Euramax International, Inc.

Our radical change to a Private Exchange

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Euramax OverviewWhat do we do?

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• Large steel and aluminum fabricatoro 180 million pounds of aluminum o 210 millions pounds of steel

• Primary customers include distributors, contractors, home improvement retailers, and RV and transportation manufacturers

• 10,000 unique products

• Leader in several niche product categorieso Preformed residential gutters sold in the U.S.o Metal roofing and siding for post frame construction in the U.S.o Aluminum siding for RVs, motor homes and holiday homes sold in the

U.S. and Europe.o Aluminum coil coating in U.S. and Europe.

Euramax OverviewWho we are…

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30 locations in 32 states (70% in PA, GA, CA, TX, IN)61% hourly blue collar77% maleAvg age 45Avg tenure 12 years

1,100 employees/1,800 covered lives80% participate in medical

2 plans offered – PPO and high deductible/w HRA66% of associates - 7+ years without a carrier change

Wellness - 3 years – lack of behavior change 40% over-weight, 35% obeseTobacco and Spousal Surcharge in place – 5 years

Enrollment Breakdown:40% employee only30% EE+child(ren)30% EE+spouse or family

Why did we make the change?Our motivation

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Needed to make a radical move

Cost Containment• Defined Benefit• Fully insured model• Create Behavior Change

• Failed HRA and Wellness offerings

Competitive Offerings• Choice of options• Health Savings Account

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• 84% enrolled online – Huge success!389 calls (55%) = Enroll in the plan/Technical/Website issues182 calls (25%) = Advice and Recommendations135 calls (20%) = Plan Design Questions

• How would you rate your experience selecting your health coverage with Health Marketplace’s help?– 3.67 average score (scale 1-5)

• Thinking back to your prior enrollment experience, rate your satisfaction– This year with the MarketPlace was better

• Did you feel the Advisor was helpful?– Yes (91%)

“Easy process”“Clear and understandable on what my costs were vs. what my coverage will be”“Advisors are helpful and friendly”

What happened?Employee Reaction – What they said

What happened?Employee Reaction – Plan Movement

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OLD - Plan % participation

PPO 800-80 82%

High Deductible* w HRA 18%

NEW - Plan % participationPPO 1K-80 64%

PPO 1K-90 13%

PPO 500-80 5%

PPO 500-90 4%

PPO 500-100 7%

High Deductible w HSA 7%

29%

“I like having

options!”

Lessons LearnedDon’t under-estimate…

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• The time to implementBrief timeline from decision to go live – 13 weeks– Inability to customize plans– System Limitations – file feeds

• Lack of employee understanding of true health care costs

• Employee Culture and willingness to accept change

• New Relationships: Euramax, BCBSGa and Bloom