Memo to Employees with Kaiser Coverage

From: Heather Fagundes, vice president, human resources, The McClatchy Company

Re: Kaiser Coverage

As previously announced, McClatchy is enacting a new, company-wide health care strategy that will be effective in 2006. We have had numerous discussions with Kaiser over the past several months, and we have determined that Kaiser is unable to offer a plan that fits within our strategy. As a result, Kaiser will not be offered as a group medical plan option for employees effective Jan. 1, 2006.

This is not a decision that has been entered into lightly. Considerable thought and evaluation has been given to Kaiser’s possible role in McClatchy’s new strategy. We understand that moving away from Kaiser may be disruptive to some employees in the short term, but we are confident that the alternatives offered through Aetna will continue to provide quality, comprehensive medical plan options for employees and their families.

As we move toward open enrollment this fall, it will be important for you to think about the following:

1. Choosing an Aetna health care plan. We will be offering three plan designs: Aetna Select (and HMO-like plan), Aetna Choice (a PPO plan) and Aetna Routine Care. HealthWorks 101, an educational presentation on different types of medical plans, key terms and examples, was offered by your human resources department last month. If you were unable to attend this presentation, you may access it on the HealthWorks Web site. Specific information about the Aetna plans will be available on the HealthWorks Web site in late June, and presentations about the plans will be held at your newspaper prior to open enrollment. You will need to make your Aetna plan selection during open enrollment this fall.

2. Choosing an Aetna doctor. You can begin searching for a new doctor by using the Provider Search/DocFind link at the HealthWorks Web site. You may want to request a referral from your current Kaiser physician. Please note that the provider list for Aetna Choice doctors is not identical to the Aetna Select or Aetna Routine Care list of your plan selection may affect your choice of doctors.

3. Managing current care issues. If you are undergoing a specific treatment plan, are pregnant, or are in the middle of a series of scheduled surgeries that will continue into 2006, contact your human resources department so they can help transition your care to Aetna. Our goal is to avoid as much disruption as possible at a crucial stage in your treatment.

A Frequently Asked Questions (FAQ) is enclosed that will answer these and other questions you might have about the upcoming change to Aetna in more detail. It also provides some suggestions on actions you should take now to ease your transition to Aetna in 2006. You may want to visit the HealthWorks Web site for information about Aetna doctors and the new health care strategy.

More specific information about the Aetna plans and programs will also be provided in brown-bag sessions throughout the remainder of the year. We strongly encourage you to attend these meetings, as they will help you understand your options, how the Aetna plans work and what plan best meets the health and financial needs of you and our family. If you are unable to attend a meeting, the presentations will be available on the HealthWorks Web site.

Again, Aetna, McClatchy and your newspaper are committed to working with you and answering any questions you may have during this change. If you have any questions, please contact your human resources department. Thank you.