and GALLAGHER Arthur J. Gallagher & Co. ENVISIONING A PARTNERSHIP 2017 GALLAGHER BENEFIT SERVICES, INC.

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1 and GALLAGHER ENVISIONING A PARTNERSHIP Arthur J. Gallagher & Co GALLAGHER BENEFIT SERVICES, INC.

Objectives Attract Retain Engage Employees Accountant, Senior - Aviation Department $55,873.38 - $89,174.31 Assistant Building Official $69,411.70 - $110,780.

2 Objectives Attract Retain Engage Employees Accountant, Senior - Aviation Department $55, $89, Assistant Building Official $69, $110, Behavioral Health Clinician $48, $77, Food Service Supervisor $36, $57, Transit Mechanic $ $31.70 hourly 47 Posted Positions 2

3 Annual Employee Benefits Survey Benchmarking

4 Overview Progressive Plan Management 4 plan offerings including HRA/HSA components and Consumer Driven Health Approach Narrow Network for 2018 Community Care Plan (CCP) Offers subsidy for part-time employees medical benefits Engagement Incentive / Wellness Strong Incentive and Focus Linked to HRA/HSA Funding for 2 of the plans Completion of One Wellbeing Event Self Funded Offerings Medical since 2015 Pharmacy over 15 years Stand Alone Pharmacy Programs CCP Plan uses EnvisionRx All other plans use OptumRx 4

5 Challenges Plan Funding 2015 required additional County funding Projected to increase at a rate of 9.5% per year Employee Contribution Fluctuations 2016 contributions changed from (80%) - 400% forcing large migration 2017 contributions changed from 0% - 17% Wide swings in County HSA/HRA contributions State Filing Issues Medical State filings No year end filing for 2015 Required additional funding Pharmacy State Filings Several not accepted by the OIR Provider Losses & Replacement Carriers RFP process recommended vendor was not implemented Selected UnitedHealthcare post-rfp based on Network changes Potential Revenue Loss / Budget Issues Proposed increase to Homestead Exemption 5

6 Is Your Benefits Program Sustainable? Sustainability Payroll (in millions) Total Expense (in millions) Benefits as a Percent 2015 Actual 2017 Projected 2019 Projected $265.2 $277.7 $289.3 $52.6 $56.0 $ % 20.2% 23.2% 2017 Gallagher Benefit Services, Inc.

Plan Benchmarking 2017 Comparison of Richest Plans Offered South Florida Public Entity Clients Type of Benefit OOP/Cost Annual Employee $1,300 Deductible Annual Employee Out of $2,800 Pocket Maximum

7 Plan Benchmarking 2017 Comparison of Richest Plans Offered South Florida Public Entity Clients Type of Benefit OOP/Cost Annual Employee $1,300 Deductible Annual Employee Out of $2,800 Pocket Maximum Coinsurance 80% Total Monthly Cost $755 Monthly Employee Contribution $151 Type of Benefit OOP/Cost Annual Employee $0 Deductible Annual Employee Out of $1,264 - $2,500 Pocket Maximum Coinsurance 100% Total Monthly Cost $633 - $771 Monthly Employee Contribution $0 - $30 Arthur J. Gallagher and PROSPECT NAME 7

Life/Wholesale Multinational Benefits & HR ** ** Pharmacy Benefit Management Retirement Plan Wellbeing & Engagement Voluntary Benefits

8 Requested Services and Other Gallagher Capabilities ** ** ** Compliance Executive Benefits Exchange Solutions Health & Welfare Healthcare Analytics Human Resources & Compensation HR & Benefits Technology Institutional Investment & Fiduciary Services Life/Wholesale Multinational Benefits & HR ** ** Pharmacy Benefit Management Retirement Plan Wellbeing & Engagement Voluntary Benefits Gallagher has the local resources to meet all requested outlined services. In addition to those the RFP, Gallagher can provide other capabilities and services. 8

Broward County s Dedicated Team Our client-centered

Michelle Nathan, Account Executive and Back Up Lead

Crowe, Area President, Lead Consultant Jeff Angello

Counsel Glen Volk and Sharon Leach Consulting Actuaries

Copeland Account Services Gerry Desmond, Retirement

9 Broward County s Dedicated Team Our client-centered focus means we work as part of Broward County s Team Michelle Nathan, Account Executive and Back Up Lead Consultant Barbara L. Crowe, Area President, Lead Consultant Jeff Angello Florida Market President Paul Hebert, Lead Benefit Counsel Glen Volk and Sharon Leach Consulting Actuaries Rebecca Pitilon, Yvonne Blackford, and Gerry Smith- Copeland Account Services Gerry Desmond, Retirement Plan Consulting Dr. Love, Kate Siano and John Hughes Wellness Consultants Gallagher Benefit Services, Inc.

Strategic Approach Multi Year Strategy Immediate Upon Award Identify Goals & Objectives Understand the County s directives and strategic HR goals Immediate financial opportunities Present

contract analysis to eliminate waste, ineffective programs, and contractual gaps Assess financial stability State filings both on medical and RX Stop Loss Review and Marketing 2018 2019 Focus on

10 Strategic Approach Multi Year Strategy Immediate Upon Award Identify Goals & Objectives Understand the County s directives and strategic HR goals Immediate financial opportunities Present benchmarking Review historical claims and design data medical and Rx Conduct thorough compliance review and update Compliance gap analysis Healthcare Reform compliance & financial impact Forensic contract analysis to eliminate waste, ineffective programs, and contractual gaps Assess financial stability State filings both on medical and RX Stop Loss Review and Marketing Focus on Vendor Partnerships Evaluate vendor relationships Define contract language and terms Leverage analytics to drive and validate benefit strategy Workforce Evaluation - drives communication style & benefit mix Operation Unit wellness environment audit (CDC scorecard based) Cost containment philosophy - incentive versus steerage Competitive landscape for benefits & recruitment Identify retrospective and prospective risk score based on claims data Identify key cost drivers by operational unit/plan Overview and areas for negotiations Data Warehouse Stop Loss Marketing 2019 & Beyond Optimize Plan Effectiveness Aggressively manage cost by identifying drivers in plan data Review changes to ensure their effectiveness Evaluate the market for best contract terms and conditions Review contribution structure and effectiveness Consider cost-saving plan design options Overall plan designs Network optimization (including limited networks) Consumerism/Communication tools Alternative payment models to align physician and plan goals Identify retirement readiness and the impact that has on long-term health costs 10

Partnership Model Wellbeing & Engagement The Gallagher Way for Wellbeing Communication & Education Workforce Evaluation Calendar Multi-media deliverables

Multi-Year Planning Sustainability modeling Benchmarking Evaluate Emerging Trends Reporting and Analytics Actuarial Services Underwriting Benefits Dashboard

11 Partnership Model Wellbeing & Engagement The Gallagher Way for Wellbeing Communication & Education Workforce Evaluation Calendar Multi-media deliverables Aligned with culture Compliance 27 Attorneys Monthly Directions HCR Updates Technical Bulletins CE Approved Webinars Quarterly Seminars Strategy & Design Multi-Year Planning Sustainability modeling Benchmarking Evaluate Emerging Trends Reporting and Analytics Actuarial Services Underwriting Benefits Dashboard Monthly Reporting M&A / Transactional Analysis Plan Management & Benefits Administration Annual Service Calendar Benefit Advocate Call Center Benefits Administration Consulting 11

12 Healthcare Analytics Suite of Services Actuarial Services Data Warehousing Audits PBM Services Rate Renewals/ Plan Pricing Reserving Plan Redesign Retiree Valuations State Filings Benefit Valuations In-depth Data Analysis Predictive Modeling Benchmarking Quarterly Trend Updates Medical Claim Audits Prescription Drug Electronic Audits Pre-implementation Audits Dependent Eligibility Audits PBM Procurement Services Ongoing Post- Implementation Audits What would Broward County have experienced under Gallagher s model? 3 to 5 year regularly updated forecast Deep dive into cost drivers Comparison of network contracting / discount analysis Gallagher s propriety underwriting and plan design factors Premium rate setting to ensure plan solvency Annual State filings 12

13 The Multiple Dimensions of Wellbeing Physical Health Social/ Emotional Health Financial Health Career Health Community Health The WHOLE person comes to work every day... & each employee s wellbeing influences individual and organizational performance 13

14 Getting Started Our consultative process Dedicated Resources Dr. Love, Kate Siano and John Hughes Health Benefits (Design, financing, risk management andadministration) Well-being & Engagement Strategy Framework Well-being & Engagement (Optimization of workforce productivitythrough engagement and goodhealth) Alignment to Business Objectives Deeper discovery, finding new ways to demonstrate well-being as an enabler to internal business strategies and company mission Understand Data, People, Culture Create Guiding Principles, Goals, Objectives, & Success Metrics Create Plan Design to Encourage Healthy Decisions and Manage Costs Create formal Wellness Advocate Network Conduct Market Survey for Wellness Partner, if appropriate Build Internal Alignment with Stakeholders Adapt Workplace Policies & Environment to Support Vision for Health Evaluate Opportunities for Onsite Care Integration 14

Gallagher Wellbeing Microsite Turnkey Wellbeing Communications Created by Gallagher wellbeing experts Very simple, no cost solution 12 Month Wellbeing Website Monthly topics and strategies to promote

15 Gallagher Wellbeing Microsite Turnkey Wellbeing Communications Created by Gallagher wellbeing experts Very simple, no cost solution 12 Month Wellbeing Website Monthly topics and strategies to promote through information, resources and programs Monthly Categories of Information Newsletters (English & Spanish) Posters (English & Spanish) Toolkit/Challenge/Activity Website URL is Gallagher Benefit Services, Inc

Compliance Dedicated Resources: Paul Hebert, Local Attorney and over 27 compliance attorneys National Scope We shoulder your compliance needs and help you avoid compliance risk.

We provide toolkits, checklists, and other resources to put the compliance landscape in an actionable perspective.

16 Compliance Dedicated Resources: Paul Hebert, Local Attorney and over 27 compliance attorneys National Scope We shoulder your compliance needs and help you avoid compliance risk. Our resources are dedicated to removing fear and uncertainty on compliance issues. We provide up-to-date legislative and regulatory monitoring and support. We provide toolkits, checklists, and other resources to put the compliance landscape in an actionable perspective. Local Execution Access to a dedicated local team member for compliance who will help navigate both day-to-day and strategic compliance issues. Common Ways We Provide Help Honing your game plan for the employer mandate and related IRS reporting. Spotting gaps in reporting and disclosure requirements under ACA, COBRA, and HIPAA. Design issues for wellness programs and consumer-driven health care. 16

17 Communication Consulting & Development Listen Design Digital Personalize Print 17

18 Workforce Segments Stage Career Priority Life Stage Characteristics Benefits Needs Communication Style Preference Entry-Level year olds (Gen Y) Mid-Career year olds (late stage Gen Y + Gen X) Established year olds (late stage Gen X +Boomers) Pre-Retiree 55+ year olds (Boomers + Traditionalists) Professional development Job advancement Income growth Establishing financial stability Recognition Focus on job and income advancement Recognition Professional development and certifications Professional respect Leadership Mentorship opportunities Preparing for transition into retirement Single or recently married Childless No or little savings Does not own a home Young family Growing financial obligations Day care needs Work/life balance is important Lessening family obligations Established financial routines Elder care needs (for aging parents) Focus on securing steady income during retirement Lighter family obligations Light user of medical benefits Health and wellness activities that are fun, social and affordable Financial planning for the future Work environment and corporate culture are important Moderate to heavy user of medical benefits Wellness efforts aimed at preventing health problems and sustaining good health Financial planning for the future Heavy user of time off and leave benefits Moderate to heavy user of medical benefits Wellness efforts aimed at preventing health problems and sustaining good health Retirement savings Long term care insurance Life Insurance Heavy user of medical benefits Wellness efforts aimed at preventing health problems and sustaining good health Retirement savings Long term care insurance Life Insurance Expects technology Prefers multiple focal points in presented information Needs guidance and structure Prefers summarized and visually appealing communications Requires detail Expects to be asked for feedback Requires individual attention Prefers practical and factual information Requires to be asked for feedback Requires individual attention Prefers peer advice Requires to be asked for feedback 18

19 Publications Healthcare Reform Updates Directions Newsletters Technical Bulletins Webinars 19

20 What is a Trusted Advisor? What Gallagher Brings to the Table Accurate & Responsive Account Management Gallagher s internal Business Operating Standards and Systems ensure Broward County Board of County Commissioners will have a measurable and clearly defined service plan The account management team servicing Broward County Board of County Commissioner has expertise with the public sector area, direct access to local subject matter experts and qualified redundancies to ensure consistency Partnership in Strategic Planning and Execution Gallagher s consulting team has the expertise to guide Broward County Board of County Commissioners through future challenges and the ability create and execute a strategic plan Our Public Niche works with companies of Broward County Board of County Commissioners s industry and size enabling us to provide precision guidance and perspective Supported by robust analytics, underwriting, communications, compliance, health management and other resources Measurable Engagement Our communications team combines insight based on a deep understanding of employee tendencies with imaginative delivery to create a final product for Broward County Board of County Commissioners that is unique and effective Team and Cultural Stability Broward County Board of County Commissioners can count on Gallagher for a locally consistent service team and stable, conservative corporate backing Market Clout Gallagher s presence as one of the largest benefit consultants in the world translates to favorable negotiations and renewals for Broward County Board of County Commissioners 2017 GALLAGHER BENEFIT SERVICES, INC. 20

21 Proudly GLOBAL, Fiercely LOCAL Presence 190+ Benefit Offices Nationally Benefit Services Employees Nationally 103+ Local Benefit Services Employees Premium in Excess of $2 billion World s Most Ethical Companies S. Florida Business Journal Chief Executive Magazine Best Companies Largest Public Entity Consultant in Florida Awards Over 90 Florida Public Entities Arthur J. Gallagher and Broward County Board of County Commissioners 21

22 A True Partnership At Gallagher, partnership means we actively invest in your success and continually earn your trust. 22

PROJECT SPECIFIC VENDOR QUESTIONNAIRE EMPLOYEE BENEFITS CONSULTING SERVICES

PROJECT SPECIFIC VENDOR QUESTIONNAIRE EMPLOYEE BENEFITS CONSULTING SERVICES Proposer is being asked to provide the following services. Proposers are asked to specify their ability to provide these services.