Are you utilizing your benefits broker/consultant as effectively as possible?

1. Education Series What is the Value of a Consultant? Presented by: Dominic Franchini, CBC

2. What criteria do you use in selecting a broker?

3. Select your top 5 employee benefit challenges

4. If you were considering a change in brokers, what would be the three main reasons you would change?

6. Employers are growing increasingly frustrated

7. Employees still expect great benefits

8. “Bending Trend” is difficult

9. Changing behavior is challenging

10. Understanding how to make progress is not always clear

12. Agenda Define role of Broker vs. Consultant Clarify the value of working with a consultant Discuss your consultant’s relationship with insurance carriers Understand how your consultant is compensated

14. Represents employer in insurance marketplace

15. Agent represents insurance company

16. Places products across multiple insurance carriers

17. Product centered services

18. Consultant – BLUE TEAM

19. Hired by employer for benefit design and advice

20. Engages the organization in change

21. Services centered around long-term goals

22. Unbiased on products

23. How do benefits impact my business???

25. Understanding Plan Cost Plan Cost = Covered Lives X (Fixed Costs + Variable Costs) Fixed Costs include: Fully Insured Product Administration and Stop Loss Product Value add Service Fees Variable Costs include: Claims PEPM OR PMPM

27. Administration and Stop Loss Products

29. Value of Working with a Consultant In 2011, your consultant operates at 3 levels Employer Employee Insurance AND, serves 2 primary functions Address Plan Cost Offer Excellent Service

30. Value of Working with a Consultant

31. Ask yourself… Am I on the RED TEAM? Or the BLUE TEAM? Are my efforts focused on the 15% (fixed) or the 85% (variable)? What is driving our healthcare costs? What are we doing to address it? What resources do I have at my fingertips to accelerate progress?

33. Expertise and experience to understand products and carrier operations

34. Influence over product design with insurers

35. Access to underwriting

36. Market leverage and influence

38. Compensation 5500 Filings with DOL www.efast.dol.gov Medical Loss Ratio - 85% Large / 80% Small NUMERATOR Claims + Expenses that Improve Health Quality Earned Premium DENOMINATOR