Aon Health Exchanges for Active Employees The New Paradigm for Employer-Based Health Coverage

Transcription

1 Aon Health Exchanges for Active Employees The New Paradigm for Employer-Based Health Coverage March 27, 2014 Contacts: Aon Hewitt 7325 Beaufont Springs Drive, Suite 300 Richmond, VA

2 Reform. Rising Cost. Declining Health: Which Path Forward? Source: Aon Hewitt 2013 Health Care Survey, Percentage of employers indicating their anticipated future approach to providing health care benefits in the next 3-5 years (out of 794 employer respondents) 1

3 Is a Private Exchange Right for My Company? Key decision criteria (in order of importance) Mandate for change Strategic fit Internal champion with access to senior leadership Acceptable financials Internal decision process that matches RFP results timeline Willingness to take on change management activities 2

4 Why it Works No silver bullet ; there are six key levers working in concert to support our Value Proposition Insured Plans Defined Contribution Subsidy Competition Our Value Proposition Reduce Trend Remove Volatility Ensure Team Member Sustainability Choice and Flexibility Best-in-Market Efficiencies Consumerism 3

5 Value Proposition Making This Work for All Stakeholders Employers Risk transfer and predictability Trend mitigation through competition, efficiency, and best-in-market contracting Focus on health, wellness and productivity True budget ability Employees Greater choice of plans and carriers Fundamental control Lower cost Superior customer experience Flexibility to tailor benefit/contribution trade-offs Carriers Market share opportunity Standardization Earnings potential Product innovation and control Attractive risk pool 4

6 Vision Dental Medical What It Is and How It Works Defined Contribution Subsidy Employees Shop Across Plan & Carrier Options Carrier Risk & Incentives Aligned Health Care Credit Standardized Plans + Competing Carriers 21 Rating Bands Risk Adjustment Bronze Bronze Plus Silver Gold Platinum Bronze Silver Gold Platinum Bronze Silver Gold 5

7 A Comprehensive Consumer Portal 6

8 Advocacy Advocacy plays an important role in the Corporate Health Exchange solution Resolving escalated issues across benefit plans bringing swift answers & peace of mind! Connecting employees to their relevant programs and services make visible those valuable programs! Problem Resolution Navigation Support includes employee, spouse/domestic partner, children and parents/parents-in-law Clinical Support Medical professionals helping employees and their families with a real voice and real support for their healthcare needs 7

9 Given the Opportunity for True Consumerism, Employees Engage The Tale of the Tape 42% of employees bought down to less expensive coverage and saved on payroll deductions 26% bought up to richer coverage than prior year (including many for whom the richer coverage had been previously unavailable) Less than 1/3 of employees remained at comparable level What s covered, including preventive care, is the same across plan levels Under a true DC application the employer s cost does not vary based on plan level chosen fostering real consumerism 8

10 Overall Enrollment Experience Employees Prefer Choice vs. Forced Change in Full Replacement Corporate Exchange enrollees who agreed with the following statements: Total I like being able to choose my own carrier 93% I feel confident that I chose the health plan that offered the best value 79% The benefits enrollment process was easy for me to understand. 76% I feel like (Client) tries very hard to make my benefits enrollment experience positive 76% I have a good understanding of how my employer and I share the cost of my medical insurance 75% 9

11 Web Tool Use Statistics 10