2018 New Hire Enrollment Guide

What’s Inside

3 Healthcare Lingo

4 Your Options at a Glance

6 Primary Medical Plans

7 Medical Plans by the Numbers

8 Health Savings Account

10 Other Medical Plans

12 Find Your Medical Plan Match

14 Prescription Drug Coverage

16 Flexible Spending Accounts

18 Dental

19 Vision

20 Supplemental Life and Accidental Death & Dismemberment

21 Long Term Disability

22 Helpful Enrollment Tools

24 Enrolling Your Spouse/Domestic Partner?

25 What to Expect When Enrolling Your Dependents

26 Take These Steps to Enroll

28 Important Dates and Deadlines

30 Wait, There’s More

32 Online and Social Media Support

33 Contacts

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The allowed amount is how much healthcare providers can charge for the services your plan covers.

A copay is the fixed amount you pay for a covered healthcare service.

Doctors, hospitals and service providers that don’t contract with your plan are called out-of-network providers. You usually pay more when you use an out-of-network provider.

Your annual deductible is the amount you pay for office visits, prescription medications and other covered services before your plan begins sharing the cost.

An EOB is a summary of services received, what your plan paid and how much you owe your healthcare provider.

The most you pay in a year for eligible healthcare services is called the out-of-pocket maximum. After you reach the out-of-pocket maximum, the plan covers 100% of eligible expenses for the remainder of the plan year.

Coinsurance is the percentage you and your plan each pay when you’re sharing costs. Coinsurance kicks in after you meet your annual deductible.

Doctors, hospitals and service providers that contract with your plan are called in-network providers. You usually pay less when you use an in-network provider.

The medical premium is the amount deducted from your paychecks to pay for your medical coverage. Your deduction comes out of your paychecks before taxes.*

* The cost of coverage for a domestic partner comes out of your paycheck after taxes.

Allowed Amount

Copay

Out-of-Network Provider

Annual Deductible

Explanation of Benefits (EOB)

Out-of-Pocket Maximum

Coinsurance

In-Network Provider

Medical Premium

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Healthcare Lingo

Get to know these common terms before you enroll so you can understand your medical plan options.

20 Supplemental Life and Accidental Death & Dismemberment

21 Long Term Disability

22 Helpful Enrollment Tools

24 Enrolling Your Spouse/Domestic Partner?

25 What to Expect When Enrolling Your Dependents

26 Take These Steps to Enroll

28 Important Dates and Deadlines

30 Wait, There’s More

32 Online and Social Media Support

33 Contacts

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Don’t miss your enrollment! You need to enroll by the deadline on your Welcome Letter. Go to UPoint, the enrollment website, at http://resources.hewitt.com/mckesson to make your choices.

Your Options at a Glance

Take this opportunity to learn more about your coverage options. This page highlights the benefits you can choose during your enrollment period.

Medical PlansIn all states, except Hawaii:

• HSA plan

• HSA Plus plan

In limited locations:• Kaiser Plus plan

• Kaiser HMO — Hawaii

• HMSA/Blue Cross HMO — Hawaii

Dental Plans

• Cigna Dental PPO

• Cigna Dental PPO Plus

• Cigna Dental DHMO

Health Saving Account

Available with the HSA, HSA Plus and Kaiser Plus plans.

Vision Plans• Vision Service Plan (VSP)

• VSP Plus

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Don’t miss your enrollment! You need to enroll by the deadline on your Welcome Letter. Go to UPoint, the enrollment website, at http://resources.hewitt.com/mckesson to make your choices.

HR Support Center855.GO.MCKHR (855.466.2547)Press 1 for the McKesson Benefits Center for Health, Vitality and Pension questions. Benefit experts are available 7 a.m. - 6 p.m. Central time, M-F. Oprime 1 para asistencia en español a través del McKesson Benefits Center.

Call the HR Support Center if you have enrollment questions. If a benefit expert can’t answer your question, an advocate will contact you within 24-48 hours. Advocates are specifically trained to help you with questions about medical, dental and vision coverage.

Flexible Spending Accounts (FSAs) • HSA-compatible FSA

• Standard healthcare FSA

• Dependent care FSA

Supplemental Life and Accidental Death & Dismemberment Insurance  (Life and AD&D)

• Employee

• Spouse/domestic partner

• Child(ren)

Long Term Disability Coverage (LTD) Provides up to 60% of your covered pay (up to $25,000 a month) if you’re out of work more than 180 days due to a disability.

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A health savings account to help you pay eligible expenses.

Comprehensive medical and prescription drug coverage.

Your prescription drug coverage is administered by CVS Caremark.

Preventive care covered at 100% when you use in-network providers.

A deductible you need to pay for eligible expenses before coinsurance kicks in.

Coinsurance after meeting your deductible. Coinsurance is the percentage you and your plan each pay when you’re sharing costs.

• You pay 20% of the eligible cost and your plan pays 80% when you use in-network care or services.

• You pay 40% of the eligible cost and your plan pays 60% when you use out-of-network care or services.

• You pay 100% of the difference in costs between out-of-network provider charges and eligible charges for the service. This is called balance billing.

Out-of-pocket maximums that limit how much you pay for eligible healthcare services in a year. An out-of-pocket maximum is the amount you pay for your annual deductible plus your share of eligible expenses before the plan pays 100%.

The HSA and HSA Plus medical plans offer:

Here’s an example of what you’ll see on UPoint when choosing a medical plan.

Primary Medical Plans

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Medical Plans by the Numbers

Here’s a quick look at the HSA and HSA Plus medical plans. Use the charts below to compare the deductibles, coinsurance and out-of-pocket maximums.

HSA plan

Health savings accountDeductible

Coinsurance out-of-pocket maximum Out-of-pocket maximum

EE contribution**

McKesson contribution In-network Out-of-

network In-network*** Out-of-network

EE* $0-$3,450 $0 $3,500 $2,750 $5,500 $6,250 $9,000

EE + SP/DP* or Child(ren) $0-$6,900 $0 $5,250 $4,125 $8,250 $9,375 $13,500

EE + Family $0-$6,900 $0 $7,000 $5,500 $11,000 $12,500 $18,000

HSA Plus plan

Health savings accountDeductible

Coinsurance out-of-pocket maximum Out-of-pocket maximum

EE contribution**

McKesson contribution In-network Out-of-

network In-network*** Out-of-network

EE* $0-$2,700 $750 $2,125 $2,500 $5,000 $4,625 $7,125

EE + SP/DP* or Child(ren) $0-$5,800 $1,100 $3,175 $3,750 $7,500 $6,925 $10,675

EE + Family $0-$5,400 $1,500 $4,250 $5,000 $10,000 $9,250 $14,250

McKesson medical plan premiums vary. You can view your actual premiums when you enroll on UPoint.

*** EE = employee. SP/DP = spouse/domestic partner.*** Putting money in a health savings account is voluntary. You choose how much to put in, up to the annual IRS limit shown in the chart. You can

put in up to 1/12 of the annual limit each month. If you’re age 55 or older, you can make catch-up contributions of up to $1,000 per year ($83.33 per month). Avoid tax penalties by making sure you don’t put more in your account than the IRS monthly or annual limit. McKesson and Fidelity don’t monitor your contributions for you. For more information on health savings accounts, go to www.mckesson.com/totalrewardslibrary > Health Savings Account > Health Savings Account FAQs.

*** If you’re enrolled in EE + SP/DP, EE + Child(ren) or EE + Family coverage, your plan has an out-of-pocket maximum of $6,850 per individual. This means no one covered by your plan pays more than $6,850 a year for in-network services.

Coverage for a Variety of Health Services Your plan covers more than health exams and surgery. You’re covered for a variety of services, such as chiropractic care,acupuncture, addiction treatment, infertility treatment, speech therapy and physical therapy. Learn more about what your plan covers in the Summary of Benefits and Coverage (SBC) at www.mckesson.com/totalrewardslibrary > Plan Documents.

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Health Savings Account

You Own the Account The money in your health savings account is yours to keep whether you change medical plans, leave McKesson or retire. You decide how and when to spend or save the money in your account.

McKesson Contribution (HSA Plus and Kaiser Plus Plan)If you enroll in the HSA Plus or Kaiser Plus plan, McKesson puts money in your health savings account. The amount McKesson contributes depends on who’s covered by your medical plan:

• $750 Employee Only

• $1,100 Employee + Spouse/Domestic Partner or Child(ren)

• $1,500 Employee + Family

You need to activate your health savings account on Fidelity’s website (www.netbenefits.com) before you can use your account.

Investment OpportunitiesYou can use your health savings account to invest in a variety of options through Fidelity.

IRS Contribution LimitsThe IRS limits how much you can put into your health savings account. The limit is based on:

• Your medical plan

• Who’s covered by your medical plan

All contributions you make to a health savings account in 2018 count toward the IRS limit, whether made while at McKesson, another employer or on your own. Be sure to account for your previous 2018 contributions when setting your monthly contribution amount on UPoint to avoid tax penalties. Find the annual and monthly limits — and what to do if you go over the limits — in the Health Savings Account FAQs at www.mckesson.com/totalrewardslibrary > Health Savings Account.

Triple Tax Break

1. Before-tax and tax-deductible contributions that lower your taxable income

2. Tax-free withdrawals for eligible healthcare expenses

3. Tax-free earnings from interest and investments*

* Some states tax contributions and interest/investment earnings. Check with your tax advisor to see how your account is affected or contact Fidelity for more guidance.

Health Savings Account — Available with the HSA, HSA Plus and Kaiser Plus Plans

It’s a good idea to contribute as much as you can to your health savings account so you can use that before-tax money to pay for eligible expenses or save it for the future. TIP

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Take Action! Activate Your Health Savings Account

After enrolling in the HSA, HSA Plus or Kaiser Plus plan on UPoint, you need to activate your health savings account on the Fidelity website (www.netbenefits.com) before you can use the account. If you enroll in the HSA Plus or Kaiser Plus plan, you need to activate your account within 90 days of enrolling or you won’t get your McKesson contribution.

Once you activate your account, you’ll receive a Fidelity card. You can use it like a debit card when paying for expenses.

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Go to www.netbenefits.com. Click Register Now to set up your account.

Review eligibility information, then click Get Started.

If your personal information is correct, click Confirm My Information.

Click Open in the Health Savings Account box.

Review Fidelity’s Terms and Conditions. If you accept the Terms and Conditions, click Agree & Open Account.

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Enter your personal information, such as your name and email address, then click Continue.

Steps to Activate Your Health

Savings AccountYou only need to activate your account once — not every year.

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Kaiser Permanente at Your FingertipsIf you enroll in the Kaiser Plus plan, use the Kaiser Permanente app to make appointments, refill prescriptions and see a list of all your meds. Get the app for free at the App Store® or Google Play™.

Kaiser Plus Plan

The Kaiser Plus plan is a high-deductible HMO plan available in California, Colorado, Georgia, the Mid-Atlantic states, Oregon and Washington. Here’s a look at how the Kaiser Plus plan works.

Your preventive care, including certain prescription medications, is 100% covered. You pay the full cost of your non-preventive care out of pocket until you meet your annual deductible:

• $2,125 Employee Only

• $4,250 Employee + Spouse/Domestic Partner or Employee + Child(ren)*

• $4,250 Employee + Family* * If you’re enrolled in Employee + Spouse/Domestic Partner,

Employee + Child(ren) or Employee + Family coverage, you have an embedded individual annual deductible of $2,700. This means if a person meets the $2,700 individual deductible, that person will begin paying coinsurance for covered services even if the total annual deductible hasn’t been met.

You pay coinsurance after meeting your deductible.

You keep paying coinsurance until you meet your out-of-pocket maximum. Once you do, the plan pays 100% for eligible expenses.

The Kaiser Plus plan doesn’t cover out-of-network providers, except for emergency services.

You can open a health savings account and get a McKesson contribution to help you with your deductible and coinsurance — see p. 8.

You can use the money in your health savings account to pay for eligible expenses or save it for future expenses.

See how coverage under the Kaiser Plus plan compares to other McKesson medical plans. View the Health Plan Comparison Charts on UPoint at http://resources.hewitt.com/mckesson.

No Copays

Prescription Medication Coverage

Kaiser Permanente administers the Kaiser Plus plan’s prescription medication coverage. Go to https://my.kp.org/mckessoncorp > Understanding your costs for more information.

Other Medical Plans

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When Enrolling on UPointOn UPoint, the Kaiser Plus plan is listed as the Kaiser HMO plus HSA plan. Choose this option if you want to enroll in the Kaiser Plus plan.

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HMOs in Hawaii

If you live in Hawaii, you’ll see two HMO plan options on UPoint when you enroll. Review the Health Plan Comparison Charts to see what’s covered for 2018.

With an HMO plan, you typically pay a copay (a fixed dollar amount) for office visits and a coinsurance amount for certain services. Your premiums are higher in exchange for lower out-of-pocket costs. An HMO plan generally doesn’t cover out-of-network services, except in emergencies.

Available medical plans in Hawaii include:

• HMSA/Blue Cross HMO plan

• Kaiser HMO plan

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Your healthcare needs are as unique as your fingerprints. That’s why we made sure that whether you visit the doctor once a year or once a month, there’s a coverage option for you. Use the examples below to see which plan may match your personal situation.

Find Your Medical Plan Match

Marco’s choice: HSA Plan

Why? The HSA plan has the lowest premiums of all the McKesson medical plans. With a lower premium, Marco can put more before-tax money from his paycheck into his health savings account. He can use that money for a rare trip to the doctor or save for the future.

Kelli’s choice: HSA Plus Plan

Why? The HSA Plus plan has a lower annual deductible, but a higher premium than the HSA plan. Kelli also gets a $750 McKesson contribution in her health savings account. She can use that money to help pay her annual deductible.

Marco • Rarely sees a doctor.

• Likes to keep his medical premiums as low as possible.

Kelli • Takes prescription medications.

• Sees her doctor frequently.

• Wants a plan with the lowest annual deductible.

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Don’t Miss It!Watch the Video Guide to Benefits and Enrolling Find the right medical plan with this video. Go to www.mckesson.com/totalrewardslibrary > New Hire.

Steven’s choice: HSA Plus Plan

Why? Steven and his family receive medical care frequently. The $1,500 McKesson puts in his health savings account helps him meet a portion of his annual deductible without paying money out of pocket.

Shauna’s choice: Kaiser Plus Plan

Why? With the Kaiser Plus plan, Shauna can use Kaiser Permanente doctors and pharmacies. She also gets all the benefits of a health savings account.

Steven • Covers his wife and two kids.

• Visits the pediatrician multiple times a year.

• Wants help paying his annual deductible.

Shauna • Likes Kaiser Permanente doctors and healthcare system.

• Wants the benefits of a health savings account.

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Prescription Drug Coverage

Prescription Coverage Before Meeting Your Deductible

You pay prescription medications like any other eligible healthcare expense. This means you pay the full cost of your medications until you meet your deductible, unless your medication is on the HSA Preventive Therapy Drug List. When you pay prescription medications with your health savings account, it counts toward your deductible.

Prescription Coverage After Meeting Your Deductible

After meeting your medical plan’s annual deductible, coinsurance kicks in. This means you and your plan begin sharing the costs of your eligible medical expenses, including your prescription medication costs.

CVS Caremark administers prescription medication coverage for the HSA and HSA Plus plans. You can use your prescription medication benefits within CVS Caremark’s network, which includes hundreds of retail pharmacies such as CVS PharmacyTM, Health Mart® and Walmart®.

A Look at What’s Covered

The chart below shows how you and the plan pay for your prescription medicines.

Medications on the HSA Preventive Therapy Drug List

Preventive generic medications Plan pays 100% without having to meet your deductible

Preventive brand name medications You pay half the normal coinsurance without having to meet your deductible

Medications not on the HSA Preventive Therapy Drug List

Generic medications You pay 20%, plan pays 80% after meeting your deductible

Preferred brand name medications You pay 20%, plan pays 80% after meeting your deductible

Non-preferred brand name medications You pay 40%, plan pays 60% after meeting your deductible

You don’t have coverage at out-of-network pharmacies. If you use an out-of-network pharmacy to fill your prescriptions, you pay the full cost of your prescription medications.

HSA Preventive Therapy Drug List

Certain preventive generic medications may be covered 100% without you having to meet your deductible. You can find the list at www.mckesson.com/totalrewardslibrary > Healthcare Benefits > Costs, Pharmacies and Medication Lists.

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If you’re not enrolled in the HSA or HSA Plus plan, view your plan’s SBC on the Total Rewards Library to see your prescription drug benefits. Go to www.mckesson.com/totalrewardslibrary > Plan Documents.

CVS Caremark Online

Register on the CVS Caremark website to:

• Estimate prescription medication costs.

• Order a refill.

• Get details about mail order and specialty pharmacies.

• Use the pharmacy locater to find in-network pharmacies near you, including CVS Pharmacy, Health Mart, Walmart and others.

Go to www.caremark.com > Sign Up Now and follow the prompts. Your covered family members can set up their own secure accounts (children must be age 19 or older).

Download the CVS Caremark App

Use the CVS Caremark app to access your prescription medication benefits on the go. Download the free app at www.caremark.com. (Standard mobile phone carrier and data usage charges apply.)

Mail Order Program

You can fill your prescriptions — up to a 90-day supply — at CVS Caremark’s

mail order pharmacy or at any retail pharmacy in CVS Caremark’s

network. Visit www.caremark.com to order your prescriptions online.

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FSA Food for Thought

• Spend all the funds in your FSAs by December 31, 2018 and submit your claims by March 31, 2019. Unused 2018 FSA dollars don’t carry over to 2019. Carefully consider your healthcare and dependent care needs before entering your annual contribution amount on UPoint.

• You can pay eligible expenses with your WageWorks® Healthcare Card (similar to a debit card), by using the EZ Receipts mobile app or filing a claim for reimbursement on the WageWorks website.

• Keep all your FSA receipts in case you need to verify your purchases with WageWorks or the IRS.

• If you don’t enroll in a McKesson medical plan, you may be eligible to enroll in a standard healthcare FSA. Contact WageWorks at www.wageworks.com or call 877.924.3967 to see if you can enroll in an FSA.

You can find a list of eligible FSA expenses at www.mckesson.com/totalrewardslibrary > Flexible Spending Accounts (FSA).

Healthcare FSAsDependent Care FSA

HSA-compatible FSA Standard healthcare FSA

Available to HSA plan members

HSA Plus plan members

Kaiser Plus plan members

All benefit eligible employees not enrolled in the HSA, HSA Plus or Kaiser Plus plan

All benefit eligible employees

Use for Eligible dental and vision out-of-pocket expenses only, including deductible and coinsurance amounts

Eligible medical, prescription medication, dental and vision out-of-pocket expenses, including deductible and coinsurance amounts

Eligible child care and eldercare out-of-pocket expenses

Annual contribution amounts

$100 - $2,600 $100 - $2,600 $100 - $5,000

Why choose this account

• You want to use before-tax dollars to pay eligible dental and vision expenses right away. You can use all your HSA-compatible FSA dollars as soon as your medical coverage begins.

• You want to save the money in your health savings account for retirement.

• You want to lower your taxable income.

• If you’re not enrolled in the HSA, HSA Plus or Kaiser Plus plan, but still want to use before-tax dollars to save on out-of-pocket healthcare expenses.

• You want to lower your taxable income.

• You want to use before-tax dollars to pay eligible child care and eldercare expenses.

• You want to lower your taxable income.

Add to Your Savings with Flexible Spending Accounts

Stretch your money with a flexible spending account (FSA). You can set aside before-tax dollars to pay for eligible healthcare and dependent care expenses. The type of healthcare FSA you can have depends on your medical plan, as shown below. There are two healthcare FSAs (HSA-compatible FSA and standard healthcare FSA) and one dependent care FSA.

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Flexible Spending Accounts

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How to Put Money in Your FSA

Depending on the medical plan you choose, UPoint automatically updates the Health Care Flexible Spending Account page to allow you to put money in either an HSA-compatible FSA or a standard healthcare FSA. Enter your annual contribution amount and click Continue.

Here’s an example of whatyou’ll see on UPoint whenyou enroll in an FSA.

Learn more about FSAs at www.mckesson.com/totalrewardslibrary > Flexible Spending Accounts (FSA).

If you want to put money in a health savings account in 2018, you can’t put any money in a standard healthcare FSA. This includes any standard healthcare FSA your spouse contributes to.

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Dental

Take care of your smile with dental coverage from Cigna Dental. You can choose between the dental plans in the chart below. Under the PPO plans, you save money by using in-network providers who have negotiated discounted rates with Cigna Dental. Visit Cigna Dental at www.cigna4McKesson.com to find an in-network dentist near you.

PPO PPO Plus DHMO

Out-of-network coverage Yes Yes No

In-network preventive care and cleanings

100% of eligible charges without meeting deductible

100% of eligible charges without meeting deductible

100% of eligible charges

Deductible $50 individual$150 family

$50 individual$150 family

No deductible

Coinsurance/copay 80% or 50% coinsurance* after meeting deductible

90%, 60% or 50% coinsurance* after meeting deductible

Fixed copay

Orthodontia coverage For children under age 19 For children under age 19 Adults and children

Calendar year benefit maximum $1,500 per person $2,000 per person None

* To find out which coinsurance percentage applies to your dental services, see the summary plan description (SPD) at www.mckesson.com/totalrewardslibrary > Plan Documents > Dental SPD.

Here's an example of what you'll see on UPoint when you choose your dental plan.

Get Money Back on Certain Dental TreatmentsYou can get reimbursed for out-of-pocket expenses on certain dental treatments if you have a qualified medical condition, such as diabetes or pregnancy. Family members covered by a Cigna Dental plan may be eligible as well. Learn more at Total Rewards Library > Healthcare Benefits > Dental Plans.

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Take care of your vision with coverage from Vision Service Plan (VSP). You can choose the VSP or VSP Plus plan to get 100% in-network coverage for routine eye exams and prescription glasses after a copay. Be sure to visit an in-network VSP doctor to get the best value. When you see a non-VSP doctor, you pay in full up front and then submit a claim to VSP for partial reimbursement. Visit www.vsp.com or call 800.877.7195 to find a VSP provider near you.

Vision Options (in-network only)*

VSP VSP Plus

Plan pays

Eye exam • 100% after $15 copay

• Once every calendar year

• 100% after $10 copay

• Once every calendar year

Prescription glasses 100% up to plan allowance after $25 copay for lenses and/or frame

100% up to plan allowance after $10 copay for lenses and/or frame

Frame • Up to $130 allowance

• Once every other calendar year

• Up to $210 allowance

• Once every calendar year

Lenses (includes single vision, bifocal, trifocal and lenticular lenses)**

• Once every calendar year

• Progressive and other lens enhancements available at a discount

• Once every calendar year

• Progressive lenses covered after $40 copay

• Other lens enhancements available at a discount

Elective contact lenses (instead of prescription glasses)

• Up to $150 allowance

• Once every calendar year

• Up to $200 allowance

• Once every calendar year

** These coverages are also available for out-of-network provider services. However, dollar maximums apply to exams, lenses, frames and contact lenses as shown in the Vision SPD. Find the Vision SPD on the Total Rewards Library at www.mckesson.com/totalrewardslibrary > Plan Documents.

** The plan doesn’t cover the costs of other lens options such as anti-reflective coating, color coating, mirror coating, scratch coating, blended lenses, cosmetic lenses, laminated lenses, oversize lenses, polycarbonate lenses (except for children), photochromic lenses, tinted lenses (except Pink #1 and Pink #2), and ultraviolet protected lenses. For more information, see the Vision SPD at the Total Rewards Library — www.mckesson.com/totalrewardslibrary > Plan Documents.

Here’s an example of what you’ll see on UPoint when you choose your vision plan.

Vision

Save up to 60% on Hearing AidsAs a VSP member, you and your family can get up to 60% off digital hearing aids, plus 48 free batteries per device. Learn more at Total Rewards Library > Healthcare Benefits > Vision Plans and Hearing Discount.

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You can take comfort in knowing your family is financially protected by McKesson-paid basic life and accidental death and dismemberment (AD&D) coverage. You get this coverage automatically as part of your Total Rewards. During your enrollment period, you can buy:

Life insurance can protect your family’s financial future. Watch a short video at lifebenefits.com/videos/term to learn more about life insurance. When enrolling for supplemental coverage, you may be asked for Evidence of Insurability (EOI). If you need to provide EOI after you’ve enrolled, a “Submitted Successfully - Required Follow-Ups” page appears, and you get a confirmation number.

While enrolling on UPoint, confirm that you’re tobacco-free to save on your 2018 life insurance premiums. TIP

Supplemental employee life and AD&D insurance — $10,000 to $1.5 million (or eight times your pay, whichever is less)

Spouse/domestic partner life and AD&D insurance — $20,000 to $400,000

Child life and AD&D insurance — $5,000 to $25,000 per child (in $5,000 increments)

Supplemental Life and Accidental Death & Dismemberment

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You automatically get McKesson-paid short term disability (STD) coverage as part of your Total Rewards. You can buy additional protection for you and your family by enrolling in optional long term disability (LTD) coverage. LTD coverage protects your income if you’re out of work for more than 180 days due to a disability. LTD generally provides 60% of your covered earnings (up to a maximum monthly benefit of $25,000), minus earnings from other income.

During the first 12 months of LTD coverage, you won’t be paid LTD benefits for a disability that results from a pre-existing condition.

You pay only 30% of the cost for LTD coverage. McKesson pays the other 70%. For example, if you earn $50,000 a year, you pay $3.99 a month for LTD coverage and receive $2,500 a month in LTD benefits if you become disabled.

Long Term Disability

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Call the HR Support Center to enroll in benefits or get answers to your enrollment questions. Benefit experts are available to talk you through your options and provide detail about all your health and wellness benefits. You can also call to request a paper copy of this guide.

If a benefit expert can’t answer your questions, an advocate will contact you within 24-48 hours.

UPoint is your enrollment website. You need to enroll by the deadline on your Welcome Letter.

During your enrollment period, log on to:

• Choose your benefits for 2018.• Use enrollment tools to compare and understand your

healthcare coverage options — see the chart on the next page.• Choose contribution amounts for your health savings account

and flexible spending account.

Throughout the year, log on to:

• Start, stop or change your health savings account contributions.• View details about your health and wellness benefits.• Update your coverage within 31 days of a qualified status change.

HR Support Center

855.GO.MCKHR (855.466.2547), press 1. 7 a.m. - 6 p.m. Central time, M-F.

UPoint

http://resources.hewitt.com/mckesson

Helpful Enrollment Tools Are a Keystroke Away

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Medical Plan Carrier Websites

Visit the medical plan carrier websites to review plan details and search for providers.

Aetna http://aetnaresource.com/8778/mckesson

Anthem http://enrollment.anthem.com/McKesson

Kaiser Permanente https://my.kp.org/mckessoncorp

HMSA www.hmsa.com

Cignawww.cigna4McKesson.com

Your Enrollment Tools

Use these UPoint tools to sort through your medical plan options.

Health Plan Comparison Charts Compare multiple plans side by side, including covered services, deductibles, coinsurance and out-of-pocket maximums.

Medical Expense Estimator Find out how much you can expect to pay for common healthcare services under different medical plans.

Summaries of Benefits and Coverage (SBCs) Get a summary of services covered by each medical plan.

See p. 33 to find out which medical plan carriers are available in your area.

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Here’s what you’ll see on UPoint in the Employed Spouse/Domestic Partner Surcharge field when you enroll. Be sure to select Yes or No in the highlighted field.

If you enroll your spouse/domestic partner in McKesson medical coverage on UPoint, you’ll be asked if he/she is eligible for medical coverage through his/her employer.

• If your answer is Yes, you’ll pay a $100 monthly surcharge* on your McKesson medical premiums beginning on your first day of coverage. The $100 surcharge is split over your pay periods each month.

• If your answer is No, you won’t pay the $100 monthly surcharge.

Consider encouraging your spouse/domestic partner to enroll in medical coverage through his or her employer so you can answer No.

Be sure you select Yes or No in the Employed/Spouse Domestic Partner Surcharge field. If you don’t make a selection, your answer becomes Yes by default and you pay the $100 monthly surcharge. If you and your spouse/domestic partner are both McKesson employees, the surcharge is waived.

* The surcharge for an employed spouse is taken before taxes. The surcharge for an employed domestic partner is taken after taxes.

Let us know within 31 days if your spouse/domestic partner loses or gets medical coverage through his or her employer and we’ll add the surcharge to your paycheck or take it off. Simply call the HR Support Center at 855.GO.MCKHR (855.466.2547) and press 1, or go to UPoint > Life Changes.

Enrolling Your Spouse/Domestic Partner?

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What to Expect When Enrolling Your Dependents

As a McKesson new hire, you’re required to provide dependent verification documents for each dependent you enroll in a McKesson benefit plan (medical, dental and vision). If your dependent’s eligibility isn’t confirmed, he/she loses coverage under all plans he/she is enrolled in.

In the coming weeks, you should get a notice from the Dependent Verification Center in the mail. The notice will let you know which documents to submit to confirm dependent eligibility. Here are some steps you can take to make your verification process easier.

2. Gather your documents. Take time to find your documents now to avoid delays later — some state and local public records offices can take weeks to issue documents.

Here are some documents you can begin looking for:

• Documents proving joint ownership — mortgage statements, credit card statements, bank statements, property tax statements and current, non-expired residential leasing agreements listing both parties’ names as co-owners. The joint ownership may be established before the current year. However, the statement provided must be issued within the last six months or still be current, if it’s a residential lease.

• Proof of marriage — the documents need to be a government-issued marriage license or marriage certificate with the date of your marriage. Church-issued certificates are not acceptable.

• Birth certificates listing parent names — birth certificates must be government-issued and list parent names. Short form government-issued birth certificates without parent names are not acceptable. Use the long form with the parent names (the same used for a passport).

3. Look for your notice in the mail. Once received, follow these steps when submitting your documents:

• Send copies only. Keep your original documents.

• Black out Social Security Numbers on the copies of the documents you submit.

• If a copy of your prior year’s federal tax return is needed, send only the first page of the IRS Form 1040, which shows your dependents. Black out any dollar amounts.

Questions?The Dependent Verification Center is available to help before and after you receive your notice.800.725.58109 a.m. - 5 p.m. Central time, M-F

1. Determine who is considered an eligible dependent.

Who is an eligible dependent?

• Legal spouse

• Common law spouse

• Domestic partner

• Children under age 26 (including your own children, step-children, domestic partner’s children, legally adopted children, legal wards and foster children)

• Unmarried children age 26 or older who are incapable of self-support because of a disabling sickness or injury that began before age 26.

• Other children related by blood or marriage (for whom you pay at least half of their support and reside with you)

• Children who become eligible for medical coverage under the terms of a Qualified Medical Child Support Order (QMCSO)

Who is not an eligible dependent?

• A former spouse

• Children age 26 and older (unless unmarried and incapable of self-support because of a disabling sickness or injury that began before age 26)

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v

Make Your Choices• On the UPoint homepage, under Action Needed!, click Enroll. Or select the Health and

Insurance tab and under Enroll!, click Enroll Now!

• Choose your medical, dental, vision, life and disability coverage.

• Enter an annual contribution amount for your health savings account and/or FSA(s).

• Provide Social Security Numbers (SSNs) for your covered dependents if you haven’t already.

• Select Yes or No in the Employed Spouse/Domestic Partner Surcharge field, which is tied to the medical plan field, if you plan to enroll your spouse/domestic partner in a McKesson medical plan.

If you don’t make a selection, your answer becomes Yes by default and you pay a $100 monthly surcharge.

Log On to UPoint• Go to http://resources.hewitt.com/mckesson and enter your username and password.

Click New User? and follow the prompts to register. You need to enroll by the deadline on your Welcome Letter.

• Use tools on UPoint to see how much you can expect to pay for your healthcare coverage premiums.

1

2

Take These Steps to Enroll

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Select “Complete Enrollment” or “Quit”When you select:

Complete Enrollment — you save your choices and complete your enrollment.

• Print the “Submitted Successfully” message and reference number as confirmation.

• If you entered your email address on UPoint, you get a confirmation email.

• If you need to give EOI, a “Submitted Successfully - Required Follow-Ups” page appears, and you get a confirmation number. (You can print this page as confirmation.)

Quit — your choices are canceled.

• You see a “Canceled Successfully” message.

• You need to enroll by the deadline on your Welcome Letter.

3

If you enroll in the HSA, HSA Plus or Kaiser Plus plan, you need to activate your health savings account with Fidelity at www.netbenefits.com.

TIP

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Questions about your enrollment?

Contact the HR Support Center at 855.GO.MCKHR (855.466.2547). Press 1 for the McKesson Benefits Center for Health, Vitality and Pension questions. Benefit experts are available 7 a.m. - 6 p.m. Central time, M-F. Oprime 1 para asistencia en español a través del McKesson Benefits Center.

You need to enroll by the deadline on your Welcome Letter for:

• Medical, dental and vision coverage

• Flexible spending accounts (FSAs)

• Long term disability (LTD)

• Supplemental life and accidental death & dismemberment (AD&D)

Choose your coverage on UPoint at http://resources.hewitt.com/mckesson.

If you enroll in the HSA, HSA Plus or Kaiser Plus plan, activate your health savings account as soon as possible on the Fidelity website at www.netbenefits.com. You won’t be able to use your account until it’s activated.

You need to activate your health savings account within 90 days of the day your coverage starts to get your contributions for 2018 (and McKesson’s if you enroll in the HSA Plus or Kaiser Plus plan).

If you have a qualified status change after your enrollment, such as a marriage or the birth of a child, you have 31 days to change your coverage on UPoint at http://resources.hewitt.com/mckesson.

The last day to spend the money you put in a 2018 McKesson healthcare and/or dependent care FSA is December 31, 2018.

The last day to submit your 2018 healthcare and dependent care FSA claims is March 31, 2019. Submit your claims to WageWorks at www.wageworks.com.

December 31

2018March 31

2019

Health Savings Account

31days

90days

McKesson Flexible Spending Accounts

Life Changes

Enroll

Important Dates and Deadlines

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When Your Coverage BeginsIf you’re a new full-time or part-time employee scheduled to work 30 or more hours a week, your coverage begins the first day of the calendar month following your date of hire (as long as you enroll by the deadline on your Welcome Letter).

If you’re hired more than 31 days before McKesson’s Annual Enrollment period (generally in early November), you’ll need to enroll twice this year:

• Once by the deadline on your Welcome Letter to have coverage this year.

• Again during Annual Enrollment to choose your benefits for 2019.

Your new medical, prescription drug and dental ID cards should arrive in the mail a few weeks after you enroll. If you don’t receive an ID card, you can view/print a temporary ID from your carrier’s website. You can also call for a replacement card. Find your carrier’s contact information at www.mckesson.com/totalrewardslibrary > Contacts.

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In addition to the benefits you can choose during your enrollment period, we offer a variety of resources and programs that support your overall physical, mental and financial well-being. Here’s a peek at what’s available to you at McKesson.

Wait, There’s More!

Healthcare Shopping Tool

Paid Holidays

Weight Loss Rebate Program

Paid Parental Leave

Bone Marrow Drive

Educational Assistance

Commuter Benefits

Expert Second Opinion Service

Paid Time Off (PTO)

Credit Union

Wellness Programs

Scholarships for Your Kids

$

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Employee Referral Program

Matching Gifts Program

We Care Grant

401(k) Plan

Employee Stock Purchase

Plan (ESPP)

Get You to Safety Grant

Adoption Assistance

Volunteer Program

Employee Assistance Program (EAP)

Employee Resource Groups

Learn more about these and other benefits at McKNet.

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Online and Social Media Support

Use these online resources and social media tools to learn more about your benefits and stay in touch with your coworkers.

Total Rewards Librarywww.mckesson.com/totalrewardslibrary The library is your year-round, online source for important information about our health and wellness programs. It’s open to everyone 24/7 from any device with internet access. Start with the New Hire section to find information about:

• Important deadlines you need to know

• Health savings accounts

• Flexible spending accounts (FSAs)

• Wellness programs

• Commuter benefits

• Medical premium savings

InstagramFollow us at @mckessoncorporation

YammerJoin the MCK Health FYI group on Yammer to share health tips, memes and words of encouragement with your coworkers. Connect to Yammer through Office 365.

McKNetMcKNet is our company intranet, and it’s loaded with information about your benefits and other McKesson news and happenings. Click the Pay & Benefits tab to:

• Learn about health and wellness programs.

• Get details about financial benefits, such as our 401(k).

• Schedule Paid Time Off (PTO).

• See your recent paystubs.

• Single sign on to Vitality.

• Update your contact information.

• Access employee discounts.

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Aetna http://aetnaresource.com/8778/mckesson 877.286.3900 Available in all states except Hawaii.

Anthem http://enrollment.anthem.com/McKesson 866.820.0763 Available in California, Florida, Michigan and Pennsylvania.

Cigna www.cigna4McKesson.com 888.806.5042 Available in all states except Hawaii.

Kaiser Permanentehttps://my.kp.org/mckessoncorp Available in California, Colorado, Georgia, Mid-Atlantic, Oregon and Washington.

CVS Caremark www.caremark.com 800.378.0822

Cigna Dental www.cigna4McKesson.com 800.244.6224

Vision Service Plan (VSP) www.vsp.com 800.877.7195 imember@vsp.com

Fidelity Investments (for health savings accounts) www.netbenefits.com 800.544.3716 7:30 a.m. - 7 p.m. Central time, M-F

WageWorks (for flexible spending accounts and Commuter Benefits) www.wageworks.com 877.924.3967

Resources for Living®www.resourcesforliving.com(username: mckesson, password: eap)888.425.6174The Employee Assistance Program (EAP) is available 24/7 for free, confidential support for everything from child care referrals to addiction counseling. No problem is too big or too small.

Hawaii Medical Plans

HMSA/Blue Cross HMO — HI www.hmsa.com 808.948.6372

Kaiser HMO — HI https://my.kp.org/mckessoncorp 808.432.5955 (Oahu) 800.966.5955 (neighbor islands)

Life and Disability

Securian Life Insurance (for Life and Accidental Death & Dismemberment)866.293.6047

Matrix Absence Management(for short term disability)www.matrixabsence.com866.254.8706

Cigna(for long term disability)https://dmswebintake.group.cigna.com800.552.9503

Condition Support Managers

Aetna — Aetna In Touch Care 888.257.0411

Anthem — Condition Care 866.820.0763

Cigna — Personal Health Team 800.244.6224

Contact Information

Visit each carrier’s website to compare doctors, service providers, tools and resources.

Register on Your Carriers’ WebsitesRegister on both your medical plan carrier’s and prescription drug carrier’s websites to use their online tools and learn how you can manage your medical and prescription medication budget more effectively.

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August 2018 - CPS# H000199453

UPointhttp://resources.hewitt.com/mckesson Enroll in, review and manage your Total Rewards.

HR Support Center855.GO.MCKHR (855.466.2547) Press 1 for the McKesson Benefits Center for Health, Vitality and Pension questions. Benefit experts are available 7 a.m. - 6 p.m. Central time, M-F. Oprime 1 para asistencia en español a través del McKesson Benefits Center.

Call the HR Support Center for:• Answers to general questions about your

coverage options

• Guidance about eligibility and enrollment

• A paper copy of this guide

Speak with an AdvocateIf a benefit expert can’t answer your questions, an advocate will contact you within 24-48 hours.

Your Benefit Lifelines