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Explore the challenges faced by HR and Benefits professionals in the evolving business environment and discover effective strategies for recruitment, training, retention, and compliance. Get insights on managing costs, wellness initiatives, benefit management systems, analytics, and client-specific solutions at the Alabama SHRM Conference 2011 by Willis of Alabama, Inc.
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Willis of Alabama, Inc. Alabama SHRM Conference 2011
I have used the analogy, “How do you eat an Elephant?” but maybe a better question today is “How do you eat a Cheetah?
Through the years, we have all seen change, however, at a much slower pace. • If we know anything about survival today it is that we must stay nimble and flexible but above all diligent. • We have noticed that many layoffs, reductions in force, right sizing, etc. have also included personnel in HR and Benefits.
Prior to the economic down turn, we all had our hands full trying to “do more with less.” • Now with reduced staff, how do we: Recruit, Train, Retain and COMPLY?!! • More than ever, it is important to have the right partnerships. As HR and Benefit professionals, this is a “must have”.
What are our clients facing? • Cost, always an issue. Stay the course or change. Carriers, Plan Design, Cost share formula Fully insured or Self Insured How does Reform affect the above, short term and long term?
Did you “Grandfather” or Not? If you did, for how long and what did it buy you? What are your strategies now, post reform? Current Year, Next Year, still Grandfathered, lose it? 3-5 Years
Wellness, where is it and where is it going? • Voluntary, Required, Incentives • Wellness in a box • On Site Clinics • ROI, what is real and what is not?
Benefit Management System What system(s) will you use to make certain you as an employer comply with Reform? How do you know they will work with your current HRIS systems or Payroll systems.
Analytics – what do you need and how are you getting it? Usable, actionable, client specific “The purpose of data is to create information, the purpose of information is to reduce uncertainty.” Fully Insured Self Insured Stop Loss
Client 1 • Fully insured 90 employee group, renewal date 7-1-2010, after Reform, before regulation or rules were out. • 40% increase to maintain Grandfather status. • Moved carrier, plan and contribution for a net 7% total increase. (Lost Grandfather Status) • Second year increase just proposed 9%. Better plan and still 24% lower than proposed increase.
Client 2 • Fully insured 500 employee company, had been trying to move to self insured plan for 3 years. • Ongoing claim issues prevented availability of competitive Stop Loss insurance. • Ongoing analysis of data, timing right for moving self insured plan. • Maintained fully insured funding to build reserves to offset future “knee jerk” increases. • Maintained Grandfather status • Marketing of Ancillary resulted in $40,000 annual savings, 3 year rate guarantee, duplicate coverage
Client 3 • Fully insured 500 employee company, medical costs increased an average of 20% per year last 3 years. • Offered PPO, H S A and HRA plans. • Went all in HRA, stringent wellness requirements, phase in approach. • Lost Grandfather status
Client 4 • Self insured 15,000 employee company, offered multiple carrier options. • Looked for analysis of efficiencies of plans. Who was controlling cost better, who was providing better discounts. • Re-marketed ancillary products. • $20,000,000 in Health Plan Savings (fixed plan costs, network efficiency, prescription contract terms and utilization)
Client 5 • 4,500 employer group. • 10+ year ancillary carrier relationship. • Rate hold for 6 years. • Review and analysis of claims and premium revealed client drastically overpaying. • Marketing resulted in $700,000 in annual savings, 4 year rate guarantee, duplicate coverage. ($2,100,000 previous budget)
