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HomeMy WebLinkAboutRESPONSE - RFP - 8283 BENEFITS CONSULTANTCity of Fort Collins RFP#8283 BENEFITS CONSULTANT HUB International Insurance Services Inc. www.hubinternational.com 4/25/2016 Services Provided by: Jim Sampson Vice President/Client Executive jim.sampson@hubinternational.com 720-207-2385 HUB International Insurance Services Inc. www.hubinternational.com 1125 17th Street, Suite 900 Denver, CO 80202 April 25, 2016 Lynn Sanchez Wellness Program Coordinator Jill Wilson Buyer City of Fort Collins 215 North Mason St., 2nd Floor Fort Collins, CO 80524 RE: RFP 8283 Benefits Consultant On behalf of HUB International Insurance Services Inc. (“HUB”), thank you for giving us the opportunity to respond to your Request for Proposal. We welcome the opportunity to partner with the City of Fort Collins and to collaborate with your team to create a cost effective, innovative and strategic plan for your health and welfare programs. Our goal is to demonstrate that HUB is the ideal partner to provide you with superior consulting expertise tailored to your operations. Together we can build a complete, competitive, and creative employee benefits program to assist in managing costs, with the City remaining an employer of choice. Our goal is to: • Provide a thorough and targeted response to your Request for Proposal • Describe the HUB Advantage – the value added resources and capabilities we provide to group employee benefit clients • Demonstrate depth of expertise and experience as best-in-class employee benefit consultants • Reinforce our interest and commitment in partnering with the City to help you deliver and administer a competitive and comprehensive benefit package to your employees HUB is not only committed to meeting, but exceeding, the City’s service requirements. We are a company dedicated to superior customer service. Our professionals are committed to adding value to every client activity. HUB is uniquely qualified to provide a customized portfolio of quality insurance carriers and employee benefits services to meet and achieve your goals and objectives. On your behalf, HUB’s professional team will engage our considerable resources, knowledge, technology and market relationships. As you review our responses, please feel free to contact us with any questions. We look forward to the opportunity to work with you, and we hope to develop a long term strategic partnership between the City of Fort Collins and HUB International. Respectfully Submitted, Terry Reams, Colorado Employee Benefits Practice Leader 720-207-2368 Jim Sampson, Client Executive 720-207-2360 Shawne Cihak, Account Executive 720-207-2343 Nathan Wolfe, Manager of Financial Consulting 720-207-2321 Jennifer Yokley, Account Manager 720-207-2353 HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 1 | Page 1) Describe any problems you foresee, if any, in your ability to perform the services described in the RFP. We do not foresee any problems in our ability to perform the services described in the RFP. 2) Describe your firm’s services offered for plan design modeling as it relates to wellness incentives, and creating a holistic approach to the City’s Total Rewards Strategy. Our Employee Benefits Practice is comprised of industry experts who develop benefit programs that make sense for our clients and their employees. With specialists in all lines of employee benefits, we have the expertise to keep your programs running smoothly and your employees satisfied. From needs assessment through plan implementation, our team helps you achieve your objectives while increasing employee engagement and commitment. Built upon a tradition of integrity, industry leadership and excellence, we are committed to delivering tailored benefit solutions with thoughtful strategic planning, valuable professional services, education and technology based solutions. We pride ourselves on offering the resources of a global brokerage delivered with a local touch. With over 80 local employees who specialize in Employee Benefits, HUB can offer the City of Fort Collins solutions that are properly scaled to meet the needs of your diverse employee base. We are passionate about supporting your business and delivering results. Wellness Health and Performance is one of our five core strategic components of our employee benefits practice. HUB’s Health and Performance team provides strategic consultation in designing an effective and sustainable wellness program specific to your organization’s unique culture, in conjunction with short-term and long-term program goals. Wellness program tools include wellness vendor partnerships, healthy culture development, industry leading program design and compliance, annual health evaluations; employer aggregate reporting; personalized health reports; health coaching; on-site courses and online tools, as well as full program administration, record keeping and reporting. We will support City of Fort Collins by advising on program models, incentive design, communications and effective strategies for successful integration with your current health and wellness programs. With HUB’s data analytics capabilities, unique population groups can be measured to assess the impact of wellness programs. High risk members can be easily identified and tracked over time using claims information, biometric screening data, and clinic participation. Health and Performance is a key component of HUB’s value proposition and client multi-year strategy. Overarching client goals will fall within different phases of the wellbeing spectrum from Awareness, Participation, and Engagement to Accountability. Organizations that invest in and focus on health as a business strategy gain significant value from the resources HUB has to offer. Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 2 | Page HUB believes that one size does not fit all so we offer our clients wellness solutions that fit their specific needs and can offer basic wellbeing programs to a comprehensive outcomes-based wellness program. Some of HUB’s wellness tools are as follows: Wellness Documents and Resources • Wellness Program Compliance Checklist • Wellness Program Privacy Notice • Health and Wellness Plan Privacy Certification • Reasonable Accommodation Policy • Wellness Program Disclosure Notice of Reasonable Alternative Standard • Benefit Plan Language - SPD • Benefit Plan Language - Premium Differentials Notice 3) Explain what steps you have taken to become HIPAA compliant and what is your experience in offering HIPAA training to clients? HUB’s top priority is your employees’ privacy when we are handling their HIPAA related claims issues. Our procedures to ensure the secure handling of Protected Health Information (PHI) are as follows: • All employees must pass an extensive background check, sign a confidentiality statement and follow our HIPAA Privacy and Security documented policies and procedures • All employees are internally trained and certified on HIPAA compliance • We have invested in state-of-the-art client management database software and your data is password protected at all times • All paper records are stored electronically and thus allows for quicker access to client files creating a paperless office environment • Our building and all public access doors are secure • We obtain your employee’s consent to communicate with the carrier or vendor as their “Authorized Delegate” Form and all Protected Health Information is kept extremely confidential Should training on HIPAA be desired for City employees, ThinkHR, a complimentary service, provides unlimited access to self-paced training in a variety of topics including HIPAA training. 4) Explain how your firm stays current with change in federal and state laws and how this information will be communicated to the City. Describe your firm’s practice for communicating and ensuring compliance in these federal and state laws, including but not limited to, HIPAA, PPACA, COBRA, and other federal and state compliance areas. One of our most valuable assets is our in-house team of compliance attorneys who address and minimize City of Fort Collins’ exposures to audits, penalties, and lawsuits under state and federal laws affecting employee benefit plan sponsors. The HUB Legal Compliance Service attorneys have decades of combined experience advising employers in the public and private sectors. Compliance services are strategic, varied, and practical. Our service is designed with the goal of taking you to the point of solution, rather than simply telling you what the law says. The Legal Compliance Service team assists HUB clients and HUB professionals in many ways by answering specific questions from a client’s benefit consultant, resolving impermissible carrier coverage denials, and completing in-depth compliance reviews for a client within DOL and IRS guidelines. Our attorneys are nationally recognized experts in HIPAA, COBRA, Code Section 125, high Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 3 | Page deductible health plans, HSAs, HRAs, FSAs, DCAP plans, FMLA, USERRA, Mental Health and Substance Abuse Parity, CHIPRA, the Public Health Service Act, and Medicare Secondary Payer rules. HUB consultants seek guidance and compliance advice from our in-house compliance department when designing benefit programs such as consumer-driven health care and wellness programs. Our attorneys also conduct in-depth research on specific topics, while tracking changes in state and federal law, including federal health reform’s likely impact on our clients. We communicate legislative information to clients through our HUB Bulletins which are regularly sent to the Human Resources team via an email based platform. Releases will contain Department of Labor Technical Releases, EEOC Publications, HHS Guidance, PPACA Final Rules and Amendments. Our client updates will include citations of the Federal or State agency that issued the guidance. The periodic legal compliance updates inform clients, prospects, and our internal HUB specialists, while providing specific action steps, sample forms, suggested plan language, and other tools. Types of compliance communications you can expect from HUB International: • Health Care Reform Webinars and Local Seminars - Our in-house team of Compliance Attorneys have conducted webinars and seminars on a regular basis as new developments surface in Washington related to health care reform and its implications for the City. HUB is a leader in the industry on Health Care Reform education and provides prompt and thorough guidance as regulations are released. Upcoming National Webinars include: o May 4, 2016 – The IRS is Coming. What to Do Before, During and After an ACA Audit o May 11, 2016 – Innovate Reward Practices for a Rapidly Changing Workplace • hubhealthreform.com - HUB’s dedicated website is updated regularly with the latest information, webinars on demand, and a library of past compliance bulletins. • Client e-mail alerts - As important developments arise, HUB sends e-mail alerts to keep your staff abreast of current events in the employee benefits industry. ThinkHR™ • HUB will provide ThinkHR™ to the City of Fort Collins at no cost. ThinkHR™ is expert HR advice and answers to complex HR questions. ThinkHR™ offers a phone based support service that allows you to obtain quick answers or second opinions on a range of Human Resources issues from a SPHR/PHR certified consultant. You have unlimited access to self-paced training with over 200 on-demand training courses including employee relations, policy and procedures, a comprehensive online HR Library for federal and state law compliance, COBRA, FMLA and thousands of invaluable templates, forms, guides and online tools. Reference ThinkHR flyer in the attachments. 5) Describe any audit services that you provide for claim audits or dependent eligibility audits. HUB has several partnerships with auditing firms to conduct periodic claim and eligibility audits for our clients. There are additional fees depending on the project scope that would be passed directly to the City and would not be included in our base fee agreement. Legislative and compliance audits are included in our core services and we have a variety of tools and resources to assist the City in achieving full compliance with all applicable governmental regulations. Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 4 | Page 6) Submit a sample of annual and periodic reports you provide similar clients. Our Financial Consulting team utilizes a cutting-edge, integrated system called HUBLens for both reporting and analytics pertains to the benefits plan. A more detailed description of our capabilities and samples are contained in our response to question #9. 7) Describe any customized or ad hoc reporting capabilities including Internet capabilities. The HUBLens analytics system provides excellent flexibility in generating reporting that can be customized to the City’s specific needs and setup. Certain elements of our analytics engine can be made available to the City through an online dashboard ensuring benefits data is at your fingertips 24/7. As stated in the previous question, a more detailed description of our capabilities and samples are contained in our response to question #9. 8) Describe any services provided by your firm for the purposes of employee and management communication and employee and management training. HUB has several methods to share information with Human Resources and City employees, depending on the topic. The HUB team will work with the Human Resources Department to develop an employee communication strategy based on the objectives and goals within the City’s strategic plan. HUB creates multiple types of employee communication pieces as part of our standard employee communication strategy: • A Benefits-at-a-Glance brochure will be created and updated annually. This summary of the plan offerings can be used during open enrollment and throughout the year. • HUB will create an open enrollment presentation and join the meetings as the City desires, from leading the entire presentation to simply answering questions. • To keep the City of Fort Collins compliant, HUB will prepare language and include mandated notices (CHIP, HIPAA Special Enrollment, Medicare D, WHCRA, Exchange Notice, etc.) for distribution to participants. • Benefit statements are available to educate employees about the total value of their compensation and benefits. • HUB will create ad hoc communication materials for the City on topics such as wellness and specific benefit offerings. • A guided PowerPoint communications and training for new hires and open enrollment education. The City’s HUB team has many years of experience in facilitating employee meetings and are well versed in the use of materials such as power point presentations, webinars, lunch and learns, benefit enrollment systems and HRIS systems. The local and national resources available through the HUB portal allows for ease of access to professional, quality communication material in a timely fashion. Based on the desires of the City, HUB’s service team is available to travel to multiple locations in order to accomplish the City’s communication goals. Scope of Proposal Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 5 | Page Benefits At A Glance - This document will be custom designed specifically for you. It outlines the details of the benefit plans you offer, illustrates the employee’s portion of the premium and provides narrative on key aspects of each benefit option. Employees are provided with contact information directly to HUB team members and carriers to steer benefit related questions away from your busy HR team. Clients often use these communication tools with prospective new hires as a complete outline of their benefit package and during open enrollment as they are comprehensive and easy to understand. Individualized Benefit Statements - HUB can provide individualized Employee Benefit Statements that illustrate the “hidden paycheck” each employee receives from the City through their benefits package. HUB’s clients value this tool because of the magnified role benefits play in contributing toward an employee’s compensation package in the current economic environment. Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 6 | Page HUB Training Opportunities for Managers and Employees • With ThinkHR, you have unlimited access to self-paced training with over 200 on-demand training courses for managers and employees. Reference ThinkHR flyer in the attachments. • HUB MyWave Benefits Portal™ is an educational portal that your assigned management team has access to at no charge. We can train your team to utilize the HUB MyWave Benefits Portal when you become a client. This website gives you the ability to join human resource related forums to communicate with HR professionals from around the country and learn about a variety of benefits, OSHA and HR related topics at your own pace. The website includes thousands of topics in print and video form that you can email to or print for your employees. Topics range from saving money on medical costs and wellness newsletters to proper lifting procedures and annual preventive doctor visits. Reference HUB MyWave Benefits Portal flyer in the attachments. • Our in-house team of Compliance Attorneys conduct webinars and seminars on a regular basis as new developments surface in Washington related to health care reform and its implications for the City of Fort Collins. HUB is a leader in the industry on Health Care Reform education and provides prompt and thorough guidance as regulations are released. 9) One area of interest for the City is improving its management reporting and analysis of the self- funded healthcare plan. Provide a description of how your firm assists clients in this area, along with a sample report you would offer the City as part of this contract. HUB Colorado is an integral component in our national underwriting and financial consulting practice. The Central Region underwriting and financial consulting division is based here, numbering a team of six analysts and financial consultants. We have several unique tools to analyze plan performance, employee behavior and predictive modeling. Among the most comprehensive of our software platforms for our self-insured clients is described below. Access to robust claim and utilization data is very important in the analysis and reduction of ongoing costs. Having access to data allows the City of Fort Collins to make efficient and effective decisions about its health plan. This can include actions such as reviewing proper emergency room utilization, evaluating underlying conditions to design a wellness program, evaluating network access and discounts, and properly evaluating plan design adjustments. HUB will analyze the utilization data and lead the discussion in designing a population health management program. This will include recommendations on the wellness program and plan design that allows employees to identify and manage their health conditions. HUB International has partnered with Innovu to bring you HUBLens, a user-friendly benefits data analytics solution. The HUBLens capabilities provide dynamic, graphical dashboards and an array of reporting capabilities. In addition, data filters and drill down capabilities provide insight down to the member and condition-specific level. With rich analytics, we have the ability to evaluate employee/patient compliance levels based on best practice standards and prevention screenings. With the ability to instantly view cost and condition factors that affect your overall health plan, the data analytics tools deliver an essential foundation for optimizing your plan design. Our systems even have the ability to integrate workers’ comp data with your medical claims data. By integrating workers’ compensation claim data with medical claim data, HUB unites its benefit and P&C experiences to provide a unified delivery model. HUB cross references workers’ compensation claims with medical and Rx claims, looking for improper use of benefits, as well as tracking duplicate prescription charges. Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 7 | Page HUBLens is the leading benefits analytics solution that allows you to… Have Your Benefits Data at Your Fingertips 24x7 Automatically Discover Errors in Your Claims and Enrollment Data Stay Connected With Your HUB Team with Electronic Messaging Receive Immediate and Prioritized Information Relevant To You Benefit Program Know Exactly Where Your Benefits Program Stands To Proactively Manage Today and Plan for Tomorrow Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 8 | Page Medical Dashboard HUBFeed Discussion with a Client on Claims Spend Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 9 | Page Pharmacy Dashboard Workers’ Compensation Dashboard Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 10 | Page Our Plan Modeling tools provide comparative analyses on hypothetical plan strategies using actual claims experience. These tools enable organizations to forecast potential savings, predict changes in a proposed plan, and calculate the possible value in various wellness initiatives. By simulating plan modifications with real claims experience, these tools are designed to improve wellness, save money and increase efficiency. 10) What resources do you use for benchmarking? At HUB, benchmarking is not a separate discipline, but rather an important part of the everyday business of managing risk. We strive to create a meaningful performance benchmarking system that will allow you to better support your organization’s strategic goals. By implementing the “best of the best,” you are closer to assuring its continued success and long-term profitability. Our benchmarking data provides you a standard to which you can compare your benefit programs. We can make recommendations to help you enhance your plan offering while remaining competitive and reducing your overall plan costs. Valuable benefit trend statistics and surveys are one of the core pieces of information that we provide to our clients to help support your benefit plan design strategy and decisions. These surveys and statistics provide benchmark data from leading consulting organizations around the country and cover the following topics: • Ancillary Benefits • Benefit Costs • Benefit Management • Healthcare Costs • Health Plans • Prescription Drugs • Retirement Plans • Wellness Benefits • Vacation and Paid Time Off HUB utilizes a broad panel of benchmarking resources for our group clients. These include the Mountain States Employers Council Health and Welfare Survey; The Milliman Medical Index Report; Kaiser Family Foundation/Health Research Education Trust Employer Health Benefits Annual Report, and the Towers Perrin Healthcare Cost Survey. Due to the national size and scope of HUB’s Employee Benefits consulting practice, we have the ability to benchmark within our own client base by geography and industry using our standardized agency management system. Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 11 | Page 11) Explain how you will ensure that performance standards for the City’s benefit related vendors are negotiated and met. With $735 million in premium placed with the insurance companies in Colorado, HUB’s clout ranks above other competitors and allows us to aggressively negotiate on the City of Fort Collin’s behalf by way of direct access to the insurance carrier decision makers. In addition, we serve on the broker advisory councils for all of the major carriers serving the Colorado market. With our market status, we are able to ensure carriers and vendors are accountable in provision of the appropriate information, identification of issues, and meeting pre-determined performance standards and deliverables. HUB will work with the City to develop and implement standards of performance with regards to its selected carriers or third party administrators. In instances where we have negotiated objective performance or service guarantees, our teams will ensure that the standards are measured and if the objective is not obtained, we will coordinate payment of any financial reimbursements. 12) What is your firm’s experience in dealing with Northern Colorado demographic area healthcare issues? (e.g. single hospital, consolidated specialty physicians, etc.) Your strategic and relationship manager, Jim Sampson, has lived and worked in Northern Colorado for 17 years, and in the City of Fort Collins for 10 years. He is intimately familiar with the medical consolidation that has occurred in the local market. That said, your entire team has extensive experience serving Northern Colorado employers, and collectively has worked with some of the largest public, private, and non-profit employers in the area. While the single hospital system and medical consolidation have ruled the headlines over the past decade, increased competition both locally and regionally have begun to pressure those historic dynamics. In addition, numerous claims advocacy and guidance resources have been developed to help employees and their family members better evaluate when it might make sense, both from an outcome and a cost-perspective, to seek medical consultation from experts that may reside outside the local community. HUB has extensive experience deploying these types of resources, and can assist the city at exploring resources that enable you to look at new network models that positively impact the plan and its participants. 13) What is your experience in developing/evaluating/maintaining Section 125 plans? Section 125 plans have been widely adopted by employers across the country and HUB has vast experience in advising clients on the administration and maintenance of Section 125 plans. Our on-staff attorneys can provide consultation on appropriate language for the Plan Document, as well as advising on complex issues that arise throughout the year. HUB has several partner vendors that provide comprehensive administration of Section 125 plans for our clients. HUB will assist clients in vendor evaluation and implementation where appropriate. 14) What is your experience in bid proposals and negotiating for services of third party administrators, stop loss and other types of insurance? As stated previously, HUB’s clout ranks above other competitors and allows us to aggressively negotiate on the City of Fort Collins’s behalf by way of direct access to the insurance carrier decision makers. Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 12 | Page With six financial consultants on staff, one of our key functions is to perform work around market evaluation, renewal analysis, negotiations and the placement of benefit programs for our clients. The HUB team is well-versed in the entire process: drafting a Request for Proposal (RFP) that is comprehensive to the program requirements, collection and analysis of bid submissions including contract language, thorough comparison of results, comparison to benchmark data of like industries and size, and sound consultation and recommendations toward the best course of action. We are charged to ensure the City gets not just the best price, but the best contract and terms possible. HUB will work with the City to develop and implement standards of performance with regard to its selected carriers or third party administrators. We will incorporate the following critical criteria in the carrier evaluation process. Critical Criteria: • Carrier pricing • Accuracy of claims process system and auto adjudication • Overall service and quality • Experience in administering network-based programs • Commitment to continuous quality improvement processes • Experience in administering multiple option health programs • Quality of communication materials (e.g., booklets, EOBs) • Effective administration procedures (e.g., coordination of benefits, subrogation) • Cost efficiencies and care management programs • Responsiveness to client feedback • Professionalism of RFP Response • Willingness to adapt to changing needs and circumstances • Adequate staffing ratios • Superior network coverage in relationship to location of your employees HUB has a proactive and open approach to the market evaluation process. Approximately eight months prior to the actual renewal date, we will meet with the City team to develop a project timeline. Also discussed are vendor negotiations based on anticipated rate actions, expected budget constraints, claims analysis and current industry trends. As we move through the steps in the timeline, we will meet with the City team frequently to discuss renewal strategy, market options including plan redesign, modified employee contribution schedules, alternative funding considerations and specifications for a bidding process to market the program to competing carriers, administrators, and service providers. Beginning with data collection including census and plan experience information, we begin with the first steps in the renewal process more than six months prior to the effective date. The market analysis includes a range of carriers that offer policies or plans that fit the City’s needs and that provide quality contracts and service. Once we have proposals from each carrier, we negotiate rates and contract terms with each carrier based on current benefits and provisions, plan experience, and the future needs of the City and their employees. The HUB team will also assist with the presentation to upper management regarding the decision made during the process. Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 13 | Page 15) What is your experience and recommendations for using a pharmacy benefits management firm? Pharmacy claims represent 20% to 25% of an employer’s health plan cost. The landscape is changing with the introduction of more specialty medications, compounds, and less blockbuster brand drugs losing patent. It is anticipated that pharmacy will grow at 8-10% inflation through 2018. It has never been more important for employers to review their pharmacy program, and it is essential that it receives the same due diligence as the medical plan. HUB believes that with the increasing cost of pharmaceuticals, there needs to be more focus than ever before on this important benefit. HUB provides a full claim by claim audit and re-pricing analysis as part of our core consulting services. Armed with this information, we can then negotiate a better contract on the City’s behalf or carve out the pharmacy benefit to a partner with a preferable contract. We routinely look at pharmacy contracts as part of our due diligence process on behalf of our clients. Our goals in evaluating pharmacy include: • Competitive PBM contract pricing terms • Higher service level (account management / customer service) • Assurance all PBM discounts and performance guarantees are met • Better control over cost-drivers and trend • Higher level of insight into their overall pharmacy plan • Simplify the complex 16) Beyond the stated Scope of Services specified in this RFP, what additional services would you recommend to the City? What would be the estimated cost of those additional services? The five components of a quality multi-year strategic plan include Health & Performance, Technology, Communication, Compliance, and Optimized Benefits. A base level of support in these areas are assumed in our fee structure. We believe data is key to any planning process. When possible, the HUB analytical team conducts an analysis of historical claims data in order to provide a projection for the future. Our basic analysis is included. As a complement to our in-house underwriting team, HUB utilizes an internal claims analysis tool, HUBLens, which will examine current Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 14 | Page and historical data and compare it to other similar employers (see question #9 for more details). HUBLens is an enhanced level of service, and does have a fee over and above our base fee. Benefits management technology has evolved rapidly in the last few years. Our service team includes Walter Fagan, our Director of Benefits Technology. Walter is available to consult with the City of Fort Collins to assess how existing and future platforms could improve management of the employee benefits program, employee engagement, compliance, reporting and enrollment. Should the City seek HUB’s assistance in identifying a technology partner, the consulting would be included but the actual technology platform fees would be outside the scope of service of this proposal. Lastly, our Health & Performance team will consult with the City of Fort Collins as part of our base fee. If the City were to accept a proposal for long-term engagement, a separate fee would be proposed by either HUB’s personnel or a third-party vendor. Scope of Proposal HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 15 | Page 17) Provide information on the principal consultant who would be responsible for the City's account. What is their professional background and experience? Specifically include this consultant’s experience dealing with public employers. Describe the team that would assist the principal consultant and the client. HUB is the only national employee benefits consulting firm to have a local presence in Northern Colorado. The City’s principal consultants will be Shawne Cihak and Jim Sampson. HUB believes customer service is pivotal to all business relationships and key to the City’s satisfaction and retention. In addition to a primary consultant, you will have a secondary consultant directly assigned. That said, all members of our account management team are able to support your organization. Our internal database allows the team to respond with accurate and precise information due to the ease of access to client specific plan documents, compliance documents and other items related to the City’s benefit programs. HUB’s internal client management systems are diligently kept in an organized manner so that they are easily accessed and understand across the employee benefits division. To ensure customer satisfaction, HUB utilizes metrics from the annual Reagan/PIIAC Best Practices study to ensure our staffing and resources are appropriate for the market – allowing us to be effective in fielding the talent and expertise our clients expect. Nationally and regionally, we routinely rank in the top quartile in all major categories of comparison. The list of HUB associates below demonstrates the depth and commitment of the HUB Colorado office. HUB Colorado Leadership Team: Name Team Responsibility Matt Coleman President, Colorado Operations Matt is the President for HUB International, Colorado operations. He has overall responsibility for the management of all sales, marketing and business practices for property and casualty insurance, employee benefits and personal lines operations of the Colorado operations. Terry Reams Employee Benefits, Practice Leader Terry leads the Employee Benefits Practice for HUB International, Colorado operations. Terry's expertise includes traditional, consumer-driven and exchange-related health insurance solutions along with ancillary, voluntary and wellness-related programs. Jeff Van Gulick Property & Casualty, Practice Leader Jeff Van Gulick is the Practice Leader for the Executive Liability group and co-leads the Private Equity practice, HUB International, Colorado operations. Jeff has extensive knowledge in the executive liability field, across public, private and non-profits companies. His specialties include public company D&O, private equity coverage and management liability. Jack McStrovak, JD Chief Compliance Officer, Central Region Jack provides compliance and consulting services for the Central Region regarding health plans and other employee benefits. Assigned Personnel & Availability HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 16 | Page The day-to-day, local HUB Colorado service team assigned to the City’s Account: Name Team Responsibility Jim Sampson, REBC, RHU, ChFC, CLU Client Executive Jim has 17 years of experience in the Colorado insurance industry, and has been with HUB International for over two years. Jim is primarily responsible for developing and maintaining an understanding of a client’s internal dynamics, culture, labor force characteristics, geographic footprint and other considerations. He consults with clients on developing a benefit-improvement and cost-containment strategy that conforms to the client’s unique situation. Specializing in self-funded health insurance programs, Jim focuses on the core components that drive cost in a health insurance program. By applying cost-reducing platforms such as reference based pricing, provider quality/cost guidance and high claimant identification, Jim works with clients to maximize employee satisfaction with the health plan while working to drive down health care costs. Jim currently has 29 clients, including three public entities. Shawne Cihak Account Executive Shawne’s role is to act in collaboration with Jim and all members of the HUB team assigned to the City on all aspects of the account. Shawne has over 20 years’ experience in the insurance industry working for three consultant firms and an insurance carrier. Shawne’s area of expertise includes both self-funded and fully insured insurance plans. She is well versed in account management, underwriting and renewal negotiations, carrier relationship management, benefit design development, cost containment strategies, wellness program implementation and management and on-site clinic evaluation. Shawne joined HUB in July of 2010. She previously worked for Van Gilder Insurance for 10 years where she served as an Account Executive. She has also held positions with Gallagher Byerly and Great West Life as an underwriter. Shawne has 19 clients including 4 public entities. Nathan Wolfe Manager of Financial Consulting Nathan is the manager of the financial consulting practice for Colorado and New Mexico. Nathan specializes in providing consultation regarding the strategic use of analytics to help clients make informed decisions and measure the results of their benefit programs. He is recognized as an expert in self-funded strategies for both large and small employers, with over 10 years of industry experience. Jennifer Yokley Account Manager Jen works alongside her colleagues directly, involving additional individuals as appropriate in support of client’s service needs. Jen will be the day-to-day contact for customer service, providing professional and courteous account management and brokering services to her assigned book of business. Jen has a vast knowledge and background in Employee Benefits. Assigned Personnel & Availability HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 17 | Page Other HUB Colorado professionals involved with the City’s account: Name Team Responsibility Debra Busetti Strategic Resource Manager Debra coordinates and develops consistent resources for the Colorado HUB office. She is a resource available for product development and marketing. Michelle Clark Health & Performance Director Michelle is responsible for coordinating with carriers to develop wellness solutions for HUB clients, collaborating with HUB Account Executive to implement health and wellness related programs and maintaining strategic relationships with wellness vendors. Michelle is a Certified Corporate Wellness Coach (CCWC). Danny Talley Voluntary Benefits Danny is responsible for any voluntary, worksite benefits if the client is interested in offering these products to attract and retain employees. Mickelle Shults Senior Actuarial Consultant Mickelle will provide any actuarial services required for the FASB106, GASB45 and other filing requirements. 18) If the principal consultant were to leave your firm, how would your firm ensure continuity of service? How soon would a new principal consultant be assigned to the City’s account? As mentioned above, the City of Fort Collins will be assigned a secondary consultant from the on-set. This is not unique to the City, but is done as regular business practice to assure continuity in our client relationships. Not only would this be of benefit should an employee leave, but it has also served clients well in the event of a leave of absence or even an extended vacation. The City of Fort Collins’ secondary consultant will be Lisa Seal. Lisa has over 20 years of experience in the insurance industry on both the carrier and brokerage sides, including working with self-funded and fully insured employee benefit plans. In addition to her experience in benefits consulting with HUB and with another Colorado consulting firm, she has worked with a Third Party Administrator for self-funded plans, a PPO provider network, and with large fully insured employer groups as an Account Manager with Rocky Mountain Health Plans. Lisa’s background gives her unique perspective and knowledge with regard to strategic planning, account management, underwriting and renewal negotiations, carrier relationship management, benefit design development, cost containment strategies, and wellness program implementation. She specializes in health and welfare plan compliance, including Affordable Care Act compliance. Lisa is a graduate of Colorado State University and holds a Master of Healthcare Systems degree from the University of Denver. Assigned Personnel & Availability HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 18 | Page 19) What is the principal consultant's experience with self-funded benefit plans; specifically, medical, dental, wellness and on-site clinics? With more than 20 years of industry experience helping clients manage their benefit programs, Shawne is one of the most qualified consultants in the Colorado market. She began her career with Great West Life as an underwriter in their large group division, providing renewal and new business claims analysis and pricing. This experience provided her the knowledge to move into a consulting position with a broker, providing analysis and support to clients on their self-funded benefit programs. Throughout her career Shawne has been a leader on the forefront of consultation surrounding provision of employee health clinics and direct primary care. She has helped to implement both on-site and near-site clinics, as well as direct primary care arrangements for some of our largest public & private sector clients. In her experience with integrating a clinic or direct primary care model with an employer health plan, Shawne understands the complex coordination that has to take place to ensure the success of the model. 20) How many clients does the principal consultant provide services to? List the five (5) largest clients in which the principal consultant is involved in on an ongoing basis and which the firm can provide as a reference. Provide name of client, contact name, address, telephone number and number of employees. Client Name Contact Name Address Telephone # of EEs RES Americas Doug Nieb 11101 W. 120th Avenue Broomfield, CO 80021 (303) 439-4200 1,100 DigitalGlobe Lindsey Cushman 1300 W. 120th Ave Westminster, CO 80234 (303) 684-4000 1,000 City of Pueblo Marisa Pacheco 301 West B St. Pueblo, CO 81003 (719) 553-2633 800 MYR Group Neile Taylor 12150 E 112th Ave, Henderson, CO 80640 (303) 286-8000 800 City of Arvada Linda Haley 8101 Ralston Road, Arvada, CO 80002 (720) 898-7555 700 21) Do you have an in-house benefits attorney? If yes, please provide his/her credentials and the number of years he/she has provided counsel on benefit issues. Yes, our in-house attorneys serving Colorado are Jack McStravock, J.D. and Cory Jorbin, JD. Jack and Cory provide compliance and consulting services for the Central Region regarding health plans and other employee benefits. Both serve as extended members of our client service teams. Their areas of expertise include consulting with large employers on matters related to the implications of the Affordable Care Act, ERISA, Cafeteria Plans, HIPAA, COBRA, FMLA, ADA and related human resource matters. Both actively present on related topics before employer groups, professional associations, client meetings and online webinars. Prior to joining HUB, Jack worked for 17 years in Human Resource management for Lockheed Martin, Kollsman and Raytheon. Cory came to HUB after serving as internal counsel at Axiom. Prior to earning his law degree, Cory was an employee benefits consultant. Assigned Personnel & Availability HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 19 | Page 22) Tell us the location of the office(s) from which consulting services would be provided. What is the employee turnover rate among consultants and staff personnel of this office during the past three (3) years? Your Benefit Consulting team will work from the Northern Colorado and Denver offices. In the past five years, our employee turnover rate is less than 2% due to relocation or advancement opportunities. We have been fortunate to have low turnover owing to HUB’s culture and our growth rate in the past couple of years. Since 2014, HUB’s Employee Benefits department alone has grown from 53 to 70 employees. Assigned Personnel & Availability HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 20 | Page 23) Provide an overview of the firm’s philosophy and approach to Sustainability. In no more than one (1) page, please describe how your firm strives to be sustainable in the use of materials, equipment, vehicles, fuel, recycling, office practices, etc. Corporate Social Responsibility Policy Statement Policy At Hub International Limited, we recognize our corporate social responsibilities in the various roles we assume, including that of insurance broker, borrower, investor, consumer, business partner, employer, employee, and community member. The purpose of this Policy Statement is to inform all of our stakeholders, including our employees and customers, insurance companies with whom we do business, regulators who oversee our business activities, and bankers and investors who have a financial stake in our enterprise, what we mean by corporate social responsibility and how we are working towards achieving it. This Policy Statement represents a summary only and reflects information from other corporate and regional statements, policies and procedures that address our corporate social responsibility. Community We strive to be a good corporate citizen, recognizing our responsibility to work in partnership with the local communities where we operate, while being mindful of the impact and influence of our conduct on those communities. Hub International Limited contributes hundreds of thousands of dollars annually to many local, regional and national charities, and we promote personal charitable giving by our employees to worthy causes. We strive to educate ourselves concerning, and respond to, the needs of others in our larger global community. Volunteer service initiatives are supported through our HUB GIVES program. This charitable and community-giving program allows HUB employees the opportunity to donate their time and service to community projects. HUB GIVES taps into our employees’ creativity, passion, and connection to their communities to facilitate a meaningful and rewarding experience. Environment We support and comply with governmental and community policy that seeks to preserve our natural resources, facilitate recycling and foster a clean environment. We recognize that our conduct affects the societies where we operate. We endeavor to manage our activities in a responsible manner. We are committed to continuous improvement in our corporate social responsibility and encourage our business partners, and our employees in their personal lives, to strive to be socially conscious as well. The insurance business relies heavily on paper products, so we strive to utilize new technologies, such as document imaging, that will reduce our consumption of paper. We participate in, and promote, recycling and other “green” initiatives to reduce waste and consumption of office supplies and other products. Local Examples As HUB has grown, significant efforts have been deployed to reduce our impact. These efforts have intertwined both policy adaptations and financial investments to make our organization more sustainable. As an example, HUB has made significant investments in technology. In Colorado, we provide all offices with teleconferencing abilities. This has significantly reduced inter-office travel for departmental and internal meetings, as we have created a culture that looks to meet virtually first. This has been coupled with a modification in our travel reimbursement policy whereas business travel is reimbursed only when travel exceeds certain time/distance thresholds. This was created not only as an expense reduction effort, but to encourage utilization of the technology for external meeting purposes, as well. We have also structured our reimbursement approval processes to require employees to carpool when traveling to see clients from a common origin. For years, our industry has been a significant consumer of paper. To lessen our use of resources, we have invested heavily in internal electronic document storage software, ImageRight. We also provide clients with cloud storage and access to their policies, certificates, compliance, and communication documents through secure web portals like the MyWave/HUB Benefits Portal, eliminating distribution of the traditional insurance notebooks that have notoriously cluttered clients’ shelves for years. Sustainability HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 21 | Page 24) Proposed cost. YEAR 1 OPTION 1 OPTION 2 OPTION 3 Limited Scope of Work Proposed Fee: $4.00 PEPM Estimated Fee: PEPM will use actual medical plan enrollment ($4.00 * 1,470 = $70,560) Full Scope of Work Proposed Fee: $5.66 PEPM Estimated Fee: PEPM will use actual medical plan enrollment ($5.66 * 1,470 = $99,842) Full Scope of Work + Voluntary Product Offering* Proposed Fee: $4.82 PEPM Estimated Fee: PEPM will use actual medical plan enrollment ($4.82 * 1,470 = $85,024) *This pricing option allows HUB to educate the City’s employees one- on-one about the value of rounding out the core benefit program with voluntary product offerings, such as Critical Illness and Accident Insurance. YEAR 2, 3, and 4 OPTION 1 OPTION 2 Limited Scope of Work Proposed Fee: $4.00 PEPM Estimated Fee: PEPM will use actual medical plan enrollment ($4.00 * 1,470 = $70,560) Full Scope of Work Proposed Fee: $5.66 PEPM Estimated Fee: PEPM will use actual medical plan enrollment ($5.66 * 1,470 = $99,842) Cost and Work Hours HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 22 | Page SCOPE OF SERVICES OPTION 1 OPTION 2 • Strategic Benefit Program Services − Benefit design analysis − Benchmarking using in-house resources − Underwriting services − Evaluation of current On-Site Clinic model and performance − Financial reporting − Funding consultation analysis − Benefit committee meeting attendance − Comprehensive plan marketing − Vendor meeting attendance − Annual stewardship report − Multi-year strategic planning − Cost containment solutions • Compliance − Access to Compliance Officer − Summary Plan Description preparation/review − Wrap document preparation − Provide templates for Notices, FMLA, COBRA, HIPAA, Section 125 − Compliance bulletins and webinars − Federal legislation updates − HUB HR • Plan Administration − Open Enrollment support and meetings − Vendor issue resolution − Billing issue resolution − Eligibility/Contract dispute resolution − COBRA/FSA Vendor Management • Communication − Health awareness newsletter − Benefits guide, post card and flyer preparation, printing and distribution (excludes mailing cost to members’ home) − Standard Total Compensation Statements (includes 13 standard compensation/benefit categories with electronic delivery) • Wellness − Plan design consultation − Rewards and incentive development • HR Support − ThinkHR All items listed under Option 1 above plus the additional services listed below: • Strategic Cost Management Programs − Analytical Engine (HUBLens) with full integration of On-Site Clinic, worker’s compensation, and medical plan data − Benchmarking Using Outside Companies − Pharmacy Marketing and Analysis − On-Site/Near-Site Clinic Negotiation and Implementation • Communication − Videos − Customized Total Compensation Statements (includes more than 13 compensation/benefit categories, printed and delivered) HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 23 | Page 25) The City recognizes that at times various projects and services may develop that are not part of the proposed Scope of Services. State the current hourly billing rates for each level of employee that may be involved in conducting additional services. Our fee proposal addresses and accounts for most services for which clients ask us to provide. The majority of the items not included are premium or fee based products that are set by a third party. Should the City want to add those products to its benefits offerings, HUB would pass through all reductions it had negotiated with the vendor. If the City were to require additional consulting services not included in the proposal, HUB would complete a needs analysis and proposed a fixed fee. We believe this is a better approach than an hourly rate, as it give our clients a definitive proposal based on the scope of the project instead of the variability possible with an hourly structure. Cost and Work Hours HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 24 | Page 26) Describe your firm, its history and size, the locations in which it operates, and the number of employees. HUB Colorado HUB is one of the largest insurance brokerages in Colorado. The Denver, Colorado Employee Benefit Practice emerged as the result of the 2004 acquisition of Talbot Insurance (founded in 1955) and Employee Benefit Specialists (founded in 1975) which was the largest privately held benefit consultant in Colorado for over 30 years. Further acquisitions of the Gemini Group in 2009 (founded in 1988) and Benefit Resources in 2011 (founded in 1981) have resulted in HUB becoming one of the most trusted, experienced, talented, and knowledgeable consulting practices in the region. We have six offices in Colorado. Our Colorado staff of 170 employees consists of 70 dedicated employee benefit professionals with a vast array of expertise in both current and emerging benefit solutions and trends. We are one of the few agencies in Colorado that has: • A local team of underwriters/financial consultants to provide robust program analysis and data driven solutions for clients; • An experienced Employee Benefit Technology team resource to provide client consultation and support for benefit administrative platforms; and • On-staff legal resources including compliance attorneys to advise and consult on Health Care Reform along with laws and regulations to help our clients stay in compliance with employee benefits. Denver 1125 17th St., Suite 900 | Denver, Co 80202 Grand Junction 2742 Crossroads Blvd | Grand Junction, CO 81506 Northern Colorado 4065 St. Cloud Drive, Suite 201 | Loveland, CO 80538 Colorado Springs 111 Tejon St., Suite 113 | Colorado Springs, CO 80903 Glenwood Springs 214 8th St., Suite 310 | Glenwood Springs, CO 81601 Pueblo 1414 West 4th St. | Pueblo, CO 81002 HUB North America HUB International is a privately held insurance brokerage firm based in Chicago, IL with over 330 offices and 7,000 colleagues in North America and beyond. HUB offers the full range of insurance solutions and complements these solutions with claims management, risk control and analytical resources that yield value beyond the insurance transaction. Founded in Canada in 1998, HUB International was formed with the merger of 11 privately held Canadian insurance brokerages. HUB has since grown to become the 9th largest global insurance broker, recognized by various trade journals as measured by gross revenues exceeding $1.3 billion in 2014. HUB is one of the largest insurance Firm Capability HUB International Insurance Services Inc. 2016 | City of Fort Collins RFP 25 | Page brokerages in Colorado representing over $735 million in brokered premium. In late 2013, Hellman & Friedman, LLC became HUB International’s major investor with the leadership team maintaining a 20% stake in the company. HUB’s rapid ascent in the brokerage and consulting world is attributable to strong organic growth coupled with an aggressive merger and acquisition strategy. 27) Provide three (3) current clients, include at least one (1) public sector client, to which your firm provides similar services referenced in this RFP. For each reference include entity name, length of time as consultant, number of employees, and contact information (name, title, telephone number and email address) of individuals that can be contacted as references for your company. Client Name Contact Name Email Address Telephone # of EEs City of Arvada Linda Haley lhaley@arvada.org (720) 898-7555 700 City of Pueblo Marisa Pacheco mpacheco@pueblo.us (719) 553-2633 800 RES Americas Doug Nieb doug.nieb@res-americas.com (303) 439-4200 1,100 28) Provide three (3) terminated clients, include at least one (1) public sector client, to which your firm provided similar services referenced in this RFP. For each reference include entity name, length of time as consultant, number of employees, and contact information (name, title, telephone number and email address) of individuals that can be contacted as references for your company. Client Name Contact Name Email Address Telephone # of EEs Town of Windsor Mary Robins, HR mrobins@windsorgov.com 970-674-2482 100 AxelaCare Brad Holliday, VP HR bholliday@axelacare.com 913-747-3711 300 Nebraska Transport Company Brent Holliday, CEO bholliday@nebt.com 308-635-1214 240 29) Describe, if applicable, any pending litigation against your firm. In Colorado, no dispute, mediation, arbitration or lawsuit, individually or in the aggregate, has had or would reasonably be expected to have a material adverse effect on HUB’s business or is likely to prevent, impair or delay HUB’s ability to operate its business or to provide any service on behalf of any particular client. ************************************************* Attachments: 1. Signed Vendor Statement 2. ThinkHR™ Flyer 3. HUB Benefits Portal Flyer 4. Sample Self-Funded Report Package ThinkHR Live Expert HR Advice and Answers to Complex HR Questions When you need answers to tough HR questions, where can you go? Friends? The web? These options are either unreliable or leave you with incomplete answers. So, HUB has teamed with ThinkHR, the leader in LIVE HR advice, to give you answers you can trust. HR Hotline Talk directly to certifi ed HR experts and get immediate answers  Discrimination - EEO, ADA  Employee Relations  Performance Management  Policy and Procedures  Recruiting and Hiring HR Library Access thousands of online tools, forms, templates and guides  Leaves of Absence - FMLA, PDL  Wage and Hour, Equal Pay Act  Workers’ Compensation  General Benefi ts Compliance  COBRA, ERISA, HIPAA, PPACA HR Training Use unlimited self-paced employee training from over 200 courses  Statutory Compliance  Confl ict Resolution  Terminations  Workplace Safety  Unlawful Harassment Call the HR Hotline with your questions and you will speak directly to SPHR/PHR certifi ed consultants. You can get immediate guidance and best practices on how to handle the toughest HR issues swiftly, and get right back to business. All calls are also followed up with a written summary. You also have unlimited access to self-paced training with over 200 on-demand employee training courses available. Plus a comprehensive online HR Library with step-by-step guides for federal and state law compliance, COBRA, FMLA and thousands of invaluable templates, forms, guides and online tools. Stop searching and start fi nding accurate information. Join the 30,000 businesses that trust ThinkHR Live for immediate, affordable and conclusive HR advice How to Start Talk to your HUB benefi ts advisor today. Once your service is activated, ThinkHR will email you a welcome kit with your user name and password so you can login at: http://hubinternational.thinkhrlive.com. Contact HR Hotline 877-225-1101 Certain restrictions and limitations may apply. ©2009-2011 Zywave, Inc. All rights reserved. The information contained herein, including its attachments, contains proprietary and confidential information. Any distribution of these materials to third parties is strictly prohibited. Last Revised August 20, 2015 dlr Click+ Connect+ Communicate Welcome to a whole new way of working! The HUB Benefits Portal is a personalized website that allows you to effortlessly click, connect and communicate with HUB International. It’s designed to offer you time-saving tools and resources that build convenience into managing your everyday work tasks. Whether you want to collaborate with our agency online, quickly access timely news, information and resources, or connect with around 325,000 peers in your industry, this is the place to be. It’s easily accessible, hardworking and just one of the many value-added services available to you when you partner with us. "Our client portal allows us to easily find out what other companies are doing in a variety of situations. I can get answers quickly from other colleagues in the industry; the interactive discussion forum has become my personal sounding board." ■ Trevor, Southeast region Document Posting  Our document posting capabilities allow a seamless exchange of information sharing from our agency to you, accessible 24/7. Survey Benchmarking  Participate in benefit plan and/or P&C program surveys.  Determine how your plans and programs compare to other employers across the country. Health Care Reform  Access valuable health care reform resources, including legislative updates, explanations and timelines for you, plus educational materials for your employees. Discussion Forum  Through your client portal’s interactive discussion forum, you have access to a vast and knowledgeable network of colleagues from across the country. Compliance  Looking for quick answers to tough COBRA, FMLA, health care reform, HIPAA, Medicare Part D and Section 125 questions? Look no further than your client portal! Documents on Command  When you need to resource information fast, you have instant access to a library of downloadable health, wellness, HR and compliance articles. Resource Links  Useful links to industry-related Claims Performance Report 2015 Sample Client Data Updated October-15 Sample Client 1.) Average Medical/Rx plan enrollment for current plan year: 595 Average Medical/Rx plan enrollment for prior plan year: 328 Average Dental plan enrollment for current plan year: 616 Average Dental plan enrollment for prior plan year: 330 2.) Actual plan cost vs. budget: Medical/Rx 84.2% Dental 67.4% 3.) Summary of Plan Costs: Current YTD Prior Year Fixed Costs $1,194,352 $831,442 Claims $3,103,796 $2,198,743 Total Plan Costs $4,298,147 $3,030,185 PEPM $722.99 $770.26 % Change -6.1% Current YTD Prior Year Fixed Costs $32,319 $20,790 Claims $275,144 $229,446 Total Plan Costs $307,463 $250,236 PEPM $49.95 $63.19 % Change -21.0% *PEPM = Per employee per month Current YTD Prior Year 4.) Fixed Medical/Rx costs as a percentage of current total plan costs: 27.8% 27.4% Fixed Dental costs as a percentage of current total plan costs: 10.5% 8.3% 5.) Average Medical/Rx claim cost PEPM for current plan year: $522.09 $558.91 Average Dental claim cost PEPM for current plan year: $49.95 $63.19 6.) Average Medical/Rx fixed cost PEPM for current plan year: $200.90 $211.35 Average Dental fixed cost PEPM for current plan year: $5.25 $5.25 7.) There are 8 claims that have exceeded the $65,000 specific deductible. Total reimbursements are: $1,262,361 8.) Of total Medical claims, large claims over $25,000 represent: 52.0% Medical/Rx Dental Executive Summary 2015 Sample Client Enrollment Medical Admin Stop Loss Total Medical Rx Total Over ISL Net Claims Jan-15 507 $21,092 $81,917 $103,009 $216,260 $73,452 $289,712 $0 $289,712 $392,721 Feb-15 540 $22,282 $86,532 $108,814 $297,425 $68,826 $366,251 $46,661 $319,590 $428,405 Mar-15 458 $19,114 $74,236 $93,349 $512,989 $61,437 $574,426 $303,120 $271,306 $364,656 Apr-15 446 $19,229 $74,706 $93,935 $216,307 $72,299 $288,606 $50,051 $238,554 $332,489 May-15 497 $21,082 $81,893 $102,975 $233,292 $68,718 $302,010 $40,458 $261,552 $364,527 Jun-15 571 $23,226 $90,185 $113,411 $446,823 $65,246 $512,069 $295,543 $216,526 $329,937 Jul-15 561 $23,365 $90,746 $114,111 $313,814 $57,983 $371,796 $89,065 $282,731 $396,843 Aug-15 783 $31,085 $120,667 $151,752 $289,409 $81,345 $370,753 $76,828 $293,926 $445,678 Sep-15 795 $31,879 $123,765 $155,644 $526,331 $77,333 $603,664 $212,361 $391,302 $546,947 Oct-15 787 $32,223 $125,128 $157,351 $591,852 $95,018 $686,869 $148,275 $538,595 $695,946 Nov-15 Dec-15 2015 Total 5945 $244,577 $949,775 $1,194,352 $3,644,501 $721,656 $4,366,157 $1,262,361 $3,103,796 $4,298,147 Avg Month 595 $24,458 $94,977 $119,435 $364,450 $72,166 $436,616 $126,236 $310,380 $429,815 PEPM $41.14 $159.76 $200.90 $613.04 $121.39 $734.43 $212.34 $522.09 $722.99 % Change 81.3% -9.4% -3.7% -4.9% 22.6% 22.4% 22.6% 428.8% -6.6% -6.1% 2014 Total 3934 $178,692 $652,750 $831,442 $1,966,558 $390,162 $2,356,720 $157,977 $2,198,743 $3,030,185 Avg Month 328 $14,891 $54,396 $69,287 $163,880 $32,514 $196,393 $13,165 $183,229 $793,782 PEPM $45.42 $165.93 $211.35 $499.89 $99.18 $599.06 $40.16 $558.91 $770.26 % Change 26.7% -4.2% -0.8% -1.6% 13.1% 0.5% 10.8% 478.6% 4.7% 2.9% 2013 Total 3106 $147,283 $519,507 $666,790 $1,373,400 $306,467 $1,679,867 $21,557 $1,658,310 $2,325,100 Avg Month 259 $12,274 $43,292 $55,566 $114,450 $25,539 $139,989 $1,796 $138,193 $1,069,178 PEPM $47.42 $167.26 $214.68 $442.18 $98.67 $540.85 $6.94 $533.91 $748.58 Budget Actual YTD Attachment Point: $4,804,437 $3,103,796 Claims vs. Carrier Expected: 77.5% Claims vs. Carrier Maximum: 64.6% Budget Actual YTD Internal Accruals: $5,101,795 $4,298,147 Actual Plan Cost vs. Accrual: 84.2% BC1 EE $416.92 ES $950.59 EC $813.00 FAM $1,425.88 Total Plan Performance Accrual Rates Medical Plan Cost Fixed Costs Claims Stop Loss Claims Performance Total Medical Plan Performance Report 2015 Sample Client Relationship Plan Diagnosis Total Paid Paid in Most Recent Month Over Stop Loss % of Total DEP BC1 UNSPEC CERBRL ART OCCL W/INFARCT $589,196 $29,475 $524,196 13.5% DEP BC1 CHRONIC PANCREATITIS $486,916 $3,367 $421,916 11.2% SUB BC1 MALIG NEOPLASM OTH SPEC SITES BLADD $235,243 $8,270 $170,243 5.4% SUB BC1 COR ATHEROSLERO NATIVE COR ART $109,852 $15,477 $44,852 2.5% DEP BC1 OTH SPEC CONDS ORIG PERINTL PERIOD $96,356 $75,199 $31,356 2.2% DEP BC1 PERSONAL HX MALIG NEOPLASM BREAST $94,452 $59,843 $29,452 2.2% SUB BC1 SEC MALIGNANT NEOPLASM OF LIVER $87,972 $7,786 $22,972 2.0% DEP BC1 LOC OSTEOARTHROSIS-LOWER LEG $82,373 $206 $17,373 1.9% DEP BC1 OTHER SPEC DISORDERS BILIARY TRACT $62,356 $1,867 1.4% SUB BC1 ACUT MI OTH ANT WALL INIT EPIS CARE $59,503 $42,229 1.4% DEP BC1 LOSS OF WEIGHT $58,378 $349 1.3% DEP BC1 CALCU GB W/OTH CHOLCYST W/O OBST $55,142 - 1.3% SUB BC1 REGIONAL ENTERITIS LARGE INTESTINE $46,112 $13,788 1.1% DEP BC1 LIVEB TWIN-MATE LIVEB HOSP WO C-SEC $44,345 - 1.0% DEP BC1 HODG MIX CELLR W/NODES HEAD&NECK $43,839 - 1.0% DEP BC1 OTHER CHRONIC PAIN $42,114 $136 1.0% SUB BC1 ATRIAL FIBRILLATION $41,243 - 0.9% $33,555 0.8% Total 18 $2,268,949 $257,992 $1,262,361 52.0% Relationship Plan Diagnosis Total Paid Paid in Most Recent Month Over Stop Loss % of Total SUB BC1 ACQUIRED SPONDYLOLISTHESIS $170,007 $105,007 7.2% DEP BC1 MALIG NEOPLASM BREAST UNSPEC SITE $100,027 $35,027 4.2% DEP BC1 LOC OSTEOARTHROSIS-PELVIC RGN&THIGH $62,827 2.7% DEP BC1 CHRONIC PANCREATITIS $50,526 2.1% DEP BC1 OTHER SPECIFIED DISORDERS OF BREAST $48,914 2.1% DEP BC1 LIVEB TWIN-MATE LIVEB HOSP WO C-SEC $42,018 1.8% DEP BC1 OTHER CONGENITAL DEFORMITY OF HIP $34,730 1.5% SUB BC1 COR ATHEROSLERO NATIVE COR ART $32,002 1.4% DEP BC1 INFLUENZA WITH PNEUMONIA $30,215 1.3% DEP BC1 ANAL OR RECTAL PAIN $28,369 1.2% DEP BC1 SINGLE LIVEBORN HOSP C-SEC DELIV $25,288 1.1% Total 11 $624,923 $140,034 26.5% Relationship Plan Diagnosis Total Paid Over Stop Loss % of Total SUB BC1 PRIMARY LOC OSTEOARTHROS LOWER LEG $86,237 $21,237 5.1% DEP BC1 LIVEB TWIN-MATE LIVEB HOSP C-SEC $65,143 $143 3.9% DEP BC1 PNEUMONIA DUE MYCOPLASMA PNEUMONIAE $33,109 2.0% SUB BC1 OTH BEN NEO CNCTV&OTH TISS TRNK UNS $25,396 1.5% Total 4 $209,885 $21,380 12.5% Anthem Self Funded Plan - January 2014 - December 2014 ($65k ISL) - Not Including Rx Anthem Self Funded Plan - January 2013 - December 2013 ($65k ISL) - Not Including Rx Anthem Self Funded Plan - January 2015 - December 2015 ($65k ISL) - Not Including Rx High Cost Claimant Report 2015 Sample Client Dental Enrollment Fixed Costs Claims Vision Enrollment Fixed Costs Dental Admin Dental Vision Premium Jan-15 520 $2,730 $22,603 $25,333 Jan-15 514 $7,049 Feb-15 516 $2,709 $24,613 $27,322 Feb-15 481 $6,612 Mar-15 487 $2,557 $25,354 $27,911 Mar-15 470 $6,551 Apr-15 500 $2,625 $30,232 $32,857 Apr-15 476 $6,678 May-15 523 $2,746 $27,112 $29,858 May-15 509 $7,106 Jun-15 558 $2,930 $21,270 $24,200 Jun-15 536 $7,409 Jul-15 674 $3,539 $23,790 $27,329 Jul-15 642 $8,729 Aug-15 748 $3,927 $30,226 $34,153 Aug-15 722 $9,734 Sep-15 815 $4,279 $36,226 $40,505 Sep-15 751 $10,137 Oct-15 815 $4,279 $33,716 $37,994 Oct-15 772 $10,422 Nov-15 Nov-15 Dec-15 Dec-15 2015 2015 Total 6156 $32,319 $275,144 $307,463 Total 5873 $80,427 Avg Month 616 $3,232 $27,514 $30,746 Avg Month 587 $8,043 PEPM $5.25 $44.70 $49.95 PEPM $13.69 % Change 86.5% 0.0% -22.9% -21.0% % Change 83.0% -2.9% 2014 2014 Total 3960 $20,790 $229,446 $250,236 Total 3851 $54,322 Avg Month 330 $1,733 $19,121 $20,853 Avg Month 321 $4,527 PEPM $5.25 $57.94 $63.19 PEPM $14.11 % Change 27.0% 0.1% 10.1% 9.2% % Change 26.1% 2.0% 2013 2013 Total 3118 $16,354 $164,120 $180,474 Total 3054 $42,236 Avg Month 260 $1,363 $13,677 $15,040 Avg Month 255 $3,520 PEPM $5.25 $52.64 $57.88 PEPM $13.83 Budget Actual YTD Internal Accruals: $456,085 $307,463 Actual Plan Cost vs. Accrual: 67.4% Dental EE $34.19 Dental $5.25 PEPM ES $74.71 EC $82.53 FAM $124.97 Vision EE $8.21 ES $13.17 EC $13.43 FAM $21.67 Vision Premium Rates Dental Accrual Rates Administration 2015 Fees Dental Plan Cost Total Dental Plan Performance Dental/Vision Performance Report 2015 Sample Client Enrollment Claims Life/AD&D LTD STD Admin STD Claims Jan-15 402 $11,046 $8,512 $977 $3,359 $23,894 Feb-15 528 $10,841 $8,395 $1,283 $1,000 $21,519 Mar-15 504 $11,074 $8,637 $1,225 $6,572 $27,508 Apr-15 511 $10,953 $8,582 $1,242 $3,336 $24,113 May-15 480 $11,514 $9,011 $1,166 $3,336 $25,028 Jun-15 599 $12,056 $9,222 $1,456 $3,336 $26,070 Jul-15 658 $15,210 $11,395 $1,599 $2,313 $30,516 Aug-15 826 $16,937 $12,579 $2,007 $3,636 $35,159 Sep-15 826 $18,144 $13,424 $2,007 $6,780 $40,355 Oct-15 913 $18,199 $13,533 $2,219 $31,872 $65,823 Nov-15 Dec-15 2015 Total 6247 $135,975 $103,289 $15,180 $65,541 $319,985 Avg Month 625 $13,597 $10,329 $1,518 $6,554 $31,999 PEPM $21.77 $16.53 $2.43 $10.49 $51.22 % Change 89.5% -22.4% 3.7% 0.0% 21.2% -7.0% 2014 Total 3955 $110,905 $63,039 $9,611 $34,245 $217,800 Avg Month 330 $9,242 $5,253 $801 $2,854 $18,150 PEPM $28.04 $15.94 $2.43 $8.66 $55.07 % Change 24.1% 28.4% -85.1% 7.3% 2013 Total $89,377 $49,090 $64,476 $202,943 Avg Month $7,448 $4,091 $5,373 $16,912 Life 0.073/$1,000 AD&D 0.02/$1,000 LTD 0.315/$100 STD $2.43 PEPM Life/DI Plan Cost Fixed Costs 2015 Fees Premium/Admin Fees Life/Disability Cost Report 2015 Sample Client Cumulative YTD Budget Illustration 2015 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 YTD Cumulative Medical Plan Performance Budget Actual $5,101,795 $4,298,147 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2015 BC1 Plan YTD Medical Performance Budget Actual Sample Client Medical Plan Components Illustration 2015 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Monthly Medical Plan Cost Components Medical Administration Stop Loss Premium Medical Claims (Net Specific Reimbursements) Rx Claims 6% 22% 55% 17% YTD Medical Plan Cost Components Medical Administration Stop Loss Premium Medical Claims (Net Specific Reimbursements) Rx Claims 82% 18% YTD Employer/Employee Medical Contribution Employer Employee Sample Client Medical Enrollment Illustration 2015 507 540 458 446 497 571 561 783 795 787 0 0 0 100 200 300 400 500 600 700 800 900 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 YTD Medical Enrollment BC1 250 42% 92 16% 68 11% 185 31% BC1 Plan YTD Average Enrollment Breakout Employee Only Employee & Spouse Employee & Child(ren) Family websites are all available from the convenience of your client portal. 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