SEPTEMBER 13-16, 2016 SOUTH LAKE TAHOE, CA

How To Conduct An Effective Employee Benefits Marketing

September 15, 2016

Presented to you by:

Dan Exceen, Sr. Vice President/Partner, Burnham BenefitsTina Koenig, Vice President, Burnham Benefits

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

• Insurance Committee

• Accessing the Market

• Information Gathering and the Process of Marketing

• Evaluating the Results

Agenda

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

Insurance Committee

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

• Why?

• Who?

• How?

• Results

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

Building the Committee

Have the “we’re in this together attitude”

Bargaining Unit 

members

New and tenured 

employees

District HR / Finance

Balanced mix of all parties

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

Set the Ground Rules

Remember “We are in 

this together”

Each Unit has a voice

Communicate

Develop Goals & Purpose

No Bargaining Commitment

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

Education• Educating the Committee

• Group Insurance 101 • ACA Overview• Regional landscape of carriers, plans and trends in

insurance• Factors that drive rates and how to affect change• Timeline

• Educating the workforce• Town Hall meetings• Selecting the right tone/clear message

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

What Purchasing Options are available?

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Accessing the Market

• Direct Market• Purchasing Pools • Broker/Consultant Pools• CalPERS• Retirees

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Direct Market

Placing business directly with the carrier

• Employer stands on their own• Flexibility in plan design options• Experience (Claims) information available for 

evaluating renewals• Lose some of the ability to spread the risk over a pool

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

Direct Market Carriers (California)

• Anthem• Blue Shield• Aetna• United Healthcare• HealthNet• Cigna• Regional Providers (WHA, Sutter, etc)

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Purchasing PoolsTwo or more public entities banding together to purchase insurance

• Board can be Union and/or Management• Surplus revenues can be returned to the district or 

used to offset rates• Contracts with the carriers and provides some services 

to districts• The ability to spread the risk over a pool

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

Choosing the right JPA

• How long has the JPA been in existence?• What are the commitments that are required to 

participate?• How healthy is the pool?• Is there access to any information?• How are rates determined?

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Choosing the right JPA, continued

• How are renewals established• How much Kaiser enrollment is in pool• What voice do we have in the pool• What are the pool termination rules

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Broker/Consultant Pools

In addition…

• Are there restrictions on who I can work with?• Are there commissions or profits built into the rates?• Is there an annual financial accounting?• What if I leave?

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

CalPERS

• Large buying power• Risk is spread amongst many public employers throughout 

California, not just schools• Set Plan designs• No experience information• Regional Pricing Structure• Once committed, exiting CalPERS can be difficult• Offers options for Retiree benefits• Security

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Sample Pooled Markets

ASCIP

ACSIG

CVT SCSEBA

REEP

VEBA

SISC

LOCALCalPERS

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How to Market

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Gathering the Information

• Census• Claims Information (if available)

• Loss Ratio • Large Claim Information• Rate History• Current and Proposed Plan Designs

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Evaluating the Quotes

• Financials• Pooled Renewal Rate History• Network Access• Employee Impact (Pharmacy)• Members Services• Support

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Available Help

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You are not alone – leveraging help

• Consultants can be valuable unbiased resources• Moderate insurance committee meetings• Source of information to educate the committee• Has a pulse on what’s going on in the market• Not beholden to the inforce carriers/vendor

• Lean on your carrier partners and invite them to present to the committee

• Share latest product/network developments• Set the table for upcoming renewal or market challenges• Sounding board for issues/concerns facing your employees

SEPTEMBER 13-16, 2016 – SOUTH LAKE TAHOE, CA

Thank You

Dan Exceen Tina KoenigSr. Vice President/Partner Vice PresidentExceen@burnhambenefits.com Koenig@burnhambenefits.com949‐252‐4586 916‐642‐1003