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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Houchens Insurance Group 1750 Scottsville Rd., Suite 4 Bowling Green, KY 42104
The Benefits of Online
Enrollment
April 12, 2013
Presented By:
Adam Marley
(270) 467-1309
Houchens Insurance Group
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367 2
About Us
Headquartered in Bowling Green, KY
5 Locations throughout Kentucky and Tennessee
Staff of 164+ employees handling
over $250 million in annual premiums
Full Range of Brokerage services include: Employee Benefits
Property & Casualty Financial & Retirement
Personal Lines
Provide access to virtually all insurance and
administration markets
Excel locally through community involvement and
position of leadership
Possess national presence and exposure through a
variety of prestigious memberships and
affiliations
Largest 100% employee-owned ESOP in the United
States
2012 Insurance Journal Ranked HIG 30th largest privately-held insurance brokerage in the United
States
Employee Benefits Areas of Specialization
Medical Plans • Self-Insured Plans • Fully-Insured Plans • Contingent Premium Plans • Captive Programs • High-Deductible Health Plans (HDHPs) • Health Savings Accounts • Health Reimbursement Accounts • Limited Medical Plans (Mini Med Plans)
Other Employee Benefits Plans • Flexible Spending Accounts • Wellness Programs • Dental Plans • Vision Plans • Short-Term Disability • Long-Term Disability • Life/AD&D • Long Term Care • Supplemental Coverages (cancer, accident ,etc. ) • Section 125 Plans • Travel Accident • Special Risk Coverage • Group Auto • Group Legal
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367 3
Universal Coverage: Individual Mandate Online Enrollment Systems Overview
What is Online Enrollment and Benefits Administration? 30,000 ft. overview
• Links employers, insurance carriers and payroll into one, user-
friendly platform
• Provides access for employees to enroll in benefits through a secure website or portal • Employees see personalized coverage with customized rates and
benefits • Each employee has a unique user ID and password
• Data is electronically delivered to insurance carriers via EDI feeds,
updating benefits in real-time
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
4
Each enrollment and benefits administration system has two sides:
• Employee Enrollment- benefit enrollment occurs once per year, or when qualifying life events occur. Additional features such as videos, informative documents, and company messaging may also be included • Enhances Communication to All Staff • Allows a new medium to deliver important messages • Creativity is welcome
• HR Management- Human Resources may send information to carriers, change
employee benefit or demographic information, unlock employees for changes, and create valuable reports in seconds • One centralized system • Carriers disable online changes, so the enrollment system is the sole source of
input • Saves time and resources
Online Enrollment Systems Overview
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Phases of Implementing an Enrollment System
Phase 1: Research Systems and find your organization’s best fit.
Phase 2: Gain buy-in from stakeholders that going electronic is the “way to go”
Phase 3: Project Management- let everyone know what their role is in implementing the system and how they will benefit
Phase 4: Plan for implementation. Know the timeline, have a strategy and set goals
Phase 5: Continue to improve and find new ways to use the enrollment system. Learn the reporting features.
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367 6
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Price/Features Continuum Enrollment Systems
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Custom Graphics/Videos
Robust/Custom Reporting
Integrated with Carriers/Payroll
Basic Enrollment Function
$1.00 PEPM $7.00 PEPM
Live, Licensed Customer Service
Communications and Fulfillment
Billing/ Admin
Enrollment Methods
Other Extension Services: Dependent Audits, Total Compensation Statements, etc.
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
New Trends and Capabilities
• PPACA- Look-back periods, eligibility, admin periods
• Defined Contribution
• Individualized Premiums
• Total Compensation Statements
• Private Exchanges
• Plan Expense Forecasting
• Personalized Medical Expense Forecasting
• Dependent Audits
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Execute Your Search
• Request demos from as many enrollment companies as you wish
• Have a vision for what you want out of the enrollment system
• Set up a template to “evaluate” each system
– Recency bias
– Presentations start run together
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Things to Consider In Your Search
• Functionality
– Are we comfortable operating the system?
• Price
– What is our target budget?
• Level of Service
– Will we need a lot of service? Can our own IT department help?
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367 11
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367 12
What if an individual cannot afford to buy insurance? Benefits of Using Online Enrollment Systems
Frees time for Human Resources Staff
Reduces paper and mail
Records both positive and negative enrollment decisions
Eliminates human-error in understanding handwriting on paper forms
Synchronizes data between company payroll and insurance carriers (Including Banner)
Eliminates ineligible “dependents” who may be on the plan (Dependent Audits)
Cleans-up employee demographic information
Helps employees better understand their benefits
Robust and Customized Reporting- Generate Self-Bills in seconds
Saves time in the enrollment process (complete demographic information only once)
Makes annual benefits enrollment an efficient process
Easily access dependent and beneficiary information
Provides year-round self-service access eliminating time-consuming calls to HR
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Benefits of Enrollment Systems to Management
• Provide greater transparency into costs – Run financial reports based on real-time participation, trends, etc.
– Provides the ability to interface with claims data
• Ease the burden of moving insurance carriers – Data for quoting is readily available (including claims with some systems)
– Change carriers and rates easily within the enrollment system
• Improve response time to changing legislation with Health Care Reform – Update premiums, plan types, funding models, and more with relative ease
– Effectively communicate to employees through branded online portals
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
14
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Facilitate Open
Enrollment or On-going enrollments
Approximately
Upload Benefits Information and
Employee Census. Create User
Names/Passwords. Test feeds with carriers
and payroll systems.
Approximately
Choose a Technology vendor and request
initial setup and training
Approximately
Enrollment System Implementation Timeline
Step 1
Step 2
Step 3
End-to-End Setup and Enrollment process tot take
between
depending on the group and the quality of the group’s data.
Business Day Lead Time
Weeks depending on group response
Typically a one to two week process, including testing time.
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Enrollment Method Planning
• Self-Service
• Call Center
– Mandatory and Optional
• Enrollers
• Mix of any/all of the above
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Keys to Success
Capitalize on the Investment
• Name a “champion” on your team
– Serves as the resident expert on the system and communicates back with the vendor
– Attends training, watches the webinars, reads the studies and attends all meetings provided by the vendor
– This person “knows” he or she is the “champion”
• Any system takes people and time to make it a successful tool
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Coordination with Current Carriers
• Let your carriers (both core and voluntary) know your interest in systems
– This can dramatically change cost
– Lowers administrative burden for carriers as well
• Make sure your enrollment vendor supports your carriers
– Implementation time varies by carrier
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Keys to Success
• Create a “responsibilities” matrix – Includes
• Internal champions • Management (decision-makers) • Contacts at the technology vendors
• Track progress regularly – Plan for the following:
• Understanding the “HR Side” (reporting, unlocking records, etc.) • Building products • Checking rates and payroll • Importing census • Customization of Platform • Communications Planning • Do we want a call center to assist?
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
20
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Implementation Timeline-Communications
Benefit Booklets
• Introduce a “changing process”
• Discuss the foreseen benefits
• Any changes in coverage highlighted
Communications Strategy
• Leading up to Open Enrollment
• Understand your mediums and communication culture
• Methods
• Tone to Staff
Reminders
• Day Before
• “Weekly”
• Last Chance Reminders
• Individualized messages
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Keys to Success
• Start Mid-Year
– If open enrollment is for 1/1 effective dates, start enrollments much earlier
– Use New Hire enrollments to start-out
• They are a “clean-slate” and have no reference to the change that is taking place
– Give the system time to work out “bugs”
– Allows HR to get comfortable with the processes and technology
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Keys to Success
• Communication is key – If you think all employees/staff know what to do, tell
them two more times – A message must be seen 19 times to “set-in” (this is
shockingly true) – Set and agree upon a communications strategy and
timeline about Open Enrollment • Emails • Benefit booklets • Texts, Voicemails • Break-room fliers
• Plan your enrollment window – Sometimes shorter is better
23
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Keys to Success
• Can we make online enrollment “mandatory”?
– The tone of communications is much different
– Makes online enrollment a “term of employment”
– This drives clean data
– Drives active decision making versus passive opt-outs
• Records “Accept/Decline” decisions
• Beneficiaries are updated annually
• Dependents are cleansed annually
• Addresses, emails and emergency contacts are accurate
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367 25
Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Keys to Success
• Set Measurable Goals for the Enrollment Tool
– “Log-in” rates (80% is a great target for a first year)
– Surveys to staff
• “Do you understand your benefits better?”
– Billing Accuracy
– Ineligible dependents removed
– Pieces of data cleansed (addresses, beneficiaries, etc.)
• Boards love data. Being able to show a “return” on the investment will keep everyone happy.
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Why Having a Benefits Enrollment System is Key
• In a changing environment, the ability to respond timely is key: – Defined Contribution
– “Individualized Premiums”
– Look-back and Administrative periods (artificial turn-over)
– Affordability tests
– More plan options based on the metallurgic scale (Bronze, Silver, Gold and Platinum)
– Voluntary Benefits will grow in popularity (more billing coordination for HR)
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Houchens Insurance Group 1750 Scottsville Road, Suite 4
Bowling Green, KY 42104 / P: 270.793.0367
Conclusion
• Reviewed enrollment systems
– Benefits
– How to research
– How to prepare
– How to implement
Questions?
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