lubbers bse 2015
TRANSCRIPT
Presented by: Official Partner:Presented by: Official Partner:
Paul Lubbers, SVP, Aon Benefit SolutionsExpanding Distribution
Presented by: Official Partner:
Discussion Topics
• Evolving Health & Benefit Landscape
• Emerging Responses • Approaches and Considerations• Questions?
• My Mobile = 1.312.342.9757– Text me questions !
Presented by: Official Partner:
ACA is a Game-Changer
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Guaranteed issue No pre-existing condition exclusions Minimum essential coverage Restricted rate-ups Age 26 under parents’ plan Medicaid expansion
Access
Subsidies
Mandates
$23B87% of individuals received an average subsidy of $263
16.4 Mof non-elderly adults gained coverage via marketplace & Medicaid expansion
Subsidies to uninsured with household incomes up to 400% of FPL
Small group business tax credit extension State subsidies to set up exchanges
Individual mandate & progressive penalties Employer mandate
– 50-99 2016– 100+ 70% of FTEs by 2015; 95% by 2016
Minimum value requirements Employer shared responsibility Grandfathering, Cadillac tax Compliance reporting
11.9%Uninsured rate (previous 18%)
1MAdditional people covered through employers
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Emerging Market Place Dynamics
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Small Employers Mid-Market Employers
Large Groups
Micro groups accelerating exit even with tax credits
Finding alternatives to traditional group coverage− Defined contribution
models− Individual
sponsorship programs
Faster adoption of private exchanges
Single carrier Defined benefit Strong incentives for
high-deductible plans, some as only option
Narrower networks Rationalizing benefit
eligibility
Multi-carrier private group exchanges: self-insured & insured
Broad networks, broad plan choices
Defined contribution for retirees
Growing set of group ineligibles
Individuals
Growing participation & improving coverage
Shift towards choice models & online enrollment with guided support
Federal & state exchanges + plethora of private market solutions
Brand name coverage at subsidized cost
Growing set of more affluent segment without access to traditional group coverage
Consumers utilizing choice models but prefer to access benefits from a trusted source
50% group market exit predicted, but most employers want “to do something” to sponsor access
Adoption of consumer-driven plans are low; growing need to do something for ineligibles
Cadillac tax in 2018 requires action now
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Emerging Solutions – Plethora of New Entrants
Aon AffinityProprietary & Confidential
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Small Employers Mid-Market Employers
Large GroupsIndividuals
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New market players seek to leverage employer and consumer affinity and provide a solution that transforms the way health and related benefits are accessed and funded1. Removing the hassle factor for employers and
consumers / employees2. Help everyone manage to a budget3. Create compelling value through personalization of
benefits and the benefit experienceWinning Features• One-stop shop + self-serve + high touch enablement
models for health and voluntary benefits• Health as a gateway for comprehensive benefit
solutions• Data analytics, decision support, and relevant
product targeting / cross-sell creating differentiated value proposition vs. traditional models
• Seamless administration / low employer involvement
Focus on Affinity Channels
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Typical Yields in OE 2016
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Factors That Drive Yield
AT LARGE CONSUMER MARKETING
“Expected” Range Employer sponsorship with sign-up Extensive pre-OE marketing Access to employee / consumer data High-touch engagement support Employer contribution (stipend)
Factors That Drive Yield Availability of consumer contact data Extent of live outbound engagement
<1%-3%“Expected” Range
50K Active Shoppers
100K Prospects
5K Active Shoppers
8%-12%BUSINESS SPONSOR
MARKETING
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Commonalities for Distribution
• Profile
• Profession
• Transaction
• Event
• Others?
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Questions?