2019 Annual Enrollment GuideFor Active Employees

Enroll in Your BenefitsWHEN: Between 8 a.m. Central Standard Time on Monday, October 29, 2018, and midnight Central Standard Time on Friday, November 9, 2018. You can make changes throughout the Annual Enrollment period. Elections completed as of the close of the enrollment period will take effect January 1, 2019 and continue through December 31, 2019.

WHERE: www.MyBenefitsAtBaxter.com

HOW: Log in to www.MyBenefitsAtBaxter.com or call 1-844-249-8581 (English) or 1-844-249-8803 (Spanish) and follow the prompts to speak with a Baxter Employee Benefit Center (BEBC) representative. Service representatives are available to take your call Monday through Friday from 8 a.m. to 5 p.m. Central Standard Time.

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Inside This Guide

2019 Benefit Changes ................... 4

Medical Plan Options ..................... 6

Prescription Drug Coverage for the PPO, POS and BTO Plans ....... 9

Dental Plan Options ..................... 11

Other Benefits You Can Elect .......12

Notices about Your Benefits Coverage and Rights .....................15

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2019 Annual EnrollmentBegins: Monday, October 29, 2018, at 8 a.m. Central Standard Time

Ends: Friday, November 9, 2018, at midnight Central Standard Time

Enroll online at www.MyBenefitsAtBaxter.com

Enrollment DeadlineAfter November 9, 2018, you can change elections only if you have a qualifying life event such as marriage, adoption or birth of a child, divorce, death of a covered dependent or a change in your spouse’s or domestic partner’s employment status. Changes due to a qualifying life event must be made made within 31 days.

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The Affordable Care Act requires employers to send IRS Form 1095-C, an annual statement, to all employees eligible for coverage. The statement includes a description of the medical insurance available to them, the coverage they have enrolled in for 2018 and cost information. Employees may receive multiple forms if they were offered coverage by more than one employer and a separate 1095-B form if they are covered under an insured plan (HMO). These IRS forms will be sent in January 2019. Be sure to review your covered dependent names and Social Security Numbers listed on www.MyBenefitsAtBaxter.com for accuracy to ensure proper reporting of healthcare coverage. To sign-up for e-delivery of your Form 1095, login to www.MyBenefitsAtBaxter.com and go to “At Your Fingertips” and select the IRS Form 1095 (ACA Reporting) link.

Your benefits represent a valuable portion of your total compensation package at Baxter. Each year during Annual Enrollment, you have the opportunity to review your benefit elections and make changes to meet your needs and the needs of your dependents. This Enrollment Guide will help you make decisions on the following benefits for 2019:

• Medical Coverage

• Dental Coverage

• Flexible Spending Accounts

• Long-Term Disability Plus Insurance

• Supplemental Life Insurance

• Personal Accident Insurance

• Voluntary Benefits

If You Are on Leave of AbsenceDuring Annual Enrollment, you can only make changes to your medical and dental coverage. When you return to active work, you can complete your other benefit elections, if eligible. Changes can be made by logging in to www.MyBenefitsAtBaxter.com within 31 days of your return to active work.

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2019 Benefit Changes

Consistent with our goal to align our benefits with the marketplace, the following changes have been made for the upcoming year:

Benefit What’s Changing

Medical Plans • PPO, POS, BCO and BTO: Applied Behavior Analysis (ABA) therapy for treatment of Autism Spectrum Disorder will now be offered. Coverage for this and certain other behavioral health outpatient services will be contingent upon pre-authorization and treatment review. See Page 8 for more details.

• Wisconsin Residents: Your BCBSIL PPO network will be replaced with the Blue Preferred POS provider network. The new network provides greater discounts when you receive care, and you will likely have access to the same providers you do with the PPO network. See Page 6 for more details.

• There are changes to HMO premiums. Visit www.MyBenefitsAtBaxter.com for details on premiums and plan design.

Flexible Spending Account (FSA)

• Healthcare FSA: We are changing from a grace period to a carry over approach. Starting with the 2019 plan year, you can carry over a maximum of $500 in unused funds into the next plan year. See Page 12 for more details.

• Healthcare and Dependent Care FSA: The grace period for incurring claims will be removed. The deadline for incurring claims will now be December 31 of the plan year, and the deadline for submitting claims will continue to be March 31 of the following year. See Page 12 for more details.

• To comply with IRS limits, the maximum contribution rate for the healthcare FSA will be increased from $2,600 to $2,650.

Medical Contribution Rates

• Medical contribution rates for the PPO will remain flat for 2019. Contribution rates for other plans may increase. The new employee contribution rates for your benefits can be found online at www.MyBenefitsAtBaxter.com beginning October 29. Please note that your costs depend on the plan you choose and the number of eligible dependents you cover.

Summary of Benefits and Coverage A summary of each medical plan offered is available to help you understand and evaluate your medical insurance choices. The summaries can be found online at www.MyBenefitsAtBaxter.com. Additionally, you may request a paper copy by calling the Baxter HRCentral Support at 1-844-249-8581 (English) or 1-844-249-8803 (Spanish) and following the prompts to the BEBC.

New ID CardsIf you are enrolled in the PPO, BTO or BCO medical plans, you will receive a new medical ID card with updated language on preauthorization. Additionally, if you reside in Wisconsin and are enrolled in the PPO medical plan option, your new ID card will show your new provider network (Blue Preferred POS). If you switch medical plans or enroll in a medical or dental plan for the first time, you will also receive a new ID card. New plan ID cards will be mailed to your home by January 1, 2019.

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Dependent Eligibility AuditBaxter conducts dependent eligibility audits on an ongoing basis. This means that if one or more of your dependents are enrolled in Baxter benefits, you are required to provide proof of their eligibility for coverage (such as a birth certificate or a marriage license). Please ensure the family members you are covering are eligible for coverage and make changes as needed. If you participated in Baxter’s Dependent Eligibility Audit in the past and received a confirmation letter, your verification process for those dependents is complete. If you enroll a new dependent, or if you did not previously participate in the audit, you are required to provide the necessary documentation for each dependent shortly after the start of the plan year. Additional information will be mailed to your home after Annual Enrollment. For a complete list of eligible dependents, see the Medical Summary Plan Description (SPD) under Plan Information at www.MyBenefitsAtBaxter.com.

Who’s Eligible?You and the following family members are eligible for the Baxter benefits* outlined in this guide:

• Your spouse.

• Your domestic partner of the same or opposite gender. If you intend to enroll a domestic partner and/or the children of a domestic partner, call HRCentral Support at 1-844-249-8581 (English) or 1-844-249-8803 (Spanish) and follow the prompts to the BEBC.

• Your children, including the children of your domestic partner, under age 26, are eligible for medical, dental, life, and personal accident insurance coverage.

* Short- and Long-Term Disability benefits are available only to you.

What Happens If You Don’t Enroll?If you are currently enrolled in:

If you do not enroll:

Medical Coverage

• Your current election, if available, will continue for 2019.

• If your current election is NOT available, you will default to the PPO (Preferred Provider Option) or the Blue Preferred POS (if you reside in Wisconsin). If the PPO is not available, you will default to the BTO (Baxter Traditional Option).

• If you have never elected medical benefits, you will not default into coverage.

Dental Coverage • Your current election, if available, will continue for 2019.

• If your current election is NOT available, you will default to the Basic Dental Plan.

• If you have never elected dental benefits, you will not default into coverage.

Supplemental Life, Long-Term Disability, and Personal Accident Insurance

• Your current elections will continue for 2019.

Healthcare and Dependent Care FSAs

• Your current elections will NOT continue for 2019. These accounts must be elected each year per IRS rules.

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Medical Plan Options

Preferred Provider Option (PPO)The PPO, offered through Blue Cross and Blue Shield of Illinois (BCBSIL), is available to employees who reside in PPO coverage areas. The PPO gives you access to one of the nation’s largest networks of doctors, hospitals and other healthcare facilities. While you can see any doctor, you will pay lower out-of-pocket costs when you go to doctors and facilities in the PPO network.

To find a doctor in the PPO, visit www.bcbsil.com and use the Provider Finder® tool. If you are prompted to enter an alpha prefix, enter BXE.

Wisconsin Residents — Blue Preferred POSYour PPO provider network will be replaced with the Blue Preferred POS provider network, effective January 1, 2019. The new network provides greater discounts when you receive care in-network. You will likely have access to the same providers that are in the PPO because most providers currently used by our members participate in both networks. When you seek care in Wisconsin from doctors and facilities in the Blue Preferred POS, you will pay lower out-of-pocket costs than if you go outside of the network. Wisconsin doctors and facilities not in the Blue Preferred POS are covered at the out of network benefit level. If you seek care outside of Wisconsin, you can access the BCBSIL PPO network and will pay lower out-of-pocket costs than if you use a provider outside of the PPO network. If you are currently enrolled in the PPO

BCBS Cost Estimator ToolThere’s a lot to think about when deciding where to get health care. Prices can differ substantially from one provider to another, even for the same procedure. The BCBSIL Provider Finder® tool available through Blue Access for Members(SM) (BAM) is available to help make you a smarter health care shopper by allowing you to check costs before your appointment. Go to www.bcbsil.com, click Member Services, then Log Into My Account and enter your credentials. (Or, click the Register Now link if you are a new BAM user. Note, you will need your BCBSIL ID card to register.) Click, Find a Doctor or Hospital under the Doctors & Hospitals tab, then click Find a cost. Once you select your search criteria, you can compare estimated out-of-pocket costs for medical services, view patient feedback and find a network physician, specialist or hospital. It’s easy, immediate and secure.

and reside in Wisconsin, you will be automatically enrolled in the Blue Preferred POS provider network, unless you make changes to your medical coverage during Annual Enrollment. You will also receive a new ID card with the Blue Preferred POS network name. A letter explaining these changes will be sent before the Annual Enrollment period begins.

To find a doctor in the the Blue Preferred POS network, visit www.bcbsil.com and use the Provider Finder® tool.

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Key Features of the PPO Plan*

Plan Feature In-Network Services Out-of-Network Services

Annual Deductible

Employee $500 $1,000

Employee + Family $1,000 $2,000

Annual Out-of-Pocket Maximum (including deductible and copays)

Employee $2,725 $5,450

Employee + Family $5,450 $10,900

Preventive Care

Routine Preventive Care, Colonoscopy

Plan pays 100% Not covered

Mammogram and Pap Tests Plan pays 100% Plan pays 60% after you meet the deductible

Office Visits

Primary Care Physician Plan pays 100% after $20 copay Plan pays 60% after you meet the deductible

Specialist Plan pays 100% after $35 copay Plan pays 60% after you meet the deductible

Hospital and Surgery Services

Emergency Care Plan pays 80% after you meet the deductible and $100 copay (copay waived if admitted)

Plan pays 80% after you meet the in-network deductible and $100 copay (copay waived if admitted); if not a true emergency, plan pays 60% after you meet the out-of-network deductible and copay

Inpatient Hospitalization Plan pays 80% after you meet the deductible Plan pays 60% after you meet the deductible

Outpatient Surgery Plan pays 80% after you meet the deductible Plan pays 60% after you meet the deductible

Diagnostic X-Ray and Laboratory Services

Plan pays 80% Plan pays 60% after you meet the deductible

Mental Health and Substance Abuse

Inpatient Plan pays 80% after you meet the deductible Plan pays 60% after you meet the deductible

Outpatient – Office Visits (including Group Therapy)

Plan pays 100% after $20 copay per visit Plan pays 60% after you meet the deductible

Percentages (%) shown represent the percentage of eligible charges the Plan will pay for covered services. The eligible charge may be less than the actual billed charges. You are responsible for any expenses in excess of the eligible charge for services by an out of network provider. PPO network providers agree to accept negotiated fees and not bill for charges in excess of those fees.

*Plan design is the same for the Blue Preferred POS.

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Baxter Traditional Option (BTO)If you live outside the PPO or POS coverage area, the BTO will be available to you. The BTO gives you the flexibility to go to any doctor, hospital or other provider and pays 80% of your eligible charges once you meet the deductible ($500 individual, $1000 family). You are then responsible for any portion of payment not covered by the plan up to the out-of-pocket maximum. Eligible preventive care is covered at 100%. For more information on the BTO, visit www.MyBenefitsAtBaxter.com.

Baxter Catastrophic Option (BCO)The BCO is available to all employees. This high deductible option, with a low premium cost, provides medical coverage in case you or an eligible family member develops a major illness or suffers a serious accident. Once you meet the plan’s deductible limit ($5,000 individual, $10,000 family), the plan pays 100% of eligible medical and prescription drug charges. For more information on the BCO, visit www.MyBenefitsAtBaxter.com.

Health Maintenance Organization (HMO) OptionsTo find out if an HMO is available in your location or for details on plan design changes for Baxter’s HMO offerings, visit www.MyBenefitsAtBaxter.com.

Applied Behavior Analysis (ABA) TreatmentABA for treatment of Autism Spectrum Disorder will be offered effective January 1, 2019. Under the PPO or POS plan, services provided by an in-network provider will be covered at 100% after a $20 copay. Under the BTO and BCO plan, deductible and coinsurance apply. Benefit coverage will be contingent upon medical review. To initiate treatment, the provider must submit clinical forms to BCBSIL to confirm:

• Autism diagnosis by an appropriate diagnostician;

• Provider is qualified to conduct ABA services;

• Initial treatment plan meets medical necessity.

Behavioral Health Outpatient Pre-AuthorizationCertain behavioral health outpatient services will require pre-authorization and medical review before benefits can be determined. These services include:

• Applied Behavior Analysis (ABA)

• Electroconvulsive Therapy (ECT)

• Intensive Outpatient Program (IOP)

• Repetitive Transcranial Magnetic Stimulation (rTMS)

• Psychological testing/neuropsychological testing

For more information on ABA or behavioral health outpatient services pre-authorization, call BCBSIL Customer Service at 1-800-851-7498.

If You Live Outside a Plan’s Coverage AreaIf you live outside of a geographic area covered by a medical or dental plan, but still wish to enroll in one of these plans, you may request to do so during Annual Enrollment.

To enroll online:

1. Select one of the medical or dental plans listed on your enrollment worksheet at www.MyBenefitsAtBaxter.com. Save your elections and print your confirmation statement. This step is necessary because requests for a plan outside a coverage area are subject to approval.

2. Go to Resource Library, print the Opt-In Appeal Form: 2019, complete and return it to the BEBC. Forms must be received no later than November 9, 2018.

3. The plan administrator will determine if your request will be approved. If your request is denied, you will be enrolled in the plan(s) you elected in Step 1.

Note: If you opted into coverage last year, please review your coverage options carefully as opt-in elections do not carry over from year to year.

Pre-Certification and VerificationIt is your responsibility to verify medical necessity and understand your benefits. You can request a predetermination review for a recommended procedure or test to make sure it meets the plan’s medical necessity criteria. Additionally, if you are covered under Baxter’s PPO, POS, BTO or BCO plans, you are required to “pre-certify” at least one business day before or within 48 hours following an emergency admission or for any inpatient admissions, residential treatment center care, skilled nursing care, private duty nursing, home healthcare. Certain outpatient medical and behavioral health care services also require medical review before services are provided. For more information on your benefit coverage, pre-certification requirements, or predetermination review, call BCBSIL Customer Service at 1-800-985-6241.

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Prescription Drug Coverage

Drugs determined as “non-formulary” based on the prescription claims administrator’s current formulary are not covered by the Plan. Additionally, effective January 1, 2019, the current prescription drug formulary will be changed to include the Advanced Control Specialty Drug Formulary (ACSF). Additional exclusions or changes in tiering may apply for some specialty drugs. Most current specialty drug utilizers will be grandfathered and allowed to continue their current specialty drugs. If you are impacted by this change, you will receive a letter from CVS Caremark prior to the change advising you of the change and other preferred formulary options.

There is a separate prescription drug out-of-pocket maximum: $2,000 individual/$4,000 family.

Baxter partners with CVS Caremark to provide utilization management programs such as prior authorization, quantity limits, and clinical step therapy for select drugs to ensure cost-effective and safe use of drugs.

For additional information on covered drugs and utilization management programs, call CVS Caremark at 1-866-282-3463.

When you enroll in either the PPO, POS or BTO medical plan option, you receive prescription drug coverage through CVS Caremark. Under the BCO, your prescription drug claims are covered under the medical plan after you meet the deductible. If you are in an HMO, your prescription drug coverage is provided through the HMO.

Prescription Drug Coverage for the PPO, POS and BTO PlansGeneric drugs are covered at the lowest copayment (Tier 1). Brand-name drugs that have been selected by CVS Caremark for their clinical and cost-effectiveness are considered preferred (Tier 2) and cost you more than generics, but less than non-preferred brands. Brand-name drugs that are considered non-preferred (Tier 3) cost more than preferred brands. In most cases, Tier 3 non-preferred brand drugs have different brand or generic drug alternatives in Tiers 1 and 2 that treat the same condition, are more clinically effective and cost less.

The copay / coinsurance structure is as follows:

Key Features of Baxter’s Prescription Drug Coverage

Type of Prescription Drug

Retail Amount You Pay*

Mail Order Amount You Pay*

Tier 1 - Generic $10 $20

Tier 2 - Brand name preferred (when a generic equivalent is not available)

25% coinsurance ($25minimum/ $75 maximum)

20% coinsurance ($50 minimum/ $150 maximum)

Tier 3 - Brand name non-preferred (when a generic equivalent is not available)

40% coinsurance ($50 minimum/ $115 maximum)

$40% coinsurance ($100 minimum/ $230 maximum)

Brand name (preferred or non-preferred) when a generic equivalent is available

$10, plus the difference in cost between the brand name and generic equivalent

$20, plus the difference in cost between the brand name and generic equivalent

* The amount you pay will not exceed the drug cost.

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BeWell@Baxter One way to get and stay healthy is to receive regular checkups and routine health screenings. Routine, in-network preventive and wellness care are covered at 100% in the PPO, POS and BTO plans. This includes adult physical exams, well-baby and well-child care, mammograms, Pap tests and colonoscopies.

Through your medical plan, you may have access to fitness center discounts and other programs like smoking cessation and weight management resources that encourage you to stay active and healthy. Check with your medical plan for details. For more information, visit the BeWell@Baxter intranet site by selecting “BeWell@Baxter” from the “Life & Career” drop-down menu on the Baxter intranet homepage.

You also have access to the Personal Wellness Profile Tool. Through this tool, you can confidentially review your health status and identify and set goals for improvement. For more information or to access the tool, visit the BeWell@Baxter intranet site. Refer to Personal Wellness Profile or go to https://bewell.wellnesscheckpoint.com.

Employee Assistance Plan – Help when you need itThe EAP provides you and your family members with up to three free counseling sessions for help with a wide variety of issues, including marital differences, stress, financial, legal, child or elder care issues and work-related concerns. The EAP network includes more than 50,000 providers nationwide who can offer you the right care in a manner that is comfortable and convenient for you: face-to-face, online or by phone. To talk to someone confidentially about your concerns, call the toll-free number, 1-877-361-4658 anytime or go to Beacon Health Options website: www.achievesolutions.net/baxter.

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Basic and Basic Plus Dental Plan Options

Finding a Dentist – Under the Basic and Basic Plus plans, you can use any dentist and receive the same level of benefits whether the dentist is in or out of network. However, your costs will likely be less when you use an in-network dentist because Cigna negotiates better rates with these providers. The network of providers that contract with Cigna is one of the largest in the country. That means there is a good chance that your dental providers will be in the network. To find a participating dental provider, visit www.cigna.com and use the Find A Doctor tool.

Key Features of the Dental Plan Options

Service Basic Dental* Basic Dental Plus* DHMO

Annual Deductible No annual deductible; $5 copay applies to all office visits

Employee Employee + Family

$150 $300

$125 $250

None None

Preventive Plan pays 100% of reasonable and customary charges

Plan pays 100% of reasonable and customary charges

Plan pays 100%

Basic (Endodontics, fillings, oral surgery, periodontics)

Plan pays 65% of reasonable and customary charges after deductible

Plan pays 80% of reasonable and customary charges after deductible

Plan pays 100%

Major (Crowns, prosthodontics, implants)

Plan pays 50% of reasonable and customary charges after deductible

Plan pays 50% of reasonable and customary charges after deductible

Plan pays 60% (denture repairs 100%; implants are not covered)

Orthodontia No coverage Plan pays 50% of reasonable and customary charges up to $1,500 per person, per lifetime**

Plan pays 50% (no maximum benefits)

Annual Benefit Maximum, per person

$2,000 $2,000 No maximum

* Charges for services provided by a Cigna network provider are based on negotiated rates. ** Spouses, domestic partners and dependent children over age 19 are not eligible for orthodontia.

DHMO (if available in your location) – Cigna will continue to be the Dental HMO (DHMO) vendor. Your plan design features will remain the same for 2019 (as shown in the chart below). Under the DHMO, you must select a network dentist. The DHMO covers most dental expenses at contracted rates with no deductible or annual limit. Preventive care, general services and orthodontia are covered according to a schedule of benefits. For details, visit www.MyBenefitsAtBaxter.com. To find a participating dental center, visit www.cigna.com and use the Find A Doctor tool.

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Other Benefits You Can Elect

Healthcare and Dependent Care Flexible Spending Accounts (FSAs)You can save on taxes using pre-tax money you’ve set aside in these accounts to pay for eligible expenses. The maximum amount you can contribute in 2019 to the Healthcare FSA is $2,650, and the maximum amount you can contribute to the Dependent Care FSA is $5,000 (some restrictions may apply if you are married).

You can use your Healthcare FSA for eligible healthcare expenses not covered by your medical, dental or vision plans, including deductibles, copays and coinsurance amounts, as well as many common healthcare purchases (e.g., saline solution and first-aid supplies). Over-the-counter medicines (e.g. Claritin, Advil, cough syrups) are not considered eligible expenses unless accompanied by a prescription.

Your Dependent Care FSA can be used for child care services for your eligible dependent children under age 13, or for services to care for other qualified dependent family members (e.g., elder care). Please note that you cannot use your Dependent Care FSA to cover your dependent’s healthcare costs.

New Healthcare FSA Carry Over Feature: Starting with the 2019 plan year, you can carry over a maximum of $500 from your Healthcare FSA account into the next plan year. The amount you can carryover over is determined as of March 31 of the following year. This new carry over feature does not apply to the Dependent Care FSA.

For example, if you contribute $2,650 to your Healthcare FSA for 2019, but only incurred $2,000 in eligible medical expenses by December 31, 2019, you have left $650 in unused funds. After the 2019 claims submission deadline (March 31, 2020), you will carry over $500, and you will forfeit the remaining $150. You can use the $500 carry over amount for eligible medical expenses during the remainder of 2020 or for future plan years.

Grace Period Changes: When the current year ends on December 31, 2018, you will have a grace period of 2½ months (until March 15, 2019) to incur eligible claims. For the 2019 plan year and ongoing, the grace period for incurring claims will be removed. Instead, beginning with 2019 elections, your deadline for incurring eligible expenses will be December 31, 2019.

Claims Submission Deadline: Claims for eligible expenses must be submitted by March 31 of the following plan year. For a comprehensive list of eligible expenses, see the SPD at www.MyBenefitsAtBaxter.com or visit www.irs.gov

and view IRS Publications 502 (healthcare) and 503 (dependent care).

Note: Dependent Care Flexible Spending Accounts are “use it or lose it” accounts per IRS guidelines — meaning you forfeit any unclaimed funds remaining in your account after the claim deadline. WageWorks, Baxter’s FSA vendor, has tools to help you estimate your annual expenses (visit https://www.wageworks.com/employees/open-enrollment-center/ for details).

Life, Personal Accident, and Disability InsuranceFor details, go to www.MyBenefitsAtBaxter.com. Rates will be shown on your online Annual Enrollment worksheet.

Disability Insurance – Rebranding to Lincoln Financial GroupAs you may know, effective May 1, 2018, our disability insurance plan carrier and administrator, Liberty Life Assurance Company of Boston is now a wholly owned subsidiary of The Lincoln National Life Insurance Company, a Lincoln Financial Group Company. Over the next 12 months, your disability benefits and communications marketed as Liberty Mutual Insurance will be rebranded to the Lincoln Financial brand. This change does not affect your how your disability benefits are designed or administered.

Commuter Benefits Through the commuter benefits program, administered by WageWorks, you can use pre-tax funds to pay for parking and public transit — such as train, subway, UberPool, bus or vanpool-as part of their daily commute to work.

You can contribute up to a maximum of $260 Pre-Tax dollars per month for transit and eligible vanpools and up to a maximum of $260 Pre-Tax dollars per month for qualified parking (as of 2018). These limits may change for 2019. Any monthly orders that are over $260 will have the difference deducted on a Post-Tax basis.

You can sign up and manage your commuter benefits account at the WageWorks website: https://www.wageworks.com/employees at any time. There’s no special enrollment period, however, you must sign up by the 10th of the month prior to when you want to use benefits. For example, you must sign up by November 10th for December passes. You can also set up recurring elections and payments.

Learn more about commuter benefits at www.wageworks.com/mycommute.

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Voluntary BenefitsThrough YouDecide, an external vendor, you have the opportunity to enroll in the following employee-paid benefits through convenient payroll deductions.1

• Vision Insurance

• Legal Benefits

• Long Term Care Insurance

• Auto Insurance

• Homeowners Insurance

• Pet Insurance

If you would like to enroll in Vision Insurance, Legal Benefits and/or Long Term Care Insurance, you must do so during Annual Enrollment. Coverage will begin on January 1, 2019. If you are currently enrolled in Vision, Legal and/or Long Term Care, your election and covered dependents will continue for the benefit year starting January 1, 2019. You can enroll in Auto, Homeowners and/or Pet Insurance benefits anytime during the year.

For plan and rate information, to enroll, disenroll, or to make any changes to your Voluntary Benefits, visit www.YouDecide.com/Baxter.

1 Baxter does not sponsor, endorse or have any responsibility for these benefits. Baxter’s sole involvement with these benefits is to withhold the cost of any benefits that you choose to purchase from your paycheck, on an after-tax basis, and transmit the payments to the applicable provider. Any questions that you have about the benefits must be directed to the provider. For additional information, see the materials from the providers of these benefits.

IIP ReminderAre you preparing for your financial future? To have the amount of income you’ll need in retirement, you’ll likely have to save some of the income you earn while you are working. Baxter’s IIP (401(k) Plan) provides an easy and efficient way to do that by offering great benefits such as:

• Reduced income taxes when you make before-tax contributions;

• Matching contributions from Baxter to help your account grow faster;

• Total control over how much to save and how to invest.

The earlier you start saving, the longer your money can remain invested before you need it. Time can make a big difference in how much money you might end up with at retirement, so start today!

Already saving in the 401(k) Plan? Give your account a “checkup” to make sure your contributions and your investments are still in line with your goals and your remaining time before retirement. The IIP website has tools like, MyOrangeMoney, to help you determine if you are on track.

Employee Stock Purchase Plan (ESPP)The ESPP allows you the opportunity to purchase Baxter common stock each month at a 15 percent discount (up to 15 percent of base pay and sales commissions) through convenient payroll deductions with no brokerage fees. The money deducted from your eligible pay is placed into an account for you and, at the end of each month, used to buy shares of Baxter stock. For more information on how the plan works and how to enroll, search for ESPP on BaxCentral.

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Name or update your beneficiaries for your retirement account today!Designating beneficiaries for your 401k IIP savings plan helps make sure that in the event of your death, your wishes are being followed. That’s because it can ensure the savings you’ve worked so hard to accumulate are passed along to the right people. Designating a beneficiary is easy. Don’t wait! Do it Today!

• Log on to your account at baxteriip.voya.com

• From the Personal Information menu, click Beneficiary Information, then Add/Edit Beneficiary.

• You can also make your designation over the phone by calling HRCentral Support at 1-844-249-8581 (English) or 1-844-249-8803 (Spanish) and following the prompts to speak directly with a Voya representative.

Once you add your information online, you can easily manage and make changes to it in the event of life changes in the future such as marriage, birth of a child, or divorce. Your new election will override any existing elections you may have on file.

If you have questions or need assistance you can call HRCentral Support at 1-844-249-8581 (English) or 1-844-249-8803 (Spanish) and follow the prompts to speak directly with a Voya representative.

Please make sure to verify that you have the most up to date beneficiary on all your coverages including life and pension, if applicable.

Employee DiscountsYou and your family have the opportunity to save money on a range of products and services such as electronics, fitness center memberships, movie tickets, flowers, gifts, books and music through Baxter’s employee discount program. Visit www.YouDecide.com/Baxter for more details and offers. You will be prompted to create a username and password.

In addition, you also have access to other corporate discounts on items such as cellular phones and travel-related services. For more details, search for “Voluntary Benefits & Employee Discounts” on the Baxter intranet (BaxCentral).

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For more information on these notices, go www.MyBenefitsAtBaxter.com and click on Resource Library for the Summary Plan Descriptions. If you have questions, call HRCentral Support at 1-844-249-8581 (English) or 1-844-249-8803 (Spanish) and follow the prompts to speak with a Baxter Employee Benefit Center (BEBC) representative.

HIPAA Privacy NoticeUnder the Health Insurance Portability and Accountability Act of 1996 (HIPAA), the Baxter plans are required to provide you with a HIPAA Notice of Privacy Practices (“Notice”) at the time of your enrollment in the plan, and at certain other times. In addition, the plan is required to periodically notify you of the availability of the Notice and provide you with information on how to obtain a copy of the Notice. You may request a copy of the plan’s Notice by visiting www.MyBenefitsAtBaxter.com and clicking on Resource Library. To the extent that the plan contains benefits other than those covered under HIPAA’s privacy rule, this reminder pertains only to those healthcare benefits that are covered under HIPAA’s privacy rules. A copy of the latest notice is included in this mailing.

Women’s Health and Cancer Rights Act of 1998The Women’s Health and Cancer Rights Act of 1998 requires Baxter to advise you annually of the following benefits. Your Baxter medical plan provides for mastectomy-related services, including reconstruction and surgery to achieve symmetry between the breasts. It also provides for mastectomy-related prostheses and provides for services to address complications resulting from a mastectomy, including lymphedema. For more information, consult your medical plan’s member services department.

Notice of Special Enrollment Rights — Children’s Health Insurance Program (“CHIP”)Effective April 1, 2010, if you and your eligible dependents are not already enrolled in Baxter’s medical plan, you may enroll yourself and your eligible dependents if (1) you or your dependents lose coverage under a state Medicaid or CHIP, or (2) you or your dependents become eligible for premium assistance under the state Medicaid or CHIP, as long as you request enrollment no more than 60 days from the date of the Medicaid/CHIP event.

Notices About Your Benefits Coverage and Rights

Notice of Grandfathered Plan StatusFor the 2019 Plan Year, the BCO option remains a “grandfathered health plan” under the Patient Protection and Affordable Care Act (the Affordable Care Act). All other options under the Baxter Medical Plan are no longer grandfathered health plans. As permitted by the Affordable Care Act, a grandfathered healthcare plan can preserve certain basic healthcare coverage that was already in effect when that law was enacted. Being a grandfathered healthcare plan means that your plan may not include certain consumer protections of the Affordable Care Act that apply to other plans; for example, the requirement for the provision of preventive healthcare services without any cost sharing. However, grandfathered healthcare plans must comply with certain other consumer protections in the Affordable Care Act; for example, the elimination of lifetime limits on benefits.

Questions regarding which protections apply and which protections do not apply to a grandfathered healthcare plan and what might cause a plan to change from grandfathered healthcare plan status can be directed to the plan administrator.

You may also contact the Employee Benefits Security Administration, U.S. Department of Labor at 1-866-444-3272 or www.dol.gov/ebsa/healthreform. This website has a table summarizing which protections do and do not apply to grandfathered healthcare plans.

Baxter International Inc. One Baxter Parkway Deerfield, Illinois 60015

This guide provides highlights of your Baxter benefits for the 2019 plan year. Please keep this guide with your Summary Plan Descriptions (SPD) and other important papers. This guide is not your SPD. For a copy of your SPD, log in to www.MyBenefitsAtBaxter.com and click on Resource Library. This guide is based on official plan documents. If there is any discrepancy between this guide and the official documents, the official documents will govern. Nothing in this guide says or implies that participation in the plans described is a guarantee of continued employment with Baxter, nor is it a guarantee that the plans will remain unchanged in the future. Baxter reserves the right to suspend, amend or terminate these plans at any time. For questions about your benefits, call HRCentral Support at 1-844-249-8581 (English) or 1-844-249-8803 (Spanish) and follow the prompts to the BEBC.

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