BCG's Trend Neutralizer is a proven program that guarantees a reduction in your medical trend costs, based on the level of your company’s participation in various health plan best practices.

1. A Health Plan Strategy
that
Guarantees Savings

2. 2
Proven
Strategy.
Predictable
Results.
Do your renewal meetings
normally start like this?
“Well, healthcare costs continue to
rise….”
Then,
consider these
facts:
For most
companies,
healthcare costs
are the 2nd or 3rd
largest item on
their income
statement.
RAND Corporation:
10 years of family income
growth have been WIPED
OUT by increased
employee medical plan
contributions & benefit
reductions.

3. The Challenge for
Mid-Sized Employers
3
Average Number
of Members
“Credibility” Based on
Months of Claims Experience
1st Renewal 2nd Renewal
50-74 0% 25%
100-149 31% 35%
200-299 43% 50%
400-499 58% 67%
1000-1099 89% 100%
• It’s called “credibility.”
• Your claims improved, so you expect a significant ROI, but you are
not the beneficiary of the improvement. Here’s why:

4. 4
The Devastating Impact of Compounding
Trend 646% Increase in Medical Costs
1995-2016
…
… 1,741
1,941
2,164
2,413
2,690
3,050
3,344
3,729
4,158
4,636
5,188
5,701
6,226
6,786
7,397
8,026
8,628
9,188
9,813
10,451
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
How have most companies addressed this?
• Reduce benefits, increase employee contributions, absorb more costs in corporate
budget.
• This has translated into employee pay cuts and reduced capital for business
investment.
Simply due to trend.

5. Size Matters
️
5
Large Employers
Small to Mid-Size
Employers
•Only must worry about
improving their claims experience
•Fully credible
•Have to improve claims AND
reduce their trend factor
•Can’t achieve fully credible
status
•But are told they can’t do
anything about trend

6. 6
Wellness Programs.
But What about ROI?
Most employers don’t know what
their return on investment for
Wellness efforts will be….
The insurance industry tends to
accept this…we don’t.
Based on the 2017 Arizona Employee Benefits
Benchmarking Survey responses of mid-size employers.

7. 7
What If… ️
Wellness programs were viewed like
safety programs are for your workers
compensation rates?
you had a 100% GUARANTEE of return
for your wellness efforts?
AND…

8. 88
The Parallel to Workers Comp Rates
If you do a lot of safety training and have detailed safety policies
and procedures, you expect that to be reflected in your premium
rates for workers compensation insurance, right?
• You have a lot of safety awareness and efforts.
• Another company similar to yours does not.
>>> You get a lower premium rate for workers
comp.
Would you run your company without a safety program?
Why would you run your health plan without wellness programs?
Is it right for your company to invest time in
wellness programs and NOT receive financial
benefit?

9. Trend Neutralizer
99
Trend Neutralizer is a
proven program that
guarantees a reduction in
your medical trend costs,
based on the level of your
company’s participation in
various health plan best
practices.
With BCG’s exclusive
Trend Neutralizer, your
company and employees
benefit directly from
these savings (instead of
just adding to your
insurance carrier’s
bottom line).

10. Trend Neutralizer:
How it Works ️
Total
possible
credit
points =
10-12%
1010
The percentages above represent guaranteed savings for particular
wellness initiatives at renewal, ranges based on participation.

11. EXAMPLE #1:
ACTUAL RENEWAL WITH TREND NEUTRALIZER
1111
$101,605 – 1st year savings
$1.6 Million+ – Anticipated
5-year savings

12. 12
HERE’S THE MATH
Without
TREND
NEUTRALIZE
R
With TREND
NEUTRALIZER
12 Months Premium $1,080,902 $1,080,902
Assumed Rate
Increase (11.61%)
X 1.1161
Trend Neutralizer
Credit
N/A -9.4%
Next Years Premium $1,206,394 $1,104,790
Savings at 1st
Renewal
$101,605
5-Year Savings $1,615,789
TOTAL
Trend
CREDIT:
9.4%

13. 13
TREND NEUTRALIZER SAVINGS EXAMPLE:
100 EMPLOYEES OVER 5 YEARS
$1,080,902
$1,104,790
$1,126,886
$1,149,423
$1,172,412
$1,195,860
$1,080,902
$1,206,394
$1,327,034
$1,459,737
$1,605,711
$1,766,282
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
$1,500,000
$1,600,000
$1,700,000
$1,800,000
$1,900,000
Year 1 Year 2 Year 3 Year 4 Year 5
2% Trend 10% Trend

14. 14
FINANCIAL
IMPACT
Using figures shown on previous chart, the
financial impact of 2% trend vs. compounded
10% trend for the next 5 years:
$17,663
per
employee
$1,766,282 per
100 employees
If your business drives a 10%
margin, that’s equivalent to an
initiative that would yield over
• $17 million in additional gross
revenue (per 100 employees).

15. 15
BENEFIT COMMERCE GROUP’S
TREND NEUTRALIZER
PROVEN PREDICTABLE GUARANTEED
You CAN combat the inevitable medical inflation trend curve. We will
GUARANTEE it.
--Some will tell you that what we are describing is not possible.
--HOWEVER, our 33 clients who have saved $55 million over the past
5 years would say otherwise.
See actual client success
stories.