TOTAL REWARDS COMPENSATION EMPLOYEE RECOGNITION

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1 TOTAL REWARDS Blue Shield of California strongly believes that our employees are the driving force that makes us the premier health care leader in the market. Our employees help us meet our commitments to members and deliver on our mission and brand - to ensure that all Californians have access to high quality care at an affordable price. That s why we proudly offer a comprehensive total rewards package that encompasses competitive cash compensation, health and wellness benefits and retirement. Most programs are available on the first day of employment. COMPENSATION BASE SALARY We ensure competitive pay for employees that reflects their skills, experience and market compensation trends. INCENTIVE PLANS Blue Shield believes in paying for performance. Our incentive plans are designed to align our employee pay with the company's strategic objectives, ensuring that we are driving outstanding performance and behaviors essential to achieving our Mission. EMPLOYEE RECOGNITION At Blue Shield, our goal is to create a distinct recognition culture, a feeling of camaraderie, interconnectedness and trust. MISSION & VALUES IN ACTION Recognizes individuals, teams, and/or departments who champion innovative ideas to create a positive change for the company and, in many cases, the communities we serve. BRAVO AWARDS Immediate peer-to-peer recognition program that recognizes employee behaviors that are above and beyond expectation. All employees are eligible to give and receive a Bravo Award.

2 SPOT BONUS Rewards an employee s differentiated achievements and contributions at the department level. All employees are eligible to receive a Spot Bonus. EMPLOYEE REFERRAL Recognition provided to employees that refer a candidate hired by Blue Shield. CAREER MILESTONE AWARD Recognition provided to employees for every year of service at Blue Shield. HEALTH MEDICAL PLANS Blue Shield offers various medical plans and coverage options for employee, spouses or domestic partners and dependent children. DENTAL & VISION PLANS Employees have the choice of two dental and two vision plans. FLEXIBLE SPENDING ACCOUNTS Employees can use pretax dollars to pay for eligible health care expenses up to $2,500 and/or dependent care expenses up to $5,000 annually, subject to IRS limits.

3 RETIREMENT 401(k) RETIREMENT PLAN Employees can reduce their taxable income and save for retirement by contributing to a 401(k). Employees who contribute at least 4% of pay can receive the maximum company match of 4% which is immediately 100% vested. INCENTIVES Blue Shield encourages employees to live healthy lifestyles and improve their overall well-being by offering rewards such as discounts on medical plan contributions and a Health Day Off. HEALTH RISK TOOLS We offer confidential health assessments for employees to identify challenges and offer support in the areas you most want to improve. WELLNESS Blue Shield supports employee well-being by offering programs that are easy, social and fun to fit healthy activity into the busiest day. Wellness programs are accessible via computer, mobile device or onsite to help with health goals such as weight management, healthy nutrition and smoking cessation. OTHER WELLNESS We offer annual flu shots, healthy cafés and vending machines, onsite fitness centers, free fitness classes, treadmill desks and more.

4 LIFE & DISABILITY BASIC LIFE INSURANCE We provide coverage of 1.5 times the employee s annual salary to a maximum of $1 million. Coverage is guaranteed and automatically adjusted as the employee s salary grows. VOLUNTARY LIFE INSURANCE Employees may purchase additional voluntary life insurance at affordable group rates for themselves and dependents. AD&D Accidental Death and Dismemberment (AD&D) insurance which pays a benefit if an employee is seriously hurt or dies as a result of a covered accident. DISABILITY An employer-paid short- and longterm disability benefit provides partial wage replacement when an employee s health condition prevents him or her from working. TRAVEL ACCIDENT INSURANCE We pay for insurance coverage for accidental death or injury while traveling on Blue Shield business. PAID TIME OFF TIME OFF OBSERVED HOLIDAYS Employees accrue paid time off based on fullor part-time status and years of service with the company. Full-time employees with 1-5 years of service accrue 20 days per year; those with 6-15 years accrue 23 days per year; and those with more than 15 years accrue 28 days per year. Blue Shield observes nine paid holidays per year.

5 LEAVE OF ABSENCE PROGRAM Paid and unpaid leave programs are available for bereavement, family care, maternity, child bonding, military service, and more. COMMUTER ADDITIONAL TUITION ASSISTANCE Blue Shield employees can contribute pretax dollars to pay for public transportation and parking expenses. We also offer additional programs to assist employees with vanpooling or carpooling. Blue Shield provides reimbursement up to 75% of eligible tuition expenses up to $5,250 (full-time employees)or $2,625 (parttime employees) per calendar year. ADOPTION ASSISTANCE We reimburse eligible adoption expenses to a maximum of $5,000 (full-time employees) or $2,500 (part- time employees). LIFE REFERRALS 24/7 Employees and their families have access to professional support and advice regarding various work/life situations - from emotional health, to relationships and parenting, to financial and legal issues. SCHOLARSHIP PROGRAM Dependent children, stepchildren, and grandchildren of eligible Blue Shield employees may apply for financial assistance for continued education. VOLUNTARY Employees have the option to purchase home, auto, long-term care, universal life, pet, and group legal insurance and identity theft protection, critical illness and accident insurance at group discount rates via a convenient payroll deduction.

6 ADDITIONAL DISCOUNTS Employees can take advantage of special discounts on tickets, hotels, apparel, gifts, gym memberships, car rentals and more. PURCHASING POWER Employee can purchase various personal products and services through payments that are automatically deducted over 12 months. RELOCATION Blue Shield offers a tiered relocation program that provides coverage for a spectrum of relocation-related costs and tax liabilities to eligible new hires. For more information on careers at Blue Shield go to:

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