Health Care Reform Changed our World: Is a Private Exchange the Right Approach for Me?

1. Health Care Reform Changed our World:Is a Private Exchange the Right Approach for Me? Dallas- CEBS March 13th, 2014

2. Agenda Is a Private Exchange the Right Approach for Me?

3. Exchange Panel • Panel MC -  Jack Tartaro - Willis Human Capital Practice, Client Advocate • Technology Expert  - Matthew Culloty –Willis Human Capital Practice, Vice President Client Service • Medical Representative – Jay Saad – CIGNA HealthCare, New Business Manager • Wellness Representative – Alison Sugg - Viverae, Strategic Solutions Consultant • Risk Consultant – Jennifer Morgan – Willis Human Capital Practice, Vice President Client Services • Employer Representative – Alice McAbeeCEBS, MS, SPHR, Haggar Clothing Co, VP HR

4. Exchange • A technology based platform that provides greater consumer choice.

5. Exchanges • Haven’t we seen this before?

6. Public Exchange • A Government provided technology based platform that provides greater consumer choice.

7. Private Exchanges • A technology based platform that provides greater consumer choice… • … defines employer financial contribution and enhances employee decision support.

8. Private Exchanges

9. What are the features of a Private Exchange? • A technology based platform that provides greater consumer choice, defines employer • financial contribution and enhances employee decision support. • A broad spectrum of PX definitions in use today. General attributes include: • Increased employer cost predictability • Move from defined benefit to defined contribution approach • Significant increase in medical and non-medical plan offerings • Reduced employer involvement in plan selection, plan administration and renewal negotiation • Consumer focused buying experience • Personalized member experience • Robust decision support tools to help consumers choose coverage that best meets their unique needs • Greater employee ownership / responsibility • Technology based ‘backbone’ and customer service support • “Point and click’ purchasing platform

10. Defined Contribution Defined Contribution You give employees money 1 Choice Engagement Consumerism Private Exchange 2 People go shopping!

11. Why do Employees Want Choice? L XXL S M M XS L XL XS

12. The Exchange Spectrum +Employer Involvement - +Employer Involvement - Private Exchanges

13. What Are Employers Saying About Private Exchanges? • An increasing number of employers are considering exchange-based strategies • 45% of employers have implemented or plan to consider utilizing a Private Exchange for their full-time active employees before 2018 • 25% of employers think that moving their organization to a Private Exchange will save them money - employers are looking for comprehensive capabilities and service from Private Exchanges • The greatest barriers to Private Exchange adoption relate to their immaturity and uncertainty about their long term stability • Interest in private exchanges extends across all industry segments and employer size, while the importance of exchange features varies between employers, demonstrating the need for flexibility in design and application • - From Private Exchange Employer Survey Findings • Private Exchange Evaluation Collaborative • Employers Heath Coalition, Midwest Business Group on Health, Northeast Business Group on Health, Pacific Group on Health, and PwC

14. What Considerations Should an Employer Have when Considering a PX Strategy? Employer Pays 5% More Each Year

15. Human Capital Strategy and Exchanges

16. Why Wellness Matters For Every 100 Employees Source: Department of Health and Human Services, 2011

17. Employee Decision Support

18. Employee Decision Support

19. Lifestyle Information

20. Medical Plan Designs 90.2%

21. Panel Questions?

22. Audience Questions?