TALKING POINTS – 5 ELEMENTS

TALKING POINTS – 5 ELEMENTS TO OPERATIONALIZE YOUR BENEFITS STRATEGY Industry Update – HealthCare Industry Health systems consolidation ACOs – different kinds Increase in PAs/NPs Specialty Drugs – 1% of all scripts; 25% of spending Venture capital – healthcare toppled technology in 2nd quarter of 2014; 50% of all VC money into healthcare Industry Update – Employers ACA Reporting – Hourly & 6055/6056 Increase in Account-Based Plans – AHIP study = 17.4m in 2014 Financing Dependents? – UPS spousal waiver Alternative funding methods – Self, Level, and Captives Staying in the ‘game’ – Mercer study = 4% of large employers, 16% of mid-market to small employers will ‘leave’ the game   Benefits Buyers Discuss each category Thought Exercise – Where do you fit now? Do you think you fit in one category, but in practice fit in another? Where do you want to go? What needs to happen to get you there?

TALKING POINTS – 5 ELEMENTS TO OPERATIONALIZE YOUR BENEFITS STRATEGY Technology Share story from Florida meeting HRIS or Benefits Technology? What’s Happening? Maxwell video What should we be doing? Tech-savvy or Luddite? Do you really have a choice? Review mobile capabilities – mobile purchasing to grow by 61% by 2015…some 47 billion transactions; where we buy things has changed Review marketplace – Lots of new companies, money, and technology platforms Technology Champion – Who can help you figure this out?   Communication Yes, it’s important What’s Happening? Chart & Video Examples: Benefits statements, YouTube Videos, GoPro Year-round benefits communication Use different mediums Communication = building Education & Awareness Internal expertise or outsource it

TALKING POINTS – 5 ELEMENTS TO OPERATIONALIZE YOUR BENEFITS STRATEGY Compliance What’s Happening? More compliance due to ACA, increase in DOL audits, share some examples (small doctor office, example of process from DOL) What should we be doing? Turn info into action – systematize the information Get an ERISA attorney Compliance to workflow – generally the workflow, not the area of compliance Insource vs Outsource – how much can you do yourself and how much can you outsource? There are a bunch of partners, TPAs, payroll vendors, etc. who do this work   Data What’s Happening? Financing Benefits – more funding strategies, interest in defined-contribution (employer as financier), more scrutiny on Rx management, third-party actuarial services Health & Wellness – now part of overall benefits strategy, incentives, personal responsibility, (EEOC) Employee Demographics – workforce dynamics changing, impact of millennials, what about those baby-boomers?

TALKING POINTS – 5 ELEMENTS TO OPERATIONALIZE YOUR BENEFITS STRATEGY Enrollment What’s Happening? Convergence of technology, communication and enrollment Changed forever with ACA Ongoing enrollment = more compliance now than ever Increased amount of time to educate & communicate Individual shopping experience - pick the benefits that fit your specific situation What should we be doing? Review technology and communication strategy Customize the employee experience – Netflix Video Brand your benefits materials Plan early and communicate often   Vision for Future of Benefits Technology is the central component to benefits = it organizes and streamlines the other 4 categories Employees will ‘subscribe’ to benefits programs Expansion of benefits at all size employers Employer = financier, Employee = decision-maker Mobile device will be the interface into benefits