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SUMMARY PLAN DESCRIPTIONfor theWalgreen Health and Welfare PlanEffective January 1, 2021

TABLE OF CONTENTSIntroduction . 1IMPORTANT NOTICE. 3About This Document . 4Whom to Contact. . 5Eligibility. 10You Are Eligible If. . 10Additional Medical Plan Eligibility Requirements for Hourly Team MembersSubject to Employer Mandate. 11Eligible Dependents . 13Domestic Partner. 14Imputed Income . 15When Your Spouse or Other Eligible Dependents Are Also Team Members . 15Enrollment . 17As a New Team Member . 17If You Leave the Company and Are Rehired . 17Your Dependents . 17Social Security Numbers Generally Required for Enrollment . 18Open Enrollment . 18If You Do Not Enroll . 19Declining Enrollment and Special Enrollment Period Rules . 19Enrollment Under a Qualified Medical Child Support Order (“QMCSO”) . 19Paying for Coverage . 21Your Contribution . 21Medical Premium Surcharge for Tobacco Users . 21Paying for Coverage—Active Team Members. 22When Coverage Begins . 23New Team Members . 23Current Team Members . 23Changing Your Coverage . 24During the Year. 24Qualified Change in Status . 24-i-

TABLE OF CONTENTS(continued)Special Enrollment Rights . 24Other Changes in Circumstance. 25Special Enrollments in a Qualified Health Plan . 25Reduction in Hours of Service . 26How to Make Changes During the Year . 26Your Medical Coverage . 31What Medical Options Will Be Available? . 31Care Coordination . 32Surgical Centers of Excellence . 33Overview of Medical Plan Options and Networks . 33Primary Care Provider (PCP) Requirements . 34EPO Network—Common Features Applicable to Most Options . 35United Healthcare (UHC) Nexus Medical Plan Network . 35United Healthcare (UHC) Navigate Medical Plan Network. 36United Healthcare (UHC) Choice Medical Plan Network . 36United Healthcare (UHC) Core Medical Plan Network . 36Blue Cross Blue Shield of Illinois (BCBSIL) Networks . 36POS Network Option—Options Through Kaiser Permanente . 36HMO Network Option—Only Applicable in Certain States . 37Emergency Room Coverage . 38Health Reimbursement Arrangement (HRA) . 38Health Savings Account (HSA) Plans . 38Enrollment in Medicare . 39How Health Savings Account Plans Work . 39Coordination with Healthcare FSA. 39Limited Purpose FSA. 39Tax Information . 40Highly Compensated Individuals . 40Medical Coverage in Hawaii . 40Medical Coverage in Puerto Rico . 41-ii-

TABLE OF CONTENTS(continued)Medical Coverage in US Virgin Islands . 41Rescission of Coverage . 41Continuation of Coverage Through COBRA . 41Your Prescription Drug Coverage . 41Managing Your Health . 42Telehealth Services . 42Wellness Programs. 44365 Get Healthy Here & Life365. 44 0 Copay Medication Program . 44Tobacco-Free Program. 45Healthy Living Centers . 46Special Disease Management/Prevention Programs . 47Coordination with Medicare . 47The Aon Active Health Exchange . 48Your Dental Coverage . 49What Dental Options Will Be Available? . 49Overview of Options . 49Basic PPO Options—Bronze Option . 50Basic Buy-Up PPO Options—Silver Option . 50Enhanced PPO Options—Gold Option. 50Dental Health Maintenance Organizations (“DHMOs”)—Platinum Option. 50Continuation of Coverage Through COBRA . 50Your Vision Coverage. 51What Vision Options Will Be Available? . 51Overview of Options . 51Discount Plan with Eye Exam Option—Bronze Plan Option . 52PPO Plan Options—Silver and Gold Options . 52Continuation of Coverage Through COBRA . 52Health Coverage for Team Members Temporarily Working Outsidethe United States . 53-iii-

TABLE OF CONTENTS(continued)Your Flexible Spending Accounts (“FSAs”). 54Electing How Much to Contribute . 54Annual Limitation on Use of FSAs . 54How the Healthcare FSA Works. 55Eligible Healthcare FSA or Limited Purpose FSA Dependents . 56Coordination with the Health Reimbursement Arrangement (“HRA”) account . 56How the Healthcare FSA, Limited Purpose FSA, and HSA Work in Tandem . 57Qualified Change in Status . 58Eligible Healthcare FSA Expenses . 58Ineligible FSA Expenses . 59Eligible and Ineligible HSA Expenses . 60Payment of Eligible Healthcare FSA Expenses (including Limited Purpose FSA) . 60Limited Purpose Flexible Spending Account . 60Using Your Spending Account (“YSA”) Card . 61Continuation of Healthcare FSA and Limited Purpose FSA Coverage throughCOBRA . 64How the Dependent Care FSA Works . 64Eligible Dependent Care FSA Dependents . 64Qualified Change in Status . 65Eligible Dependent Care FSA Expenses. 65Ineligible Dependent Care Expenses . 66Payment of Eligible Dependent Care Expenses. 67Dependent Care FSA Annual Statement of Benefits . 68Dependent Care Tax Credit . 68Filing an FSA Claim . 68Submitting a Claim via the Benefits Support Center . 68Submitting a Claim Using the “Reimburse Me” Mobile App . 69Nondiscrimination Testing. 70Forfeitures . 70Termination of Participation . 70-iv-

TABLE OF CONTENTS(continued)The Transportation Benefit Plan. 71Eligibility . 71Eligibility Exception . 71How to Enroll. 71Eligible Expenses . 72Transit Pass Expenses . 72Parking Expenses . 72How the Plan Works . 72Determine Your Expenses . 73Enroll in the Plan . 73Receive Before-Tax Payroll Deductions . 73Pay Your Transit Expenses . 73Receive Pass or Reimbursement . 74How the Plan Can Save You Money . 74Transit Payment . 75Parking Payment . 75Filing a Claim . 75Maximum Qualified Benefit Allowed . 76Overestimated Expenses . 76Underestimated Expenses . 76Employee Assistance Program. 77Eligibility . 77Loss of Eligibility . 78Benefits . 78Session Maximums . 79Immunizations. 79Coordination with the Medical Plan . 79When Benefits End . 79When Coverage Ends . 80When Health Coverage Ends . 81-v-

TABLE OF CONTENTS(continued)Retiree Health Plan Coverage . 82Continuation of Coverage Through COBRA . 83Coordination of Benefits. 84Retiree Health Plan Coverage. 85Subsidized Retiree Health Care Coverage . 852019 Changes to Subsidized Retiree Health and Life Insurance . 85Coverage Details . 86EPO Network Options – Pre-Medicare Eligible Retiree Options . 86Medicare-Eligible Retiree HRA . 87Unsubsidized Retiree Health Plan Coverage . 88Retiree Health Plan Coverage—Puerto Rico . 88Continuing Coverage . 89If You Die While Working for the Company . 89Leaves of Absence . 89If You Are on a Company-Approved Disability Leave . 89If You Are on an Unpaid Leave That Qualifies as a Family Medical Leave(under the rules of the Family and Medical Leave Act of 1993) . 89If You or a Covered Dependent Are Hospitalized When Coverage Ends . 89If You Are Still Determined to Be “Totally Disabled” at the End of a12-Month Period of Approved Paid/Unpaid Disability Leave . 90Family and Medical Leave Act of 1993 (“FMLA” or “Act”) . 90Uniformed Services of Employment and Reemployment Rights Act (“USERRA”) . 90State Family and Medical Leave Laws . 91Administrative Information . 92Plan Numbers and Employer Identification Numbers . 92Plan Documents . 92Additional Plan Information . 92Insurers/Claims Administrators . 98Payment of Benefits . 98No Guarantee of Tax Consequences . 99-vi-

TABLE OF CONTENTS(continued)Non-Alienation of Benefits . 99Expenses . 99Fraud . 99Indemnity . 100Nondiscrimination. 100Plan Funding and Type of Administration. 100Right to Amend or Terminate . 101No Enlargement of Rights . 101Severability . 101Corporate Actions . 101Claims Procedure . 102Types of Claims . 102Where to File Your Claim. 103ERISA Benefits Claims – Self-Insured Medical Benefits (IncludingPrescription Drug, Dental and Vision), Health Care Flexible SpendingAccount and Health Reimbursement Arrangement Benefits . 109External Review of Adverse Benefit Determinations . 114Other Claims (Eligibility, Dependent Care FSA and TransportationBenefit Plan Claims) . 116General Claims/Appeals Information . 119Exhaustion Required . 119The Advocacy Program . 120Continuation Coverage Under COBRA . 121What COBRA Continuation Coverage Is . 121COBRA Qualified Beneficiaries. 121When COBRA Coverage Is Available . 123Notification of Qualifying Events . 123How COBRA Coverage Is Offered . 123How Long COBRA Coverage Lasts with Respect to Medical/Prescription Drug,Dental, and Vision Benefits COBRA . 124-vii-

TABLE OF CONTENTS(continued)COBRA Qualifying Events. 125Medicare Extension for Your Dependents . 125How Long COBRA Coverage Lasts with Respect to theHealthcare FSA and EAP. 125What COBRA Coverage Costs . 126What to Consider When Deciding Whether to Elect COBRA . 126When COBRA Coverage Ends . 127If You Have Questions. 127Your Rights Under ERISA . 128Assistance with Your Questions . 129HIPAA Privacy. 130Health Insurance Portability and Accountability Act (“HIPAA”) . 130Required Notices and Affordable Care Act Disclosures . 131Your Maternity Rights (Newborns’ and Mothers’ Health Protection Act) . 131Your Rights Following a Mastectomy (Women’s Health and CancerRights Act of 1998). 131Mental Health Parity . 131Patient Protection and Affordable Care Act Disclosures . 132Non-Discrimination and Accessibility. 134Reimbursement and Subrogation. 136Terms to Know . 138-viii-

IntroductionWalgreen Co. (“Walgreens” or the “Company”) is pleased to provide its team members with acomprehensive package of health and welfare benefit options. To assist you in betterunderstanding these options, known as the Walgreen Health and Welfare Plan, we have preparedthis Summary Plan Description (“SPD”). The Walgreen Health and Welfare Plan includesmedical and prescription drug, dental, and vision coverage, Healthcare and Dependent CareFlexible Spending Accounts (“FSAs”), Limited Purpose Healthcare FSA (“Limited PurposeFSA”), Health Reimbursement Arrangement (“HRA”), Health Savings Account (“HSA”), anEmployee Assistance Program (EAP) program, and a Transportation Benefit Plan (also known asBenefit Programs). A summary of all the benefits available is shown below.Information on disability, personal accident and group life insurance is covered in separateSPDs.The complete Walgreen Health and Welfare Plan document (the “Plan”) includes this SPD,including any Summary of Material Modifications, and summary plan descriptions coveringother benefits that are not covered by this SPD. Several Benefit Programs described in this SPDare also governed by the applicable coverage summaries, insurance policies, and contracts. TheBenefit Programs and applicable plan documents are shown in the Administrative Informationsection of this SPD.In the event that any term or provision in the SPD is in conflict with any of the terms orprovisions of the Plan, the terms or provisions in the Plan document will govern.Walgreens employs a diverse group of people with ever-changing lifestyles and personal goals.The needs of team members beginning their careers may differ from those of long-service teammembers approaching retirement. Team members with young families may have requirementsthat vary greatly from those without dependents. Recognizing these differences, and in an effortto retain a highly qualified workforce, the Company continually reviews and updates itscomprehensive benefits program to ensure it remains competitive and meets the needs of all ourteam members and their eligible dependents.Walgreens maintains these benefit plans to provide you with flexibility in selecting your benefitscoverage. Because you can design your own personal benefits program, take special care toreview your coverage alternatives before making elections. You also may want to discuss youravailable benefits choices with your spouse or partner.The Plan and certain Benefit Programs, as identified herein, have been written and are intendedto conform to all applicable legal requirements, including, but not limited to, the EmployeeRetirement Income Security Act of 1974,

Jan 01, 2021 · The Walgreen Health and Welfare Plan includes medical and prescription drug, dental, and vision coverage, Healthcare and Dependent Care Flexible Spending Accounts (“FSAs”), Limited Purpose Healthcare FSA (“Limited Purpose FSA”), Health Reimbursement Arrangement (“H