Live Life, Live Long, Live Well™ An Evolving Health and Wellness Strategy. Dodi Kelleher, DMH Director, Health and Wellness Initiatives, Safeway Inc. One of the largest food and drug retailers in North America 200,000 employees and 1,725 stores across the US and Canada. Safeway health benefits offered to 30,000 corporate and store employees

1. Consumer-Centric Health
Models for Change „11

2. Live Life, Live Long, Live Well™
An Evolving Health and Wellness Strategy
October 13, 2011
Dodi Kelleher, DMH
Director, Health and Wellness Initiatives
Safeway Inc.

3. Getting to Know Safeway
 One of the largest food and drug
retailers in North America
 200,000 employees and 1,725 stores across
the US and Canada
 Network of distribution, manufacturing and
food processing facilities
 Safeway.com
 Safeway health benefits offered to
30,000 corporate and store employees
 Majority of union population receives
benefits through labor trust funds,
principally UFCW and Teamsters

4. Four Chronic Conditions = 74% of Disease Costs
Cost Distribution by Disease State
17% 100%
74% of Costs
9%
10%
11%
20%
33%
CVD Cancer Diabetes Overweight Other All Other Total
& Chronic Disease
Obesity Cost
80% 30% / 60% 80% Nearly all % Preventable / Manageable
CVD/Stroke Type 2 can improve
Source: CDC, HHS, 2005 data, Safeway analysis

5. Cost of Unhealthy and Non-compliant Behavior
Unhealthy Behaviors are Expensive Non-Compliant Behavior is Common
2010 Incremental Cost % Non-Compliant with Recommended Care
$1,796
67
$1,437
55
51
46 46 34 Obese
35
32
$652 $617
$488
Smoking Obesity Lack of Uncontrolled Uncontrolled Coronary Hyper- Colorectal Asthma High Diabetes Overweight/
Exercise Hypertension Cholesterol Artery tension Cancer Cholesterol Obesity
Disease
Source: Elizabeth McGlynn, et al, The Quality of Health Care Delivered to Adults in the United States,
NEJM, Vol. 348:2635-2645 June 26, 2003 (No. 26); NHANES 2005-06

6. Creating a Healthier Safeway
Enable employees and Create business
families to improve health advantage for
and quality of life Safeway
We have a strong belief in the efficiency of markets and the
power of pricing...
And the confidence that employees can be informed
consumers of health care and are willing to be held
accountable for their actions.
Safeway’s Vision Statement:
We earn the loyalty of the people we serve through the
talents and passion of employees

7. Programs To Identify and Manage Risks
Safeway Wellness Offerings
Program Incentive Type Eligible Population
Healthy Measures Premium Discount Benefit Eligible Employees,
Health Assessment Spouses, and Domestic Partners
My Well Family Survey Premium Discount HRA Eligible Employees, Spouses,
Health and Consumerism Training and Domestic Partners
JumpStart Team Health Challenge Virtual tickets in a All Safeway Employees in US and
Family Focused Health Challenge raffle Canada
Weight Management Programs Subsidized Cost All Safeway Employees where
Healthy Cafeterias available
Gym Memberships
Smoke Free Campus No Cost All Safeway Employees where
Onsite Fitness Center available
Weekly Wellness Classes

8. Healthy Measures
 Reductions to medical benefit premium if employees
and/or covered spouse/domestic partner meet the
following :
─ BMI below 30 mg/dL
─ Blood Pressure <140 & <90
─ Cholesterol < 220
─ Glucose <116
─ No nicotine use
 Employees who miss one or more of the measures, can
earn retroactive rebate if they meet standards or improve
sufficiently by year end
 Provide a one year “pass” for those who meet NIH
standards in all measures

9. Healthy Measures Testing Results
For 2009 Plan Year For 2011 Plan Year
 Employees  Employees
– 70% participation – 76% participation
– 51% qualified for all 4 discounts – 58% qualified for all 4 discounts
– 12% qualified for 1 or fewer – 39% improved at least one of
discounts four test results from 2009
 Spouse / Domestic Partners  Spouse / Domestic Partners
– 56% participation – 69% participation

10. Healthy Measures Two Year Results
Percent of Participants Passing in Plan Year 2011 Who Did Not Pass in Plan Year 2009
73% Employees and Spouses
45% 43%
35%
21%
Blood Pressure Glucose Cholesterol Tobacco BMI
No Pass‟09 1,899 1,378 2,674 1,106 3,295
Passed „11 1,379 616 1,160 392 708

11. Long Term Engagement Drives Success
100
Number of Participants
JumpStart Health Challenge 1 - Initial BMI
80 37.1% Obese
60
40 37.8%
8.6%
20 1.5% 23.6% 22.3% 6.2%
0
14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46+
100 JumpStart Health Challenge 2 - Post BMI
Number of Participants
80
30.2% Obese
60
40
40.1% 7.2%
20 18.5% 4.6%
1.7% 28.0%
0
14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46+
Underweight Ideal Weight Overweight Obese Class I Obese Class II Obese Class III

12. Participants are Embracing the Changes
When Healthy Measures participants were surveyed . . .
 87% of participants participated because it saved them money
 70% said they participated because it rewards healthy lifestyles
When JumpStart Team Challenge participants were surveyed . . .
 93% said they participated to improve or learn more about their health and
wellness and were satisfied or very satisfied with the program
 78% agreed it had improved their health and 80% said they were likely or very
likely to participate in the next challenge and to encourage a co-worker to
participate

13. Creating a More Engaged Consumer
What Would One Look Like?
 Takes personal responsibility for understanding
and optimizing health behaviors
 Is a smart buyer of health care products
and services
 Participates in a transformational
consumer-focused health plan

14. Smart Purchasers of Health Care
 Recognizes accountability for health care and knows how to maximize
health benefits
 Shops for providers and goods based on value
 Knows the appropriate medical facility for relevant medical conditions
and emergencies
 Has a collaborative relationship with
health care provider
 Uses quality hospitals and
doctors that offer e-visits and online
scheduling
 Understands the financial impact of
healthcare choices and the lifetime
cost trend
14

15. We Provide Additional Support
 Dedicated Personal Health Team:
– Health and disease prevention information
– Telephonic outreach regarding health risks and conditions
– Coaching and condition management
• Holistic bio-psycho-social approach that is culturally aware
• Integrated with other benefits
• Reportable outcomes
• Some programs like tobacco cessation and diabetes management have
“co-pay” incentives
 Communication and transparency tools
• AisleOne
• Castlight Health

16. ChoicePoint (Reference Based Pricing)
 Safeway Plan sets an amount it will pay
for the commodity services such as:
– Pharmacy
– Labs
– Imaging
 Any amount above this price point is the
responsibility of the member
 Member shops for commodity services
via online portal or via phone
 Ability to view pricing for non-commodity
services
16

17. Safeway AisleOne Benefits Portal
 A benefits portal for
employees and covered
spouses/ domestic
partners
 One-stop shopping
experience… available
through one URL with one
password
 A “sticky” experience that
engages employees
 Comprehensive site to
support all aspects of a
total health and wellbeing
strategy

18. Supporting Shopping Behaviors: Castlight Health
 Castlight Health is an online health care decision tool for
employees to shop costs before visiting a doctor or making
other choices about health care
18

19. Building a “Culture of Health”
 Attributes of a “culture of health”
Culture =
– Corporate values reflect belief that
“How things get
workforce well-being is a business
done around
here”
advantage
– Managers demonstrate consideration for
employee health, well-being and safety
in operational management and planning
– Employees believe leadership
Health = authentically cares about their well-being
“Physical, – Employees take accountability for
emotional and achieving good health
financial well-
being”

20. Why Create a Total Health Brand
 Creates a way of connecting the various Safeway health benefits
and wellness programs that help employees manage their
wellbeing, from wellness exams to retirement planning, everyday
 Encourages a new employee mindset about taking care of
physical, emotional and financial health and wellbeing
 Helps employees and their families be healthier in all parts of life
 Leads to more present, focused and engaged employees.