The document introduces CDHC 2.0 as an evolution of consumer-directed healthcare that aims to address the shortcomings of earlier models. It discusses how CDHC 2.0 establishes a partnership between employers and employees to share responsibility for managing healthcare costs through benefit designs that incentivize healthy lifestyles and value-based care. The model is presented as a sustainable approach that ties future benefit levels to the ability of employees to control costs through the tools and resources provided.
Significant cost increases. Decreasing benefits. Lack of control. If this is your employee benefits story, then we invite you to consider alternative ways to fund your benefits program.
Captives bring a slew of benefits, including more control, long-term cost savings, and the potential to earn dividends. Most importantly, it puts you in charge of your benefits program's performance.
Shawn Lanter from Berkley Accident and Health digs into what a captive is, why they exist, and how they could work for you.
Significant cost increases. Decreasing benefits. Lack of control. If this is your employee benefits story, then we invite you to consider alternative ways to fund your benefits program.
Captives bring a slew of benefits, including more control, long-term cost savings, and the potential to earn dividends. Most importantly, it puts you in charge of your benefits program's performance.
Shawn Lanter from Berkley Accident and Health digs into what a captive is, why they exist, and how they could work for you.
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Do you know the impact of 10% decrease in revenue, or a 10% increase in expense?
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How can your organization accumulate cash to minimize shortfall through project debt service term?
Does your organization understand the cash flow impact of the capital project over the ENTIRE term of the project, not just the three to five year forecast period?
Do normalized financial statement trends look similar as reported trends?
How can your organization utilize the forecast more effectively moving forward?
Do you know the impact of 10% decrease in revenue, or a 10% increase in expense?
University Faculty Senate Presentaiton: Overview of Contributions Report Marc...Larry Catá Backer
Penn State University Faculty Senate Committee on Faculty Benefits, Advisory and Consultative Report--An Overview of Contributions Report, March 17, 2015
Paul Raetsch retired north east regional director of the Economic Development Administration explains what a Comprehensive Economic Development Strategy Planning effort entails.
The CECL Workshop Series Part II: Vintage AnalysisLibby Bierman
This webinar covered concerns with methodologies as institutions prepare for the FASB's proposed current expected credit loss (CECL) model. This presentation covered the importance of scenario building, choosing methodologies to test, and gave a deep dive into vintage analysis CECL scenarios.
Health care providers today face an overwhelming number of change initiatives that aim to move the provider community in a given direction by leveraging incentives and penalties. Learn about all of the incentives and penalties CMS is leveraging to drive health care reform.
5. WHY CDHC 1.0 FAILED
CDHC 1.0 SHIFTED COST FROM EMPLOYERS TO
EMPLOYEES AND OFFSET A PORTION OF THAT COST
VIA INCENTIVES (HRA/HSA) OFFERED TO INDIVIDUAL
PLAN MEMBERS.
• “Money is not a motivator.” ~ Maslow
• Benefits are more important than $$$ to most employees.
• We do not live in caves but in communities.
• Sense of Team / Peer Pressure trumps self-interest.
• Unaffordable care is not Consumer Directed care.
• You can’t “direct” what you can’t afford!
6. WHY DO WE NEED CDHC 2.0™?
• We need economically sustainable health benefits.
• Health Benefits for a family of 4 are on track to cost $40,000 by
2019.
• We need employees with healthier lifestyles.
• 70% of all cost is related to preventable conditions.
• We need members to shop for healthcare value & we need
healthcare that treats patients’ actual conditions effectively and on a
timely basis.
• 30% of all cost is for inappropriate treatment.
7. CDHC 2.0™ : THE PROCESS
• Employer designs plan:
• Meet Company & Member needs.
• Employer sets budget & acceptable rate of increase.
• Including Employee Contribution Formula.
• Employer communicates Benefit Partnership:
• “Past performance WILL determine future benefits!”
• Employer offers tools & resources to help meet goals.
• Employer varies plan design at renewal based on results.
8. CDHC 2.0™ : THE PARTNERSHIP MESSAGE
• The Company is committed to providing benefits that meet members’ needs.
• We have designed a plan to meet those needs.
• Health benefit resources are not unlimited & annual double digit increases
are not sustainable.
• We have agreed to absorb reasonable cost increases.
• Future benefit levels will be a direct reflection of members’ health care costs.
• We will provide the tools & resources to help control costs.
9. CDHC 2.0™ PARTNERSHIP : AN EXAMPLE
• Company designs plan with broad coverage and modest employee out-
of-pocket cost sharing.
• Company agrees to pay 70% of the cost of this plan.
• Company also agrees to pay 70% of each annual cost increase up to
a total cumulative increase of 6%/year.
• If cumulative cost increases total more than 6%/year,
SBP benefits will be adjusted downward.
• If cumulative cost increases total less than 6%/year, SBP benefits will be
adjusted upward OR surplus will be credited to a Benefit Stabilization
Fund (BSF).
10. CDHC 2.0™: Model
$1,500,000
Total Plan Cost
$1,000,000
$500,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Total Budget $1,000,000 $1,060,000 $1,124,000 $1,191,000 $1,262,000 $1,338,000
Premium Trend 12% 10% 8% 6% 4%
Cost of HDHP $800,000 $896,000 $986,000 $1,064,000 $1,128,000 $1,173,000
Cost of SBP $100,000 $103,000 $106,000 $109,000 $113,000 $116,000
Surplus/Deficit $100,000 $61,000 $32,000 $18,000 $21,000 $49,000
Benefit Stabilization Fund $100,000 $161,000 $193,000 $211,000 $232,000 $281,000
11. CDHC 2.0™: What If It Doesn't Work?
$1,500,000
Total Plan Cost
$1,000,000
$500,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Total Budget $1,000,000 $1,060,000 $1,124,000 $1,191,000 $1,262,000 $1,338,000
Premium Trend 12% 12% 12% 12% 12%
Cost of HDHP $800,000 $896,000 $1,004,000 $1,124,000 $1,259,000 $1,410,000
Cost of SBP $100,000 $103,000 $106,000 $109,000 $113,000 $116,000
Surplus/Deficit $100,000 $61,000 $14,000 -$42,000 -$110,000 -$188,000
Benefit Stabilization Fund $100,000 $161,000 $175,000 $133,000 $23,000 -$165,000
12. How CDHC 2.0™ Works: Case Studies
Milliman Index 50 Life Tech 120 Life Retail 50 Life Distributor 30 Life Credit Union
Plan Year Increase Increase Increase Increase Increase
2002 - 2003 Base Year Base Year Base Year
2003 - 2004 10% 12% -1% Base Year
2004 - 2005 11% 13% 4% -16%
2005 - 2006 9% 0% 9% 12%
2006 - 2007 10% Base Year 0% 5% 6%
2007 - 2008 8% -1% 7% 10% 0%
2008 - 2009 8% -3% -1% 1% 1%
2009 - 2010 7% -1% -2% 5% 11%
2010 - 2011 8% 2% 12% 5% 4%
Cumulative 9% -2% 6% 5% 2%
13. PRIMING THE PUMP FOR CDHC 2.0™
• Implement a Value Based Benefit Design:
• Focus limited resources on meeting members’ needs.
• Kick-off process with a survey to ID employee priorities.
• Incent wellness & consumerism.
• Fund Benefits Cost Effectively:
• Self-fund what’s predictable & affordable; insure the rest!
• Communicate Incessantly:
• The CDHC 2.0™ Partnership Philosophy.
• The Content of the Benefits themselves.
• Via Concierge Service & Member Advocacy.
14. WHY CDHC 2.0™ WORKS
• Employer & Employees share a common goal:
• Sustainable benefits that meet members’ needs.
• Employer & Employees share a common road map:
• Healthier members, higher quality care, greater value.
• Employer is incented to create a culture of health:
• Tools & resources to promote health and consumerism.
• Employees are incented to succeed in that culture.
• Use tools & resources, join company sponsored activities.
15. QUESTIONS?
For Additional Information, Please Contact:
David Cowles I Principal
1-800-528-1530 x 117
david@benemax.com
www.benemax.com