5 ELEMENTS TO OPERATIONALIZE YOUR BENEFITS STRATEGY

Health systems consolidation ACOs – different kinds WHAT’S HAPPENING NOW Health Care Industry Health systems consolidation ACOs – different kinds Increase in PAs/NPs Specialty drugs Venture capital 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

Alternative funding methods Staying in the “game” WHAT’S HAPPENING NOW Employers ACA reporting Increase in HSAs Financing dependents? Alternative funding methods Staying in the “game” 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 Keep the Same Uninterested Follows the Rules Change Averse “I like what we have; don’t change a thing!” Uninterested Indifferent “Don’t bother me; I’m running my business!” Follows the Rules Paternal “This is what they need!” Quick Start Innovative “Tell me what’s next and I’ll do it!” 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?

WHAT’S HAPPENING NOW Technology Technology Share story from Florida meeting HRIS or Benefits Technology? What’s Happening? Maxwell video  

Determine if you’re tech-savvy or a Luddite Review mobile capabilities WHAT SHOULD WE BE DOING? Technology Determine if you’re tech-savvy or a Luddite Review mobile capabilities Review marketplace of potential partners Technology champion 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?

WHAT’S HAPPENING NOW Communication Company Size <100 100-500 500-1,000 1,000-5,000 5,000+ Benefits & Comm Strategy X Communication of legal requirements In-person or virtual meetings Branded benefits materials for enrollment and new hires Way to capture Employee feedback & questions Monthly or quarterly updates/tips Branded benefits web site on the internet Social media as part of overall strategy Communication Yes, it’s important What’s Happening? Chart & Video Examples: Benefits statements, YouTube Videos, GoPro

Total Rewards Statement WHAT’S HAPPENING NOW Communication Total Rewards Statement

Year-round benefits communication – now a must WHAT SHOULD WE BE DOING? Communication Year-round benefits communication – now a must Utilize different mediums – technology, blogs, websites, paper, etc. Communication = building education and awareness Internal expertise OR outsource it – have a partner that can customize What should we be doing? Year-round benefits communication Use different mediums Communication = building Education & Awareness Internal expertise or outsource it   

WHAT’S HAPPENING NOW Compliance Compliance What’s Happening? More compliance due to ACA, increase in DOL audits, share some examples (small doctor office, example of process from DOL)  

Turn information into action Get an ERISA attorney WHAT SHOULD WE BE DOING? Compliance Turn information into action Get an ERISA attorney Compliance to workflow Insource vs. Outsource? 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

WHAT’S HAPPENING NOW Financing Benefits Health & Wellness Data Data 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?  

Know your numbers – and (increasingly) the numbers of your employees WHAT SHOULD WE BE DOING? Data Know your numbers – and (increasingly) the numbers of your employees How should I finance employer-sponsored healthcare? Treat benefits data like you would business data – stay on top of it What should we be doing?

Convergence of technology, communication and enrollment WHAT’S HAPPENING NOW Enrollment 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 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

Review technology and communication strategy WHAT SHOULD WE BE DOING? Enrollment Review technology and communication strategy Customize the employee experience Brand your benefits materials Plan early and communicate often

FUTURE OF BENEFITS Vision for Future of Benefits Technology is 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 interface into benefits