Your Benefits at a GlanceA wealth of benefits to support your total well-being.

Welcome to Total Rewards

As a member of the McKesson team, you contribute to more than our company’s success — you change lives by helping supply our customers with the tools and services they need to treat and care for patients around the world. Total Rewards are our way of recognizing your hard work. They include benefits that go beyond your base pay and healthcare coverage. If you work 30 or more hours a week, you and your family can take advantage of the many Total Rewards available to you.

3 Healthcare Coverage You Can Rely On

4 Save Money for Healthcare Expenses

5 Healthcare Tools and Programs

6 Plan for Your Financial Future

7 Support Your Mind, Body and Spirit

8 Relax and Unwind

9 Work-Life Balance

10 Help Others

11 At-Work Perks

2

Medical

Our primary medical plans are the HSA and HSA Plus plans. Both offer:

• Comprehensive medical and prescription drug coverage

• No-cost in-network preventive care

• Deductibles, coinsurance and out-of-pocket maximums

• A health savings account to help you save for current and future healthcare expenses

• Choice of Aetna, Anthem (limited locations) or Cigna as your plan carrier

Depending on where you live, you may also have a third medical plan option to choose from — the Kaiser Plus plan. Learn more on the Total Rewards Library.

Healthcare Coverage You Can Rely On

Save Money on McKesson Medical Premiums

When you participate in Vitality, a voluntary wellness program, you can earn rewards such as savings on your McKesson medical premiums. Depending on your medical plan, pay and Vitality Status®, your medical premiums may be as low as $1 a month. Learn more on the Total Rewards Library.

Live In Hawaii?

Available medical plans in Hawaii are:

• HMSA/Blue Cross HMO plan

• Kaiser HMO plan

Dental

Take care of your smile with dental coverage from Cigna. You have these options to choose from:

• Cigna Dental PPO

• Cigna Dental PPO Plus

• Cigna Dental DHMO (available in some locations)

All provide 100% coverage for in-network preventive cleanings and exams. Learn more at my.cigna.com.

Vision

Protect your eyes with vision coverage from Vision Service Plan (VSP). Choose the VSP or VSP Plus plan. Both plans come with an allowance for lenses, frames and contacts. You also have access to the VSP network, which includes Costco and hundreds of other retail providers. Learn more at www.vsp.com.

3

Learn more about these benefits on the Total Rewards Library.

Save Money for Healthcare Expenses

Health Savings Account

If you enroll in the HSA, HSA Plus or Kaiser Plus plan, you’re eligible to contribute to a health savings account — a powerful tool that can help you save money for current and future healthcare expenses. The account also comes with many other financial benefits, such as the opportunity to invest your balance like you would with a 401(k) plan.

Flexible Spending Accounts (FSAs)

Set aside before-tax dollars to pay for eligible healthcare or dependent care expenses. For 2018, you can contribute up to $2,500 a year into a healthcare FSA and up to $5,000 a year into a dependent care FSA.

4

Healthcare Tools and Programs

Put the Best Medical Minds to Work for You

If you enroll in any McKesson medical plan, you and your covered family members can contact Best Doctors with questions about a diagnosis or treatment plan. Best Doctors provides expert medical advice and second opinions from some of the world’s leading physicians.

Save on a Hip or Knee Replacement

If you enroll in the HSA or HSA Plus plan, you have access to the Centers of Excellence (COE) program, which contracts with best-in-class hospitals and doctors to offer hip or knee replacements for little to no cost to you.

Say Hello to Your Personal Healthcare Assistant

If you enroll in the HSA or HSA Plus plan, you have access to Castlight, an online tool that can help you:

• Look up costs for doctor visits, prescription medications and other medical services.

• See what’s covered by your plan.

• Find reviews about doctors and hospitals in your network.

• Check your past medical claims.

Learn more about these benefits on the Total Rewards Library.

5

Save for Retirement with Our 401(k) Plan

We want you to sleep soundly at night knowing you have a solid retirement plan in place. That’s why we offer the 401(k) Retirement Savings Plan, formerly known as the PSIP. You can set aside 1%-75% of your paycheck on a before-tax and/or Roth after-tax basis (up to $18,500 in 2018) and 1%-25% in after-tax contributions. Plus, you can set aside an additional 1%-75% in catch-up contributions if you’re age 50 or older (up to $6,000 in 2018).

Best of all, McKesson provides a 1:1 match for the first 3% of your base pay and a 1:2 match for the next 2%. McKesson’s contribution is capped at 4% of your eligible pay. Traditional after-tax and catch-up contributions aren’t eligible for the match.

Stock Up on Shares of McKesson

Buy McKesson stock at a 15% discount through the Employee Stock Purchase Program (ESPP). You can participate in the program if you:

Protect Your Family’s Finances

We hope you or your loved ones never need to use your life and accident insurance benefits, but it’s good to know your family is protected. As a McKesson team member, you automatically get company-paid:

• $50,000 basic life insurance

• $50,000 accidental death & dismemberment (AD&D) insurance

• Short-term disability (STD) benefits

You can also buy supplemental coverage for you and your dependents. Learn more on UPoint.

Have worked at McKesson or a designated subsidiary for 60 days before the start of an offering period.

Work more than 20 hours a week and are expected to work more than five months a year.

Join the Credit Union

Enjoy the advantages and convenience of the McKesson Employees’ Federal Credit Union. Credit unions generally charge lower rates for loans and pay higher dividends on savings because they’re nonprofits. Get details at www.mckessonefcu.org.

Plan for Your Financial Future

You’ll get a welcome kit in the mail once you meet eligibility requirements for the 401(k) and ESPP.

6

Get Active and Earn Rewards with Vitality

Vitality is a voluntary wellness program that rewards you for taking steps to maintain or improve your health. Activities such as walking, yoga classes and yearly flu shots all earn Vitality Points™. As you increase your Vitality Points, you increase your Vitality Status® and earn rewards, like savings on your McKesson medical premiums and gift cards.

Plus, you get a free fitness device or a $47 credit toward a device of your choice when you join Vitality. (One device or credit per person, per lifetime.)

Save Money with Wellness Rebates

Reach your wellness goals without breaking the bank. You can get up to $275 a year toward gym membership fees and $200 a year toward weight loss program fees if you’re eligible.

Handle Whatever Life Throws Your Way

There’s no issue too big or too small for the Employee Assistance Program (EAP). Services include:

• 10 visits with a professional counselor per issue, per year

• myStrength™, a health club for your mind

• Referrals for legal advice, home repairs and other professional services

• Financial advice

• Identity theft resolution

• Help with workplace matters

• Senior care management

• Referral to the Taking Care of Our Own Fund, which provides grants for emergencies — see p. 10.

Services are confidential and free to you, your household members and your dependents up to age 26 who live outside your home.

Support Your Mind, Body and Spirit

Take advantage of tools and programs that support your total well-being. Whether you want to improve your fitness, change your diet or free your mind of stress, there’s something for you in your Total Rewards.

Learn more on the Total Rewards Library.

7

Relax and Unwind

Earn Paid Time Off (PTO)

You earn PTO every pay period. How much you earn depends on your years of service.

Years of Service Paid Days Off Equivalent Hours

Less than 1 16 prorated based on hire date

128 prorated based on hire date

1-2 16 128

3-4 18 144

5-9 23 184

10-14 25 200

15+ 28 224

Enjoy Paid Holidays

You get 12 paid holidays a year. These holidays are split between set and floating holidays. You can find the holiday calendar on McKNet.

Need Time Away from Work?

Sometimes life throws you a curveball and interrupts your daily routine. Using PTO to recover from a stubborn cold or to go camping can be expected. But when something more serious requires you to be away from work for an extended period of time, you can take a leave of absence. Available leaves include:

Eligibility requirements apply. Learn more on the Total Rewards Library.

Americans with Disabilities Act (ADA) Leave

Family and Medical Leave Act (FMLA) Leave

Parental LeaveBone Marrow Donation Leave

Military Leave

Personal Leave

Spend Time Bonding with Your New Child

The birth or adoption of a child is a special time, and we know you don’t want to miss a minute of those first days. That’s why we offer paid Parental Leave to both the primary and secondary caregivers, whether you’re a mom or a dad.

8

Adoption Assistance

Further Your Education

Get reimbursed up to $5,250 a year for your eligible education expenses, including tuition, registration and lab fees. Best of all, there’s no limit on the number of courses you can take.

College Scholarships Available

Each year, the McKesson Foundation awards  four-year scholarships to children of employees through Scholarship America and the National Merit Scholarship Corporation.

If you’re thinking about adding to your family through adoption, be sure to take advantage of the Adoption Assistance Program. You can get a reimbursement of up to $2,000 per adoption for:

• Court fees

• Foreign adoption fees

• Immigration, immunization and translation fees

• Legal fees

• Legal guardianship

• Private or public agency fees

• Temporary foster care

• Transportation expenses

You can also be reimbursed when you adopt certain relatives, such as a grandchild, niece or nephew.

Work-Life Balance

Save Money on Almost Everything

You can get employee discounts on a variety of goods, from electronics to travel, through our Employee Discounts and Purchase Programs on McKNet.

Ride Smart and Save

The Commuter Benefits program lets you set aside before-tax dollars to pay for public transportation and parking fees.

Learn more about these benefits on McKNet.

9

Like you, we’re committed to creating healthier communities. That’s why we offer volunteer and donation programs, so together we can make a positive difference in the world. Here are some ways you can get involved.

Give Comfort to Those in Need

The McKesson Foundation provides cancer patients with care packages through our nonprofit program called Giving Comfort. McKesson employees like you make care packages with handcrafted blankets, inspirational gifts and messages of hope.

Support Your Coworkers

The Taking Care of Our Own Fund provides grants to help coworkers through tough times, like disasters, accidents or serious illness. It’s supported by McKesson, the McKesson Foundation and employees like you. When you give to the Fund, the Foundation automatically matches your donation.

Double Your Charitable Donations

The Matching Gifts Program matches your eligible donations dollar for dollar, from $10 to $2,500 a year. In 2017, the total value of grants matched was more than $1.7 million.

Promote Enrichment through Diversity

Employee Resource Groups (ERGs) are voluntary, employee-led and company-sponsored groups that help encourage diversity at McKesson. ERGs give you the opportunity to grow professionally and influence McKesson’s culture. ERGs are open to all employees.

Help a Cause and Earn a Grant

Get grants for your favorite nonprofit organizations by volunteering your time. Eligibility and grant amounts depend on the hours you volunteer. Through the program, you have the opportunity to expand the McKesson Foundation’s charitable reach into the community.

Help Save the Life of a Cancer Patient

Consider adding your name to an international donor registry through the McKesson Marrow Drive. You can take paid time off from work to make a marrow donation.

Help Others

Learn more about these benefits on McKNet.

10

Refer a Friend to McKesson

Earn gift cards, cash and vacation trips for successful referrals through MINT, our employee referral program.

Mpower Others and Reap the Rewards

Mpower programs recognize and reward you for on-the-job performance. When you do something great — celebrate a McKesson milestone or get a “thank-you” from a colleague — you can earn Mpower points. Redeem your Mpower points for anything from brand-name electronics to gift cards to personal travel — the possibilities are virtually endless. Ask your manager how you can start earning Mpower points.

Social Connections

Get social and share health tips, photos, success stories and words of inspiration with your coworkers. Tag @mckessoncorporation on Instagram and join a McKesson group on Yammer.

At-Work Perks

Learn more about these benefits on McKNet.

11

June 2018

UPointhttp://resources.hewitt.com/mckessonReview and manage your Total Rewards.

Total Rewards Librarywww.mckesson.com/totalrewardslibraryFind information about health and wellness programs from any device connected to the internet.

McKNet http://mcknet.mckesson.comStay up to date on everything going on at McKesson.

Fidelitywww.netbenefits.com 888.625.7747Review and manage your 401(k), ESPP and health savings account.

WageWorkswww.wageworks.com877.924.3967Review and manage your FSAs and commuter benefits.

Vitalitywww.powerofvitality.com877.224.7117Earn rewards for taking steps to improve your health.

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.

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.