Employee Webcast

2015 Open Enrollment Highlights You play an important role in helping Kindred deliver quality care every day in communities across the country Our goal is to provide a benefits plan that helps you manage your total health, take responsibility for yourself and your family and save money and thrive in the future As in 2013 and 2014, we will continue to offer Consumer Directed Healthcare Plans, Health Savings Accounts and a Wellness Program 2

2015 Open Enrollment Highlights We have made some changes to the plans to meet the requirements of the Affordable Care Act (ACA) and to provide greater cost transparency We are introducing a new option, the Value Plan We modified the Flexible Choice and Consumer Choice options and adjusted employee contributions - the company subsidy is now exactly the same for all plans HSA funding strategy has been modified Wellness program requirements have been increased 3

2015 Open Enrollment Highlights Addition of a new medical plan in 2015 – Value Plan Provides the lowest employee contributions in exchange for the highest deductibles All prescriptions are subject to the deductible, except as required by the Affordable Care Act (ACA) You may contribute to the HSA, but there is no company contribution or match Consumer Choice deductible increase $2,200 for single coverage $4,400 for dependent coverage Networks changes in limited areas Your eligibility forms and enrollment guides will specify applicable networks

2015 Open Enrollment Highlights Health Savings Account Kindred’s contribution to the HSA will be made each pay period rather than as a lump sum at the beginning of the year Kindred’s contributions and match to the HSA will vary depending on which health plan you choose Flexible Choice If you choose the most comprehensive plan, Kindred will, over the course of the year, contribute up to $300 to your HSA if you cover only yourself or $600 if you cover dependents You can also contribute additional money each pay period, and Kindred will match up to $300 per year at a rate of up to $25 per month Consumer Choice With this plan, Kindred will, over the course of the year, contribute up to $375 to your HSA if you cover only yourself or up to $750 if you cover dependents There is no company match Value Plan Allows you to contribute to an HSA, but there is no company contribution or match

2015 Plan Summary Flexible Choice Consumer Choice Value Plan   Flexible Choice Consumer Choice Value Plan KND HSA Funds (single / family) Up to $300 / $600 annually Match up to $300/year Up to $375 / $750 annually No Match $0 company funding In-Network Out-of-Network Deductible (single / family) $1,500 / $3,000 $4,000 / $8,000 $2,200 / $4,400 $2,800 / $5,600 $5,000 / $10,000 Out-of-Pocket (single / family) $4,500 / $9,000 $12,000 / $24,000 $6,000 / $12,000 Hospital 20% after deductible 40% after deductible 30% after deductible 50% after deductible Office Visits Preventive: Covered at 100% Adult preventive: Not covered Child preventive: Other: 20% after deductible 40% co-ins, after deductible Other: 40% after deductible Other: 30% after deductible 50% co-ins, after deductible Other: 50% after deductible Pharmacy Preventive: select preventive generics free, otherwise coinsurance but no deductible Non-preventive: subject to overall medical deductible and then coinsurance All drugs subject to deductible Preventive: 20% coinsurance Non-preventive: Retail: Generic 20%; Brand 30%; Non-preferred Brand 50% Mail: Generic 20%; Brand 30%; Non-preferred Brand 50% Retail: Generic 20%; Brand 30%; Non-preferred Brand 50% Mail: Generic 20%; Brand 30%; Non-preferred Brand 50%

2015 Open Enrollment Highlights Wellness and the Healthy Rewards Rate Kindred is about health – it’s who we are We are committed to providing rewards for employees who demonstrate and pursue healthy behaviors, so take the steps to earn the Healthy Rewards rate You can save up to an additional $900 per year if you cover only yourself or yourself and your children, and $1,800 per year if you cover your spouse/domestic partner We continue to partner with Limeade to help you lead a healthy lifestyle, achieve your health goals and have fun at the same time Limeade will provide tools, resources and support in your endeavors to lose weight, reduce stress, live healthier and stop smoking 7

HealthyStepsWellness.com 8

2015 Healthcare Benefits Overview Other Program Changes Long-Term Disability (LTD) LTD benefit duration will be based on years of employment Dependent Life Insurance Spouse benefit increased to $10,000 Child benefit (age 6 months – 23) increased to $5,000 PIB PIB will no longer be offered

Key Dates to Remember October 15 Online Well-being Assessments will be available at www.healthystepswellnes.com. Must be completed by December 15 to qualify for the Healthy Rewards rate in 2015. Late October/Early November Employee meetings. November 4 – November 21 RehabCare, Support Center and Kindred at Home Employees access information at www.healthystepsbenefits.com . Employees must call the Kindred Enrollment Call Center to make 2015 elections or changes. November 6 – December 1 Hospital Division, NCD Employees must call the Kindred Enrollment Call Center to make 2015 elections or changes. December 12 Deadline for submitting dependent documentation. Deadline to complete Well-Being Assessment at www.healthystepswellnes.com. January 1, 2015 New benefit elections take effect. January 1 – January 31, 2015 Biometric screenings. 10

Healthcare Reform Information Helpful Tools for Open Enrollment Communication Text Messages Kindred App ACA Website Text healthysteps to 30364 Free App available in the Apple App Store, Google Play and Amazon Healthcare Reform Information http://acaanswers.hcrmadesimple.com 11 11

Steps for Open Enrollment First... Then... Finally... Read through the enrollment guide carefully to decide what works best for you/your family. Learn what’s available to you for 2015 and what has changed from last year. Call the Enrollment Call Center during your designated times to confirm your choices and enroll in an HSA if you choose one of the healthcare plans. If you enrolled in a healthcare plan, take advantage of the new opportunities to learn more about your health by completing your Well-Being Assessment by December 15, 2014. 12

Q & A 13

Thank You! 14