TRANSFORMING HEALTHCARE USERS INTO HEALTHCARE BUYERS PRESENTED BY CHRISTOPHER PARKS FOUNDER & CHIEF DEVELOPMENT OFFICER CHANGE:HEALTHCARE, INC.
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1 TRANSFORMING HEALTHCARE USERS INTO HEALTHCARE BUYERS PRESENTED BY CHRISTOPHER PARKS FOUNDER & CHIEF DEVELOPMENT OFFICER CHANGE:HEALTHCARE, INC. Projections for 2012
2 Projections for 2012 SOURCE: NBGH 2011 SURVEY OF 329 LARGE EMPLOYERS Employer Reaction to ACA Annual Benefit Limits Grandfather Status 59% no changes 49% did not have any benefit option in grandfather status this year 70% expect to lose grandfather status Default Plan for New Hires 27% plan to use least costly plan as default for new hires SOURCE: NGBH 2011 SURVEY OF 329 LARGE EMPLOYERS & TOWERS WATSON 2011 SURVEY OF 368 BUSINESSES
3 Employer Reaction to ACA Strategic Actions 2012 to 2014 SOURCE: TOWERS WATSON 2011 SURVEY OF 368 BUSINESSES
4 change:healthcare 2011 Employer Feedback # Employees Description 6,000 Food Product Manufacturer 2,300 Global Payment Service Provider 16,000 Chemical Company 8,000 National Marketing Firm 25,000 Carpet Manufacturer 4,000 Plastic Container Company 6,400 Clinical System Provider 200,000 National Bank Food Product Manufacturer 6,000 Employees Close the gap between what CFO knows and what employees know about healthcare costs Full CDHP replacement in 2011, but stopped rollout Raised deductible and added transparency tool to support objectives Get employees engaged about the cost of healthcare but don t pull rug out from under them
5 Global Payment Service Provider 2,300 Employees Do something so that a planned increase in deductible won t create an employee revolt recognize that CDHP is viewed as a four letter word Two PPO options, traditional and high deductible Increase deductibles Move from a generic HR communication model (one size fits all) to a personalized communication model where employees hear about things that pertain specifically to them Chemical Company 16,000 Employees Obtaining support for CDHP from PBM and Health Plan 28% CHDP, 72% PPO All employees hired before a particular date have PPO, anyone hired recently on CDHP (neither group may switch) Identify a tool to support CDHP employees that incorporates price variance, quality and convenience information Educate PPO employees that the real cost of care is not just a $20 co pay
6 National Marketing Firm 8,000 Employees Respond rapidly to employees request for tools to manage their plan, manage satisfaction with plan design High deductible for three years 37% on rich PPO 10% have HRA with $1,500 deductible 53% have HRA with $2,500 deductible Don t wait two years for health plan to deliver what s been promised, find another option Carpet Manufacturer 25,000 Employees Reduce healthcare costs through plan design change Full replacement CDHP in 2012 Add Centers of Excellence for planned hospital services Identify tool that shares healthcare cost information across medical, dental and Rx but also supports steering employees (through incentive and education) to lower cost hospital services
7 Plastic Container Company 4,000 Employees CEO directive, Tell employees what healthcare really costs! 60% CDHP All new employees are given a CDHP with an option to opt out at two year mark Find a transparency tool that offers cost information but also a tactical savings capability to help employees (and the company) lower health care costs Clinical System Provider 6,400 Employees Support engagement and communication regarding Centers of Excellence, Healthcare Concierge, Proprietary Health Record Program and On Site Clinic Determine the value of steering employees to On Site Clinic on an annual basis Mix plan options with CHDP, HRA and HSA options Identify a vendor to provide analysis of opportunity as well as a tool with proven engagement to support full spectrum of employee healthcare cost management
8 National Bank 200,000 Employees Remain competitive in regard to tellers and bank staff at lower salary levels Motivate employees to select CDHP (reduce fear factor) Address perception that employees pay too much for benefits 7% CDHP Recognize that CDHP is inevitable Identify cost transparency tool to educate employees and motivate the selection of CDHP and prepare them for the move to CDHP First Horizon Bank 5,000 Employees Demographics Plan Structure Objective Need Result White collar; Pre launch 5% CDHP Streamlined plan design to PPO and CDHP with financial incentives (Medical and Rx) Expanding CDHP selection Support educating employees on how to use a CDHP and reduce concern about taking on more financial responsibility Support employee healthcare choice moving forward Reduce healthcare cost Post launch/enrollment period 20% CDHP
9 First Horizon Bank 5,000 Employees AVERAGE TIME SPENT IN SOLUTION 6.76 Minutes Per User Q&A PRESENTED BY CHRISTOPHER PARKS FOUNDER & CHIEF DEVELOPMENT OFFICER CHANGE:HEALTHCARE, INC.
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