How the National Agreement Supports KP 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 control 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 The 2012 National Agreement, which takes effect October 1, goes far beyond traditional issues of wages, benefits and working conditions. The agreement includes provisions that support KP’s five-part business strategy, as well as the unions’ strategy to support KP’s model of care and partnership. For example: Transforming Care Delivery: The agreement sets aggressive targets for UBT development and assessment. This will enable teams to lead change and improve performance in their respective areas of care delivery and support. Solving for Affordability: Several provisions address the rising costs of care and help keep KP affordable for our members. Growing Membership: Frontline teams will step up their work to grow KP members in their area, with a focus on member service and retention. Enabling Performance through People: Workforce training and development, joint plans for hard-to-fill positions, and competitive wages (including results- based performance incentives) support KP’s strategy to be the best place to get care and best place to work. Total Health: Incentives reward measurable improvements in the health status of the entire workforce, rather than rewarding or punishing individuals. Such provisions, reached through interest-based bargaining, differentiate Kaiser Permanente and provide unique tools for achieving our strategic goals. For more information, see www.lmpartnership.org/tools/2012-national-agreement-overview