In the U.S., the Prologis presently offers employees and their families two medical plan options: the Account-based Health Plan (“ABHP” – structured as a high deductible type plan in parallel with a health savings account) and a Preferred Provider Organization (“PPO”). The coverage levels of the two options offered are identical. The primary differences are the monthly contribution amounts and the potential out-of-pocket expenses that a participant may incur. The ABHP has a generous employer contribution to the employee’s health savings account which is up to half of the participant’s annual deductible. So, the ABHP is a more generous plan than the PPO, but focuses participants to be proactive in managing their healthcare spending. In general, employees share in the cost of the medical plan where Prologis pays 70% and employees pay 30% of the cost. In comparison to other employer plans in our industry and of similar size, Prologis employee share of costs is lower (services industry average is 44% and similar sized average is 36%).
