U.S. Benefits Update 2011 Annual Enrollment Nov. 1 – 19, 2010

2 AGENDA U.S. Medical – Goals and Results  Consumer-Driven Health Care (HDHP) – Putting you more in control Helping You Control Your Costs – HDHP with HSA, and New Tools on Your Life Choices (YBR) 2011 Benefit Changes Controlling Costs and Improving Health  Health Risk Assessment and Biometrics  Dependent Eligibility Verification

3 U.S. Medical – Goals and Results U.S. Benefits Results and Goals Claims have been significantly higher than premiums Deliver effective medical benefits and protect employees from catastrophic financial loss Goal of greater than 50% enrollment in HDHP Consumer-Driven Health Care (HDHP) Allows participants to use a tax advantaged Health Savings Account (HSA) Gives participants an incentive to learn about the costs and quality of care before spending Studies show HDHP participants are:  Twice as likely as those in other medical options to learn about costs  Three times as likely to choose a less expensive treatment option  Chronic patients were 20% more likely to follow treatment

4 ConocoPhillips Movement to the HDHP In the last three years: Participant costs reduced by $20 million Company costs reduced by $25 million Total savings of $45 million!

5 Phase One: Preventive Care Network Preventive Medical Care is covered at 100% Certain Preventive Prescription Drugs are covered at 100% up to $1,500/person/yr. If you meet the $1,500 limit, then you pay 20% until you reach the out- of-pocket maximum. These amounts do not apply to your deductible (deductible waived). HDHP: When you pay…and when you don’t ( Network Benefits) Phase Three: Meet your out-of-pocket maximum You pay 20% of the negotiated / discounted costs for covered network care and prescription drugs until you reach the out-of-pocket max. Annual Out-of-Pocket Max.: (amount includes deductible): $4,000 - “You only” $8,000 - other coverage levels Phase Four: The HDHP handles the rest The plan pays 100% of covered medical services and prescription drug costs for the remainder of the calendar year Phase Two: Meet your deductible You pay 100% of negotiated / discounted, covered medical & prescription drug costs, until you meet your deductible All covered medical & prescription drug costs are applied to your deductible Annual Deductible: $1,200 - “You only” $2,400 - other coverage levels

6 Eligibility Enrolled in HDHP Employees must be enrolled in the HDHP with HSA Cannot be covered by any other medical option that is not a HDHP  Medicare  Indian/Veterans coverage  Spouse’s HMO/PPO  Spouse’s general FSA How the HSA Works Funding You & ConocoPhillips ConocoPhillips is contributing $500 “You only” or $750 “other coverage levels” You can contribute before- tax funds to your HSA through payroll deduction Total 2011 contribution (yours & ConocoPhillips ) can’t exceed the IRS maximum of $3,050 / $6,150 Over 55 – You can contribute an additional $1,000 Tax advantages “Triple crown” federal tax savings Tax deductible contributions Tax-free earnings (current interest rate.40%) Tax-free withdrawals when used for qualified medical expenses Using the funds It’s your money Pay for eligible health care expenses directly from the account Unused amounts roll over from year to year ― there’s no “use it or lose it” rule and no maximum account balance The money is yours ―  You own the “bank” account  You can take it with you when you leave or retire, unlike an FSA  Investment options when your balance reaches $2,000 Why is the HDHP offered without HSA?

7 New YBR Tools Still considering the switch to the HDHP with HSA? Check out the new estimating and comparison tools on YBR.

8 Medical Option Highlights (Network) HDHPPPOEPOTraditional 2011 Increase 0%17%15%30% Monthly Costs Annualized Individual/Family $0 - $0$1,152-$3,240$1,380-$3,852$1,812 - $5,064 HSA Company Contribution $500 / $750$0 Deductible Individual/Family $1,200 (you only) $2,400 (you + more) (includes all medical and prescription drug costs) $500 (indiv.) $1,500(fam.) $500 (individual)* $1,500 (family)* $900 (indiv.) $2,700(fam.) Out-of-pocket Maximum (includes deductible) Individual/Family $4,000 (you only) $8,000 (you + more) 100% coverage thereafter (includes all medical and prescription drug costs) $3,000 (indiv.) $6,000 (fam.) 100% coverage thereafter No limit on out-of- pocket expenses – which means your costs continue without ever hitting a maximum limit $3,000 (indiv.) $6,000 (fam.) 100% coverage thereafter *Items new for 2011

9 Medical Options Highlights (Network) continued … HDHPPPOEPOTraditional Network Networks are the same.Must use an Aetna Select Network provider or no benefits will be paid No network. You can choose any doctor or facility Preventive Medical Care No deductible. Network services covered at 100% (annual wellness exam, mammogram, colonoscopy, etc.) No deductible. Services covered at 100%.* Physician Visits (non- preventive) 20% after deductible $25 copay (PCP); $50 copay* (specialist) $25 copay (PCP); $50 copay* (specialist) 20% after deductible Outpatient Surgery 20% after deductible $400 copay after deductible* 20% after deductible Inpatient Hospitalization 20% after deductible$400 per day up to a $2,000 per admit maximum after deductible* 20% after deductible Emergency Room 20% after deductible$150 copay after deductible* 20% after deductible *Items new for 2011

10 Other 2011 Benefit Changes (Medical) Medical Changes Dependent Requirements Restrictions on over age 19 dependents (tax dependents or students) Children can be covered up to age 26 Penalty for not wearing a seatbelt or helmet in a motor vehicle accident No PenaltyOut-of-pocket maximums double for participants in the PPO, HDHP & Traditional medical options. Inpatient hospitalization per admission copay doubles for the EPO medical option. New Health Management Administration AetnaHealthways New Health Savings Account (HSA) AetnaJP Morgan Chase FSA and HSA Accounts Can purchase over-the- counter drugs As a result of health care reform, can no longer use these accounts to purchase over-the-counter drugs without a prescription

11 New in 2011! JPMorgan Chase (Chase) becomes direct administrator of Health Savings Accounts (HSAs) Welcome Kit  Includes one debit card  Deposit slip Online access -  Need debit card to register  Order up to three additional debit cards for family members over 18 years of age  Balance and transactions  Online bill payment  Information on investment funds  Designate a beneficiary No charge for 3 extra debit cards Free Checks – contact number on back of debit card Can I get more than one HSA card?

12 Other 2011 Benefit Changes (Rx) Prescription Drug Changes Brand / Generic Drug Cost Difference – “Member Pays the Difference” Program Member pays the difference in costs out-of-pocket Difference no longer applies to: Deductibles Out-of-Pocket Maximums Preventive Rx Allowance ($1,500) Maximum Coinsurance Out-of-pocket Maximum for Prescriptions Mail Order Preferred and Retail Non-Preferred - $150 Mail Order Non-Preferred - $250 Mail Order Preferred and Retail Non-Preferred - $200 Mail Order Non-Preferred - $400 Diabetic testing meters and strips Covered under medical & Rx benefits Covered under Rx benefit

13 Dental Option Changes Preventive Dental Option N/ANew option at $0 monthly cost to cover preventive dental services (exams, cleanings, x-rays etc.) Annual Maximum and Orthodontia Lifetime Maximum $1,500$2,000 Aetna Dental DMO Employee concerns about shrinking network and dentist wait Option eliminated due to employee concerns Other 2011 Benefit Changes (Dental)

14 Well-Being Assessment & Biometrics Long-term strategy to increase participant awareness of health risks: – Know your numbers: take a well-being assessment and four biometric screenings (blood pressure, cholesterol, body mass and blood sugar) Screenings at work locations or employee’s physician Employees will receive a $600 discount on 2012 annual premium costs ($50 per month) – Take well-being assessment and biometric screenings and if at risk, take action to receive a discount on premium costs in Take well-being assessment and biometric screenings and if at risk, take action and improve results : To the extent provided by law, employees are incentivized, through 2014 premium discounts, to show improvements

15 U.S. Dependent Eligibility Verification Background  2009 Communications resulted in a 4% drop in dependents resulting in an average annual savings of almost $5 million  Full dependent eligibility verification conducted by Hewitt; July 7 - August 6, 2010 Results and Next Steps  2010 Dependent eligibility verification resulted in an additional annual savings of $4.7 million  Beginning January 1, 2011: all dependents added for medical and dental coverage must provide documentation to support eligibility

16 Where can I find out more? ConocoPhillips Benefits Center  or ,8 a.m. - 6 p.m. Central time, Monday - Friday  Login to YBR through HR Express Online benefits information also available at (SPDs, Claim Forms, Benefit Highlights, DocFind, Preventive Care brochure and more) HDHP blog (through HR Express) 2011 Benefits Changes & New Tools Blog (through HR Express) Health Care Reform - Annual Enrollment Materials – Delivered on November 1, 2010

17 Disclaimer This presentation is intended to be accurate, but if there is any discrepancy between these materials or the presentation and the terms of the official plan documents, the official plan documents will control. In addition, although ConocoPhillips intends to continue these benefit plans indefinitely, the company reserves the right to amend, change or terminate any of these benefit plans or provisions at any time.

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