Healthcare Consumerism: One Company s Pathway to Self-Insured Health Plan Sustainability Tuesday, October 7, 2014 Karrie Andes, CBP, SPHR Sr. Benefits Manager, PGi
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
A Trashy History Leading to Self-Insurance
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
Kaiser Employer Health Benefits Survey Single Traditional HDHP w/savings HRA HSA 2011 5,429 4,793 5,227 4,427 2012 5,615 4,928 5,271 4,713 2013 5,884 5,306 5,655 5,006 2014 6,025 5,299 6,040 4,949 Family Traditional HDHP w/savings HRA HSA 2011 15,073 13,704 14,909 12,655 2012 15,745 14,129 15,169 13,446 2013 16,351 15,227 16,477 14,155 2014 16,834 15,401 17,279 14,514
Kaiser Employer Health Benefits Survey Single Traditional HSA % of Savings 2011 5,429 4,427-18% 1,002 2012 5,615 4,713-16% 902 2013 5,884 5,006-15% 878 2014 6,025 4,949-18% 1,076 $$ Family Traditional HSA % of Savings $$ 2011 15,073 12,655-16% 2,418 2012 15,745 13,446-15% 2,299 2013 16,351 14,155-13% 2,196 2014 16,834 14,514-14% 2,320
8 th CIGNA Choice Fund Study 2014
AON 2014 Healthcare Survey
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
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
PGi Long-Term Strategy Health Plan Consumerism Strategy 2013 2014 2015 2016 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%
Attractive Plan Design Lowest IRS Deductibles & OOPM $1,250/$2,500 $3,000/$6,000 HSA, funded by PGi Single $700 Family $1,400 280+ Free maintenance medications Lowest Premiums We re investing in the plan and our employees!
Webinars Virtual Rooms Social Media
What do the Marketing Pros know? What HR and Benefits can Learn from Marketing
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?
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
The PRIMARY method used by everyone, regardless of age is: Home and Work Computers * 2013 The Digital Marketer Report by Experian
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
During a typical week, how many people access a website with their mobile phone? 21% * 2013 The Digital Marketer Report by Experian
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
How does your organization communicate benefits? Online/Paper Enrollment or Mailings Group Meetings Webinars & Audio Conferences One-on-One Counseling Twitter, Facebook, Social Media
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
Most organizations are missing communication opportunities! G O T E C H!
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!
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!
Meetings Videos Emails Texting Social Media Postcards Mailings Virtual Fairs Webinars
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
One-on-one consultations offered by HR Customized mailing for those not enrolled in the consumerism plan demonstrating possible savings!
Videos Made our own via webcam on YouTube Used a professionallymade video highlighting the advantages of the Savvy Plan
Educational Webinars
Demonstrate Plan Features & HSA
Low-Cost Resources Mailings & Postcards Company Emails Wellness Program Emails HRIS System Emails 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
HDHP Consumerism Training
Easy DVR Replay Links for Employees
Social Intranet
Benefits Center
You Tube Videos
Virtual Benefit Fair
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
imeet & Greet Vendor Rooms MEDICAL & VISION
On-Going Support
Results! 1 st Year 2013 32% 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
2nd Year 2014 32% 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
Questions? Karrie Andes, CBP, SPHR Sr. Benefits Manager, PGi Karrie.Andes@pgi.com www.pgi.com