HealthFlex Plan Operational Updates

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1 HealthFlex Plan Operational Updates HealthFlex Mini-Summit March 2013

2 Agenda Plan Rates Consumer-Driven Health Plan (CDHP) Extend Health Express Scripts Ceridian 2

3 Plan Rates Update Premium increases (Six-year compound average growth rate) PPO Medicare 4.4% 2.3% 3

4 Plan Rates Update Impact on CBOP meetings Inability to provide rates in advance of scheduled delivery dates Requests for rates based off CBOP meetings scheduled prior to rate delivery date Maybe s: Potential timeline change/caveats due to health care reform 4

5 CDHP Update Claims data comparison HealthFlex book of business (BOB) average cost PMPY* $5,406 HealthFlex CDHP average cost PMPY $4,677 HealthFlex PPO average cost PMPY $5,242 CDHP growth Total plan sponsors in CDHP 15 Total lives in CDHP 9.9% Average % of lives in CDHP for plan sponsors offering CDHP as an option 13.2% *PMPY per member per year 5

6 CDHP Update CDHP rating relationship to PPO Office visit benefit design HRA 1 design (too generous?) Additional CDHP designs HCR/ACA 2 HDHP 3 (IRS) designs 1 HRA health reimbursement account 2 HCR/ACA health care reform/affordable Care Act 3 HPHP high-deductible health plan 6

7 CDHP Survey Number of respondents First year plan sponsors Second+ year plan sponsors Common likes Common concerns Overall rating 7

8 Extend Health Plan Migration Update 9 more plan sponsors moved to Extend Health effective January 1, of 22 plan sponsors now in Extend Health Plan sponsor meetings Q1/Q2 (through April 15) Plan decision Q2 (April 15) Eligibility file submission Q2 (May 31) Deadline to back out of April 15 election: June 30 8

9 Extend Health Update 2013 Implementation Successes % enrolled (450% growth) Workshops Challenges Medicare D enrollment Pre-65 Medicare-eligible participants Extend Health service delivery Wait times (set and non-set appointments) Licensed benefit advisors (LBAs) knowledge base 9

10 Extend Health Update Improvements Scheduled plan sponsor meeting survey/feedback Commitment to increase ratio LBAs to participants Commitment of approved LBAs Facilitate ability to make recommendations Direct participants decision-making 10

11 Enrollment Data Review Nine Plan Sponsors As of December 31, 2012 Measure Combined Result Eligible participants 2,885 Enrollments 2,651 Conversion 95.36% Unique carriers 49 Unique plan types 409 Medicare Advantage/ Supplement split Average Medicare Advantage/ Supplement premium 12.33%/87.67% $33.44/$ Average Part D Premium $31 11

12 Top Carriers Medical Plans AARP Medicare Supplement Continental Life Insurance Company of Brentwood, Tennessee, an Aetna Company Blue Cross Blue Shield of Georgia Humana American Continental Insurance of Tennessee Prescription Drug Plans (PDP) Silverscript AARP PDP Humana Well Care Coventry Health Care 12

13 Extend Health Survey Number of respondents Common likes Common concerns Overall rating 13

14 Potential Medicare Companion Changes by 2015 Extend Health 2015: only available plan sponsor offering HealthFlex would continue to facilitate/ manage relationship with Extend Health and plan sponsors 14

15 Potential Medicare Companion Changes Medicare Companion (MC) 2015: Eliminate MC 1 and MC 2 plans Extend Health 2015: Only plan sponsor offering available 15

16 Express Scripts Update Transition from Medco DBC* due diligence: Rx purchasing coalition Brings to light, at a minimum, areas for improvement Service updates General Board (HealthFlex) leads DBC Service Committee * Denominational Benefits Coalition 16

17 Express Scripts Update Areas of Focus Service Improvements Platform/transition/integration issues Customer service/advocate team US-based vs. overseas Dedicated vs. designated Overall, for all calls For targeted areas (e.g., complex cases) Training and technology supports (e.g., customer service expertise re: benefit/plan design) 17

18 Express Scripts Update Areas of Focus Service Improvements Mail order/home delivery (includes increasing account balance) Communications Participant focus groups and satisfaction surveys 18

19 Ceridian Update Debit Cards FSA*/HRA stacking Auto-reimbursement ( auto-pay ) * FSA flexible spending account 19

20 Eligibility and Health Accounts Vendor Due Diligence Execute vendor RFP/due diligence process Q2/Q3 If needed, vendor selection and implementation Q through 2014 For effective date to coincide with 2015 annual election 20

21

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