Sample Voluntary Benefits Presentation

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• Sample Voluntary Benefits Presentation
• John Doe
• Title

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Whats covered

• The growing responsibilities of the employer,
  employee the broker/consultant in a changing
  benefits environment.
• The growing need for effective benefit
  communication during the enrollment process.
• Proven strategies to communicate benefits where
  everyone wins (employer, employee,
  broker/consultant)

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Those Not Offering Are Being Approached
Just over 40 of firms not offering voluntary
benefits are familiar with this concept and have
been approached about offering a voluntary plan
within the past year.
Heard of Vol. Benefits? (Those not offering)
Approached in Last Year?
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Industry Dynamics

• Employers are competing for top employee talent
• Medical costs are consuming large portions of
  benefit budgets
• Employees lack tools and knowledge to navigate
  through all of their benefit decisions
• Brokers/consultants asked by clients to solve the
  above issues

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Employers

• Total benefit costs averaged 37.6 of payroll
• More than one-quarter of all benefit costs and an
  average of 14.5 of gross payroll is spent on
  medical related benefits
• The average turnover rate among top-performing
  employees is 17 at companies that offer rich
  benefits but poorly communicate them to workers,
  as opposed to 12 at businesses with less
  comprehensive programs but better communication
  strategies - Employee Benefit Advisor April
  2005

U.S. Chamber of Commerce, Statistics and
Research Center. Employee Benefits Study 2004
Watson Wyatt study WorkUSA 2004
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Employers

• Medical plans quickly moving toward consumer
  directed plan designs with higher deductibles,
  HRAs, HSAs, etc.
• Domestic and global competition is forcing
  employers to become even more efficient and cost
  effective
• Evolving plans require employee education
  communication.

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Employees

• Increasingly more responsible for insurance
  protection
• Assume greater portion of healthcare costs
  through
• higher deductibles/out of pocket limits
• cost sharing on premiums
• Required to determine type and amount of coverage
  for their families
• Lack appropriate tools to evaluate current or
  added benefit options

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Brokers/Consultants

• Required to provide employers cost effective
  benefit alternatives
• Redesigned plans
• Reduce/eliminate employer funding for certain
  benefits
• Introduce employee-paid benefits
• Provide solutions to effectively communicate
  benefit plan changes and new plan options

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Whats Important When Selecting an Outside
Advisor or Consultant?
Percent of Respondents Who Rated the Criteria
Extremely Important (9 and 10 on a 10 point scale)
Preliminary Data
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Traditional Communication Methods

• Benefit booklets
• Benefit Highlight Sheets
• Group meetings
• Others

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Benefit Communication Companies

• aka - Enrollment Firms
• Product choices complement/enhance current
  benefits
• Utilizing the experts to maximize results
  provide additional services (communication,
  enrollment value added service).

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Enrollment Solutions - Value Added Service

• Core/Voluntary benefit enrollment
• Technology
• FSA/HSA Communication
• Data Cleansing

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Benefit Enrollment
Core

• Enrollment Company communicates all benefits to
  the employees in a consistent manner
• Alleviates pressure of open enrollment from HR
  and department managers

Voluntary
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Technology

• Secret to Employee Self Service?
• Fully integrated operating system for enrollment
  and benefit administration process all in one.
• Technology and Communication Companies can
  provide training/testing ground for Employers to
  move to an internet, self-service model.

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Self Service Trends
Banks understand the savings from self service
Teller
ATM
This transaction costs banks approximately 1.20
This transaction costs banks approximately 0.02
Self Service can be the key to solving HRs
problems and integrated technology can help!!!
Source Cedar Survey 2002
Estimated costs
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Technology

• Enroll/communicate benefits
• Provide benefit plan details
• Provide benefits statements
• Show pre and post tax benefits
• Work with existing payroll or HR systems

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Section 125 Analysis
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Benefit Statements

• Show the employer paid portion of the benefit
  package to each employee as a vital part of their
  compensation
• Show the employee their net pay
• Show the cost savings of pre-tax benefit
  contributions

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FSA/HSA Communication

• Increase participation in flexible spending
  accounts saving the employer valuable tax dollars
• If an employer is implementing a HDHP with an HSA
  employees need to understand
• Communication is key!
• Education Success

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Data Cleansing

• Capture current personal information such as
  current home address/phone
• Cleanse current dependent data
• Capture beneficiaries
• Update emergency contacts, etc.

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Example (Actual Case)

• ABC Company has an approaching open enrollment
  and will be introducing a Consumer Driven Health
  Plan.
• The complex structure of the plan and higher
  deductibles have made employees wary of the
  concept.

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Example

• ABC Company engages a Benefit Communication
  Company to educate employees on the concept.
• Enrollers will conduct the companys Open
  Enrollment, enrolling core and voluntary benefits
  through one-on-one sessions call center.
• New hires will be enrolled via call center on a
  perpetual basis.

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Example

• Counselors dedicate two-full days of training.
• Counselors become familiar with ABC Companys
  benefit program and the companys culture.
• Supported by presentations customized for each
  employee, counselors effectively communicate the
  entire benefit plan and the value of the CDHP.

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Example.conclusion

• ABC Company experienced 55 participation in its
  CDHP.
• 98 of employees surveyed said they had a better
  understanding and appreciation of their benefits.
• 94 of employees made changes to their personal
  data during enrollment.

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Value Proposition Everyone Wins!

• Employers
• Communicate consistent message regarding benefits
  to their employees
• Reduces paperwork
• Provide comprehensive benefit coverage
• Potential tax savings (FICA)

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Value Proposition

• Employers (contd)
• Data Cleansing employee demographics accurate
  and up-to-date
• Electronic data feeds available for benefit
  providers
• Option to utilize consolidated billing/common
  remitter

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Value Proposition

• Employees
• Educated benefit consumers
• Access to affordable benefits
• Ability to properly insure themselves and their
  families
• Gain a clear appreciation of the economic value
  of their benefit program

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Value Proposition

• Broker/Consultant
• Enhance role as a trusted advisor to your clients
• Solve clients benefit communication challenges
• Address benefit cost containment
• Client retention tool
• Maximize revenue

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Voluntary Products Offered
Percent of All Employers with 10 Employees
30
Voluntary Products Offered
Percent of All Employers with 10 Employees
31
Questions