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FOCUS ON PEOPLE | STRIVE FOR EXCELLENCE | BE ETHICAL | DELIVER RESULTS | BE GOOD STEWARDS
April 10, 2018
DallasHR
ADOPTING A
CONSUMER-DRIVEN
HEALTH PLAN
Getting buy in and
demonstrating ROI
A SNAPSHOT OF ENLINK MIDSTREAM
WHO WE ARE IMPACTS OUR HUMAN RESOURCES STRATEGY
• Oil and gas industry (midstream sector)
• Formed in 2014 through merger of
Crosstex Energy & Devon Energy’s
midstream assets
• Approximately 1,500 employees working
assets in seven states
• Over $6 billion in growth projects and
acquisitions since 2014, including 1
merger & 5 acquisitions that included
employee integration
DallasHR 2018 2
THROUGH THE HR LENS: OUR EMPLOYEES
UNDERSTANDING DEMOGRAPHICS ALLOWS FOR TAILORED APPROACH
• Average EnLink employee is a 45-year-old male
o He doesn’t take care of himself.
o He doesn’t have a primary care physician.
o Lives pay check to pay check
o Spouses make majority of benefit decisions
• 70% are Field Operations employees
o Rural areas
o Limited access to quality care
• Must work to build trust through:
o Face-to-face interactions
o Transparency & accountability
o Adoption of Core Values
DallasHR 2018 3
CDHP ROADBLOCKS
CONCERNS PRIOR TO IMPLEMENTATION
• We have looked at moving to a
CDHP since 2010, but lacked
executive leadership buy-in.
• There was lack of understanding
(and, therefore, perceived
complexity) by senior leaders and
employees around how a CDHP
and HSA operate.
DallasHR 2018 4
HOW TO GAIN LEADERSHIP BUY IN
KNOW THE CONCERNS OF DECISION MAKERS & ALIGN GOALS TO ALLEVIATE
• CFO Concern: Cost of healthcare & affordability of the plan
o Aligned Goal: Manage healthcare expense growth
o Aligned Goal: Improve employee health
• HR Leader Concern: A healthy, capable workforce
o Aligned Goal: Remain competitive relative to peers
o Aligned Goal: Engage, attract, and retain talent
• General Counsel Concern: Compliance of our plan
o Aligned Goal: Remain 100% compliant
DallasHR 2018 5
IMPLEMENTATION STRATEGY
A PHASED APPROACH THAT BUILDS ON SUCCESSES
Phase 5:
Continue
Advocating
for Healthy
Workforce
Phase 4:
Generate
Short-Term
Wins
Phase 3:
Create
Simplicity &
Transparency
Phase 2:
Develop a
Sense of
Urgency
Phase 1:
Define
Strategy &
Goals
DallasHR 2018 6
PHASE 1: PROPOSED HEALTH PLAN STRATEGY
CREATE A STRUCTURE THAT INCREASES EXECUTIVE CONFIDENCE
STRATEGY: Quality, Value, Outcomes
GOAL 1: Serve as
Good Stewards of
EnLink Benefit Costs
Tactics
Measures
Performance
GOAL 2: Maintain
Competitive Benefits
Package
Tactics
Measures
Performance
GOAL 3: Follow
Diligent Compliance
Practices
Tactics
Measures
Performance
DallasHR 2018 7
PHASE 2: URGENCY
MEDICAL SPEND WAS TOO HIGH
2015
BUDGET ACTUAL
• Prior to CDHP Implementation
• Volatile Oil & Gas prices
• Actual spend per employee, per
month was approximately 26% over
budget
MEDICAL SPEND BUDGET VS. ACTUAL
DallasHR 2018 8
PEER COMPARISON – INDUSTRY MOVES TO CDHP
GETTING EXECUTIVE BUY IN WITH COMPELLING STATISTICS
• More oil and gas companies moving to CDHPs
• Midstream industry has seen a steady climb in addition of CDHP’s from around
21% in 2013 to over 60% in 2017.
• Our executives are focused not only on financial ROI, but also on employee
retention and improving employee health.
2013 2014 2015 2016 2017
DallasHR 2018 9
PHASE 3: SIMPLICITY & TRANSPARENCY
EMPLOYEE EMPOWERMENT
Employees don’t understand;
• What it means to be self-funded
• Mechanics behind healthcare pricing
• Our annual healthcare spend year over
year
• Impact to other benefits such as bonus and
profit sharing funding
• Our health costs were not sustainable.
DallasHR 2018 10
PHASE 3: SIMPLICITY & TRANSPARENCY
REMOVING THE HASSLE
• So in October 2011, we partnered Compass to provide price transparency and
health navigation services.
• We partnered with Compass to provide:
o Customer service & price transparency for employees;
o Services that would make it easier to transition to a CDHP downstream.
DallasHR 2018 11
PHASE 3: SIMPLICITY & TRANSPARENCY
EDUCATING EMPLOYEES TO EASE THE PROCESS & COMBAT FEARS
• We get the family involved with a web-
based application that was accessible
from any computer and took an
individualized approach to benefit
engagement and decisions.
• We had already begun to shape EE
healthcare decision-making habits via
Compass with a one-stop shop to help
EEs with health system navigation.
DallasHR 2018 12
PHASE 4: GENERATE SHORT-TERM WINS
PLANNING FOR RESULTS & CREATING CREDIBILITY
• Short-term wins create momentum when implementing change.
• Fence-sitters are transformed into supporters, and then active participants.
• Short-term wins should be:
o Visible.
o Well defined.
o Achievable.
o Clearly related to the end goal.
DallasHR 2018 13
COMPASS RESULTS: AN ROI WIN
SAVINGS FOR EMPLOYEES, SAVINGS FOR ENLINK
METRIC 2017 ALL TIME (2011-2017)
Utilization 77% 100%
Number of Solutions 3,958 16,139
Solutions per User 3.64 9.86
Savings per User $1,030 $3,375
Cost Savings $964,927 $4,712,164
Productivity Savings* $154,556 $809,106
*$35 per hour
ENLINK’S ALL TIME RESULTS VASTLY BETTER THAN INDUSTRY
26.8% Utilization; 2.77 Solutions per User; $1,133 Savings per User
DallasHR 2018 14
SUCCESS: INCREASING ROI EACH YEAR
LOWER COSTS, LESS HASSLE, IMPROVED HEALTH: WIN, WIN, WIN!
2015 2016 2017 2018
BUDGET ACTUAL
• Employees are educated, engaged
consumers
o 96% of employees in HSA
contribute beyond employer
contribution
o Compass: recommends how to
reduce costs
o Tria Health: helps reduce RX
spend
MEDICAL SPEND BUDGET VS. ACTUAL
• 2015: Prior to CDHP, over budget
• 2016 to Today: we are under budget
& decreasing spend each year!
DallasHR 2018 15
PHASE 5: ADVOCATE FOR HEALTHY WORKFORCE
IMPLEMENTING A PREVENTION PLAN FOR THE LONG-TERM
DallasHR 2018 16
2013-2016: PREVENTION
•Get Connected
•Annual Physical
•Biometrics
•Age/Gender
Requirements*:
•Cancer Screenings
•Cervical (F 21-65)
•Breast (F 50-74)
•Colorectal (M/F 50-75)
•Osteoporosis Check (F
60-75)
2017-2018: PREVENTION &
RISK FACTORS
•Get Connected
•Annual Physical
•Biometrics
•Age/Gender
Requirements*
•Introduced Tria Health,
smoking cessation,
diabetes and RX
programs
2019-2020: BIOMETRIC
OUTCOMES
•Get Connected
•Biometric Outcomes
•(Baseline biometrics
should be completed in
prior plan year)
HOW MUCH INCENTIVE TO CHANGE BEHAVIOR?
AVERAGE COMPLIANCE RATE WITH $700 INCENTIVE IS 60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-$200 $300 $800 $1,300 $1,800
Engagement Based on Actual Results
$700 - $1,000
Incentive
Compass PHS Data 2015
DallasHR 2018 17
TODAY: A SUCCESSFUL PROGRAM!
ADOPTION BY LEADERSHIP & EMPLOYEES
• 57% of employees are enrolled in a CDHP, 2/3 of which are working in Field
Operations
• Provided incentives for employees to take better care of themselves
• Made healthcare simpler for employees
DallasHR 2018 18
TOMORROW: LEADERSHIP ADVOCATING CHANGE
WALKING THE WALK
“It’s not a Medical decision it’s a Health decision.”
Michael J. Garberding
President and CEO
LESSONS LEARNED
ADVICE FOR HR PROFESSIONALS: YOUR PROGRAM CHEAT SHEET
Generate short-
term WINS!
You can’t over
communicate.
Create a
strategy, with
clearly defined
goals, tactics,
and measures.
Establish a
deep
understanding
of what your
audience
values.
DallasHR 2018 20
FOCUS ON PEOPLE | STRIVE FOR EXCELLENCE | BE ETHICAL | DELIVER RESULTS | BE GOOD STEWARDS
ENLINK.COM

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How to achieve buy in adopting cdhp dallas hr conf

  • 1. FOCUS ON PEOPLE | STRIVE FOR EXCELLENCE | BE ETHICAL | DELIVER RESULTS | BE GOOD STEWARDS April 10, 2018 DallasHR ADOPTING A CONSUMER-DRIVEN HEALTH PLAN Getting buy in and demonstrating ROI
  • 2. A SNAPSHOT OF ENLINK MIDSTREAM WHO WE ARE IMPACTS OUR HUMAN RESOURCES STRATEGY • Oil and gas industry (midstream sector) • Formed in 2014 through merger of Crosstex Energy & Devon Energy’s midstream assets • Approximately 1,500 employees working assets in seven states • Over $6 billion in growth projects and acquisitions since 2014, including 1 merger & 5 acquisitions that included employee integration DallasHR 2018 2
  • 3. THROUGH THE HR LENS: OUR EMPLOYEES UNDERSTANDING DEMOGRAPHICS ALLOWS FOR TAILORED APPROACH • Average EnLink employee is a 45-year-old male o He doesn’t take care of himself. o He doesn’t have a primary care physician. o Lives pay check to pay check o Spouses make majority of benefit decisions • 70% are Field Operations employees o Rural areas o Limited access to quality care • Must work to build trust through: o Face-to-face interactions o Transparency & accountability o Adoption of Core Values DallasHR 2018 3
  • 4. CDHP ROADBLOCKS CONCERNS PRIOR TO IMPLEMENTATION • We have looked at moving to a CDHP since 2010, but lacked executive leadership buy-in. • There was lack of understanding (and, therefore, perceived complexity) by senior leaders and employees around how a CDHP and HSA operate. DallasHR 2018 4
  • 5. HOW TO GAIN LEADERSHIP BUY IN KNOW THE CONCERNS OF DECISION MAKERS & ALIGN GOALS TO ALLEVIATE • CFO Concern: Cost of healthcare & affordability of the plan o Aligned Goal: Manage healthcare expense growth o Aligned Goal: Improve employee health • HR Leader Concern: A healthy, capable workforce o Aligned Goal: Remain competitive relative to peers o Aligned Goal: Engage, attract, and retain talent • General Counsel Concern: Compliance of our plan o Aligned Goal: Remain 100% compliant DallasHR 2018 5
  • 6. IMPLEMENTATION STRATEGY A PHASED APPROACH THAT BUILDS ON SUCCESSES Phase 5: Continue Advocating for Healthy Workforce Phase 4: Generate Short-Term Wins Phase 3: Create Simplicity & Transparency Phase 2: Develop a Sense of Urgency Phase 1: Define Strategy & Goals DallasHR 2018 6
  • 7. PHASE 1: PROPOSED HEALTH PLAN STRATEGY CREATE A STRUCTURE THAT INCREASES EXECUTIVE CONFIDENCE STRATEGY: Quality, Value, Outcomes GOAL 1: Serve as Good Stewards of EnLink Benefit Costs Tactics Measures Performance GOAL 2: Maintain Competitive Benefits Package Tactics Measures Performance GOAL 3: Follow Diligent Compliance Practices Tactics Measures Performance DallasHR 2018 7
  • 8. PHASE 2: URGENCY MEDICAL SPEND WAS TOO HIGH 2015 BUDGET ACTUAL • Prior to CDHP Implementation • Volatile Oil & Gas prices • Actual spend per employee, per month was approximately 26% over budget MEDICAL SPEND BUDGET VS. ACTUAL DallasHR 2018 8
  • 9. PEER COMPARISON – INDUSTRY MOVES TO CDHP GETTING EXECUTIVE BUY IN WITH COMPELLING STATISTICS • More oil and gas companies moving to CDHPs • Midstream industry has seen a steady climb in addition of CDHP’s from around 21% in 2013 to over 60% in 2017. • Our executives are focused not only on financial ROI, but also on employee retention and improving employee health. 2013 2014 2015 2016 2017 DallasHR 2018 9
  • 10. PHASE 3: SIMPLICITY & TRANSPARENCY EMPLOYEE EMPOWERMENT Employees don’t understand; • What it means to be self-funded • Mechanics behind healthcare pricing • Our annual healthcare spend year over year • Impact to other benefits such as bonus and profit sharing funding • Our health costs were not sustainable. DallasHR 2018 10
  • 11. PHASE 3: SIMPLICITY & TRANSPARENCY REMOVING THE HASSLE • So in October 2011, we partnered Compass to provide price transparency and health navigation services. • We partnered with Compass to provide: o Customer service & price transparency for employees; o Services that would make it easier to transition to a CDHP downstream. DallasHR 2018 11
  • 12. PHASE 3: SIMPLICITY & TRANSPARENCY EDUCATING EMPLOYEES TO EASE THE PROCESS & COMBAT FEARS • We get the family involved with a web- based application that was accessible from any computer and took an individualized approach to benefit engagement and decisions. • We had already begun to shape EE healthcare decision-making habits via Compass with a one-stop shop to help EEs with health system navigation. DallasHR 2018 12
  • 13. PHASE 4: GENERATE SHORT-TERM WINS PLANNING FOR RESULTS & CREATING CREDIBILITY • Short-term wins create momentum when implementing change. • Fence-sitters are transformed into supporters, and then active participants. • Short-term wins should be: o Visible. o Well defined. o Achievable. o Clearly related to the end goal. DallasHR 2018 13
  • 14. COMPASS RESULTS: AN ROI WIN SAVINGS FOR EMPLOYEES, SAVINGS FOR ENLINK METRIC 2017 ALL TIME (2011-2017) Utilization 77% 100% Number of Solutions 3,958 16,139 Solutions per User 3.64 9.86 Savings per User $1,030 $3,375 Cost Savings $964,927 $4,712,164 Productivity Savings* $154,556 $809,106 *$35 per hour ENLINK’S ALL TIME RESULTS VASTLY BETTER THAN INDUSTRY 26.8% Utilization; 2.77 Solutions per User; $1,133 Savings per User DallasHR 2018 14
  • 15. SUCCESS: INCREASING ROI EACH YEAR LOWER COSTS, LESS HASSLE, IMPROVED HEALTH: WIN, WIN, WIN! 2015 2016 2017 2018 BUDGET ACTUAL • Employees are educated, engaged consumers o 96% of employees in HSA contribute beyond employer contribution o Compass: recommends how to reduce costs o Tria Health: helps reduce RX spend MEDICAL SPEND BUDGET VS. ACTUAL • 2015: Prior to CDHP, over budget • 2016 to Today: we are under budget & decreasing spend each year! DallasHR 2018 15
  • 16. PHASE 5: ADVOCATE FOR HEALTHY WORKFORCE IMPLEMENTING A PREVENTION PLAN FOR THE LONG-TERM DallasHR 2018 16 2013-2016: PREVENTION •Get Connected •Annual Physical •Biometrics •Age/Gender Requirements*: •Cancer Screenings •Cervical (F 21-65) •Breast (F 50-74) •Colorectal (M/F 50-75) •Osteoporosis Check (F 60-75) 2017-2018: PREVENTION & RISK FACTORS •Get Connected •Annual Physical •Biometrics •Age/Gender Requirements* •Introduced Tria Health, smoking cessation, diabetes and RX programs 2019-2020: BIOMETRIC OUTCOMES •Get Connected •Biometric Outcomes •(Baseline biometrics should be completed in prior plan year)
  • 17. HOW MUCH INCENTIVE TO CHANGE BEHAVIOR? AVERAGE COMPLIANCE RATE WITH $700 INCENTIVE IS 60% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% -$200 $300 $800 $1,300 $1,800 Engagement Based on Actual Results $700 - $1,000 Incentive Compass PHS Data 2015 DallasHR 2018 17
  • 18. TODAY: A SUCCESSFUL PROGRAM! ADOPTION BY LEADERSHIP & EMPLOYEES • 57% of employees are enrolled in a CDHP, 2/3 of which are working in Field Operations • Provided incentives for employees to take better care of themselves • Made healthcare simpler for employees DallasHR 2018 18
  • 19. TOMORROW: LEADERSHIP ADVOCATING CHANGE WALKING THE WALK “It’s not a Medical decision it’s a Health decision.” Michael J. Garberding President and CEO
  • 20. LESSONS LEARNED ADVICE FOR HR PROFESSIONALS: YOUR PROGRAM CHEAT SHEET Generate short- term WINS! You can’t over communicate. Create a strategy, with clearly defined goals, tactics, and measures. Establish a deep understanding of what your audience values. DallasHR 2018 20
  • 21. FOCUS ON PEOPLE | STRIVE FOR EXCELLENCE | BE ETHICAL | DELIVER RESULTS | BE GOOD STEWARDS ENLINK.COM