Private Exchange

1. Private Exchange March 2014

2. Who is ProSential Group? ProSential Group is a national alliance of independently-owned Employee Benefit Brokers who have joined forces to expand capabilities and expertise by leveraging our collective strength and national presence so Partners can best serve clients.

3. Marketplace Confusion population health management “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don't let yourself be lulled into inaction.” -Bill Gates ACO’s Defined Contribution Plans

4. What is a private exchange? INVENTORY INFRASTRUCTURE

5. Key Features “51% believe private exchanges will help employees make more cost-conscious benefits decisions.” Health Trends Institute Funding for Coverage – Employer pays a defined amount of money Inventory of major medical health plans – shifting more responsibility to employee Supplemental Insurance products – more insurance options Decision Support - Automated Enrollment Comprehensive Ongoing Support

6. The Appeal Better control the rising cost of benefits Employees select the plan that fits their risk Employees can “see” the money you are contributing to their benefits Relieve administrative burdens on staff and provide better customer service for employees

7. How Hard Can It Be?

8. To Operationalize An Exchange For Employees For Employers

9. No Governing Body Defining What a Private Exchange Is

10. Healthcare Trends Institute Survey 54.5% of the HR executives were somewhat to very familiar with private exchanges.

11. Oliver Wyman Study

12. Everyone Puts a Name on It

13. Employee Landing Page

14. Choose Medical Plan

15. 5 Medical Options

16. Use Your Personal Health Criteria in Selection Process

17. Gives You a Different Result

18. Decision Support http://www.alexforwindigonext.com/

19. Private Exchanges Exchanges Combine Two Things Technology Capabilities

20. The Inventory

21. How Much Choice is Sufficient? Ancillary • Dental • Vision • Life • Disability • Worksite Medical • Plan Designs • Network Access • Carrier Tolerability • Single or Multi-Carrier

22. The Insurance

23. Possible Trends

24. How Employers Are Saving 80% chose a plan less rich than what their employers had chosen for them

25. Health Reform Impact On Employees “40% of employees admit that stress over money negatively affects their productivity.” Dave Ramsey • Defined Contribution Plans Putting More Responsibility On Individual • Another Big Financial Decision • Also Need To Understand Health Care

27. Who Is Impacted Most (By Employer Based Insurance) Older Workers Not Technology Savvy Age Based Plans Increase Costs from Current Haven’t Been Able to Save (Health Savings Accounts) Tied to Current Physician

28. Administrative Issues with Private Exchanges More Options Means Broader Payroll Deductions More Confusion by Employee (Do people really want more options) Hidden Complexities

29. The Technology

30. Technology Need with Private Exchanges Plan and cost comparison tools 84.9% Online access 76.2% Ability to enroll all products seamlessly 61.1% Source: Health Trends Institute

31. Some Guiding Principals

32. Too Many Places Information is Stored Internal Systems Third-Party Systems Insurance and Benefits Government Medical Workers Comp HR System Payroll IRS Dental Vision State Govt. Time and Attendance Benefit System L –STD - LTD Retirement Paper Files Excel FSA Wellness Intranet Voluntary Benefits COBRA

33. Too Many Places Employees Need to Access HR System Payroll Intranet Benefit System Time and Attendance Vision Retirement Wellness Medical Dental L –STD - LTD FSA Voluntary Benefits

34. Technology Evolution Payroll Online Paystubs W2’s HR System Vacation Days Sick Days Performance Reviews Job History Pay History Benefits Enrollment Benefits Content Enroll Employees Billing Single System HR Benefits Payroll

36. HR and Benefits Automation Within 5 Years Expected To Be 80% 20% 40% 60% 80% 100% 5% - 10% Of Employers 30-300 Automated Today

37. Our Own Statistics

38. Evolution Social Mobile Consumer Grade Employee Self-Service Single System

39. Most Vendors Struggling to Get Here • Need Significant Capital to Upgrade Technology • Different Staffing Needs • Different Service Function • Over Promising – Devil Is in the Details

40. Business Like System

41. Consumer Grade Portal My Notifications Quick Links My Links Company Announcements Popular Searches Ask HR Contacts Calendar Cafeteria Menu 401K Quick Poll Wellness Video

42. ADP Mobile

43. Integrated – Consumer Grade - Social

44. Branded Site

45. Who Is Best?

46. Exchange Technology Going in the Opposite Direction Payroll Online Paystubs W2’s HR – Benefits – Payroll - Time and Attendance HR – Payroll - Time and Attendance Benefits

47. Private Exchange Technology Could cause Challenges Benefits Only One Login For Benefits - Another For HR/Payroll Not Integrated With Payroll – For Payroll Deductions Another System – Another Fee Employee Experience Diminished (Most People Don’t Use Benefits)

48. Consider Leveraging Existing Technology • Employees Already Used To It • Requesting Time-off • Looking Up Pay • Enrolling In Benefits • Viewing Company News And Holidays • Employers Already Trained • Manager Approving Time Off • Running Reports • Systems Already Running • Payroll Deductions Automated • Carrier Connections Established • Security Levels Set

49. Should you consider a Private Exchange? Are you interested in providing your employees with more choice? Are you interested in providing employees with a set amount of funding for coverage? Are you interested in automating the administration of benefits?

50. How To Get Started A Private Exchange Decision Is As Much About The Technology As It Is About The Insurance Products. ...But Start Begin with the End in Mind...