1. Wal-Mart’s Commitment to Better Health Care for America Dorsey Hughes Symposium Linda Dillman, EVP, Benefits, Risk Management and Sustainability Wal-Mart Stores, Inc. July 27, 2007

2. How the Health Crisis Affects Us Economics and competitiveness of retail –Retail workforce = higher turnover –For most businesses, growth in health care costs outpacing sales –Last year, spent $5.2 billion on Associate benefits with net income of roughly $12 billion –Double-digit benefits spending increases over last three years The Roles We Play –Employer: 1.3 million associates in U.S. –Retailer: 4,082 stores and more than 130 million customers weekly –Business Leader/Influencer: Top of 2007 Fortune 500 list

3. As An Employer

4. Benefit Solutions: Our Objective Affordability –Low payroll deductions – individual monthly premiums in some areas available for $11 and start at less than $23 throughout the continental U.S. –First-dollar coverage, lower prices on common prescriptions Accessibility –Both full-time and part-time associates can become eligible for coverage on company plans –Children become eligible as soon as their parents do –World-class health providers Peace of Mind –No lifetime maximums –Protect associates and their families from financial ruin in case of catastrophic illness –Range of choices and network options

5. Wal-Mart Health Plans Traditional Medical Plans –Three deductible options ($350, $500, $1,000) Consumer Driven Health Care –Qualified for Health Savings Account Value Plan (Hybrid) –As little as $11 per month in some areas; $23 per month in all other locations today

6. Benefit Innovations Value Plan Experimented with many versions –Used associate focus groups Rolled out January 1, 2006 Very low payroll deductions Easy to understand, “hybrid” plan –Simpler than HSA-style plans Pre-deductible doctor visits and generic prescriptions (three of each per family member) Popular with associates –180,000 lives enrolled No rate increase in 2007 $11 plan now available to about 40% of associates $3 Co-Pay Decreased co-pays from $10 to $3 on generic medications for common conditions: –Diabetes –Hypertension –Infections –High cholesterol Ultimate wellness program –Expand access, increase compliance for high success rate prescriptions Cost-effective over time Expanded list in 2007

7. 2007 Open Enrollment 90.4 percent of Wal-Mart associates reported having some sort of health coverage More than one million people – associates and their family members – are covered by Wal- Mart health plans (as of January ’07) 76.3 percent of Wal-Mart associates were eligible for coverage 9.6 percent remain uninsured

8. Among those associates who chose Wal-Mart coverage for the first time: –53.2% said they were previously uninsured –27.5% said they could not afford coverage previously –9.4% said there was not a plan that met their needs previously –7.8 % said they came off Medicaid Associates not selecting Wal-Mart health coverage –76.47% Wal-Mart is not the household primary source of income –62.25% Wal-Mart is not their individual primary source of income –25.43% are students What Are Our Associates Telling Us?

9. Hewitt Benefit Index – 20 leading retailers and grocers Wal-Mart Scores (average retail score is 100) –Health Benefits 102.0 –Retirement Savings 217.4 –Overall Benefits 104.8 Eligibility ranked among the highest How Do We Compare to Others?

10. Benefit Solutions: Health and Wellness Educating and Connecting Walmartbenefits.com: Informative articles and tools, including nutritional information, interactive calculators and smoking cessation program 24/7 hotlines for nutritional information and counseling on physical, mental, emotional and financial wellness Engaging and Supporting Discounts on fresh fruits and vegetables (in-store) and on fitness centers, diet plans, hearing aids and LASIK surgery (on walmartbenefits.com) In-store screenings (cholesterol, heart health, diabetes and vision) and events (with Speaking of Women’s Health, Steps Across America, etc.) for customers and associates

11. Pssst. What’s Your PSP? “It gave me a purpose to attack some of the things I wanted to work on myself.” - Chuck, has lost 10 pounds in 2 weeks. “(My co-workers) have already seen the change in this past week. I’ve come in happier.” - Kim, committed to losing 40 pounds and cooking healthier meals. “We’re going to succeed because it is coming from us, your associates, not from corporate.” - Monika, stopped smoking. Make the connection with sustainability What can I do to promote a healthy planet? For Associates, by Associates

12. As A Retailer

13. $4 Generic Prescription Program 331 generic prescriptions – as many as 143 different compounds in 26 therapeutic categories including diabetes, cardiovascular disease, asthma, cold, oncology, cholesterol, viruses and infections Open to both the uninsured and insured Launched Sept. 21, 2006 in Tampa, FL In 49 states by Nov. 27, 2006

14. Seniors, working families and the uninsured lined up at our Tampa area pharmacies and told us that we were doing the right thing Prices matched by many competitors, including Target, K-Mart, Meijer, HEB, Wegmans and others $4 prescriptions now represent 37.8% of all filled Nearly 30% of $4 prescriptions are filled without insurance – significantly higher than 10% industry trend More than $350 million savings to customers, employers, and government programs since launch The Public’s Response

15. In-Store Medical Clinics Expand access to affordable, quality health care Offer a convenient one-stop health shop for people short on time Benefit communities by reducing the burden on hospital ERs Opportunity to take costs out of the system to benefit consumers

16. Meeting Customer Needs 500-650 sq. ft. at the front of SuperCenter format Nurse practitioners or physicians provide non-urgent health care services for minor illnesses No appointments necessary Prices pre-determined and posted, so patients know what they will be charged in advance Insurance providers increasingly including these clinics in their networks

17. Approach September 2005 – began pilot program to lease space to in-store clinics operated by third-party vendors Successful pilot expanded to 78 stores in 13 states April 2007 – announced intention to work with local and regional hospitals and providers to open more clinics –400 in the next two to three years –As many as 2,000 in the next five to seven years

18. Early Indicators of Customer Impact Demographics - 79% are visits for adults - 21% are visits for children Insurance Status - Approximately 50% uninsured Alternative Considerations - 30-50% urgent care or ER - 5 -10% would have foregone treatment Service Usage - 25-40% stay well (immunizations and screenings) - 60-75% get well (common illnesses) Top reasons for Visiting - Convenient location - No appointment - Quick service Satisfaction - 90+% overall satisfaction Profile of CustomersService, Usage & Experience Source: Surveys collected and shared by existing tenants

19. As A Business Leader/Influencer

20. Health Information Technology Dossia First-of-kind collaboration between Wal-Mart and other employers (i.e., Intel, Pitney Bowes, Applied Materials, AT&T, Cardinal Health, Sanofi-Aventis and BP America) Bring greater efficiency, quality, portability and transparency to system Framework for building and maintaining private electronic PHRs for employees HIT Conversation Convened thought leaders in health care, IT, business and supply chain management in March 2007 Re-group late-autumn American Health Information Community (AHIC) Make recommendations to HHS Secretary on accelerating the development and adoption of HIT Wal-Mart represented by Vice Chair John Menzer Center for Innovation in Health Care Logistics Partnership with U. of Arkansas and BCBS of Arkansas, Alabama and Illinois to improve the health care delivery system with the use of IT

21. Better Health Care Together Coalition Partnered with leaders in business, government, labor and public policy communities in February 2007 –Founding Coalition members include: AT&T, General Mills, Intel, SEIU, Committee for Economic Development, the Howard H. Baker, Jr. Center for Public Policy, the Center for American Progress, the Communications Workers of America, and Kelly Services

22. Four common sense principles for achieving a new American health care system by 2012 –Every person in America must have quality, affordable health insurance coverage –Individuals have a responsibility to maintain and protect their health –America must dramatically improve the value it receives for every health care dollar spent –Businesses, governments, and individuals all should contribute to managing and financing a new American health care system

23. How Do We Plan to Bring About Change? Educate employees, members and the public about the need for health reform by 2012 Promote health and wellness improvement efforts for employees and members Draw attention to laws and policies for health reform that align with our common sense principles Add members who share our support for the principles

24. Wal-Mart’s Commitment to Better Health Care for America