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The Eight Conversations About Benefits

The Eight Conversations About Benefits. Recalibrating Health and Welfare. Ronald S. Leopold, MD, MBA, MPH National Medical Director, Vice President METLIFE EMPLOYER SPONSORED BENEFITS. Employers will continue to cost shift. Funding retirement is going to be an even bigger issue.

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The Eight Conversations About Benefits

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  1. The Eight Conversations About Benefits Recalibrating Health and Welfare Ronald S. Leopold, MD, MBA, MPH National Medical Director, Vice President METLIFE EMPLOYER SPONSORED BENEFITS

  2. Employers will continue to cost shift Funding retirement is going to be an even bigger issue. The population Is aging. Technology will drive new delivery possibilities. Consumerism in some form is here to stay. Social Security and Medicare are no longer sure bets The competition for talent is increasing across all employer sectors. Health care costs will continue to outpace most economic indices* Americans haven’t saved nearly enough for retirement.** CERTAINTIES

  3. EMPLOYEE Personal Responsibility Human Capital THE EIGHT CONVERSATIONS ABOUT BENEFITS EMPLOYER RISK FUNDING ROI / Value Employee Choice

  4. My CEO wants me to start from scratch and white board our benefits program. EMPLOYER

  5. Finding the right balance between expense and value is the new benefits equation that must be solved. The answer is different for every employer.

  6. When it comes to benefits I know we’ve got to pay to play. We agreed to drive efficiencies and value in everything that we do. But we have to drive more value without spending more. Are we really driving efficiencies and value in benefits?

  7. With 5 years of health cost inflation my dollar buys less. Other benefits may offer better value for the dollar. The challenge is to stretch the dollar as far as we can.

  8. In spite of the huge increases we face in costs and challenges... …we still do annual benefits planning on an incremental change basis. What business value do we get from our benefits spend beyond just meeting historic obligations?.

  9. What business value do I get from offering benefits? ROI / Value

  10. Benefits have the attention of the C-Suite. Fifth Annual MetLife Employee Benefits Trend Study, 2007

  11. In aggregate, retaining employees surpassed benefit cost control for the first time. Fifth Annual MetLife Employee Benefits Trend Study, 2007

  12. Competition for talent will be fiercer than ever. Fifth Annual MetLife Employee Benefits Trend Study, 2007

  13. What will it take to get your employee to stay? What role do benefits play? Sibson 2006 Rewards of Work Study survey concludes that there has been a decline in employee satisfaction with all types of benefits, including time off, retirement benefits, health care benefits, benefit administration satisfaction and benefit level satisfaction.

  14. Benefits will be a more important business driver in the future. Medical benefits are a given. My benefits package needs to differentiate me from my competition. It’s not just about richness of benefits. It’s about breadth of portfolio.

  15. How can non-medical benefits enhance the value we get from offering health insurance? FUNDING

  16. Employees are paying more for medical but not recognizing their employers’ contributions. Fifth Annual MetLife Employee Benefits Trend Study, 2007

  17. Do Workers Understand They Are Giving Their Pay Raises to the Health System? (With) the continued rise in health care costs (e.g. more than 2 times the CPI), the resultant effect (is) on affordability so that fewer workers choose to take their employer sponsored coverage even when they are paying relatively little for the benefits and that workers are essentially giving their pay raises to the health care system. - Helen Darling, NBGH* The Employee Benefit Research Institute’s ninth annual Health Confidence Survey shows that most Americans rate the health care system as fair (28%) or poor (51%). What am I getting for my health care spend? I’m still funding an inefficient health care system. *National Health Care Reform: The Position of the National Business Group On Health, 2006

  18. Health insurance is financial protection in the event of a significant medical event or situation. The value of a benefits package addresses this protection on behalf of employees and their families. Other benefits also offer financial protection in the event of a medical event or situation. LTD DENTAL Critical Illness LIFE STD Long Term Care

  19. Why should I consider more than just my standard core benefits set? Employee Choice

  20. Systems technology and other innovations will enable employers to offer…. Single Young Families UNPRECEDENTED CUSTOMIZATION Baby Boomers Pre-Retirees

  21. Employees may value certain voluntary advantages more than employers realize. Fifth Annual MetLife Employee Benefits Trend Study, 2007

  22. Benefits should give us what we want and what we need. Help us better understand what we need. Give us more options and choices. Fourth Annual MetLife Employee Benefits Trend Study, 2006

  23. Not only am I shifting cost, I’m shifting risk. What do I need to be thinking about to protect my employees? RISK

  24. My pension will be there. Social security will be there. Medicare will be there. My employer has my back. I’ve saved enough. My job is secure. My spouse’s job is secure. My health will hold out. My house is enough to retire on. I’ll inherit money from my parents. The economy will hold out. There must be other safety nets.

  25. Real risk is increasing. Recognition of that risk will increase. The value of risk protection will grow.

  26. Financial concerns are significant across all employee segments. Fifth Annual MetLife Employee Benefits Trend Study, 2007

  27. I’m starting to get the fact that my family is facing greater risk. My employer has been cost shifting for several years. Risk protection is something that I’m starting to appreciate more. It’s not just about medical costs. It’s about protection around all the risks in life.

  28. What do I need to communicate to my people to foster individual accountability? Personal Responsibility

  29. When the pollsters asked the same questions in 2006, 53% said it would be fair to charge people more; with 32% saying it would be unfair . Public Opinion Poll 2003 WSJ POLL: 37% said it is fair to ask those that live unhealthy lives to pay higher insurance premiums. 46% said it would be unfair. WSJ.com / Harris Interactive Poll, July 2006

  30. Diet, exercise and a healthy lifestyle lay the foundation for healthy longevity. Smart, responsible financial planning lays the foundation for a wealthy longevity. Do your employees recognize these assets? Do they think about health as much as they do income?

  31. Planning Healthy Lifestyle Smart planning for the future depends on an informed personal approach to health and wealth. Health Today Income Preventing Disease Protection Health Coverage Medical How much further would benefits dollars go if everyone made the connection between HEALTH and WEALTH?

  32. Your health impacts your wealth. Health decisions today may have an impact on future finances. When employees take responsibility for their own health and wealth… ...everyone gets better value from the resources invested.

  33. Why is employee satisfaction and job loyalty more important than ever? EMPLOYEE

  34. Strong correlation. Fifth Annual MetLife Employee Benefits Trend Study, 2007

  35. Benefits drive both attraction and retention. Fifth Annual MetLife Employee Benefits Trend Study, 2007

  36. Let me make informed decisions on my own behalf. With the money you’re contributing to my benefits… ...define less of it. Let me decide how to spend more of it. SATISFACTION? Fourth Annual MetLife Employee Benefits Trend Study, 2006

  37. Competition for talent appears to loom greater than ever. Benefits satisfaction is driven not only by depth, but by breadth of portfolio. A rich and diverse portfolio of core and voluntary benefits is a good business strategy.

  38. Given my demographics, what do I need to anticipate? Human Capital

  39. Sales of reading glasses are on the rise. Sales of reading glasses are on the rise.* Sunglass Association of America, 2006

  40. Born between 1946 and 1964. 78 million strong. OLDER BOOMER MIDDLE BOOMER YOUNGER BOOMER

  41. The average life expectancy is increasing and many people may not understand how long they will really live.

  42. 1935: there were 10 Million Americans over 60. The average 60 year old lived to age 70. 1965: there were 20 Million Americans over 60. The average 60 year old lived to age 75. Today there are 40 Million Americans over 60. The average 60 year old lives to at least 80. 2015 there will be 80 Million Americans over 60. The average 60 year old will live past 85. SOURCE: US Census Bureau, 2004, 2006

  43. A dwindling labor force* Boomers aren’t saving enough** Social Security may decline Medicare financing concerns Fewer employers offer retiree health Health care costs continue to rise Boomers want to work past 65 Changing pension rules Flexible work options DELAYED RETIREMENT *US Bureau of Labor Statistics in Public Policy and Aging Report, 2004. **Fifth Annual MetLife Employee Benefits Trend Study, 2007

  44. Generation X,Y,Z “By 2050, the American workforce will be heavily populated with three generations: Gen Xers, Gen Yers and Millennials (Z). In preparation, far-sighted employers, insurers and financial services providers are tossing out the traditional concept that one benefit size fits all and, instead, are offering plans and policies that are more meaningful to an individual based on where he or she is in life. Life-Stage Benefits: Wooing the MTV and Internet Generation Employee Benefit News, 12/10/06

  45. In the next decade, older workers and foreign-born employees will be a larger part of the work force.* Understanding work place demographics will be more critical than ever for benefits success. The new workforce will drive new demands and new solutions regarding what benefits to provide and how they should be delivered. SOURCE: US Census Bureau, Bureau of Labor Statistics 2006

  46. Retention Benefits Satisfaction One size does not fit all THE EIGHT CONVERSATIONS ABOUT BENEFITS Not health care only Breadth > Depth Ronald S. Leopold, MD, MBA, MPH National Medical Director, Vice President METLIFE EMPLOYER SPONSORED BENEFITS

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