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The Road to Exchange Solutions - Delivering Sustainable Value for All Your Employee Populations

The Road to Exchange Solutions - Delivering Sustainable Value for All Your Employee Populations . Janet Vermeulen , Senior Consultant, Towers Watson Rebecca Duff-Campbell , Communication & Change Management Consultant, Towers Watson. Health Care Benefits C ontinue to be Highly V alued.

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The Road to Exchange Solutions - Delivering Sustainable Value for All Your Employee Populations

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  1. The Road to Exchange Solutions - Delivering Sustainable Value for All Your Employee Populations Janet Vermeulen, Senior Consultant, Towers Watson Rebecca Duff-Campbell, Communication & Change Management Consultant, Towers Watson

  2. Health Care Benefits Continue to be Highly Valued Health care benefits are an important driver — in the top 10 —of employee attraction, globally and in the U.S.* * Towers Watson, 2012 Global Workforce Study. ** Towers Watson, 2013 Health Care Changes Ahead Survey. † 2014 Towers Watson/National Business Group on Health Employer Survey on the Value of Purchasing Health Care. J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  3. Excise Tax Impact:Must Stay Between the “Floor and Ceiling” of Costs to Avoid the Levy Plan value low enough to avoid the excise tax 40% Excise Tax Cap Ceiling ($10,200/$27,500) 2018 • Lower the gross costs of the plan (i.e., average claims and administrative expenses per employee), and the rate at which those costs increase • Reduce benefit plan value (increase employee costs through higher deductibles, coinsurance or copays) • Lower trend through use of wellness programs, disease management programs, incentives and penalties • Consider reductions in dependent subsidies • Consider “pay” strategy and direct employees to Exchanges • Introduce new wellness programs, giving employees tools and resources to maintain and improve their health. This minimizes the long-term health care trend • Healthier employees mean fewer and smaller (medical & prescription drug) claims, leading to lower budget rates • Lower budget rates extend the period of time before an employer hits the excise tax thresholds • Manage cost trend • Improve workforce health • Reduce risk factors • Optimize vendor performance • Manage high-cost claim risk • Minimize core-benefits Plan design high enough to avoid penalties Minimum plan of 60% actuarial value and affordable to employees 2014 J\GH\00025\14\Marketing\Crain's Webinar\Towers Watson Presentation - Crain's April 22 Webinar Employer Facts - Know the Pitfalls .pptx

  4. Health Care Delivery New Opportunities Employer Objectives External Influences Affordability and Excise Tax Risk • PPACA • Competitive needs • Delivery alternatives • Total Rewards • EVP • Financial commitments Components that drive lower cost/high value BenefitDelivery Channel Optimization Benefit Restructuring Network Optimizationand Contracting Population Health and Health Care Accountability and Engagement Health Care Reform is leading to significant changes in the health care system as well as potentially how benefits are delivered J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  5. Three Paths to Delivering Health Care Benefits Excise tax avoidance and trend management J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  6. The Changing Plan Sponsor Mindset: Self-Managed vs. Exchange-Based J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  7. The Changing Plan Sponsor Mindset: Self-Managed vs. Exchange-Based (continued) J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  8. The Changing Plan Sponsor Mindset: Self-Managed vs. Exchange-Based (continued) J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  9. What Employers are Moving to Private Exchanges? J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  10. How Do You Evaluate Private Exchanges? Who saves? Are cost reductions the result of cost-shifting, improved risk pools, operational efficiencies? Do employers or participants or both receive the savings? Is it viable long term? What is the impact of excise taxes and how does the exchange plan to avoid them? What is the expected trend rate in the plans? “When you’ve seen one exchange, you’ve seenone exchange” How is the participant experience realized? What decision support tools, modeling tools and call center support options are available to participants? Who owns/provides these services? What is theexchange’s strategic direction?Is it focused on health optimization, risk shifting, consumer experience/buy downs, or other approaches? J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  11. Towers Watson’s OneExchange

  12. OneExchange: Solutions for All Populations J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  13. Sustainability: Optimizing Health Care Plan Management • Key Features of OneExchange Active • Provide high-performing designs that promote consumer behavior, and healthy lifestyle through wellness, care management and engagement • Take advantage of best in class pricing and vendor management (including access to voluntary benefits) • Support team members with guided enrollment and compelling multimedia communications to the new programs • Access to complete benefits administration and full spectrum of ongoing program management support Health Plan Management Communication and Change Management BenefitsAdministration J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  14. OneExchange: 2014 Active Exchange Model • The goal: Deliver a high-value, sustainable framework built on four key pillars Incentives/disincentives to leverage improved health behaviors and decisions Best-in-market care and condition management protocols Consumerism tools and point-of-care decision support Long-term financial viability J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  15. Employee Experience & Perspective J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  16. Employee Experience Level of Change Intensity Increases

  17. OneExchange Active Communication Overview 1234 Announce Educate Enroll Support J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  18. Communication Recommendations • Pre-enrollment • Pre-enrollment announcement • Pre-enrollment guide • Team member meetings or webinars • Education and reminders (video, e-cards, poster) • OneExchange video library • Links to OneExchange carrier microsites • Enrollment • OneExchange information library • OneExchange video library • Videos • Guided annual enrollment/decision support process • Provider search • Links to carriers • Wellness incentive plan modelling • Post-enrollment • Resource guide • OneExchange information and video library • Wellness incentive reminders • Ongoing new hire and life event enrollment • Guided enrollment/decision support process • Provider search • SPDs Portal Customer service support for plan and enrollment questions Customer service support for plan, enrollment and usage questions Customer service support for plan questions J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  19. Culture and Change Considerations Make it simple, easy to understand and intuitive • Engage with multi-media • Most effective, even for tech-savvy audiences – they still want someone to tell them what’s happening and why Get in front of and behind the message Say it 10 times Have a thorough and thoughtful change and communications strategy • Grounded in your audiences needs and meets them where they’re most comfortable • What you want them to know, think and do • Defined objectives, success measures J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  20. A New Health Care Landscape for All Employers • All employers need to build a new, high performing structure to keep their health plan viable, sustainable and compliant • The role of the plan participant is changed going forward • accountability • engagement • financial investment • You will need to respond in a manner that fits your objectives, culture and financial constraints • You will need to re-examine your approach every year as the emerging markets mature and offer new alternatives J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

  21. Towers Watson Contacts • Rebecca Duff-Campbell • 248.936.7492 • rebecca.duff-campbell@towerswatson.com • Janet Vermeulen • 248.936.7543 • janet.vermeulen@towerswatson.com J\GH\00025\14\Marketing\OESA HR Council Exchanges\OESA HR Council Private Exchange Overview April 24 2014.pptx

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