Title: Adopting a Consumer Driven Health Plan – Getting Buy In and Demonstrating ROI
Summary: Learn how EnLink Midstream successfully implemented a Consumer Driven Health Plan. Starting with the long road to executive buy-in, through achieving 34% enrollment the first year, Kelli will share her obstacles and key learnings along the way.
Learning Objectives:
• Overcoming roadblocks to executive buy in
• Data points to demonstrate ROI
• Tools and communication methods for achieving high enrollment numbers
• Achieving 70% engagement in our wellness program
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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
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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
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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.
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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.
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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
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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!
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16. PHASE 5: ADVOCATE FOR HEALTHY WORKFORCE
IMPLEMENTING A PREVENTION PLAN FOR THE LONG-TERM
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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
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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
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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.
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21. FOCUS ON PEOPLE | STRIVE FOR EXCELLENCE | BE ETHICAL | DELIVER RESULTS | BE GOOD STEWARDS
ENLINK.COM