lubbers bse 2015

Presented by: Official Partner:Presented by: Official Partner:

Paul Lubbers, SVP, Aon Benefit SolutionsExpanding Distribution

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 !


ACA is a Game-Changer

3

Guaranteed issue No pre-existing condition exclusions Minimum essential coverage Restricted rate-ups Age 26 under parents’ plan Medicaid expansion

Access

Subsidies

Mandates

$23B87% of individuals received an average subsidy of $263

16.4 Mof 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%)

1MAdditional people covered through employers


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


Emerging Solutions – Plethora of New Entrants

Aon AffinityProprietary & Confidential

5

Small Employers Mid-Market Employers

Large GroupsIndividuals


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 funded1. Removing the hassle factor for employers and

consumers / employees2. Help everyone manage to a budget3. Create compelling value through personalization of

benefits and the benefit experienceWinning 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

6


Typical Yields in OE 2016

7

Factors That Drive Yield

AT LARGE CONSUMER MARKETING

“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

<1%-3%“Expected” Range

50K Active Shoppers

100K Prospects

5K Active Shoppers

8%-12%BUSINESS SPONSOR

MARKETING


Commonalities for Distribution

• Profile

• Profession

• Transaction

• Event

• Others?


Questions?

lubbers bse 2015

Documents