A New Direction in Health Care for JPMorgan ChaseThe Conference Board

March 1, 2012

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About JPMorgan Chase

[TBD]

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A New Direction in Health Care for JPMorgan Chase

“Taking care of your health and your family should be top priorities, and it’s important that companies help

employees take control of their well-being.” – Jamie Dimon, Better Every Day Newsletter; Issue 1, July 2010

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The Case for Change

Better Decisions + Healthy Actions = Improved Health Outcomes + Better Economic Value

Low engagement in benefit decisions

Increasingly unhealthy population

Time for a new directionin Health Care and Wellness at JPMC

History of rising costs and declining value (medical inflation is

much greater than CPI) for employees and firm

JPMC >$1 BillionEmployees >$600

Million

Cost increasing6% – 8% per year

50% in HMOs7 Health Care Companies

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The Process of Change

Collaborative effort among multiple stakeholders to create and implement our new strategy

Nearly two years of planning, analysis and execution

LOBCommunications

HR BusinessPartners

WorkingGroup

LOBLeadership

SteeringCommittee

JPMCBenefits

Team

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A New Direction In Health Care: A Look at Our Strategy

We moved from… And went to…

Independent wellness program and

medical plan benefits

An integrated program that promotes and rewards efforts to achieve good health

No centralized resource for health care

information and tools

The My Health portal to help employees, retirees and familiesmanage their health care and wellness information online

Limited services in on-site

health care clinics

Expanded services in on-site clinics, including physician services and more locations

Multiple plans and health care companies

Two new Consumer Driven Health Plans (CDHPs), and two health care companies

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The New Consumer-Driven Health Plan (CDHP)

Key Points

The CDHP…

Encourages preventive care and more involvement in health care decisions Links to a JPMC-funded, tax-favored account (“Medical Reimbursement Account,”

or MRA) Puts more responsibility on users of care and typically has higher deductibles

Starts with an MRA…

Is funded by JPMC Helps offset out-of-pocket expenses Rolls over from one year to the next

And asks employees

to…

Understand how the plan works Choose a plan option and a health care company Take appropriate actions to maximize the plan’s value

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Spotlight on the New Consumer Driven Health Plan

All Current JPMC

Medical Plans

Replaced by

The New Consumer-Driven

Medical Plan

Option 1

Option 2

Medical ReimbursementAccount (MRA)

Funded by JPMorgan Chase

All Current JPMC Health

Care Companies

Two Choices:

CIGNA or UnitedHealthcareConsolidated to

Higher payroll contributions; lower deductibles and coinsurance maximums

Lower payroll contributions; higher deductibles and coinsurance maximums

Both companies offer high-quality, extensive networks and services

More than 95% of providers used by JPMC employees participate in these networks

Three ways to earn MRA Funds

Automatic Funds for employees who earn up to $250,000

Wellness Funds for employees who take actions

Start Up Funds in the 1st year for employees who take actions

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Deductible 20% Coinsurance

No Deductible 10% Coinsurance

No Deductible 0% Coinsurance

Preventive Care

Hospital, Specialist and Other Medical Costs

Primary Care

Payroll contributions, MRA funding amounts and coinsurance maximums will vary by salary tier

Medical Reimbursement Account (MRA) Funding

Helps offset out-of-pocket expenses

Automatic$$$

Wellness$$$

Start Up$$$

Activity-BasedNo Activities Required

Up to Coinsurance Maximum

(Safety Net)

You and the Plan Share the Cost for Medical Care (In-Network) 89203

How the New Medical Plan Works

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Start Up Funds

Wellness Funds

Automatic Funds

Requires Action

Take part in assessments, screenings, health coaching and

weight management

Requires Action

Engage in learning more about the health plan and health care

No Action Required

Automatic for employees enrolling in the Medical Plan who earn less than

$250,000 in totalannual cash compensation

Use money to help pay your deductibles and coinsurance, including Rx — tax-free

Unused amounts roll over from year to year

Total MRA

The MRA: How Funds Work

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What This Meant for Most Employees

Estimated cost comparison relative to what employees would have paid in 2012

if no plan changes were made

POS High

POS Low

Select HMOs

All Other HMOs

Legacy CDHP

Payroll Contributions

Total Impact Varied Based on MRA Funding

Automatic Funding

Driven by straightforward, easily achieved employee actions

Increase > $1,000

Decrease

Increase< $1,000

Maximum Funding

Increase > $1,000

Decrease Increase< $1,000

• Almost 90% of employees who maximize their MRA by “doing the right things” will be better off in 2012

• Almost 70% of employees will see a decrease in their payroll contributions

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Aligning Strategy and Partners

Two Health Care Companies, Cigna and UnitedHealthcare,Offered Side-by-side on a National Basis

More than 95% of providers utilized by JPMorgan Chase employees participate in the Cigna and/or UnitedHealthcare network

Health management programs embedded with each health care company

Commitment to innovation, transparency, engagement and health improvement backed by financial guarantees

Leading Edge Performance Commitments

Claim target guarantees Financial efficiency guarantees Clinical improvements and outcomes

Partner Role and Expectations

High quality, extensive networks and services Cost transparency Commitment to clinical improvement efforts and provider re-contracting Customized and highly visible employee communication support

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Engaging Our Employees: Learning Days

The Objectives Offer a forum for employees to learn about the new

Medical plan that is:

Informative, interactive and exciting

Professionally and seamlessly executed

Well promoted and well attended

A positive experience for employees

The Plan Run 47 live events in 23 business days across the

country, covering 77,000 employees and spouses

Run 12 “mini” events, planned and executed in two weeks, covering an additional 9,000 employees

Launch a “virtual” site with six 12-hour live Q&A sessions to cover employees who couldn’t get a live event

The Approach Leverage Towers Watson HGB consultants to serve as

subject matter experts onsite and virtually

Coordinate with event planners, JPMC Benefits team, local HR staff and Towers Watson to prepare, execute and follow up each event

Manage complex logistics for training, staffing, date changes, new requests along the way…

The Results 43,000 attended (56%) live events, with average of

1,000 attendees per event

3,500 (40%) attended “mini” events

10,000 unique visitors to virtual site, with 1,500 participants in live Q&A

Percent of employees with positive attitude about the plan rose from 17% to 40% after attending events

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Print to Home

Tip Sheets & Online

Tutorials

Virtual Learning

Days

Posters

Bringing the Strategy to Life

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My Health: Centralized Resource for Health & Wellness

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Early Returns

[Results so far (HRA completion, on-site biometrics, web hits, etc.)]

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Lessons Learned

[TBD]