Proprietary and Confidential ©Copyright 2013 Spring Consulting Group, LLC. All rights reserved CSCS Membership Spring Consulting Group, LLC June 6, 2013

Proprietary and Confidential©Copyright 2013 Spring Consulting Group, LLC. All rights reserved

CSCS Membership

Spring Consulting Group, LLC

June 6, 2013

What Spring Can Do For Your Business

With many CSCS employee benefit plans renewing in July, how can Spring Help?

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AgendaWhat Spring Can do for your Business

Spring Background How can Spring Help? What do I do now? Spring Differentiators Questions?

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Presenter OutlineGeorge W. Gonser, Jr. MBA CDHC, LIA – Spring― Partner and CEO – Spring

• Affiliated with MDS since 1998 – Employee/Business Partner

• Appointed by Mass Gov. Patrick in late 2011 to Commonwealth Health Insurance Connector Authority Board of Directors – represent individuals, businesses and brokers/consultants on Mass and National Health Care Reform

― 20 + Years in Employee Benefits / Health Care / Insurance / Consulting

• CEO - MDS Insurance Services Inc.

• Vice President• National Sales / Marketing / Client Service / Consulting

• Director of Information Technology• Development / Customer Support / Operations / Claims

• Underwriting / Benefit Analysis

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Spring Structure Nationwide Employee Benefits, Consultancy and Actuarial Firm

Spinoff of U.S. Watson Wyatt Insurance & Financial Services Consulting Group

Provides strategy consulting services to employers, insurance and financial service providers and captive owners

Offers subject matter expertise in retirement, life, healthcare (including retiree medical), disability, absence management, workers’ compensation, captive insurance and strategic risk management

Working as Employee Benefits and Financial Services Provider for CSCS members since 2012

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Key Practice Areas

Employee Benefits

& Risk Mgmt Consulting

Insurance & Financial Services

Consulting

Alternative Funding Strategies

(i.e. Captives, COLI, TOLI, BOLI)

Working with employers, insurers and financial service organizations provides unique insight regarding benefits & insurance cost reduction, streamlined

administration and improved employee satisfaction for employers

Employee Benefits and Financial Services

Brokerage Services

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Employee Benefits Brokerage Employee Benefits:

Strategy development Funding analyses and financial evaluations Program design, insurance placement and overall implementation

― Traditional medical, consumer directed plans, high deductible health plans, HSAs, HRAs

― Dental, vision― PTO, disability, LOA, FML, day one absences― Disease management, wellness, EAP/work life/concierge― Life insurance― Retirement services― Voluntary products

Contribution analysis Provider and vendor management Employee relations and communications Compliance support Ongoing plan and project management

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What Can Spring Do for your Employee Benefits Program?

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Partner with you as your trusted advisor to devise and implement the best, cost effective employee benefit

program for you and your employees

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More than ever, with budgets tighter and uncertainty of the 2014 insurance product

and service landscape due to PPACA, partnering with experienced, licensed and pro-active broker/consultant is essential.

Get the help you need!

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What Spring Can Offer You:

Helping to Set Your Strategy Understanding Your Budget

Establishing Your Insurance Product and Services Goals Outlining The Census Process

Creating An Analysis Looking beyond the numbers

Planning around the Long and Short Term effects of PPACA Assisting the Plan Selection and Outlining Funding Mechanisms

Managing the Implementation Providing Customer Service and Compliance Investigating Other Products and Services

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Strategy:

Set your goals and objectives for your employee benefit program around your corporate goals and short and

long budgetary realities

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Considerations:

Will you continue to offer benefits to employees – 30 hours or more?

Will you employ a Part Time Strategy to off load expense for employees under 30 hours?

What are the ramifications of the business and to staff – Recruitment and Retention?

Will you impose a buy up strategy via a quasi fixed contribution?

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Understand Your Budget:

With funding always an issue, you need to structure your employee benefit program to fit your budget. The key is balancing product and services selections with fiscal

restraints while allowing for increased employee engagement and choice.

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Considerations:

What will you set your contribution percentage to be? How much can the business and the employees

afford? Do you plan on adding staff during the year? What are the funding realities going forward?

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Insurance Product and Service Goals:

The company must set the insurance product and services goals around the realities of market prices and

product/network offerings

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Considerations:

Do you implement single or multi plan structure? What is the product mix – HMO/PPO/EPO/HSA? What is the employment mix What are your Network needs? Is out of area coverage necessary?

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Outlining Census:

The Census Process establishes the employee count, makeup and composition of the firm for quoting plan options and completing the analysis. For 2014, there

are many changes that will take effect in capturing data on new business and renewals alike.

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Considerations:

All Data Elements must be included to get an accurate depiction of the company and employees. (Provided in Excel Spreadsheet Format) Company Name Address City/State Zip Phone and Email SIC Code

Employee Last Name Dependent Last Name * First Name Gender Date of Birth Occupation * Annual Salary * Taking Health Insurance or Waiving Smoker – Non Smoker *

* New for 2013 and beyond

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Considerations Continued:

Are there employees either: Approaching Age 65 At or over Age 65

Do you offer 2 Tier or 4 Tier Structure Looking to 2014 – List Bill Consideration

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Creating an Analysis:

The analysis is a synthesis of data and strategic goals and objectives. The census is used to generate the plan

and carrier options while the analysis takes into account current plan year products and prices.

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Considerations:

Spring provides analysis to CSCS Member entity Does the analysis have options that fall within budget Do you need to reconsider contribution strategy or

revisit the strategic direction based on the analysis? The business will drill down to a few options at this

point in the process

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Looking beyond the Numbers:

The analysis, while crucial to the employee benefit program, is not the only component. The company

and the broker/consultant need to look at the numbers and what they represent and the other factors that can influence what the analysis really

represents.

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Considerations:

Low price doesn’t always equal best value What is the risk of the plan to the overall operations

and flow of the business Employee benefits represent the 2nd highest corporate

expense after salaries… How will this plan impact the lives of the employees –

does this really matter to you?

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PPACA Effects:

All insurance product and services decisions MUST keep an eye on whats coming in 2014. While plans

renewing in 2013 will have a reprieve in the PPACA effects until renewal in 2014, changes and cost increases must be factored into decisions now

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Considerations:

Metallic Tiers coming in 2014 Will my product selections be compliant in 2014? What is the cost implications for my plans based on

estimations for 2014 including: PPACA Taxes and Fees Essential Health Benefit requirements and limits New Bill structure

9.5 Percent rule Small Business Tax Credits

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Essential Health Benefits Brief Overview:

Starting in January 2014, the Affordable Care Act will require all new individual and small group health plans (for people who don’t have traditional job-based coverage) to cover important health benefits like maternity, mental health, preventive, and pediatric dental care. These benefits, considered “essential” by the Department of Health and Human Services fall into 10 categories:

1. Ambulatory patient services (outpatient services)2. Emergency services3. Hospitalization4. Maternity and newborn care5. Mental health and substance use disorder services, including behavioral health treatment6. Prescription drugs7. Rehabilitative and habilitative services (those that help patients acquire, maintain, or

improve skills necessary for daily functioning) and devices8. Laboratory services9. Preventive and wellness services and chronic disease management10. Pediatric services, including oral and vision care

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Plan Selection and Funding:

The plan selection and funding phase is now at the forefront. Should you think of having less dollar one coverage for savings and setting up a funding vehicle

to pay or pay a portion of the deductibles?

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Considerations:

First Dollar vs. Deductible Management of Funding Vehicles – FSA, HRA, HSA – tax implications Payroll Deducted vs. post tax dollars

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Managing the Implementation:

Implementing the plan includes applications, network verification, education and verification all done in a

timely fashion to meet submission deadlines set by the various carriers

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Considerations:

Is training a factor with the staff? Outline Network access electronically is the best

avenue Transition timelines Application requirements

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Customer Service and Compliance:

Post implementation involves ongoing Customer Services functions and Compliance Guidance

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Considerations:

PPACA – always in play Fulfillment and ID Cards Customer Services – billing and claims On-going compliance support

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Other Products and Services:

There are many other products and services that round out the employee benefit portfolio. Some are

employee funded and others are purely voluntary/employee paid.

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Considerations:

What products Dental STD/LTD/Life Financial Services –Individual and Corporate Many others

Is there an appetite on behalf of the client and their employees?

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What do I do now?

• Work only with a pro-active, licensed, broker/consultant• Be compliant• Become better benefit, insurance and health care consumers

Get the “right” help

• Create a long term plan for ALL of your employee benefits• Re-evaluate annually based on updated corporate goals and

objectives• Be Ready to Pay More – taxes, fees, rating changes, administration

Long-term

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Spring’s Team Differentiators Experienced and innovative

Objective and independent

Transparent remuneration

Knowledge of competitive landscape

locally, nationally and globally, bringing the latest

ideas to employer and vendor clients

Flexible to customize products and services to meet corporate

objectives

Reliable in delivering strategy through to implementation

Focused on client services and quality assurance

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Questions

George W. Gonser Jr. MBA, CDHC, LIAPartner - CEO

Spring Insurance Group LLC

[email protected]: 617-589-0930; ext 106

Toll Free: 800-821-6033

Toll Free - (800) 821- 6033 www.springgroup.com

Documents

Proprietary and Confidential ©Copyright 2013 Spring Consulting Group, LLC. All rights reserved CSCS Membership Spring Consulting Group, LLC June 6, 2013