Actuarial consulting firm for health and welfare benefit plans

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Actuarial consulting firm for employer sponsored plans in health and welfare benefits. Actuary-led company provides high touch, customized risk management and strategic solutions for self-insured plans, mid-sized employers, medium sized multinationals and other companies with employees between 100 and 5,000 http://www.EmployeeBenefitSherpa.com

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Actuarial consulting firm for health and welfare benefit plans

  1. 1. Advantages of Actuarial ConsultingGroup Health & Welfare Plans For Mid-Sized Companies & Organizations Brad Gauen Marsh Consulting Group www.EmployeeBenefitSherpa.com
  2. 2. Brad Gauen Multi-Perspective Industry Experience in Benefits and Insurance  Created & Priced Insurance Products  Actuarial Analyst  Benefits Brokerage Experience  Global Consulting Firms – Ernst & Young, Buck  Independent Benefits Consulting Firm  Trusted Advisor To Senior Execs & ManagersPage 1
  3. 3. Pressures Facing Mid-Sized Firms Employee Benefit Plans 1. Fundamentally Increasing Health Care Costs 2. The Health & Welfare Benefits Decisions Are Increasingly Complex 3. Added Health Reform Implementation Complexity 4. Benefit Plan Costs of International Employees 5. Insurance Provider Carousel 6. Talent Recruitment & Employee Morale Challenges 7. Expensive Cookie-Cutter Benefit Plan Solutions 8. Difficulty Finding Customized Plan SolutionsPage 2
  4. 4. Increasing Employee HealthCare Costs:What Mid-sized & Large Employers Face From 2012 to 2017
  5. 5. Projected 2012 -2017 Annual Cost Trends Medical care costs expected to rise 60% over the next five years (10% per year without mitigation) $25,000 $20,000 7% Annual Growth w/Mitigation $15,000 10% Annual Growth $10,000 $5,000 $- 2012 2013 2014 2015 2016 2017Page 4
  6. 6. Benefit Solution Provider Problem Mid-Sized Employers(100 To 5000 Benefit Plan Participants) Are Caught In The Middle
  7. 7. Underserved & OverchargedUnder-served & Under-served & Overcharged Overcharged By Global By Insurance Benefits Benefits BrokersConsulting Firms
  8. 8. Over 10,000 Employees?Global Consulting Firms Work!
  9. 9. Less Than 100 Plan Participants?Capable Insurance Brokers Work!
  10. 10. How Global Employee BenefitsConsulting Firms Under-serve Mid-Sized Organizations
  11. 11. Under-served By The Global Firms 1. The Fortune 500 Get The “A” Team Consultants, Mid-Sized Organizations Get The Rest!Page 10
  12. 12. Under-served By The Global Firms 1. The Fortune 500 Get The “A” Team Consultants, Mid-Sized Organizations Get The Rest! 2. Generic Benefit Plan Designs & Pricing Not Customized To OrganizationPage 11
  13. 13. Under-served By The Global Firms 1. The Fortune 500 Get The “A” Team, Mid-Sized Organizations Get The Rest! 2. Generic Benefit Plan Designs & Pricing Not Customized To Organization 3. Very Exorbitant Consulting FeesPage 12
  14. 14. How Benefits Brokers Under-serve Mid-Sized Organizations
  15. 15. Under-served By Brokerage Firms 1. Often Lack Actuarial Expertise & Experience For Complex Benefit Plan Design & StrategyPage 14
  16. 16. Under-served By Brokerage Firms 1. Often Lack Actuarial Expertise & Experience For Complex Benefit Plan Design & Strategy 2. Exorbitant FeesPage 15
  17. 17. Under-served By Brokerage Firms 1. Often Lack Actuarial Expertise & Experience For Complex Benefit Plan Design & Strategy 2. Exorbitant Fees 3. Conflict Of Interest Relationships With Insurers /Provider Networks (Contingent Commissions)Page 16
  18. 18. Under-served By Brokerage Firms 1. Often Lack Actuarial Expertise & Experience For Complex Benefit Plan Design & Strategy 2. Exorbitant Fees 3. Conflict Of Interest Relationships With Insurers /Provider Networks (Contingent Commissions) 4. Limited Negotiation of Plan Cost IncreasesPage 17
  19. 19. The Alternative?The Actuarial Consulting Approach
  20. 20. Between 100 to 3,000 Or More Plan Participants?Actuarial Consultants Work Better!
  21. 21. Who Are Actuarial Consultants?Mathematically-Talented Consultants With An Academic Background In The Actuarial Sciences, Or Actuaries Who Have Taken AndPassed The Professional Examinations & Meet The Experience-Based Qualifications
  22. 22. Actuarial Consulting Value Proposition The Willingness & Ability To Measure, Project, & Manage Complex Cost Scenarios
  23. 23. Actuarial Consulting Value Proposition An Average 3% Annual HealthCare Cost Mitigation From 2012 To 2017 Is Possible
  24. 24. Marsh Consulting Group (MCG) Cost MitigationOur Clients Average Annual HealthCare Cost Increases Were About ½ The National Average (2001-2011)
  25. 25. What Does This Mean ForMid-Market Employers?
  26. 26. A 500 Employee Organization Will Save At Least $2.3 Million DollarsOver The Next 4 Years Keeping WithOur Current Client Trend Of 5% Less Than The National Average In Average Annual Cost Increases
  27. 27. What Differentiates The Actuarial Consultantsof Marsh Consulting Group?
  28. 28. How Are Our Actuarial Consultants Different? (Pt 1)  Ability To Assess Complex Risks (e.g. Account for factors like employee population health variables, regional/geographic statistics)  Strategic Planning Ability (e.g. Factor in 3 to 5 year actuarial projections and make adjustments)  A Clear-Cut Fiduciary Standard & IndependencePage 27
  29. 29. How Are Our Actuarial Consultants Different? (Pt 2)  Avoid Conflict of Interest with Fee-For-Service Consulting.  Full-Service Health & Welfare Benefits Consulting (i.e. Self Insured Plan Design, Funding, Employee Communications, Advisory)  Employee HealthCare Cost Consulting (i.e.Page 28 Consolidating Risk Pools, Health Reform)
  30. 30. How Are Our Actuarial Consultants Different? (Pt 3)  Advising on Vendor Selection (Benefits Brokers, Third Party Administrators, Pharmacy Benefit Mgrs, etc)  Guiding scope of Employee Benefits Offerings By Employers.  Introducing Consumer Directed Health PlansPage 29
  31. 31. Next Steps: To discuss further, contact: Brad Gauen, CLU, ChFC, FLMI Marsh Consulting Group 303-663-5750 Email: BGauen [at] MCGTeam.com LinkedIn: http://www.linkedin.com/in/bgauen Twitter: http://www.twitter.com/#!/BradGauen www.EmployeeBenefitSherpa.comPage 30
  32. 32. Or For Health Reform Resources: www.HealthReformAudit.com

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