HALLMARK CASE STUDY FOR SELECTQUOTE BENEFIT SOLUTIONS COMPANY  BACKGROUND:  

Hallmark  Cards,  Inc.  is  a  $4.1  billion  company  with  over  20,000  employees  headquartered  in  Kansas  City,  MO.  Their  products  can  be  found  in  100  countries  around  the  world  and  in  more  than  40,000  stores  in  the  United  States  alone.  

THE  CHALLENGE:  

In  coordination  with  other  benefit  changes  Hallmark  decided  to  streamline  the  management  of  their  retiree  medical  plan.    Employees  retiring  on  or  after  January  1,  2012,  would  no  longer  be  eligible  for  the  employer-­‐sponsored  Group  Medicare  secondary  plan.  Effective  January  1,  2013  substantial  changes  were  made  to  the  existing  grandfather  group  of  retirees  who  participated  in  the  Group  Medicare  Supplement  plans,  including  the  elimination  of  a  high-­‐cost  plan  and  cost  increases.  Hallmark  maintains  an  enviable  culture  of  respect  and  support  for  all  of  their  employees,  and  senior  management  was  concerned  about  how  the  message  of  new  coverage  would  be  perceived.  

The  decision  was  driven  by  unsustainable  growth  in  healthcare  costs.  Due  to  the  unique  demographic  composition  of  its  workforce,  Hallmark’s  medical  costs  were  increasing.  As  a  large  employer  with  a  sizable  pool  of  retirees,  Hallmark  wanted  both  a  benefits  AND  contribution  strategy  offering  cost  savings  and  greater  flexibility  for  plan  participants.  

The  company  was  looking  for  a  partner  who  could  provide  the  needed  replacement  coverage,  communicate  the  change  to  their  impacted  employees  and  retirees,  handle  the  enrollment  of  all  retirees  and  service  them  on  an  ongoing  basis.  

THE  PLAN:  

After  a  thorough  due  diligence  process  SelectQuote  Benefit  Solutions  was  engaged.  

Working  closely  with  Hallmark’s  HR  department  on  both  the  local  and  corporate  levels,  as  well  as  with  their  internal  communications  group,  SelectQuote  Benefit  Solutions  developed  a  comprehensive  communication  plan  to  educate  and  inform  their  impacted  retirees  about  the  upcoming  changes.  It  was  critical  to  Hallmark  retirees  understood  that  in  many  cases  the  new  program  meant  better  coverage  in  the  individual  market  than  their  current  plan  often  for  a  smaller  contribution  by  the  retiree.  

 

 

 

While  Hallmark’s  active  employees  have  always  received  benefits  through  a  single  carrier,  the  firm  recognized  that  retiree  needs  are  unique.  To  provide  the  greatest  flexibility  and  cost  savings  to  retirees,  Hallmark  decided  upon  a  multi-­‐carrier  approach.  This  option  would  give  retirees  freedom  to  weigh  the  costs  and  benefits  of  multiple  plans  and  select  the  one  best  suited  to  their  own  specific  needs.  

A  financial  analysis  allowing  the  separation  of  the  Retiree  Health  coverage  from  the  Hallmark  “Group  Plan”  proved  that  Hallmark  could  significantly  limit  cost  increases  and  utilization  rates  over  the  next  several  years.    

IMPLEMENTATION:  

August  2012  –  Hallmark  announced  the  upcoming  changes  to  all  impacted  retirees.    Through  various  communication  pieces  retirees  were  directed  to  a  unique  website  and  800#  for  any  questions  they  might  have.    Below  are  the  highlights  of  the  communication  plan.  

• Custom  posters  were  created  and  displayed  at  each  location.    

• Post  cards  were  developed  and  used  for  ongoing  communication.    The  postcard  reminders  were  coordinated  and  sent  out  by  Hallmark.      

•  30  on-­‐site  education  meetings  at  all  major  locations  across  the  country  we  conducted.    

• Custom  education  materials  outlining  options,  key  dates,  and  enrollment  periods  and  were  distributed  at  the  on-­‐site  meetings  and  highlighted  during  the  presentation.      

• A  sample  presentation  was  filmed  and  made  available  on  the  Hallmark  corporate  intranet  site  and  retire  website.    DVDs  were  also  available  to  those  that  could  not  make  a  meeting  and  did  not  have  internet  access.        

• A  custom  website  was  built  for  Hallmark  retirees,  integrated  into  the  Hallmark  benefits  site  and  was  available  throughout.    

• Licensed  agents  were  specifically  trained  regarding  the  Hallmark  program  and  were  available  to  answer  questions  and  guide  the  retirees  in  selecting  a  plan  that  was  right  for  them.    

• Retiree  questions  and  themes  were  tracked  by  SelectQuote  Senior  and  were  used  to  develop  FAQs  and  to  monitor  the  retiree  feedback  and  make  real-­‐time  program  adjustments  as  needed  throughout  the  process.  

 

THE  RESULT:  

We  communicated  to  over  4,000  retirees,  presented  to  over  2,000,  took  1,825  calls  and  transitioned  1,026  to  individual  plans.  

Retiree  feedback  has  been  extremely  positive.  The  communications  plan  was  very  well  received.  Retirees  were  thankful  to  hear  about  their  choices  and  gain  a  greater  understanding  of  their  new  benefit  options,  including  no  underwriting  or  pre-­‐existing  condition  limitations  with  timely  enrollment.    Through  the  planning  and  joint  communication  effort,  -­‐  retirees  felt  appreciated  and  understood  the  reason  for  the  change  in  coverage.  We  regularly  receive  calls  in  our  direct-­‐to-­‐consumer  business  that  are  referrals  from  Hallmark  retirees.  Hallmark’s  feedback  was  extremely  positive.  The  overwhelming  response  from  their  retirees  was  extremely  positive  as  well.