1. Good health can change the world DISCOVERY 2015 PrimaryCare

2. ACCESS TO PRIVATE HEALTHCARE BENEFITS THE EMPLOYER AND THE EMPLOYEE EmployeesEmployers Private healthcare meets employees’ needs Source: Stats SA IES survey, 2010/2011 Increased productivity of healthier employees RankEmployees’ needs 1Transport 2Housing 3Food 4Health 5Insurance 6Clothing Source: Discovery research

3. PRIVATE HEALTHCARE REMAINS UNAFFORDABLE FOR EMPLOYEES EARNING LESS THAN R6 000 PER MONTH Private healthcare is unaffordable Monthly income Medical scheme membership, % Source: South African Health Review, Health Systems Trust Medical scheme membership becomes affordable Discontinuity in health cover due to affordability

4. EMPLOYERS AND EMPLOYEES PRIORITISE PRIMARY CARE WHEN FACED WITH AFFORDABILITY CONSTRAINTS Priority of healthcare servicesPriority of baskets of services Employees’ prioritisation 1Emergency hospital care 2GP care 3Optometry 4In-patient hospital care 5Dentistry 6Specialist care Employees’ prioritisation 1Primary care services 2Full hospital cover

5. DISCOVERY PRIMARYCARE No exclusions or waiting periods No individual application forms No chronic application Seamless billing integration Seamless claims experience Employer training

6. Healthcare services for employees GP visits Prescription medicine Chronic medicine Basic pathology Basic radiology Ambulance service Additional services for employees Dentistry (R16 per employee per month) Optometry (R9 per employee per month) Access to discounted maternity global fee Discovery Wellness Day (R285 per employee) Onsite occupational health services Management service for employers Integrated billing Training Integrated healthcare usage reports Communication and marketing Seamless claims experience Occupational health and wellness consulting on request DISCOVERY PRIMARYCARE R199 per employee per month (excl VAT) Discovery PrimaryCare is not a medical scheme

7. EXECUTIVE PRIMARYCARE COMPREHENSIVE PRIORITY SAVER CORE KEYCARE EXTENDING AFFORDABLE ACCESS TO PRIVATE HEALTHCARE AT ALL INCOME LEVELS Threshold % of income to spend on healthcare Contributions as % of income Contributions with a 50% employer subsidy Discovery PrimaryCare is not a medical scheme DISCOVERY HEALTH MEDICAL SCHEME R6 000

8. DISCOVERY PRIMARYCARE | Legal Framework #1 …not a medical scheme …not an insurance product #2 #3 …not a financial product Discovery PrimaryCare is not a medical scheme as it does not fall within the ambit of the definition of “business of a medical scheme” in section 1 of the Medical Schemes Act. The term “business of a medical scheme” is defined in section 1 of the Medical Schemes Act to mean: “the business of undertaking liability in return for a premium or contribution – a)To make provision for the obtaining of any relevant health service; b)To grant assistance in defraying expenditure incurred in connection with the rendering of any relevant health service; and c)Where applicable, to render a relevant health service either by the medical scheme itself, or by any supplier or group of suppliers of a relevant health service or by any person, in association with or in terms of an agreement with a medical scheme.” There needs to be an undertaking of liability to trigger an inquiry into whether a person is conducting “the business of a medical scheme”. Discovery does not undertake liability in the implementation of Discovery PrimaryCare as Discovery enters into agreements with healthcare professionals as agents for and on behalf of employers and it does not undertake any liability towards healthcare professionals. This position will not be affected when the amended definition of a “business of a medical scheme” in the Financial Services Laws General Amendments Act comes into operation. Discovery PrimaryCare is not an insurance product as it does not fall within the ambit of either the definition of a “health policy” under the Long-Term Insurance Act or the definition of an “accident and health policy” under the Short-Term Insurance Act. Discovery in its capacity as agent of the employer, is not undertaking to provide benefits upon the occurrence of health events in return for a premium. One of the key elements of insurance is the taking on of liability or risk by the insurer. In the Discovery PrimaryCare model, Discovery does not take on liability or risk. Discovery PrimaryCare does not fall within the ambit of the definition of a financial product as contemplated in the Financial Advisory and Intermediary Services Act. Discovery PrimaryCare is… #4 … an employer-funded primary healthcare service provision model Discovery PrimaryCare is an employer-funded primary healthcare service provision model, developed, administered, and managed by Discovery, that allows employers to provide employees falling below the stated income threshold with access to quality and affordable primary healthcare.

9. DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Healthcare services for employees GP visits Prescription medicine Chronic medicine Basic pathology Basic radiology Ambulance service R199 per employee per month (excl VAT) Unlimited access to chosen * PrimaryCare GP National network of PrimaryCare GPs *Employees must choose a GP from the network to be their allocated GP

10. DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Healthcare services for employees GP visits Prescription medicine Chronic medicine Basic pathology Basic radiology Ambulance service R199 per employee per month (excl VAT) Dispensed by employee’s PrimaryCare GP Dispensed from defined list of medication

11. DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Healthcare services for employees GP visits Prescription medicine Chronic medicine Basic pathology Basic radiology Ambulance service R199 per employee per month (excl VAT) Medicine for: ‒Hypertension ‒Hyperlipidaemia ‒Asthma ‒Diabetes ‒HIV Dispensed from formulary by PrimaryCare GP or network provider

12. DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Healthcare services for employees GP visits Prescription medicine Chronic medicine Basic pathology Basic radiology Ambulance service R199 per employee per month (excl VAT) Access to a network of providers Available through referral by employee’s PrimaryCare GP

13. DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Healthcare services for employees GP visits Prescription medicine Chronic medicine Basic pathology Basic radiology Ambulance service R199 per employee per month (excl VAT) Access to ambulance services in case of an emergency Employees will be transported to the nearest state facility

14. Additional services for employees Dentistry Optometry Access to discounted maternity global fee Discovery Wellness Day Onsite occupational health services DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees

15. Additional services for employees Dentistry Optometry Access to discounted maternity global fee Discovery Wellness Day Onsite occupational health services DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees R16 per employee per month including VAT Consultations, fillings and tooth removals at a dentist in our national network

16. Additional services for employees Dentistry Optometry Access to discounted maternity global fee Discovery Wellness Day Onsite occupational health services DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees R9 per employee per month including VAT One eye test every year in our designated optometry network One pair of glasses or the contact lens equivalent every 24 months

17. Additional services for employees Dentistry Optometry Access to discounted maternity global fee Discovery Wellness Day Onsite occupational health services DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees R10 000 once-off cost Package of private care for maternity, including consultations and delivery, in a network of private hospitals Funded by employer or employee

18. Additional services for employees Dentistry Optometry Access to discounted maternity global fee Discovery Wellness Day Onsite occupational health services DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees R285 per employee per year incl VAT Access to the Discovery Wellness Day which covers all essential biometric and health screenings (incl HIV VCT) Post-Wellness Day reporting is provided, giving employers valuable insight into their employees’ state of health and wellbeing

19. Additional services for employees Dentistry Optometry Access to discounted maternity global fee Discovery Wellness Day Onsite occupational health services DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Discovery Health and its preferred sub-contracted providers can provide a comprehensive range of workplace health and wellness services

20. Management service for employers Integrated billing Training Integrated healthcare usage reports Communication and marketing Seamless claims experience Occupational health and wellness consulting on request DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees

21. Management service for employers Integrated billing Training Integrated healthcare usage reports Communication and marketing Seamless claims experience Occupational health and wellness consulting on request DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Single billing platform Billing and reconciliation integrated with Discovery Health Medical Scheme

22. Management service for employers Integrated billing Training Integrated healthcare usage reports Communication and marketing Seamless claims experience Occupational health and wellness consulting on request DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Discovery will provide the employer with the required training to assist employees in accessing their benefits

23. Management service for employers Integrated billing Training Integrated healthcare usage reports Communication and marketing Seamless claims experience Occupational health and wellness consulting on request DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Comprehensive annual healthcare reporting Integrated with existing Discovery Health Medical Scheme health and wellness reporting

24. Management service for employers Integrated billing Training Integrated healthcare usage reports Communication and marketing Seamless claims experience Occupational health and wellness consulting on request DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Discovery will provide the employer with appropriate marketing material to communicate the available services to employees

25. Management service for employers Integrated billing Training Integrated healthcare usage reports Communication and marketing Seamless claims experience Occupational health and wellness consulting on request DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Discovery will pay the healthcare provider directly and therefore: there is no need for employees to submit claims to Discovery; and the employee experiences no out-of-pocket expenses on the services provided

26. Management service for employers Integrated billing Training Integrated healthcare usage reports Communication and marketing Seamless claims experience Occupational health and wellness consulting on request DISCOVERY PRIMARYCARE | Flexible, affordable healthcare services for employees Discovery can perform an occupational health and wellness review on request

27. Healthcare services for employees GP visits Prescription medicine Chronic medicine Basic pathology Basic radiology Ambulance service Additional services for employees Dentistry (R16 per employee per month) Optometry (R9 per employee per month) Access to discounted maternity global fee Discovery Wellness Day (R285 per employee) Onsite occupational health services Management service for employers Integrated billing Training Integrated healthcare usage reports Communication and marketing Seamless claims experience Occupational health and wellness consulting on request DISCOVERY PRIMARYCARE R199 per employee per month (excl VAT) Discovery PrimaryCare is not a medical scheme

28. DISCOVERY PRIMARYCARE | Tax implications Employer Employee The extent to which the employer subsidises the monthly PrimaryCare fee represents a fringe benefit in the hands of the employee If an employee earns less than R5 892 per month, there is no tax implaction for the employee The full cost of the PrimaryCare fee is tax deductible for the employer, irrespective of whether it is fully subsidised or not The employer will be able to claim back the VAT portion of the service fee

29. DISCOVERY PRIMARYCARE | Eligibility criteria A minimum of 100 employees to be enrolled on Discovery PrimaryCare Defined in line with the employer’s recruitment criteria Employees’ spouses and dependants will not be eligible Discovery PrimaryCare can only be accessed through an employer that is contracted to Discovery Health Employers will need to provide access to these services on a compulsory basis to existing employees (with a three month open period) as well as all new qualifying employees Which employees are eligible to join Discovery PrimaryCare?

30. DISCOVERY PRIMARYCARE | New business process Financial adviser completes Discovery PrimaryCare service request form for eligible employers and submits it via their Discovery business consultant. Discovery will issue a Discovery PrimaryCare offer letter to the financial adviser and employer with details on: Services to be provided Implementation date Fees Discovery will draw up the Discovery PrimaryCare service agreement and the Discovery business consultant will be assigned to engage on implementation.

31. DISCOVERY PRIMARYCARE | Implementation process On-boarding employees Determining the list of employees that will be making use of the contracted healthcare services Employer training Training will be provided to employer representatives on healthcare services available, service rules, network of healthcare providers and servicing of the contract Employee communication Discovery will provide the employer with marketing collateral, information on participating healthcare providers and healthcare services which can be used to educate employees on the services that they have access to through Discovery PrimaryCare Ongoing administration The employer will be invoiced on a monthly basis based on up-to-date staff records in accordance with current Discovery Health billing arrangements Annual contract renewal and price reviews The contract will automatically renew at the start of the calendar year One calendar month’s notice of termination of the contract is required The employer will be notified of the calendar year increase in the last quarter of the year On contract renewal, the fee per employee per month will automatically adjust to reflect the increases in cost of providing these services

32. Good health can change the world DISCOVERY 2015 PrimaryCare