Benefit Summary 2020

BENEFITS SUMMARY OF

2020

WWW.KERNMEDICAL.COM

PREFACE This booklet is intended to highlight the benefit programs available to permanent (non-temporary) Kern Medical employees. The summary of terms contained in this booklet are not complete. Specific rights to benefits under the plan are governed solely, and in every respect, by the official plan documents and not the information contained within this benefits summary.

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BENEF I TS AT

A GLANCE

PLAN

COVERAGE

PAGE

Medical Coverage (Kern Medical & employee share cost)

05

Employee only, employee plus one, and family coverage available

Dental Coverage (Kern Medical & employee share cost)

Employee only, employee plus one, and family coverage available

08

Vision Coverage (Kern Medical & employee share cost)

Employee only, employee plus one, and family coverage available

10

Paid Time-Off, Holidays, Extended Illness Bank, & more

11

Other Benefits, Policies & Programs

Pension Plan (Kern Medical & employee paid)

14

Defined benefit retirement plan; benefit based on final salary, years of service, tier, and age upon retirement

Deferred Compensation (Kern Medical & employee paid)

15

Matching contributions for qualified employees up to 6% of eligible pay

Supplemental benefits available at employer negotiated rates

Voluntary Benefits

16

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BENEFITS OVERVIEW

Eligibility In general, if you are a permanent (non- temporary) employee who works at least 40 hours in a bi-weekly pay period you will be eligible. This booklet discusses the benefits to permanent (non-temporary) employees. Please refer to other governing documents for temporary and contract employees.

Kern Medical employees are united in their commitment to incredible patient care, education, and service to our community. Kern Medical values that commitment and is pleased to offer a robust benefits program with options to meet your unique needs. This booklet provides a brief overview of the benefit plans and other employee resources that are available to you. During a benefits enrollment meeting shortly after hire, you will be given a benefits enrollment packet that more fully describes Kern Medical’s benefits.

HEALTH BENEFITS PACKAGES

With our health benefits packages, you and Kern Medical share the cost of providingfor yourcoverage. Youpayyour share through biweekly contributions, co- payments, coinsurance, and/or annual deductibles.

Thecoverage level you select – Employee only, Employee +One, or Family – and the medical option you choose – determine your contribution amount. Each health benefits package includes medical, prescription, vision, and dental coverage.

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Kern Medical offers five medical plans to accommodate your personal needs. MEDICAL COVERAGE

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Kern Legacy Select (High Deductible EPO)

Kern Legacy Network Plus (EPO + PPO)

Kern Legacy Select Network includes coverage at Kern Medical and other local community providers. Kern Legacy Select has no biweekly employee contribution for employee only coverage anda lowcost for additional dependents. The plan features a deductible of $2000 per individual and $4000 per family. Once the deductible is met, Primary Care Physician visits are a flat $10 copay. The annual deductible is waived for preventive care. If you’re healthy and only using preventive care, you could essentially have coverage with no out- of-pocket expenses throughout the year. This plancanbeused inconjunctionwitha tax advantaged Heakth Savings Account (HSA). This personal savings account allows you to save and pay health care expenses with tax-free dollars.

Kern Legacy Network Plus is an exclusive network health plan with two benefit tiers giving members choices when accessing health care services. The Preferred Tier includes coverage at Kern Medical and other local providers. Kern Legacy Network is the 2nd lowest biweekly employee contribution. The Preferred Tier has no annual deductible & $10 copays for Primary Care Physician visits. When you want more choices, the Plus Network offers another expansive list of participating providers to choose from. This tier features a deductible of $250 per individual and $500 per family. Most services on this tier are paid at 20% of coinsurance.

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Kern Legacy Classic Choice (POS) Kern Legacy Classic Choice, is an Anthem Network health plan. The plan is the only to offer both in-network and out-of-network coverage. Kern Legacy Classic Choice has the highest biweekly employee contributions. In- network has no annual deductible and physician visits are a flat $15 copay. Out-of-network features a deductible of $200 per individual and $400 per family. Once the deductible is met, most services are covered at 70%. Kaiser Permanente (HMO) Under Kaiser Permanente, you select a Primary Care Physician to coordinate all of your care. Covered medical services typically must be received through Kaiser’s network of physicians, hospitals, and other medical providers including Adventist Health & Bakersfield Medical Center. Kaiser Permanente has the 3rd highest biweekly employee contribution. This plan has no annual deductible. You will pay a $10 copay for each Primary Care Physician visit and many other medical services.

Kern Legacy Max Choice (EPO) Kern Legacy Max Choice is an Anthem Network health plan. Anthem Network is one of the largest health plan networks with coverage available nationwide, which means any Anthem Network Hospital or Anthem Network Doctor anywhere in the United States. Max Choice has the 2nd highest biweekly employee contribution. This plan features a deductible of $250 per individual and $500 per family. Once the deductible is met, PrimaryCarePhysicianvisits areaflat $10 copay and most other services are paid at a 20% coinsurance. The annual deductible is waived for preventive care. Copays are also reduced for services received at Kern Medical.

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DENTAL COVERAGE

There are two dental plans available for employees to choose from.

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Independence Dental (PPO) This Preferred Provider Plan offer both in-network and out-of-network coverage. Of the two plans, the PPO plan has the higher biweekly employee contribution. The plan has a per person annual maximum of $2,500 for a PPO dentist/$1,500 for a non-PPO dentist and features a deductible of $50 per person and $150 per family. After the deductible has been met, the plan pays for 90% of the cost for work done by in- network dentists and 70% for work done by out-of-network dentists.

Colbalt Plus (DHMO) Under this HMO-type plan the employee selects one permanent dentist from a pre-approved list. The DHMO plan has the lower biweekly contribution of the two plans. There is no annual maximum or deductible. Preventative care, X-rays, and restorative services are covered at 100%. Other services are offered with a specified co-payment.

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VISION COVERAGE

Group vision coverage is provided by Vision Service Plan (VSP). Vision Service Plan (VSP) VSP provides for an eye examination every twelve months, and lenses and frames once every twenty-four months. Copays for eye examinations are $20. Lenses and/or frames have a co-payment of at least $20. Benefits are reduced if a non-VSP doctor is used.

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OTHER BENEFITS, POLICIES AND PROGRAMS

Employee Assistance Program (EAP)

Provided through Anthem Blue Cross, Kern Medical’s Employee Assistance Program (EAP) is designed to help you meet the challenges of modern life. The EAP offers confidential information, support, and referral service tools. Areas frequently addressed include: child care

& elder care resources, budgeting tools, legal assistance, car and home buying advice, career advice, & college planning tips. In addition, three free counseling sessions, per incident are also available to you.

Holidays Kern Medical observes eight holidays. New Year’s Day Martin Luther King’s Birthday Memorial Day Independence Day Thanksgiving Day Day after Thanksgiving

Paid Time Off (PTO) Regular and Part-Time employees are entitled to Paid Time Off (PTO). PTO is accrued under the following schedule: Years Of Service PTO Hours 0-4 144 hours 5-9 184 hours 10-14 224 hours 15+ 263 hours PTO is prorated based on hours worked.

Christmas Eve Christmas Day

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Extended Illness Bank (EIB) Regular & Part-Time employees are entitled to an Extended Illness Bank (EIB). EIB is designed for situations where you need to be absent for four or more consecutive shifts or have met other illness criteria. EIB is accrued under the

Kern Medical Employer Paid Life Insurance The plan provides life insurance to employees in certain job categories. Kern Medical pays the full cost for your coverage. Benefits are payable to your designated beneficiary under the plan.

following schedule: Years Of Service

Category

Coverage

EIB Hours

0-5

55 hours

SEIU Represented $10,000 Confidential $50,000 Management $100,000

6+ 80 hours EIB is prorated based on hours worked.

Perks at Work As a Kern Medical employee, you will have access to a free perks platform offering over 30,000 unique discounts on a variety of products and services you use every day. Save on travel, entertainment, electronics, apparel, fitness, and more.

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Flexible spending accounts (FSAs) and Health Savings Accounts (HSAs) are special accounts that allow you to put money aside for certain out-of-pocket healthcare costs. You don’t pay taxes on this money. This means you’ll save an amount equal to the taxes you would have paid on the money set aside. You can also elect to contribute pre-tax FLEXIBLE SPENDING ACCOUNTS AND HEALTH SAVINGS ACCOUNTS Kern Medical is a federally designated Health Professional Shortage Area (HPSA). You may be eligible for loan repayments. Speak to a Kern Medical representative for more details. LOAN FORGIVENESS to a separate FSA to pay for qualified dependent childcare expenses. While FSAs can be used to pay for qualifying expenses in the current plan year, HSAs can be used to pay for both current and future plan year expenses. Only those enrolled into Kern Legacy Share Select are eligible to participate in the HSA.

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PENSION PLAN Defined Benefit Retirement Plan (Kern County Employees’ Retirement Association - KCERA) Membership into KCERA begins

This plan provides you with retirement, disability and death benefits. Once you have five years of retirement service credit, you will be fully vested in the plan. Vesting means you are entitled to a monthly benefit at retirement, regardless of additional service. For employees newly hired on or after October 27, 2007, you will be enrolled in General Tier II PEPRA, which provides a benefit formula of 1.62% at 65. Your total monthly retirement benefit upon retirement will be based on the following factors: your age at retirement, your total years of retirement service credit, your final average monthly compensation & your benefit tier.

automatically upon your appointment to a permanent position of 50% or more of the regular stand hours required. Some types of employment are not eligible for membership in KCERA, these include management, mid-management, and confidential (hired on or after Nov 24th 2018), extra-help, temporary, per-diem, contract & part-time positions working less than 50% of the regular standard hours required. Members are required to make contributions to KCERA through biweekly pre-tax payroll deductions. Your contribution amount is based on a percentage of your base pay plus any special pay considered compensation that are included in determination of your final average compensation.

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DEFERRED COMPENSATION

401(a) Deferred Compensation Retirement Plan Enrollment into the 401(a) deferred compensation plan is available to you immediately upon your appointment to a management or mid-management position with Kern Medical. When you chose to defer pre-tax dollars into your 401(a) retirement plan, Kern Medical will match your contribution at 100% up to 6%of your compensation, plus an additional 50% match on the next 6% of your pay for the same biweekly pay period. Therefore, if you contribute at least 12% of your pay, you will receive the total available match of 9% of your pay. All match dollars will be deposited to the 401(a) plan. No employee deferments will be directed to this plan. Matching Contributions and any earnings on those contributions are tax- deferred until the money is withdrawn. Distributions are subject to ordinary income tax. You vest in Kern Medical’s matching contributions over a 5 year period with a 20% grading each year.

457(b) Deferred Compensation Retirement Plan Enrollment into the 457(b) deferred compensation plan is available to you immediately upon your appointment to a full-time position with Kern Medical. When you chose to defer pre-tax dollars into your 457(b) retirement plan, Kern Medical will match your contribution at 100% up to 6% of your compensation*. Your and Kern Medical’s contributions to the plan and any earnings they generate are always 100% vested. MatchingContributions andanyearnings on those contributions are tax-deferred until the money is withdrawn. Distributions are subject to ordinary income tax.

NEW EMPLOYEE PREMIUM PAY (ONGOING BENEFIT) Permanent employees are eligible for a New Employee Premium Pay equal to 6% of your base salary .* The six percent biweekly premium pay is calculated by multiplying your hourly rate times the amount of hours the you are paid during the pay period, including hours worked and PTO but excluding overtime. *Most employees hired after October 27th, 2007 are eligible.

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KernMedical hasmanyadditional benefitsandprograms available through voluntary payroll deduction. VOLUNTARY BENEFITS

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Cancer Plan (TransAmerica) TransAmerica's Cancer Plan pays you benefits in the event you are diagnosed with an invasive cancer. Additionally, this plan provides for wellness benefits to help you detect cancer early when it’s most treatable. Hospital Confinement Plan (VOYA) VOYA's Hospital Confinement Plan pays you a daily benefit if you have a covered stay in a hospital, critical care unit or rehabilitation facility. Shorty Term Disability Insurance/ Long Term Disability Coverage (American Fidelity) American Fidelity's Short Term and Long Term Disability coverage provide an income for you when you are disabled due to a covered injury or sickness that keeps you away from work for an

Accident Insurance (VOYA) VOYA's Accident Insurance plan helps you pay for out-of-pocket costs you may experience after a covered accident. Legal and Identity Theft Plan (LegalEase) LegalEase offers: Estate Planning, Family Law Services, Financial Counseling, Name Changes, Home Sale/Purchase, VOYA's Critical Illness Plan pays you benefits in the event you are diagnosed with a critical condition, such as: Cancer, Heart Attack, Stroke or Renal Failure. Additionally, this plan provides for wellness benefits towards annual health screenings. Identity Theft Assistance & more. Critical Illness Plan (VOYA)

extended period of time. Universal Life Insurance (Trustmark)

Universal life insurance can help safeguard your family members’ futures, with benefits that can assist with your final expenses and their dependent care, living expenses or college tuition.

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1700 Mt Vernon Ave, Bakersfield, CA 93306 P : 661.326.2000

E : info@kernmedical.com W : www.kernmedical.com