Aon Corporation EXPERIENCE WITH CONSUMER DIRECTED HEALTH PLAN

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Aon CorporationEXPERIENCE WITH CONSUMER
DIRECTED HEALTH PLAN

• Why did Aon consider this option?
• What did Aon implement?
• What has been the experience to date?

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WHY DID AON CONSIDER A CONSUMER DIRECTED HEALTH
PLAN?

• Health coverage in 2001
• National PPO Medical Program (Drugs, Vision)
• Separate National Dental Program
• Separate HMO alternatives varying by location
  (over 80 total)
• PPO had 200 deductible 1,000 OOP 90/10
  co-insurance
• 19,580 Employees covered

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WHY DID AON CONSIDER A CONSUMER DIRECTED HEALTH
PLAN?

• Employee Concerns
• Health care is most valued employee benefit
• Prefer choice in health plans
• Want more freedom to choose providers
• Need more access to information on medical issues
• Better access to medical records and services
• Want more affordable cost

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WHY DID AON CONSIDER A CONSUMER DIRECTED HEALTH
PLAN?

• Employer Concerns
• Double digit expense increases
• Constant evaluation of PPO and HMO design
• Appeals for exceptions
• Employee communication/responsibilities
• Efficient plan administration
• Need to change health care paradigm

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WHY DID AON CONSIDER A CONSUMER DIRECTED HEALTH
PLAN?

• Consumer Direct Health Plan (CDHP)
• Offers employee control for first dollar coverage
  (HRA)
• Major medical coverage provides safety net
• High deductible for medical and HRA rollover
  provides incentive to spend wisely
• Full internet access for employees allows for
  expense tracking and access to medical
  information
• Competitive premiums/OOP costs

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WHAT DID AON IMPLEMENT?
CDHP
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WHAT DID AON IMPLEMENT - 2005?
CDHP - GOLD
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WHAT DID AON IMPLEMENT - 2005?
CDHP - SILVER
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WHAT DID AON IMPLEMENT - 2006?
CDHP - GOLD
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WHAT DID AON IMPLEMENT - 2006?
CDHP - SILVER
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WHAT DID AON IMPLEMENT - 2007?
CDHP - GOLD
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WHAT DID AON IMPLEMENT - 2007?
CDHP - SILVER
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WHAT HAS BEEN THE EXPERIENCE TO DATE?
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WHAT HAS BEEN THE EXPERIENCE TO DATE?

• HRA Rollover Activity
• 2001 - 2002 Rollover Activity
• 77.8 of employees rolled over dollars
• 691.15 average rollover amount
• 91.8 Re-enrolled in the CDHP
• 2002 - 2003 Rollover Activity
• 68.3 of employees rolled over dollars
• 864.42 average rollover amount
• 91.1 Re-enrolled in the CDHP

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WHAT HAS BEEN THE EXPERIENCE TO DATE?

• HRA Rollover Activity (continued)
• 2003 - 2004 Rollover Activity
• 64.1 of employees rolled over dollars
• 1,078.49 average rollover amount
• 93.1 Re-enrolled in the CDHP
• 2004 - 2005 Rollover Activity
• 48.3 of employees rolled over dollars
• 1,015.04 average rollover amount
• N/A Re-enrolled in the CDHP

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WHAT HAS BEEN THE EXPERIENCE TO DATE?

• HRA Rollover Activity (continued)
• 2005 - 2006 Rollover Activity
• 61.6 of employees rolled over dollars
• 1,282.69 average rollover amount
• 84.2 Re-enrolled in the CDHP

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WHAT HAS BEEN THE EXPERIENCE TO DATE?
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WHAT HAS BEEN THE EXPERIENCE TO DATE?
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WHAT HAS BEEN THE EXPERIENCE TO DATE?
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WHAT HAS BEEN THE EXPERIENCE TO DATE?