Update to Denominational Health Association

Transcription

1 Update to Denominational Health Association June 15, 2011 Jan K. Grude, Chief Executive Officer Sarah Hoffman, CFO Elisabeth Whiting, Director, Stakeholder Relations

2 Agenda Affiliate News HBT Strategic Goals & 2011 Priorities Key Accomplishments Focus Ahead Service Delivery 1

3 Affiliate News 2012 rates will be sent in Fall 2011 in alignment with member budget cycle HBT unfunded liability has decreased significantly HBT requesting additional feedback from members on our operational review and options June 20: We invite you to attend a presentation from Pacific Blue Cross on Trends in EHC & Dental 2

4 HBT Three Year Service Plan June 2010 Financial Sustainability Ensure financial sustainability through cost-effective service delivery and sound investment management. Client Focus Be recognized as a highly valued collaborative partner supporting its clients needs. Operational Excellence Continuously look for more cost-effective and efficient routes to deliver services to clients. Engaged Team Create a workplace culture and environment that fosters and engages a healthy and highly productive workforce. 3

5 Key Priorities for 2011 Financial Sustainability Resolution of unfunded liability in four pools Consistency of Contribution Procedures and Application Disciplined approach to experience rating Asset Management and Investment Performance Decision on most effective asset management approach Operational Efficiency Full business case reviews of delivery capabilities and cost Benefits Cost Reduction Analytics support & Plan Rationalization Client and Stakeholder Relations/Communications Comprehensive annual program WorkSafeBC Project-Health & Safety In Action (HSIA) Ensuring first year projects are successful and create conditions for improvements Support for Healthcare Bargaining Plan design expertise 4

6 Financial Sustainability Drivers FOUR KEY DRIVERS 1. Investment Performance 2. Contribution Rates 3. Management of LTD Claims 4. Deficit Surcharge & Exit Levy 5

7 Financial Sustainability Strong Investment Performance 6

8 Financial Sustainability Rates Primary Goal Accumulate assets in actuarially sound manner Secondary Goals Place incentives on desired outcomes Fairness of rates Consistent treatment of collective agreements Consistent with HBT s administrative policies 7

9 Financial Sustainability Rates - In Practice Group Life and AD&D set at the Trust level EHC and Dental Provincial Agreements - set at a single provincial rate Non-Provincial Agreements - set at a group level incorporating experience rating LTD Experience-rated at employer level (including Provincial Agreements) 8

10 Financial Sustainability 30.0 Managing LTD New Claims and Reinstatements (Raw) 25.0 Annualized Rate per 1000 Covered Lives TREND Declining LTD Incidence into

11 Financial Sustainability Typical LTD Plan ( employees) 10

12 Client Focus HBT Rehabilitation Services 11

13 Client Focus Increased outreach from HBT Rehabilitation Services Analytics: neutral advisor on benefits coverage Change in rate setting & delivery Change in invoicing Service Provider Governance/Performance Client Relations & Communications Expertise Operational Review 12

14 Operational Excellence Key 2011 Priority OPERATIONAL REVIEW Full business case reviews of opportunities to: reduce administrative burden on our clients contain benefit costs identify cost-savings and/or cost-avoidance system-wide benefits Request for Additional Feedback/Comments Focus Group Report 2010, External Reviews of HBT 13

15 Operational Excellence Opportunities 14 INVOICING Timely & coordinated with client reporting CUSTOMIZED REPORTING Annual account statements for members BENEFIT ADMINISTRATION Effective & efficient client support BENEFIT CONSULTATION Cost containment & plan rationalization FLEX Flex system opportunity REHABILITATION SERVICES Support clients in LTD prevention & management BUSINESS INTELLIGENCE-TREND REPORTING Advanced reporting services CLAIMS MANAGEMENT GOVERNANCE Reviews on GWL and PBC claims practices SERVICE PROVIDERS GOVERNANCE Performance Management EHC & DENTAL ENROLMENT Review of PBC enrolment LTD CLAIMS PROCESSING Review of LTD maintenance claims processing

16 Operational Excellence Opportunities SERVICE PROVIDERS Review of service metrics from GWL & Reporting from PBC RFP for Services LTD Adjudication currently with GWL EHC & Dental full review of pricing and service delivery 15

17 Financial Sustainability Funded Position FORECAST FOR 2011 Q1 Q2 Q3 Q4 F/Cast 97% % Indicator for Overall Health of the Trust 16

18 Financial Sustainability HEABC Pool SIGNIFICANT DEFICIT REDUCTION December 31, 2009 June 30, 2010 December 31, 2010 March 31, 2011 $52.2 million $43.8 million ~$30 million ~ 28 million 17

19 Financial Sustainability Exit Levy Contracting Out? Contact Us! Request a Current Exit Levy Calculation: HBT Deficit Reduction Decreased Exit Levy HBT is working with Government on alternate solutions. Legal action on hold. 18

20 HBT Strategic Goals 1 Year Accomplishments Financial Sustainability Client Focus Operational Excellence 97% Funded Strong Investment Performance Rational Contribution Rates Potential Alternate Solution to Manage Exit Levy Trend of Declining LTD Incidence Expertise & Business Intelligence Increased Client Access via Technology Proactive Issues/Change Management Increased Client & Stakeholder Outreach Responsive to Clients Needs Operational Review Underway Plan Rationalization Proactive Client Consultation Engaged Team 19 Employee Engagement Surveys Completed Highly Motivated Executive & Senior Team

21 Upcoming in 2011 June 20 HBT & PBC Presentation HBT BUSINESS UPDATE - Strategic Objectives Priorities - Rehabilitation Services PACIFIC BLUE CROSS Trends in EHC and Dental July 27 Conference Call: HBT Business Update 20