Healthcare Consumerism: One Company s Pathway to Self-Insured Health Plan Sustainability

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1 Healthcare Consumerism: One Company s Pathway to Self-Insured Health Plan Sustainability Tuesday, October 7, 2014 Karrie Andes, CBP, SPHR Sr. Benefits Manager, PGi

2 About PGi and Karrie 2,600 Associates Globally 1,300 in the U.S., 36 States 25% Telecommute Leading global provider of collaboration software and services for over 20 years

3 A Trashy History Leading to Self-Insurance

4 Cream on Top! ASO/TPA Networks PBM Rx Rebates Admin Fees Capitation Stoploss Transplants Quality Plan Designs Incentives Premiums Authorizations Step Therapy Exclusions Claims Member Usage

5 Kaiser Employer Health Benefits Survey Single Traditional HDHP w/savings HRA HSA ,429 4,793 5,227 4, ,615 4,928 5,271 4, ,884 5,306 5,655 5, ,025 5,299 6,040 4,949 Family Traditional HDHP w/savings HRA HSA ,073 13,704 14,909 12, ,745 14,129 15,169 13, ,351 15,227 16,477 14, ,834 15,401 17,279 14,514

6 Kaiser Employer Health Benefits Survey Single Traditional HSA % of Savings ,429 4,427-18% 1, ,615 4,713-16% ,884 5,006-15% ,025 4,949-18% 1,076 $$ Family Traditional HSA % of Savings $$ ,073 12,655-16% 2, ,745 13,446-15% 2, ,351 14,155-13% 2, ,834 14,514-14% 2,320

7 8 th CIGNA Choice Fund Study 2014

8 AON 2014 Healthcare Survey

9 HSAs versus HRAs 47% with HSA 18% with HRA Sixty percent of employers offer an HDHP as an option, with another 25 percent considering doing so in the next three to five years. * AON Hewitt 2014 Health Care Survey

10 Consumerism + Cream ASO/TPA Networks PBM Rx Rebates Admin Fees Capitation Stoploss Transplants Quality Plan Designs Incentives Premiums Authorizations Step Therapy Exclusions Claims Member Usage HDHP

11 PGi Long-Term Strategy Health Plan Consumerism Strategy Premium PPO Standard Choice Savvy Consumer Frozen PPO Standard Choice Savvy Consumer Standard Choice Savvy Consumer Savvy Consumer (High) Savvy Consumer (Low) Goal: 15% Actual: 17% Goal: 30% Actual: 35% Goal: 50%

12 Attractive Plan Design Lowest IRS Deductibles & OOPM $1,250/$2,500 $3,000/$6,000 HSA, funded by PGi Single $700 Family $1, Free maintenance medications Lowest Premiums We re investing in the plan and our employees!

13 Webinars Virtual Rooms Social Media

14 What do the Marketing Pros know? What HR and Benefits can Learn from Marketing

15 When sales & marketing reach out to consumers, they use: Multiple channels to communicate Messages are repeated Branding is used to make it memorable Tailored messages according to consumer demographics Fun and engaging the goal is to make an impression! Why not use the same strategy for benefits?

16 Among all age groups, a variety of technology is used: Mobile Phones Tablets Work/Home Computers MP3 Players Game Consoles Television ereaders * 2013 The Hyper-Connected Consumer Infographic by Experian

17 The PRIMARY method used by everyone, regardless of age is: Home and Work Computers * 2013 The Digital Marketer Report by Experian

18 The adoption of mobile applications for human resources (HR) functions continues to accelerate.it s changing the way people connect with each other 91% of American adults have a cell phone 56% of American adults have smartphone 2014 The Employee Self-Service and Mobile HR Applications Report by ADP Research Institute

19 During a typical week, how many people access a website with their mobile phone? 21% * 2013 The Digital Marketer Report by Experian

20 Just three years ago, fewer than half online adults visited social media sites. Times have changed! 9 in 10 adults visit a social media site at least once a month * 2013 The Digital Marketer Report by Experian

21 How does your organization communicate benefits? Online/Paper Enrollment or Mailings Group Meetings Webinars & Audio Conferences One-on-One Counseling Twitter, Facebook, Social Media

22 How did organizations primarily communicate benefits last year? Online/Paper Enrollment 82% Group Meetings 62% One-on-One Counseling 55% * 2013 SHRM State of Employee Benefits in the Workplace Survey

23 Most organizations are missing communication opportunities! G O T E C H!

24 How can we increase engagement using marketing techniques? Use Multiple Channels for Messaging Ensure Benefit Systems & Messages are Compatible with Today s Devices Tailor the Message & Have Fun!

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26 PGi Guy This eligible bachelor appears in everything benefits at PGi. New hires can even use his health plan login to take our HDHP consumerism plan for a spin!

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29 Meetings Videos s Texting Social Media Postcards Mailings Virtual Fairs Webinars

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31 Increasing HDHP Enrollment Used the name of our HDHP plan as the theme for open enrollment Communicated our longterm goal of moving to consumerism plans

32 One-on-one consultations offered by HR Customized mailing for those not enrolled in the consumerism plan demonstrating possible savings!

33 Videos Made our own via webcam on YouTube Used a professionallymade video highlighting the advantages of the Savvy Plan

34 Educational Webinars

35 Demonstrate Plan Features & HSA

36 Low-Cost Resources Mailings & Postcards Company s Wellness Program s HRIS System s Social Media: PGiLife Intranet Site FaceBook & You Tube Company Phones Texting On-Site & Virtual Meetings Virtual Fairs & Webinars In-House Videos (webcam) Online Survey Tool for Quizzes Branding PGi Guy

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43 HDHP Consumerism Training

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45 Easy DVR Replay Links for Employees

46 Social Intranet

47 Benefits Center

48 You Tube Videos

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50 Virtual Benefit Fair

51 Virtual Fair Vendors receive their own imeet rooms Room blocks are scheduled for 2-hour increments Employees click into each room, connect audio, and enjoy visiting with a benefit representative via webcam, or audio-only Employees can easily download benefit flyers

52 imeet & Greet Vendor Rooms MEDICAL & VISION

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55 On-Going Support

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57 Results! 1 st Year % less spend than our traditional plans Savvy Gross $6,216 PEPY Savvy Net $4,654 PEPY Doubled our HDHP Enrollment in 2014 Engaged Enrollees! VS Traditional Plan: Gross $9,197 Net: $6,959

58 2nd Year % less spend than our traditional plan so far! Savvy Gross $6,216 PEPY Savvy Net $4,654 PEPY Current Enrollment: 35% Minus 1 Large Claim: Savvy Gross $4,626 PEPY Savvy Net $3,484 PEPY VS. Traditional Plan: Gross $9,197 Net: $6,959

59 Questions? Karrie Andes, CBP, SPHR Sr. Benefits Manager, PGi