1. Presented by: Official Partner:Presented by: Official Partner:
Paul Lubbers, SVP, Aon Benefit Solutions
Expanding Distribution

2. Presented by: Official Partner:
Discussion Topics
• Evolving Health & Benefit
Landscape
• Emerging Responses
• Approaches and Considerations
• Questions?
• My Mobile = 1.312.342.9757
– Text me questions !

3. Presented by: Official Partner:
ACA is a Game-Changer
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 Guaranteed issue
 No pre-existing condition exclusions
 Minimum essential coverage
 Restricted rate-ups
 Age 26 under parents’ plan
 Medicaid expansion
Access
Subsidies
Mandates
$23B
87% of individuals received an
average subsidy of $263
16.4 M
of non-elderly adults gained
coverage via marketplace &
Medicaid expansion
 Subsidies to uninsured with household incomes
up to 400% of FPL
 Small group business tax credit extension
 State subsidies to set up exchanges
 Individual mandate & progressive penalties
 Employer mandate
– 50-99 2016
– 100+ 70% of FTEs by 2015; 95% by 2016
 Minimum value requirements
 Employer shared responsibility
 Grandfathering, Cadillac tax
 Compliance reporting
11.9%
Uninsured rate (previous 18%)
1M
Additional people covered
through employers

4. Presented by: Official Partner:
Emerging Market Place Dynamics
4
Small Employers Mid-Market
Employers
Large Groups
 Micro groups
accelerating exit even
with tax credits
 Finding alternatives to
traditional group
coverage
− Defined contribution
models
− Individual
sponsorship
programs
 Faster adoption of
private exchanges
 Single carrier
 Defined benefit
 Strong incentives for
high-deductible plans,
some as only option
 Narrower networks
 Rationalizing benefit
eligibility
 Multi-carrier private
group exchanges: self-
insured & insured
 Broad networks, broad
plan choices
 Defined contribution
for retirees
 Growing set of group
ineligibles
Individuals
 Growing participation &
improving coverage
 Shift towards choice
models & online
enrollment with guided
support
 Federal & state
exchanges + plethora of
private market solutions
 Brand name coverage at
subsidized cost
 Growing set of more
affluent segment
without access to
traditional group
coverage
Consumers utilizing choice
models but prefer to access
benefits from a trusted source
50% group market exit
predicted, but most
employers want “to do
something” to sponsor
access
Adoption of consumer-driven
plans are low; growing need
to do something for
ineligibles
Cadillac tax in 2018 requires
action now

5. Presented by: Official Partner:
Emerging Solutions – Plethora of New Entrants
Aon Affinity
Proprietary & Confidential
5
Small Employers Mid-Market
Employers
Large GroupsIndividuals

6. Presented by: Official Partner:
New market players seek to leverage employer and
consumer affinity and provide a solution that transforms
the way health and related benefits are accessed and
funded
1. Removing the hassle factor for employers and
consumers / employees
2. Help everyone manage to a budget
3. Create compelling value through personalization of
benefits and the benefit experience
Winning Features
• One-stop shop + self-serve + high touch enablement
models for health and voluntary benefits
• Health as a gateway for comprehensive benefit
solutions
• Data analytics, decision support, and relevant
product targeting / cross-sell creating differentiated
value proposition vs. traditional models
• Seamless administration / low employer
involvement
Focus on Affinity Channels
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7. Presented by: Official Partner:
Typical Yields in OE 2016
7
Factors That Drive Yield “Expected” Range
 Employer sponsorship with sign-up
 Extensive pre-OE marketing
 Access to employee / consumer data
 High-touch engagement support
 Employer contribution (stipend)
Factors That Drive Yield
 Availability of consumer contact data
 Extent of live outbound engagement
“Expected” Range
50K Active
Shoppers
100K Prospects
5K Active
Shoppers

8. Presented by: Official Partner:
Commonalities for Distribution
• Profile
• Profession
• Transaction
• Event
• Others?

9. Presented by: Official Partner:
Questions?