6. Workers Struggle With Costs of Health
Care
46 million uninsured Americans
25 million underinsured Americans
72 million have high medical debt
Source: “Losing Ground: How the Loss of Adequate Health Insurance Is Burdening Working Families,”
Commonwealth Fund Biennial Health Insurance Survey, Aug., 2008, and “Income, Poverty and Health
Insurance Coverage in The United States: 2007, U.S. Census Bureau, Aug., 2008.
7. Medical Debt Contributes to Personal Bankruptcy
“Unless you're Bill Gates, you're just one
serious illness away from bankruptcy.”
“Most of the medically bankrupt were average
Americans who happened to get sick.”
Dr. David Himmelstein
Harvard Medical School Professor &
Medical Bankruptcy Study Leader
Source: Dr. David Himmelstein, Associate Professor of Medicine, Harvard Medical School, and leader of study
“Illness and injury as Contributors to Bankruptcy,” as published in Health Affairs, February, 2005.
9. Employers’ Number One Problem:
Health Care Costs
“How do I provide an
attractive employee
benefits program and
manage costs?”
10. Employers’ Response to Rising Benefits Costs
What types of cost reduction efforts have been
undertaken or are being considered by year end?
Increasing employee health care 45%
cost-sharing (e.g., premiums)
Reducing or eliminating the subsidy 32%
for other employee benefits (e.g., vision, dental)
Reducing medical benefits 25%
Source: Cost Reduction & Engagement Survey, Hewitt Associates, LLC, 2009.
11. Premium Costs Continue to Rise
Average Health Insurance Premiums and Worker Contributions for Family Coverage, 1999-2008
$12,680
119%
Increase
$5,791
117%
Increase
Employer Contribution Worker Contribution
Note: The average worker contribution and the average employer contribution do not
add to the average total premium due to rounding.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2008.
13. Traditional Solutions
Cost shifting
Eliminating benefits
Shifting decision-making
to employees
Employers need a more comprehensive solution.
14. A Comprehensive Solution
• Major Medical • Supplemental
• Dental
• LTD Communication Health
• STD
• Group Life • Life
• Retirement
Employee Core Benefits Employee Voluntary Benefits
To help fill gaps and provide
personal benefit solutions . . .
15. What to Look for in a Voluntary Benefits
Provider
Superior Innovative
Service Products
Innovative products Enrollment Benefits
Flexibility Communication
Benefits
communication
capabilities
Enrollment flexibility
Superior service
16. Innovative Voluntary Products
Superior Innovative
Service Products
Individually owned
Enrollment Benefits
Multiple benefits Flexibility Communication
options
Portable
Competitively priced
Family coverage
available
17. Benefits Communications — A Gap Exists
Superior Innovative
3% think their employees Service Products
know nothing at all about
their benefits Enrollment Benefits
Flexibility Communication
Only 24% believe
their employees actually
do understand their benefits
More than 90% of employers think it’s important for
employees to understand and appreciate their
benefits
Source: Colonial Life SHRM National Conference Survey, June, 2008
18. Benefits Communication
To Help Employees Understand and Value Their Benefits
Superior Innovative
Service Products
Salary illustrations
Benefits statements Enrollment
Flexibility
Benefits
Communication
Customizable
communication
materials
Core and voluntary benefits
communication
Individual help understanding
options and making choices
19. Enrollment Flexibility
Options that meet employers’ and employees’ needs
Superior Innovative
Call centers Service Products
National enrollment
Enrollment Benefits
team Flexibility Communication
Online and offline
enrollments
Group meetings and
one-to-one meetings
Self-enrollments and agent-assisted enrollments
Consistent enrollments among dispersed locations
Flexible scheduling for shift and non-traditional
workers
20. Superior Service
Customer persistency Superior Innovative
Service Products
Speed of paying claims
Enrollment Benefits
Sharing of service results Flexibility Communication
Strong back-office support
Independent customer reviews
Experience working with
individuals, not just groups
21. Maximize Your Benefits Program With
Voluntary Benefits
Superior Innovative
Service Products
Innovative products
Enrollment Benefits
Benefits communication Flexibility Communication
capabilities
Enrollment flexibility
Superior service
22. For more information:
Houston Hamilton
Agency Development Manager
Houston@cashflowhouston.com
713-870-7791
