October 2013

Dear IBM – Discovery Health member

DISCOVERY HEALTH MEDICAL SCHEME CHANGES FOR 2014

This letter provides you with details on various changes announced by Discovery Health for 2014. Discovery Health Medical Scheme will send you a brochure containing a detailed summary of the 2014 benefits and rate. This is your opportunity to change your plan option with effect from 1 January 2014. To make the right choice, you need to consider your healthcare needs and ensure you choose the right level of cover for 2014. You don’t have to make a change, but if you want to amend your current plan option, you need to submit your option change by logging onto www.afhealth.co.za\ibm, and selecting your change for 2014, before 29 November 2013. All 2014 Discovery Health information and a copy of the presentation can be found on the Intranet site on www.afhealth.co.za\ibm

CHANGING YOUR PLAN OPTION You have until 29 November 2013 to change your plan

OTHER CO-PAYMENTS AND LIMIT CHANGES Changes in co-payment amounts and limits

NEED ASSISTANCE? Who to call for information, advice and questions

DAY TO DAY BENEFITS Changes on the Insured Network Benefit and new preferred medicine list (acute medication)

CONTRIBUTION INCREASE Discovery Health announced a 8.9% average increase for 2014

KEYCARE BENEFIT CHANGES Changes to income bands and limits

HOSPITALISATION CHANGES Changes to networks and deductibles

VITALITY CHANGES Extended HealthyFood benefit, travel benefit and new hotel collection, Livewell and Smartphone and fitness devices

COMPASSIONATE CARE BENEFIT The Terminal care benefit amended and limits increased

GAP COVER Increase and benefit changes to AdmedAddPlus.

CHRONIC ILLNESS BENEFIT Formulary changes and new benefits

WINDOW PERIOD Employees who would like to join Discovery Health effective 1 January 2014, may do so, without any penalties

CHANGING YOUR PLAN OPTION

How much will your company pay towards your medical aid? Active Members Contributions are 100% member paid via the company payroll. When will member information sessions be held? Your Alexander Forbes Health consultant and a Discovery Health representative will provide training on the 2014 plan options. The dates and times of the member information sessions are included below:

Area Date Time of Presentations

Presenter One on One Member Consultations

Consultant assisting with One on Ones

Sandton 12 November 9am – 10am Rachel Janssens in the auditorium

10:30 – 16:00

Nkosinathi Siyoko from AF Health and Janandrin Moodley from Discovery Health

Sandton 12 November 1pm – 2pm

Sandton 13 November 11am – 12pm

Sandton 14 November No presentation

Cape Town 18 November 9am – 10am

Fauzia Mohidin – in the auditorium

10:30 – 16:00

Fauzia Mohidin from AF Health and Shereen Ashraff from Discovery Health from 10:30am

Cape Town 19 November

Durban 18 November 9am – 10am Ayanda Uche in Meeting Room 1

10:30 – 16:00 Ayanda Uche from AF Health and Louis Perumal from Discovery Health (Discovery assistance only on 18 November)

Durban 19 November

Port Elizabeth (Note: Cars to be parked outside the premises)

18 November 9am – 10am Noxolo Stemele

10:30 – 15:00 Noxolo Stemele

Should you wish to make an appointment to see a consultant after the presentation please book a time by

logging onto www.afhealth.co.za\ibm. Please remember to record the event in your calendar. How to change your plan

If you want to change your option for 2014, log onto www.afhealth.co.za\ibm and click on the option change icon. Once you have made a plan change, please ensure that you click on the confirm button to ensure the option change is recorded. If you do not make an option change prior to the deadline, you will remain on your current plan option until 2015.

ASSISTANCE WITH CHOOSING YOUR PLAN OPTION

Contact the Discovery Health Medical Scheme for general plan information by:

Browsing the Discovery Health website www.discovery.co.za; Browsing the AF Health / IBM intranet site www.afhealth.co.za\ibm; Making use of the national walk-in centres;

Discovery magazine (spring edition). Alexander Forbes Health consultants will be available to assist you to make the right plan option choice.

Health office Tel number Email address

Discovery Health 0860 100 694 healthinfo@discovery.co.za. Alexander Forbes - Sandton office 011 269 2690 hcclientservices@aforbes.co.za

Alexander Forbes - Stellenbosch office 021 809 3777 clientspecialist@aforbes.co.za

.

CONTRIBUTION INCREASE

The average contribution increase, effective 1 January 2014, of 8.9% reflects a view of the current industry scenario and the scheme’s sound operating position. The increase is applicable to all plan options. However as a result of the rounding of numbers a few variations do exist. Please refer to Annexure A for the 2014 contributions as well as the increased threshold levels on the Priority, Comprehensive and Executive Plans.

HOSPITALISATION CHANGES

Networks Refer to Annexure C for the list of hospitals applicable to the KeyCare series and Delta plan options. KeyCare Core and KeyCare Plus members must go to one of the listed KeyCare network hospitals for planned hospital admissions. If you do not use these hospitals for planned hospital admissions, you’ll need to pay the bill. The same hospital network list applies to KeyCare Access members in case of life threatening admissions and defined trauma events only. The KeyCare Access Hospital Network list applies to KeyCare Access members, but only for childbirth and care for newborns. Other approved hospital admissions for KeyCare Access members are covered in Discovery’s network of state facilities. The Delta Hospital Network applies to all Delta plans for planned admissions. The deductible is not applicable in case of life threatening admissions. Deductibles Priority plan members should note that the defined deductibles for in-hospital procedures will range from R2 150 to R10 500 in 2014. Please refer to Annexure B for more details. Delta plans members should note that the deductible has increased from R5 000 to R5 450, if you do not use the Delta Hospital Network for planned procedures. The 2014 deductibles for in-hospital or in day-clinic dentistry treatment are as follows:

Category of members In-hospital treatment Treatment in Day-clinic

Members younger than 13 years R1 550 R 750

Members older than 13 years R4 000 R2 600

COMPASSIONATE CARE BENEFIT

The Terminal Care Benefit will be renamed to the Compassionate Care Benefit. It provides access to extended home-based holistic care, including services such as pain relief, hydration, nursing and support care such as

hospice services. A benefit of R40 000 for each person in their lifetime will be applicable to all plan options, except for the KeyCare plans where a limit of R28 500 for each person in a lifetime will apply.

CHRONIC ILLNESS BENEFIT (CIB)

Discovery’s CIB medicine list and Chronic Drug Amounts (CDA) for 2014 have been reviewed based on annual pricing movements. From next year, members of the Delta plan options will have to use the scheme’s courier pharmacy (MedXpress) to obtain their chronic medication. If you don’t use MedXpress a 20% co-payment will apply.

Funding Ordered through MedXpress

Not ordered through MedXpress

On formulary Full Cover 20% co-payment + Any additional dispensing fees

Off formulary Co-payment above CDA 20% co-payment + Any additional dispensing fees + Co-payment above CDA

Above-mentioned changes will be implemented on 1 January 2014 for all new members and on 1 July 2014 for existing members. Managing diabetes digitally The iFORA Diamond Mini Telemetric Glucometer will be funded by the scheme from January 2014 via MedXpress or at Dischem pharmacies for all diabetic members registered on the Chronic Ilness Benefit (except KeyCare Plan members). This device captures blood glucose readings (replaces home diary), insulin medicine levels, and logs exercise and meals in real time. This data integrates seamlessly with HealthID and LivingVitality and can be accessed remotely by doctors. The iFora app can be downloaded free of charge for iOS and Android devices (in development for Blackberry devices). The offer is valid for one device per member for 2014.

OTHER CO-PAYMENTS AND LIMIT CHANGES

Co-payments and deductibles will increase in line with the overall increase (kindly refer to the Discovery Health brochure for various limits per plan)

The co-payment for MRI/CT scans will remain constant at R2 450 per scan, where applicable

Limits for surgical devices will increase by surgical inflation Limits for Oncology will remain constant:

Benefit option Oncology Limit

Executive and Comprehensive plans

R400 000 per member for approved cancer treatment in a 12-month cycle, a co-payment of 20% applies after the limit has been reached

Priority, Saver, Core plans R200 000 per member for approved cancer treatment in a 12-month cycle, a co-payment of 20% applies after the limit has been reached

KeyCare Cover according to the Prescribed Minimum Benefits and cancer specialists within Discovery’s network for KeyCare members

DAY TO DAY BENEFITS

Medical Savings Account (MSA), Insured Network Benefit (INB) and Above Threshold Benefit (ATB) Members registered on Core plans do not have access to day to day benefits. KeyCare Plus and KeyCare Access plan options, offer defined unlimited benefits through network providers. All other options provide day to

day cover through the Medical Savings Account, Insured Network Benefit and Above Threshold Benefit (where applicable). Medical Savings Account (MSA)

Day-to-day expenses are initially paid from the MSA

All unused funds are carried over to the following year

The funds in the MSA is available upfront to the member and dependants

The funds in the MSA will be prorated if the member joins mid year

The allocated amount will be based on the members’ plan and family size and the the percentage allocation is based on a stipulated percentage of the total contribution:

o Classic – 25% of contribution (except Classic Comprehensive Zero MSA, which has no MSA) o Essential – 15% of total contribution o Coastal – 25% of total contribution

Insured Network Benefit (INB)

Day-to-day expenses are paid from the INB once the annual MSA allocation has been depleted

The benefits can only be accessed through Discovery network providers

The 2014 INB will consists of: GP Consultations, Pathology (blood tests), Acute Medication and a new Maternity and External medical items benefit:

GP

Consultations Pathology Maternity Benefit Acute Medicine External Medical

items

Networks DH GP Network only

At Dischem, Clicks and MediRite pharmacies only

Gynaecologist and obstetrician within Discovery network of providers (All Classic and Premier Gynaecologists and Obstetricians)

At Dischem, Clicks and MediRite, MedXpress and a network of independent pharmacies

A network of independent providers

Description Consultations fees

Blood tests Antenatal consultations and 2D pregnancy scans; 2D scans will be covered in the INB if a member has already claimed for 2 scans while in their MSA

Preferentially priced, generic and brand medicines (Scheduled 3+); Acute medicine benefit has been re-designed to offer members preferential cover for medicines beyond a generic or brand innovator medicine status

A defined list of durable external medical items subject to external medical items sub-limit are included, for example

Mobility aids: wheelchairs and walkers

Breathing devices: CPAP machines, APAP machines, VPAP machines and portable oxygen concentrators

Insulin pumps

Consultations 2D pregnancy scans

Executive Unlimited Unlimited Unlimited 2 Unlimited Unlimited

Classic Comprehensive Unlimited

Classic Delta Comprehensive Unlimited

Classic Comprehensive Zero MSA

No Benefit No Benefit No Benefit No Benefit No Benefit No Benefit

Essential Comprehensive Unlimited Unlimited

Essential Delta Comprehensive

Classic Priority Unlimited Unlimited up to the ATB

2

Essential Priority No Benefit No Benefit No Benefit

Classic Saver Single: 3 Family:6

8 2 No Benefit

Classic Delta Saver

Essential Saver Single: 2 Family:4

No Benefit No Benefit

Essential Delta Saver

Coastal Saver Single: 3 Family:6

Above Threshold Benefit (ATB)

The Executive, Comprehensive and Priority plans include an ATB that provides further day to day cover once claims have accumulated up the to applicable annual threshold levels. The ATB is unlimited on the Executive and Comprehensive series whilst there is a limited ATB on the Priority plan. The Saver plans do not offer an ATB. Please refer to Annexure A for the applicable threshold levels. Preferred Medicine List for acute medication The 2013 medicine list has been amended to include both generic and non generic (brand items). The generic medicines which have been removed from the list (28 generic items) have a generic or brand equivalent on the new list, 22 brand names items have been added. Certain brand name items will be covered from 2014 such as:

Symbicord – no generic equivalent

Logynon – 35% more affordable than generic equivalent Discovery Health will pay up to 100% of the DHR for medicines included on their preferred medication list, from MSA. Those medicines not included on the preferred medication list, will be reimbursed at and accumulate at 75% of the Discovery Health rate.

2013 Day to Day 2014 Generic Medicine 100% accumulation Cover from INB and ATB Preferred Medicine list

Non-generic medicine 75% accumulation Cover from ATB only Medicine not on Preferred Medicine list

Discovery Health will pay and accumulate up to 90% of the DHR on the Executive Plan. Netcells Biosciences – Stem Cell Banking From 2014, all members will be entitled to an upfront discount of up to 25% on umbilical cord blood and tissue stem cell banking through Netcells Biosciences.

KEYCARE PLANS

KeyCare income bands have been increased by an average inflationary amount of 6.3%. Kindly refer to Annexure A for the new income bands;

The Specialist benefit amount will increase from R2 550 to R2 750 per person;

The Casualty benefit co-payment (facility fee) will increased from R205 to R225 per casualty visit;

The KeyCare plan option specific exclusions have been listed in Annexure B

VITALITY CHANGES

HealthyFood Benefit

In 2014 all Vitality members will have access to HealthyFood from Woolworths and Pick n Pay, irrespective of their plan choice

On activating the benefit Vitality members can get up to 10% cash back at Pick n Pay and Woolworths

Vitality members can get up to 15% cash back at Pick n Pay or Woolworths once they completed the online Vitality Health review to obtain their Vitality age

Vitality members can get up to 25% cash back at Pick n Pay or Woolworths once they completed the Vitality Health Check at a preferred provider

Members have to select a preferred partner, either Pick or Pay or Woolworths for the 25% cash back Members will also qualify for 10% when shopping at the other partner

DiscoveryCard holders (credit card) could qualify for up to 25% cash back at both partners

Members do not have to pay using their DiscoveryCard;

HealthyFood cash back also applies to Woolworths online purchases but not to Engen Woolworths store purchases

Identification mechanisms o Pick n Pay: HealthyFood card or your DiscoveryCard

o Woolworths: Woolworths Difference card or MySchool card (MySchool card members must first go to www.myschool.co.za and give permission to share their personal details)

Travel Benefit (Flights)

All international flights must be booked at least six weeks in advance and members may book a maximum of two international flights per person per year;

The following eight Quantas destinations have been added: Auckland, Perth, Sydney, Adelaide, Brisbane, Christchurch, Melbourne and Wellington;

101 additional new Emirates destinations have been added such as Athens, Milan, San Francisco, Rome, Toronto, Seattle and many more, whilst the Maldives and Phuket have been removed from the Emirates destinations for 2014

Maputo has been added by British Airways as a new destination

All flights go via Dubai when flying with Emirates, via Sydney or Perth with Quantas and via London with British Airways

All tickets must be booked through Kulula.com, through the kulula.com call centre or the Discovery member application

Booking fee of R29 per member per booking

Hotels

A new Vitality Hotel Collection (Tsogo Sun, Protea Hotels, Legacy Hotels, Thorny Bush Game Lodges and others), has been introduced which includes more than 500 top hotels, lodges, resorts and B&Bs

Discounts on Hotel Accommodation ranges from 15% to 35% and from 30% to 50% if booked using the DiscoveryCard

Accommodation must be booked through kulula.com

Booking no longer has to include a Saturday night

A booking fee of R25 for each room will apply to bookings made through Vitality;

Bookings must be for a minimum of two nights

Bookings must be made at least 21 days before the check-in date

Members can book for a maximum of 14 nights per year

Live Well Programme The Vitality Live Well programme runs in a 12 week cycle and will give members access to individually tailored advice, wellness specialists, support and tools.

Smartphone and Fitness Devices Fitness sessions can be logged on the Discovery App or a web-enabled device. Members will receive 50 bonus points for using one of the Fitness Devices.

COVER MEDICAL INURANCE

AdmedAdd+

Guardrisk Insurance Company will discontinue the AdmedGap product on 31 December 2013. On 1 July 2013, IBM elected to upgrade all Admed members to the AdmedAddPlus option at no additional cost to the members, so that members would have access to the stated benefit which would provide members with co-payment / deductible shortfall cover. Any members who elected to remain on the Admed option will be defaulted to the AdmedAdd+ product on 1 January 2014, unless the member opts for another product. Admed is a specially designed product which provides cover for the shortfall or gap, in the event of hospitalisation involving surgery or medical treatment and for certain procedures performed on an outpatient basis. The contribution for the mentioned policy arrangement will increase from R90 to R101 for active members and from R138 to R154 per family per month for the retirees with effect from 1 January 2014. The reason the increase is 12%, is due to the high claims ratio for both groups exceeding 100%.

The below table summarises the various products offered by Guardrisk. The changes from 2013 to 2014 have been highlighted.

Product Premium Description Additional Benefits

AdmedAdd +

Actives : R101

Retirees: R154

The shortfall, or gap, is defined as the amount by which the actual cost charged by the medical practitioner exceeds the medical scheme payment subject to a maximum limit of five times (2013: 4 times) the Admed tariff, less the medical scheme payment.

Personal Accident Cover, RoadCover A once off lump sum of R10 000 on diagnosis of Breast and Prostate cancer A stated benefit of R20 000 with no sub limits for co-payments and deductibles (in-hospital treatment)

The following changes will be implemented from January 2014:

The overall annual limit has been increased from R200 000 per beneficiary per annum (subject to an overall limit of R2 million per family per annum) to R250 00 per beneficiary per annum( subject to an overall limit of R2,5 million per family per annum)

The stated benefit has increased from R10,000 to R20,000

The once off lump sum benefit of R10 000 upon diagnosis of breast cancer has been extended to prostate cancer

The Personal Accident cover which was only available to the principal member has now been extended to all insured persons under Admed.

Shortfalls resulting from MRI/CT/PET Scans done on an outpatient basis will be covered from 2014. This amount will be covered by the stated benefit amount of R20 000

Oncology benefit – 20% co-payment that members are subjected to once they reach their oncology benefit limit, will be covered up to a max of the benefit limit of R250 000 per beneficiary per annum.

Details of the benefits, general exclusions and waiting periods (only applicable to new entrants of voluntary membership groups) can be obtained from Alexander Forbes Health or the Admed website on www.admed.co.za. Existing employees/medical scheme members who have not yet joined Admed may join on 1 January. An application form needs to be completed and can be obtained from www.admed.co.za. The proposed demarcation rulings are still pending and may have an impact on these policies once finalised.

WHY THE OPEN WINDOW PERIOD? IBM Employees not currently registered on Discovery Health Should you belong to a different medical schemeand want to join Discovery Health you could do so, however, based on your health and previous medical aid cover, the scheme would be allowed to imposed waiting periods, exclusions and late joiner penalties onto your membership. With the Open Window period, you may join the scheme free of underwriting which means no restrictions will be imposed on your membership, provided you join the scheme effective 1 January 2014. Please bear in mind that special adult dependants (i.e. parents and siblings) will be subject to the normal underwriting process based on previous credible medical scheme coverage and any current Late Joiner Penalties, applicable to special dependants, will transfer across to the new scheme. To find out more about the benefits of joining Discovery Health please attend one of the presentation sessions being held at IBM Offices nationally, Alternatively, you can make use of one of the following resources for more information:

Browsing the Discovery Health website www.discovery.co.za; Browsing the AF Health / IBM intranet site www.afhealth.co.za\ibm; Making use of the national walk-in centres;

Call The Alexander Forbes service unit on 011 269 2690 or email the service unit on hcclientservices@aforbes.co.za

If you take the decision to join Discovery Health, please complete an application form, which can be found by clicking on www.afhealth.co.za\ibm and selecting Scheme Information followed by Medical Scheme Forms.

Please remember if you require chronic medication, you will need to apply for this benefit. The chronic application form can be downloaded by clicking on www.afhealth.co.za\ibm and selecting Scheme Information followed by Medical Scheme Forms.

IBM Employees currently registered as dependants on Discovery Health If you would like to transfer to the IBM Group Payroll, all you need to do is complete a continuation form, which can be downloaded by clicking on www.afhealth.co.za\ibm and selecting Scheme Information followed by Medical Scheme Forms. All application forms must be submitted to the Alexander Forbes Service Team by email to hcclientservices@aforbes.co.za or by fax to (011) 263-2397. Chronic application forms can be submitted directly to Discovery by fax to (011) 539-7000 or by email CIB_APP_FORMS@discovery.co.za, once you have received your membership number as this needs to be included on the form. Alexander Forbes Health is available to help you to make the right choice. Yours in health Alexander Forbes Health

To keep your finger on the pulse of the Medical Scheme industry, follow us on Twitter on @AF_Health.

Discovery Health Alexander Forbes Health – Stellenbosch

Alexander Forbes Health – Sandton

Admed/ Guardrisk

Tel: 0860 100 694 Email healthinfo@discovery.co.za

Tel: 021 809 3777 Email: clientspecialist@aforbes.co.za

Tel: 011 269 2690 Email: hcclientservices@aforbes.co.za

Tel: 0860 102 936 Email: Admed@guardrisk.co.za Website: www.admed.co.za

Alexander Forbes Health will endeavour to keep you informed as further information becomes available or changes. This

document serves as a simple summary of Discovery Health changes for 2014 and is not a comprehensive description of all changes, nor is it intended as advice. Alexander Forbes Health (Pty) Ltd will not be held liable for any errors herein. E & OE

apply.

ANNEXURE A 2014 TOTAL MONTHLY CONTRIBUTIONS

Series Plan Principal

Member

Adult

Dependant*

Child

Dependant*

Executive Executive R4 100 R4 100 R778

Comprehensive Classic Comprehensive R3 362 R3 180 R670

Classic Delta Comprehensive R3 028 R2 864 R602

Classic Comprehensive Zero MSA R2 522 R2 385 R503

Essential Comprehensive R2 825 R2 670 R568

Essential Delta Comprehensive R2 544 R2 403 R509

Priority Classic Priority R2 254 R1 774 R902

Essential Priority R1 937 R1 522 R774

Saver Classic Saver R1 976 R1 556 R790

Classic Delta Saver R1 578 R1 244 R633

Essential Saver R1 570 R1 175 R628

Essential Delta Saver R1 254 R942 R502

Coastal Saver R1 556 R1 166 R625

Core Classic Core R1 471 R1 157 R587

Classic Delta Core R1 177 R925 R471

Essential Core R1 263 R947 R506

Essential Delta Core R1 010 R757 R405

Coastal Core R1 087 R815 R434

KeyCare KeyCare Plus (R8 801+) R1 448 R1 448 R388

KeyCare Plus (R6 651 to R8 800) R973 R973 R272

KeyCare Plus (R0 to R6 650) R695 R695 R251

KeyCare Access (R8 801+) R1 416 R1 416 R381

KeyCare Access (R6 651 to R8 800) R942 R942 R267

KeyCare Access (R4 151 to R6 650) R653 R653 R235

KeyCare Access (R0 to R4 150) R490 R490 R212

KeyCare Core (R8 801+) R1 070 R1 070 R241

KeyCare Core (R6 651 to R8 800) R693 R693 R171

KeyCare Core (R0 to R6 650) R556 R556 R143

*Contributions are charged up to a maximum of 3 children; Dependants 21 years + are considered adult dependants.

2014 Medical Savings Account (included in the above monthly contribution, where applicable)

Series Plan Principal Member Adult Dependant Child Dependant

Annual Monthly Annual Monthly Annual Monthly

Executive Executive R12 300 R1 025 R12 300 R1 025 R2 328 R194

Comprehensive

Classic R10 080 R840 R9 540 R795 R2 004 R167

Classic Delta R9 084 R757 R8 592 R716 R1 800 R150

Essential R5 076 R423 R4 800 R400 R1 020 R85

Essential Delta R4 572 R381 R4 320 R360 R912 R76

Priority Classic R6 756 R563 R5 316 R443 R2 700 R225

Essential R3 480 R290 R2 736 R228 R1 392 R116

Saver

Classic R5 928 R494 R4 668 R389 R2 364 R197

Classic Delta R4 728 R394 R3 732 R311 R1 896 R158

Essential R2 820 R235 R2 112 R176 R1 128 R94

Essential Delta R2 256 R188 R1 692 R141 R900 R75

Coastal R4 668 R389 R3 492 R291 R1 872 R156

ANNEXURE A 2014 ANNUAL THRESHOLD LEVELS Executive and Comprehensive plans

Executive Plan Comprehensive Plans

Principal member R12 300 R11 350

Per adult R12 300 R11 350

Per child* R2 300 R2 150

* A maximum of three children are counted when calculating the Annual Threshold

Priority plans

Annual Threshold Above Threshold Limit

Principal member R9 990 R8 500

Per adult R7 510 R6 050

Per child* R3 270 R2 920

* A maximum of three children are counted when calculating the Annual Threshold and Above Threshold Limit

2014 VITALITY & KEYFIT CONTRIBUTIONS

Single Member Member with one

dependant

Member with two or

more dependants

Vitality R169 R199 R225

KeyFIT R36 R44 R55

Vitality & KeyFIT R179 R215 R249

LATE JOINER PENALTIES Please note these rates are the standard Discovery Health rates and do not take into account any late joiner penalties (LJP) that may be applied to an applicant or to the adult dependant of an applicant older than age 35. Depending on the number of years they have not belonged to a registered South African medical scheme, an additional penalty (a percentage of the contribution) may be added to the member's monthly contribution, as shown in the table below:

Penalty bands Maximum penalty

1 – 4 years 0,05 X contributions

5 – 14 years 0,25 X contributions

15 – 24 years 0,5 X contributions

25+ years 0,75 X contributions

The LJP is calculated as follows: A = B minus (35 + C) Where: A = the number of years in the first column B = the age of the applicant at the time of application C = the number of years of creditable cover

ANNEXURE B PRIORITY SERIES (DEDUCTIBLES) AND KEYCARE PLAN OPTION EXCLUSIONS Priority series deductibles

Members need to pay an amount upfront to the hospital when the member is admitted for one of the

following procedures:

DEDUCTIBLE AMOUNT PROCEDURE

R 2 150

Conservative back and neck treatment Myringotomy (grommets) Tonsillectomy Adenoidectomy

R 2 850

Colonoscopy Sigmoidoscopy Proctoscopy Gastroscopy Cystoscopy

R 5 150

Arthroscopy Functional Nasal Procedures Hysterectomy (except for pre-operatively diagnosed cancer) Laparoscopy Hysteroscopy Endometrial ablation

R10 500 Nissan fundoplication (reflux surgery) Spinal surgery (back and neck) Joint replacements

If the procedure can be done out of hospital, for example in the doctor’s rooms, and the member doesn’t go to hospital, the member won’t have to pay a deductible. It is recommended that members contact Discovery Health directly on 0860 100 694 prior to the procedure to confirm their benefits KeyCare Series exclusions In addition to the general exclusions that apply to all plan options, the KeyCare Series does not cover the following, unless it is a Prescribed Minimum Benefits: 1. Hospital admissions related to:

• Dentistry • Nail disorders • Skin disorders • Investigations and diagnostic work-up • Functional nasal surgery • Elective caesarean section, except if medically necessary • Surgery for oesophageal reflux and hiatus hernia • Back and neck treatment or surgery • Joint replacements, including but not limited to hips, knees, shoulders and elbows • Cochlear implants, auditory brain implants and internal nerve stimulators – this • includes procedures, devices and processors • Healthcare services that should be done out of hospital and for which an admission to

hospital is not necessary 2. Correction of Hallux Valgus/Bunion and Tailor’s Bunion/Bunionette 3. Arthroscopy 4. Removal of varicose veins 5. Refractive eye surgery 6. Non-cancerous breast conditions 7. Healthcare services outside South Africa Discovery Health does not cover the cost of treatment for any complications or the direct or indirect expenses related to any of these excluded conditions and treatments.

ANNEXURE C DISCOVERY HEALTH HOSPITAL NETWORKS AREA HOSPITALS DELTA KEYCARE

Core / Plus* Access**

EASTERN CAPE

East London Life Beacon Bay Hospital

East London Life St James Operating theatres

East London Life East London Private Hospital

East London Life St Dominic’s Private Hospital

Humansdorp Life Isivivana Private Hospital

Kokstad NetCare Kokstad Hospital

Port Elizabeth Life New Mercantile Hospital

Queenstown Life Queenstown Private

Uitenhage Netcare Cuyler clinic

Uitenhage Netcare Uitenhage Hospital

Umtata Life St Mary's Private Hospital

FREE STATE

Bethlehem Hoogland MediClinic

Bloemfontein Bloemfontein Eye Centre

Bloemfontein Netcare Pelonomi Private Hospital

Bloemfontein Life Rosepark Hospital

Bloemfontein Life Pasteur Hospital

Bloemfontein Netcare Universitas Private Hospital

Welkom Ernest Oppenheimer Hospital

Welkom Welkom Mediclinic

Welkom St Helena Hospital

GAUTENG

Alberton Clinton Hospital

Bedfordview Life Bedford Gardens Hospital

Benoni Life The Glynwood Hospital

Boksburg Botshelong Empilweni-clinic (Clinix Vosloorus)

Boksburg Sunshine Centre

Brakpan Life Dalview Clinic

Fourways Life Fourways Hospital

Germiston Life Roseacres Clinic

Heidelberg Life Suikerbosrand Clinic

Johannesburg Netcare Rand Clinic

Johannesburg Morningside Mediclinic

Johannesburg Johannesburg Eye Clinic

Johannesburg The Donald Gordon Medical Centre

Johannesburg Netcare Garden City Clinic

Johannesburg Life Brenthurst Clinic

Kempton park Arwyp Medical Centre

Krugersdorp Netcare Krugersdorp Hospital

Lakefield Netcare Optiklin Eye Hospital

Lenasia Lenmed Clinic

Midrand Life Carstenhof Clinic

Pretoria Netcare Bougainville Private Hospital

Pretoria Centurion Eye Hospital

Pretoria Netcare Femina Hospital

Pretoria Life Little Company of Mary

Pretoria Life Eugene Marais Hospital

Pretoria Netcare Jacaranda Hospital

Pretoria Legae MediClinic

Pretoria Louis Pasteur Hospital

Pretoria Medforum MediClinic

AREA HOSPITALS DELTA KEYCARE

Core / Plus Access

GAUTENG CONT.

Pretoria Muelmed Hospital

Pretoria Pretoria-Eye Institute

Pretoria Zuid-Afrikaans Hospital

Randfontein Life Robinson Private Hospital

Randfontein Sir Albert Medical Centre

Roodepoort Life Wilgeheuwel Hospital

Sasolburg Netcare Vaalpark Hospital

Soweto Clinix Private Hospital - Tshepo Themba

Soweto Clinix Private Hospital - Lesedi

Springs Life Springs Parkland Clinic

Springs Life St Mary’s Women’s Clinic

Springs Netcare N17 Hospital

Thembisa Zamokuhle Private Hospital

Vanderbijlpark Emfuleni MediClinic

Vanderbijlpark Ocumed

Vereeniging Clinix Private Hospital - Sebokeng

Vereeniging Midvaal Private Hospital

Westgate Medgate Day Clinic

KWAZULU-NATAL

Amanzimtoti Netcare Kingsway Hospital

Chatsworth Life Chatsmed Garden Hospital

Durban Life City Hospital

Durban Life Entabeni Hospital

Durban Ethekwini Hospital

Durban McCord Hospital

Empangeni Life Empangeni Garden Clinic

Isipingo Life Isipingo Clinic

Kokstad Kokstad Private Hospital

Ladysmith La Verna Hospital

Newcastle Newcastle Private Hospital

Phoenix Life Mount Edgecombe Hospital

Pietermaritzburg Midlands Medical Centre

Pietermaritzburg Netcare St Anne’s

Pinetown Life Crompton Hospital

Port Shepstone Hibiscus Hospital

Richards Bay Netcare The Bay Hospital

Sydenham Nu Shifa Hospital

Tongaat Victoria Private Hospital

Westville Life Westville Hospital

LESOTHO

Lesotho Willie’s Hospital

LIMPOPO

Bela Bela St Vincent's Hospital

Phalaborwa Clinix Phalaborwa Private Hospital

Polokwane Limpopo MediClinic

Thabazimbi Thabazimbi MediClinic

Tzaneen Tzaneen MediClinic

MPUMALANGA

Barberton Barberton MediClinic

Emalahleni/Witbank Life Cosmos Hospital

Emalahleni/Witbank Emalahleni Day Hospital

Ermelo Ermelo Private Hospital

Middelburg Life Middelburg Private Hospital

Nelspruit Nelspruit MediClinic

Trichardt Highveld MediClinic

AREA HOSPITALS DELTA KEYCARE

Core / Plus Access

NORTH WEST

Carletonville Leslie Williams Private Hospital

Carletonville Western Deep Clinic

Klerksdorp Life Anncron Clinic

Mafikeng Victoria Private Hospital

Orkney West Vaal Clinic

Potchefstroom Potchefstroom MediClinic

Rustenburg Life Peglerae Hospital

Rustenburg Netcare Ferncrest

NORTHERN CAPE

Kathu Kathu MediClinic

Kimberley Kimberley MediClinic

Upington Upington Private Hospital

Vryburg Vryburg Private Hospital

WESTERN CAPE

Bellville Bellville Medical Centre

Bellville Louis Leipoldt MediClinic

Cape Town Netcare Christiaan Barnard Memorial

Cape Town Netcare UCT Medical Centre

Cape Town Cape Town Mediclinic

Claremont Life Claremont Hospital

Claremont Life Kingsbury Hospital

Ceres Ceres Private Hospital

Gatesville Gatesville Medical Centre

George Geneva Clinic

George George MediClinic

Hermanus Hermanus MediClinic

Kuilsriver Netcare Kuilsriver Private Hospital

Milnerton Milnerton MediClinic

Mitchells Plain Mitchells Plain Medical Centre

Mossel Bay Bayview Hospital

Oudtshoorn Cango Day Clinic

Oudtshoorn Klein Karoo MediClinic

Paarl Paarl MediClinic

Parow Panorama Mediclinic

Somerset West Vergelegen Mediclinic

West Coast Life West Coast Private Hospital

Worcester Worcester MediClinic

* This list applies to the KeyCare Core and Plus plans; The list also applies to KeyCare Access but

only for life threatening emergencies and defined trauma event

** This list applies to the KeyCare Access, only for childbirth and care for the newborn

Please note that the list of hospitals is subject to change. You can go to www.discovery.co.za for the

latest list of hospitals. The list does not include the day clinics where members can get treatment without

paying an amount upfront.