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Midlands Financial Benefits: Employee Benefit Programs & Consulting Services

Midlands Financial Benefits offers comprehensive employee benefit programs and consulting services. We specialize in manufacturing, service, public sector, and school districts, among others.

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Midlands Financial Benefits: Employee Benefit Programs & Consulting Services

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  1. Dimensions In Senior Living Annual Convention Employee Benefit Programs September 25, 2008 Presentation by Ryan R. Swinton, CLU, RHU, FAHM

  2. About Midlands • Founded in 1969 • Headquartered in Lincoln, Nebraska • Staff of 20 professionals dedicated to employee benefits • Full range of broker/consulting services include: • Employee Benefits • Financial and Retirement Services • Financial Services for Individual Employees

  3. About Midlands • Service fully-insured employee benefits • Provide consulting services on behalf of self-funded clients • Employ highly specialized and professional consultants • Provide access to virtually all insurance and administration markets • Subscribe to industry rating service (A.M. Best, Standard & Poors) • Work with A+ to A++ carriers

  4. About Midlands • Excel locally through community involvement and position of leadership • Possess Nebraska presence and exposure • Licensed in several states outside of Nebraska • Over 300 clients in Nebraska and throughout the U.S. • Provide specialized and value-added services using our own resources and the resources available to us through national affiliations

  5. Client Midlands Financial Benefits Team Midlands Financial Benefits Single Contact RESOURCES Team Concept • All MFB clients are assigned to a team of specialists who are dedicated to providing a wealth of resources to serve their needs. • Each client accesses these resources through a single point of contact, making working with MFB seamless and easy.

  6. Resources: Areas of Specialization Manufacturing, Service, Public Sector, School Districts, Clinics/Hospitals, Associations and More 2+ Employee Groups with Medical Clinics, Construction, Chamber Plans, and More Dental, Life, Vision, AD&D, Disability, Long Term Care, Critical Illness, Cancer, etc. 401(k), Simple IRA, Pension/Profit Sharing, Employee Education, Consulting, etc. Individual Business Insurance and Financial Services including Key Man, Buy Sell & More Large Group Small Group Voluntary Products Retirement Plans Individual Services

  7. General Inflation Rose 28.8% U.S. Medical Costs Are Rising Drastically Medical Inflation Rose112.5% Kaiser Family Foundation, “Health Care Costs – A Primer,” August 2007; OECD Stats, 2007

  8. Constraining Medical Costs How Much Can Private Insurance Costs Be Affected? 1/3 Taxes Administration 14% Claims Cost 86% Centers for Medicare & Medicaid Services, 2004

  9. Constraining Medical Costs How Much Can Private Insurance Costs Be Affected? Administration 14% Other Claims Cost 70.9% Behavior 15% Aon Consulting, Research Brief “The Impact of Consumer-Directed Health Plans with Integrated Health Improvement Services on Health Care Consumers,” October 2006

  10. Mercer Management Journal 18, “The Case for Consumerism in Health Care” Constraining Medical Costs Determinants of Health Status Access to Care 10% Lifestyle Choices 50% Genetics 20% Environment 20%

  11. Centers For Disease Control & Prevention, Tobacco Use Fact Sheet (July 2007) Constraining Medical Costs Behavior & Lifestyle: The Cost of Smoking $75 B. Direct Medical Costs $92 B. Lost Productivity $88.8 B. Product Taxes & Revenue

  12. Centers for Disease Control & Prevention, 2006 Behavioral Risk Factors Surveillance System Constraining Medical Costs Behavior & Lifestyle: Weight Gain ’86-’06 No Country Can Fund All the Consequences: Hypertension Type 2 Diabetes Osteoarthritis Stroke Coronary Heart Gallbladder Sleep Apnea Respiratory Issues Some Cancers 2006 1993 1985 1986 1987 1988 1989 1990 1991 2005 1992 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1994 Obesity Trends Among U.S. Adults (BMI>30%) No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%

  13. Constraining Medical Costs How Much Can Private Insurance Costs Be Affected? Administration 14% Other Claims Cost 67.6% Behavior 15% Inefficiencies 3.3% National Institute of Medicine, Report on Medical Errors, November 1999

  14. Constraining Medical Costs How Much Can Private Insurance Costs Be Affected? Administration 14% Other Claims Cost 62.6% Behavior 15% Inefficiencies 3.3% Malpractice 5% Towers Perrin, “U.S. Tort Costs: 2005 Update,” March 2006 PricewaterhouseCoopers, “The Factors Fueling Rising Healthcare Costs 2006,” February 2006

  15. Constraining Medical Costs How Much Can Private Insurance Costs Be Affected? Administration 14% Other Claims Cost 45.1% Behavior 15% Inefficiencies 3.3% Government Cost Shift 9.5% Malpractice 5% Uninsured Cost Shift 8% • Margaretann Cross, “Confronting the • Medicare Cost Shift,” Managed Care, Dec. 2006 • 2003 Health Affairs, “Kaiser Commission Report on Medicaid & the Uninsured”

  16. Constraining Medical Costs Government Cost-Shifting to Hospitals Average 33% Less Managed Care Magazine, December 2006: Confronting The Medicare Cost Shift

  17. Constraining Medical Costs Government Cost-Shifting to Hospitals Breakeven Premera Blue Cross, May 2006: Payment Level Comparison Between Public Programs and Commercial Health Plans for Washington State Hospitals and Physicians

  18. Constraining Medical Costs Who Is Supporting the Health Care System? $5,477 Per Person $12,913 Per Person $1,739 Per Person 2006 Chapterhouse, LLC: Census Bureau, “Current Population Survey,” CMS, Kaiser Family Foundation, EBRI, U.S. GAO, CBO

  19. Constraining Medical Costs How Much Can Private Insurance Costs Be Affected? Administration 14% Other Claims Cost 45.1% Behavior 15% Inefficiencies 3.3% Government Cost-Shift 9.5% Malpractice 5% Uninsured Cost-Shift 8%

  20. Constraining Medical Costs How Much Can Private Insurance Costs Be Affected? Administration 14% Other Claims Cost 45.1% Behavior 15% Inefficiencies 3.3% Government Cost Shift 9.5% Malpractice 5% Uninsured Cost Shift 8%

  21. February 2005 Blue Cross Blue Shield Association analysis of Census Bureau’s “Income, Poverty and Insurance Coverage” report Access For All Most Uninsured Not A Crisis 46 Million Considered Uninsured: Eligible for Government Program (but not signed up) 34% 80% $50,000+ Annual Income 32% Temporarily Uninsured 14% Long-Term Uninsured 20%

  22. Access for All Smart State Reforms Make a Difference Varying regulatory climates can have a profound impact on insurance affordability. Consider the differences in individual rates for two 30-year-old males living in a Philadelphia suburb located across the bridge from each other – in different states. September 2007 Lowest and Highest Rates for PPO Indemnity Plans: $1000 Deductible 80/20% Coinsurance In Neighboring Philadelphia Suburbs NJ PA $599 - $6,009 Haddonfield, NJ 08033 $70 - $260 Wayne, PA 19087

  23. Strategic Planning Technology Service Resources: Benefits Management MFB uses three core principles to help you manage your benefits plans:

  24. ACTIONPLAN IMPLEMENT ORGANIZE OBJECTIVE EVALUATE Strategic Planning We recommend that our clients make employee benefits management a strategic initiative. By defining objectives and developing an action plan based on meeting those objectives, we ensure an organized, complete approach to fulfilling your benefits needs.

  25. ACCESS BENEFITS PLAN IN BALANCE SERVICE PRICE Do you have a strategic plan? Careful strategic planning includes ongoing evaluation of all your plan’s characteristics, and ensures a proper balance is achieved. Strategic planning also shields your plan from becoming obsolete as new trends and market factors emerge.

  26. MEDICAL INSURANCE – United Healthcare Plan N4-P w/3G Total Monthly Premiums Employee (EE) $370.26 EE + Spouse $777.54 EE + Child(ren) $703.49 Family $1,073.74 DENTAL INSURANCE – United Healthcare Plan P1212 Total Monthly Premiums Employee (EE) $17.95 EE + Spouse $35.90 EE + Child(ren) $48.90 Family $69.80

  27. Current Issues • Costs continue to rise!! • Employee Participation in the Health Plan is poor • Healthy employees are purchasing insurance elsewhere and driving up costs to the facilities. • Employee dissatisfaction results in turnover adding additional cost to facilities through training of new hires, etc.

  28. So where do we go from here?

  29. Considerations • Add a secondary lower cost plan option for employees (possibly an HDHP with or without an HSA) • Encourage new hires and younger individuals to sign up • Increased positive communication to employees about their benefits • Wellness initiatives

  30. Questions?

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