your coverage starts.As you and/or McKesson

make contributions

Investment Opportunities

No Yes

McKesson Contribution

NoYes with HSA Plus and

Kaiser Plus plans.

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DEC. 2019

31

MAR. 2020

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Flexible Spending Account Tips

Following the tips below can help you make the most of any flexible spending account:

• Carefully consider your healthcare and dependent care needs before entering an FSA contribution amount on UPoint.

• Pay eligible expenses using your WageWorks® Healthcare Card or the EZ Receipts® mobile app. You can also pay out of pocket and file a reimbursement claim on the WageWorks website.

• Find a list of eligible FSA expenses at Total Rewards Library > Flexible Spending Accounts.

You don't need to be enrolled in a McKesson medical plan to enroll in a standard healthcare FSA. Call the HR Support Center at 855.466.2547 and press 1 to see if you can enroll in an FSA.

If you enroll in a standard healthcare FSA for 2019, have a change in status mid-year and then enroll in a medical plan with a health savings account, your standard healthcare FSA automatically will be converted into an HSA-compatible healthcare FSA.

Enter Your Contribution AmountAfter you choose a medical plan or waive coverage on UPoint, you'll get a chance to enroll in any FSAs you're eligible for. Enter how much you want to contribute for the year and click Continue.

If you enroll in a plan with a health savings account for 2019, due to the tax advantages of a health savings account, you can’t contribute to a standard healthcare FSA. However, you’re eligible to contribute to an HSA-compatible healthcare FSA for dental and vision expenses.

As Seen on UPoint

What you see on UPoint when enrolling in an FSA.

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As Seen on UPoint

Space holder for UPoint screenshot

Keep your smile bright with one of the three Cigna Dental plans. The PPO plans let you visit any dentist you like, but you pay less if you use an in-network dentist. With the DHMO plan, you need to choose a dentist from the network. Find an in-network dentist near you at www.cigna4McKesson.com.

PPO PPO Plus DHMO

Out-of-network coverage Yes Yes No

In-network preventive care and dental cleanings

100% of eligible charges 100% of eligible charges 100% of eligible charges

Deductible $50 individual

$150 family

$50 individual

$150 familyNo deductible

Coinsurance/copay 80% or 50% coinsurance* after meeting deductible

90%, 60% or 50% coinsurance* after meeting deductible

Fixed copay**

Orthodontia coverage For children under age 19 For children under age 19 Adults and children

Calendar year benefit maximum

$1,500 per person $2,000 per person None

* To find out which coinsurance percentage applies to your dental services, see the summary plan description (SPD) at Total Rewards Library > Plan Documents > Dental SPD.

** See your fixed copay amount at UPoint > Health & Insurance > Coverage Details > Plan Information > Dental Plans > Dental HMO - Patient Charge Schedule.

Dental

Get Money BackYou can get reimbursed on out-of-pocket expenses for certain dental treatments if you have a qualified medical condition, such as diabetes or pregnancy. Family members covered by a Cigna Dental plan may be eligible as well. Learn more at Total Rewards Library > Healthcare Benefits > Dental Plans.

Here’s what shows up on UPoint when you choose a dental plan.

TIP Sometimes DHMO and PPO dentists are in the same network. Be sure to compare costs carefully to see which dental plan makes the most sense for you.

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As Seen on UPoint

Space holder for UPoint screenshot

Protect the health of your eyes with coverage from Vision Service Plan (VSP). You can choose from two VSP plans that offer 100% in-network coverage for routine eye exams and prescription glasses after a copay. Visit an in-network VSP doctor to get the best value. At non-VSP doctors, you pay in full up front and submit a claim to VSP for partial reimbursement later. Visit www.vsp.com or call 800.877.7195 to find a VSP provider near you.

Vision Options (in-network only)*

VSP VSP Plus

Plan pays

Eye exam • 100% after $15 copay

• Once every calendar year

• 100% after $10 copay

• Once every calendar year

Prescription glasses 100% up to plan allowance after $25 copay for lenses and/or frame

100% up to plan allowance after $10 copay for lenses and/or frame

Frame • Up to $130 allowance

• Once every other calendar year

• Up to $210 allowance

• Once every calendar year

Lenses (includes single vision, bifocal, trifocal and lenticular lenses)**

• Once every calendar year

• Standard progressive lenses covered in full

• Other lens enhancements available at a discount

• Once every calendar year

• Standard progressive lenses covered in full

• Premium and custom progressive lenses covered after $40 copay

• Other lens enhancements available at a discount

Elective contact lenses (instead of prescription glasses)

• Up to $150 allowance

• Once every calendar year

• Up to $200 allowance

• Once every calendar year

** These coverages are also available for out-of-network provider services. However, dollar maximums apply to exams, lenses, frames and contact lenses as shown in the Vision SPD. Find the Vision SPD on the Total Rewards Library at Total Rewards Library > Plan Documents.

** The plan doesn’t cover the costs of other lens options such as anti-reflective coating, color coating, mirror coating, scratch coating, blended lenses, cosmetic lenses, laminated lenses, oversize lenses, polycarbonate lenses (except for children), photochromic lenses, tinted lenses (except Pink #1 and Pink #2), and ultraviolet protected lenses. For more information, see the Vision SPD at the Total Rewards Library — Total Rewards Library > Plan Documents.

Vision

Save up to 60% on Hearing AidsAs a VSP member, you and your family can get up to 60% off digital hearing aids, plus 48 free batteries per device. Learn more at Total Rewards Library > Healthcare Benefits > Vision Plans and Hearing Discount.

Here’s what shows up on UPoint when you choose a vision plan.

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Supplemental Protection You Can BuyYou can add to your McKesson-paid life and disability coverage by buying:

• Supplemental life and AD&D insurance — $10,000 to $1.5 million (or eight times your pay, whichever is less).

• Spouse/domestic partner life and AD&D insurance — $20,000 to $400,000.

• Child life and AD&D insurance — $5,000 to $25,000 per child (in $5,000 increments).

You may be asked for Evidence of Insurability (EOI).

If you need to provide EOI after enrolling, you’ll see a “Submitted Successfully - Required Follow-Ups” page and get a confirmation number. Watch a short video at lifebenefits.com/videos/term to learn more about life insurance.

Automatic ProtectionYou automatically have McKesson-paid:

• Basic life coverage — $50,000

• Accidental death and dismemberment (AD&D) coverage — $50,000

Life and Accidental Death & Dismemberment

Get Legal, Financial and Travel SupportYou automatically have access to Securian Lifestyle Benefits. Use this resource to find a lawyer, help you create a will and get assistance when traveling more than 100 miles from home. Learn more at Total Rewards Library > Additional Benefits > Securian Lifestyle Benefits.

TIP Enter your beneficiaries on UPoint. When enrolling your spouse/domestic partner in insurance, you’re automatically the primary beneficiary.

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You and McKesson Share the Cost of LTD For example, if you earn $50,000 a year, you pay $3.99 per month for LTD coverage and receive $2,500 per month in LTD benefits if you become disabled.

You automatically have McKesson-paid short term disability (STD) coverage. The benefit amount is equal to a percentage of your earnings before your disability, minus earnings from other income. You can receive STD benefits for up to 25 weeks of your disability. McKesson pays for this coverage as part of your Total Rewards.

If you want additional protection beyond STD, you can enroll in optional long term disability (LTD) coverage. LTD coverage protects your income if you’re out of work for more than 180 days due to a disability. LTD generally provides 60% of your covered earnings (up to a maximum monthly benefit of $25,000), minus earnings from other income until you're no longer disabled or turn 65, whichever is sooner.

Long Term Disability

During the first 12 months of LTD coverage, you won’t be paid LTD benefits for a disability that results from a pre-existing condition.

70% McKesson pays

30% You pay

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The Yes/No AnswerIf you enroll your spouse/domestic partner in McKesson medical coverage on UPoint, you’re asked if they're eligible for medical coverage through their employer.

If your answer is Yes, you pay a $100 monthly surcharge* on your McKesson medical premiums. The $100 surcharge is split over your pay periods each month.

If your answer is No, you don’t pay the $100 monthly surcharge.

Consider encouraging your spouse/domestic partner to enroll in medical coverage through their employer to avoid the surcharge. If you both work at McKesson, answer No to waive the surcharge.

* The surcharge for an employed spouse is taken before taxes. The surcharge for an employed domestic partner is taken after taxes.

Be sure to log on to UPoint and select Yes or No in the Employed Spouse/Domestic Partner Surcharge field.

Enrolling Your Spouse/Domestic Partner

As Seen on UPoint

Let us know within 31 days if your spouse/domestic partner loses or gets medical coverage through his or her employer and we’ll add the surcharge to your paycheck or take it off. Simply call the HR Support Center at 855.GO.MCKHR (855.466.2547) and press 1, or go to UPoint > Life Changes.

Here’s what shows up on UPoint in the Employed Spouse/Domestic Partner Surcharge field.

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Tools of the Trade

Use these tools to compare your options and choose the right benefits for you.

UPoint

Log on to UPoint, the enrollment website, at digital.alight.com/mckesson and use the enrollment tools below.

Health Plan Comparison Charts Compare plans side by side including deductibles, coinsurance and out-of-pocket maximums.

Medical Expense Estimator Estimate how much common healthcare services cost under different medical plans.

Summaries of Benefits and Coverage See quick summary of what each medical plan covers.

Total Rewards Library

Go to the Total Rewards Library at www.mckesson.com/totalrewardslibrary and click the New Hire tab for documents to help you get started. The library is available 24/7 from any device with internet access.

McKNet

Log on to McKNet, the McKesson intranet, at https://m.mckesson.com to stay up to date on McKesson news.

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What to Expect When Enrolling Your Dependents

As a McKesson new hire, you’re required to provide dependent verification documents for each dependent you enroll in a McKesson benefit plan (medical, dental and vision). If your dependent’s eligibility isn’t confirmed, he/she loses coverage under all plans he/she is enrolled in.

In the coming weeks, you should get a notice from the Dependent Verification Center in the mail. The notice will let you know which documents to submit to confirm dependent eligibility. Here are some steps you can take to make your verification process easier.

2. Gather your documents. Take time to find your documents now to avoid delays later — some state and local public records offices can take weeks to issue documents.

Here are some documents you can begin looking for:

• Documents proving joint ownership — mortgage statements, credit card statements, bank statements, property tax statements and current, non-expired residential leasing agreements listing both parties’ names as co-owners. The joint ownership may be established before the current year. However, the statement provided must be issued within the last six months or still be current, if it’s a residential lease.

• Proof of marriage — the documents need to be a government-issued marriage license or marriage certificate with the date of your marriage. Church-issued certificates are not acceptable.

• Birth certificates listing parent names — birth certificates must be government-issued and list parent names. Short form government-issued birth certificates without parent names are not acceptable. Use the long form with the parent names (the same used for a passport).

3. Look for your notice in the mail. Once received, follow these steps when submitting your documents:

• Send copies only. Keep your original documents.

• Black out Social Security Numbers on the copies of the documents you submit.

• If a copy of your prior year’s federal tax return is needed, send only the first page of the IRS Form 1040, which shows your dependents. Black out any dollar amounts.

Questions?The Dependent Verification Center is available to help before and after you receive your notice.800.725.58109 a.m. - 5 p.m. Central time, M-F

1. Determine who is considered an eligible dependent.

Who is an eligible dependent?

• Legal spouse

• Common law spouse

• Domestic partner

• Children under age 26 (including your own children, step-children, domestic partner’s children, legally adopted children, legal wards and foster children)

• Unmarried children age 26 or older who are incapable of self-support because of a disabling sickness or injury that began before age 26.

• Other children related by blood or marriage (for whom you pay at least half of their support and reside with you)

• Children who become eligible for medical coverage under the terms of a Qualified Medical Child Support Order (QMCSO)

Who is not an eligible dependent?

• A former spouse

• Children age 26 and older (unless unmarried and incapable of self-support because of a disabling sickness or injury that began before age 26)

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Contact Information

Aetna http://aetnaresource.com/8778/mckesson 877.286.3900

Anthem http://enrollment.anthem.com/McKesson 866.820.0763

Cigna (medical and dental) www.cigna4McKesson.com 888.806.5042

Kaiser Permanentehttps://my.kp.org/mckessoncorp Available in California, Colorado, Georgia, Hawaii, Mid-Atlantic, Oregon and Southwest Washington.

CVS Caremark www.caremark.com 800.378.0822

Vision Service Plan (VSP) www.vsp.com 800.877.7195 imember@vsp.com

Fidelity Investments For health savings accounts. www.netbenefits.com 800.544.3716 7:30 a.m. - 7 p.m. Central time, M-F

WageWorks For flexible spending accounts and commuter benefits. www.wageworks.com 877.924.3967

Resources for Living®www.resourcesforliving.com(username: mckesson, password: eap)888.425.6174The Employee Assistance Program (EAP) is available 24/7 for free, confidential support for everything from child care referrals to addiction counseling. No problem is too big or too small.

HMO Plans

HMSA HMO — HI www.hmsa.com 808.948.6372

Kaiser HMO — HI https://my.kp.org/mckessoncorp 808.432.5955 (Oahu) 800.966.5955 (neighbor islands)

Life and Disability

Securian Life Insurance For life and accidental death and dismemberment (Life and AD&D).866.293.6047

Matrix Absence ManagementFor short term disability.www.matrixabsence.com866.254.8706

CignaFor long term disability.https://www.cigna.com/customer-forms800.362.4462

Condition Support Managers

Aetna — Aetna In Touch Care 877.286.3900

Anthem — Condition Care 866.820.0763

Cigna — Personal Health Team 800.244.6224

Register on Your Carriers’ WebsitesRegister on your medical plan carrier's website and the CVS Caremark website to use online tools and learn how you can manage your medical and prescription medication budget more effectively.

Enter these plan names on your medical carrier’s website to check if a doctor is in-network:

Aetna Network: Aetna Choice POS II (Open Access)

Anthem Network: BlueCard PPO

Cigna Network: Open Access Plus with CareLink

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Notes

30

Notes

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Your Benefit Lifelines

UPointdigital.alight.com/mckesson Enroll in, review and manage your Total Rewards.

HR Support Center855.GO.MCKHR (855.466.2547) Press 1 for the McKesson Benefits Center for Health and Vitality questions. Benefit experts are available 7 a.m. - 6 p.m. Central time, M-F. Oprime 1 para asistencia en español a través del McKesson Benefits Center.

McKesson reserves the right to modify, terminate or amend benefit plans/provisions at its discretion at any time and for any reason. This document summarizes highlights of some of our benefit plans. This document also serves as a “summary of material modifications” to our benefit plans in accordance with the requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). Please keep this document with your copy of the Summary Plan Description.

Call the HR Support Center for:• Answers to general questions about your

coverage options

• Guidance about eligibility and enrollment

• A paper copy of this guide

Contact Advocacy ServicesAlight, our benefits administrator, offers help with your plan options, enrollment questions and finding in-network providers. Click the Advocacy Services tile on UPoint or call the HR Support Center at 855.GO.MCKHR (855.466.2547) and press 1 to get in touch with an Alight Health Pro™.

August 2019