2012 National AgreementAn Overview of Key Provisions

October 2012

“[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

Spirit of the National Agreement

How the Agreement Supports KP Strategy

Strategy 2012 National Agreement Summary Provisions

Transforming Care Delivery

• Continued support for UBT development and assessment — commitment for 85 percent of teams to achieve high performance by 2016

Solving for Affordability

• Formula to limit future liability for post-retiree health care costs

• Education on cost and appropriate use of employee health benefits

• Total Health education and incentives to enhance employee wellness and reduce costs of care

• UBTs increasingly taking on projects that remove costs from the system

Growing Membership

• Increased union collaboration in targeting and engaging key union-affiliated accounts

• Internal communication on employees’ role in enhancing member experience and retention

Enabling Performance though People

• Joint workforce planning and development strategies

• Implementation of hard-to-fill positions plan of 2011

• Funding for educational trusts and joint prioritization of training needs and criteria

• Across-the-board wage increases reflect the difference in performance between California regions and those outside of California (3 percent annually in CA; 2 percent annually in Regions Outside California)

Total Health

• Increase employee participation in Total Health efforts, with a commitment to attain industry-leading reductions in smoking rates, cholesterol and blood pressure levels, and BMI averages; increase understanding of how to reduce incidence and severity of chronic disease

For more information, see www.lmpartnership.org/tools/2012-national-agreement-overview

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

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

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:o California: $6 million in 2012; $4 million in 2013; $2 million in 2014

o National: $10 million in 2012; $11 million in 2013; $12 million in 2014

• Aggressive targets for growth of high-performing UBTs:

Year Levels 4 & 52012 40%2013 60%2014 75%2015 80%2016 85%

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

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 LMP organizing 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

Tracking and Monitoring NA Deliverables