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Colorado Employee benefit consultant Brad Gauen of Marsh Consulting Group illustrates how medium sized businesses (employees between 300 to 3000) are being mishandled - overcharged and under-served ...

Colorado Employee benefit consultant Brad Gauen of Marsh Consulting Group illustrates how medium sized businesses (employees between 300 to 3000) are being mishandled - overcharged and under-served by insurance plans and benefit plan strategies that are commonly applied to them.

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    Colorado benefits-consultant-midsized-companies Colorado benefits-consultant-midsized-companies Presentation Transcript

    • Colorado Benefit Consultants OnEmployee HealthCare Costs In Medium sized Companies Brad Gauen Marsh Consulting Group www.EmployeeBenefitSherpa.com
    • 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 1
    • How Do Firms Currently Choose Employee Benefits Service Providers?
    • How Does Your Company Choose? 1. RFP Invites To Local Insurance Brokers? 2. CEO/CFO Personal/Social Network? 3. RFP Invites To Regional Benefits/Insurance Brokers? 4. Referral From Current Insurance Broker? 5. Referrals From Executives At Similar Organizations? 6. Google Search? 7. Look For Niche/Industry Sector Expertise? 8. Look For Benefits, Insurance, Strategic Planning & Risk Management Expertise?Page 3
    • Local Insurance Broker Many Insurance Brokers Lack The Willingness And / Or The Actuarial Expertise Required To Work Out… The Optimal Set Of Benefit Plan Choices Given The Multiple Variables Of Healthcare Cost ControlPage 4
    • PROBLEM?? Mid-Sized Employers(100 To 5000 Benefit Plan Participants) Are Often Caught In The Middle
    • Multiple Variables of Employee HealthCare Cost Control 1. Funding Arrangements – Self Insurance or Not? 2. Employee Contribution Levels (To Cost of Coverage) 3. Employee Contribution Levels By Coverage Category 4. Choice of Benefit Plan Administrator 5. Choice of Provider Network (CIGNA, AETNA, United HealthCare?) 6. Employee Geographic Distribution 7. Product Choices (HSA-compatible? CDHP? PPO? HMO?) 8. Plan Design (Deductible levels? In/Out Network benefit levels? Stop loss coverage levels?)Page 6
    • Underserved & OverchargedUnder-served & Under-served & Overcharged Overcharged By By Global Benefits InsuranceConsulting Firms Benefits Brokers
    • Over 10,000 Employees?Global Consulting Firms Work!
    • Less Than 100 Plan Participants?Capable Insurance Brokers Work!
    • How Global Employee BenefitsConsulting Firms Under-serve Mid-Sized OrganizationsGroup Health & Welfare Plans For Mid-Sized Companies & Organizations
    • Under-served By The Global Firms 1. The Fortune 500 Get The Best Consultants, and Mid-Sized Organizations Get The Rest!Page 11
    • Under-served By The Global Firms 1. The Fortune 500 Get The Best Consultants, and Mid-Sized Organizations Get The Rest! 2. Generic Benefit Plan Designs & Pricing Not Customized To OrganizationPage 12
    • Under-served By The Global Firms 1. The Fortune 500 Get The Best Consultants, and Mid-Sized Organizations Get The Rest! 2. Generic Benefit Plan Designs & Pricing Not Customized To Organization 3. Very Exorbitant Consulting FeesPage 13
    • Under-served By The Global Firms 1. The Fortune 500 Get The Best Consultants, and Mid-Sized Organizations Get The Rest! 2. Generic Benefit Plan Designs & Pricing Not Customized To Organization 3. Very Exorbitant Consulting Fees 4. Often Impersonal Service Or Serviced By “Junior” ConsultantsPage 14
    • How Benefits Brokers Under-serve Mid-Sized Organizations Brad Gauen Marsh Consulting Group
    • Under-served By Brokerage Firms 1. Often Lack Actuarial Expertise & Experience For Complex Benefit Plan Design & StrategyPage 16
    • Under-served By Brokerage Firms 1. Often Lack Actuarial Expertise & Experience For Complex Benefit Plan Design & Strategy 2. Exorbitant FeesPage 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 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 in Handling of Employee HealthCare Cost Reduction Strategies & Actuary-based NegotiationsPage 19
    • The Alternative?The Actuarial Consultants OfMarsh Consulting Group (MCG)
    • Who Are Actuarial Consultants? Mathematically-Talented Consultants With AnAcademic Background In The Actuarial Sciences, Or Actuaries Who Have Taken And Passed The Professional Examinations & Meet The Experience-Based Qualifications
    • Meet Geoff MarshOur Clients Average Annual HealthCare Cost Increases Were About ½ The National Average (2001-2011)
    • Meet Geoff Marsh – Actuary Over 25 years Industry Experience  Founder, Marsh Consulting Group  FSA Actuarial Designation – One of only .000006% of population who are Actuaries.  Both Benefits Consulting & Brokerage Experience at Mercer (Global Consultancy)  Independent Benefits Consulting Framework  Established Speaker & Expert on topics in Health & Welfare BenefitsPage 23
    • Meet Brad Gauen – Actuarial Consultant Almost 30 years Industry Experience in Insurance, Employee Benefits & Cost Control  Academic Background in Actuarial Sciences  Worked at Insurance Company Creating & Pricing Insurance Products  Actuarial Analyst  Benefits Brokerage Experience  Global Consulting Firms – Ernst & Young, Buck  Independent Benefits Consulting Firm  Trusted Advisor To Senior Execs & ManagersPage 24
    • MCG Client ResultsOur Clients Average Annual HealthCare Cost Increases Were About ½ The National Average Between 2001 and 2011
    • What Does This Mean ForMid-Market Employers?
    • 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
    • What Differentiates The Actuarial Consultantsof Marsh Consulting Group?
    • 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 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. Plan Design, Funding, Employee Communications, Advisory)  Employee HealthCare Cost Consulting (i.e. Consolidating Risk Pools, Health Reform)Page 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 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 32