Actuarial consulting firm for employer sponsored plans in health and welfare benefits. Actuary-led company provides high touch, customized risk management and strategic solutions for self-insured plans, mid-sized employers, medium sized multinationals and other companies with employees between 100 and 5,000 http://www.EmployeeBenefitSherpa.com

1. Advantages of Actuarial Consulting
Group Health & Welfare Plans For
Mid-Sized Companies &
Organizations
Brad Gauen
Marsh Consulting Group
www.EmployeeBenefitSherpa.com

2. Brad Gauen
Multi-Perspective Industry Experience in
Benefits and Insurance
 Created & Priced Insurance Products
 Actuarial Analyst
 Benefits Brokerage Experience
 Global Consulting Firms – Ernst & Young, Buck
 Independent Benefits Consulting Firm
 Trusted Advisor To Senior Execs & Managers
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3. Pressures Facing Mid-Sized Firms
Employee Benefit Plans
1. Fundamentally Increasing Health Care Costs
2. The Health & Welfare Benefits Decisions Are
Increasingly Complex
3. Added Health Reform Implementation Complexity
4. Benefit Plan Costs of International Employees
5. Insurance Provider Carousel
6. Talent Recruitment & Employee Morale Challenges
7. Expensive Cookie-Cutter Benefit Plan Solutions
8. Difficulty Finding Customized Plan Solutions
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4. Increasing
Employee HealthCare Costs:
What Mid-sized & Large Employers
Face From 2012 to 2017

5. Projected 2012 -2017 Annual Cost Trends
Medical care costs expected to rise 60% over the next
five years (10% per year without mitigation)
$25,000
$20,000
7% Annual Growth
w/Mitigation
$15,000
10% Annual Growth
$10,000
$5,000
$-
2012 2013 2014 2015 2016 2017
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6. Benefit Solution Provider Problem
Mid-Sized Employers
(100 To 5000 Benefit Plan Participants)
Are Caught In The Middle

7. Underserved & Overcharged
Under-served &
Under-served &
Overcharged
Overcharged
By Global
By Insurance
Benefits
Benefits Brokers
Consulting Firms

8. Over 10,000 Employees?
Global Consulting Firms Work!

9. Less Than 100 Plan Participants?
Capable Insurance Brokers Work!

10. How Global Employee Benefits
Consulting Firms Under-serve
Mid-Sized Organizations

11. Under-served By The Global Firms
1. The Fortune 500 Get The “A” Team
Consultants, Mid-Sized Organizations Get The
Rest!
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12. Under-served By The Global Firms
1. The Fortune 500 Get The “A” Team
Consultants, Mid-Sized Organizations Get The
Rest!
2. Generic Benefit Plan Designs & Pricing Not
Customized To Organization
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13. Under-served By The Global Firms
1. The Fortune 500 Get The “A” Team, Mid-Sized
Organizations Get The Rest!
2. Generic Benefit Plan Designs & Pricing Not
Customized To Organization
3. Very Exorbitant Consulting Fees
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14. How Benefits Brokers Under-serve
Mid-Sized Organizations

15. Under-served By Brokerage Firms
1. Often Lack Actuarial Expertise & Experience For
Complex Benefit Plan Design & Strategy
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16. Under-served By Brokerage Firms
1. Often Lack Actuarial Expertise & Experience For
Complex Benefit Plan Design & Strategy
2. Exorbitant Fees
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17. Under-served By Brokerage Firms
1. Often Lack Actuarial Expertise & Experience For
Complex Benefit Plan Design & Strategy
2. Exorbitant Fees
3. Conflict Of Interest Relationships With Insurers
/Provider Networks (Contingent Commissions)
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18. Under-served By Brokerage Firms
1. Often Lack Actuarial Expertise & Experience For
Complex Benefit Plan Design & Strategy
2. Exorbitant Fees
3. Conflict Of Interest Relationships With Insurers
/Provider Networks (Contingent Commissions)
4. Limited Negotiation of Plan Cost Increases
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19. The Alternative?
The Actuarial Consulting Approach

20. Between 100 to 3,000 Or More Plan
Participants?
Actuarial Consultants Work Better!

21. Who Are Actuarial Consultants?
Mathematically-Talented Consultants With An
Academic Background In The Actuarial
Sciences, Or Actuaries Who Have Taken And
Passed The Professional Examinations & Meet
The Experience-Based Qualifications

22. Actuarial Consulting Value Proposition
The Willingness & Ability To
Measure, Project, & Manage
Complex Cost Scenarios

23. Actuarial Consulting Value Proposition
An Average
3% Annual HealthCare Cost
Mitigation From 2012 To 2017
Is Possible

24. Marsh Consulting Group (MCG)
Cost Mitigation
Our Clients Average Annual HealthCare
Cost Increases Were About
½ The National Average
(2001-2011)

25. What Does This Mean For
Mid-Market Employers?

26. A 500 Employee Organization Will
Save At Least $2.3 Million Dollars
Over The Next 4 Years Keeping With
Our Current Client Trend Of 5% Less
Than The National Average In
Average Annual Cost Increases

27. What Differentiates The
Actuarial Consultants
of Marsh Consulting Group?

28. How Are Our Actuarial Consultants
Different? (Pt 1)
 Ability To Assess Complex Risks (e.g. Account for
factors like employee population health
variables, regional/geographic statistics)
 Strategic Planning Ability (e.g. Factor in 3 to 5
year actuarial projections and make
adjustments)
 A Clear-Cut Fiduciary Standard & Independence
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29. How Are Our Actuarial Consultants
Different? (Pt 2)
 Avoid Conflict of Interest with Fee-For-Service
Consulting.
 Full-Service Health & Welfare Benefits
Consulting (i.e. Self Insured Plan
Design, Funding, Employee
Communications, Advisory)
 Employee HealthCare Cost Consulting (i.e.
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Consolidating Risk Pools, Health Reform)

30. How Are Our Actuarial Consultants
Different? (Pt 3)
 Advising on Vendor Selection (Benefits
Brokers, Third Party
Administrators, Pharmacy Benefit Mgrs, etc)
 Guiding scope of Employee Benefits
Offerings By Employers.
 Introducing Consumer Directed Health Plans
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31. Next Steps:
To discuss further, contact:
Brad Gauen, CLU, ChFC, FLMI
Marsh Consulting Group
303-663-5750
Email: BGauen [at] MCGTeam.com
LinkedIn: http://www.linkedin.com/in/bgauen
Twitter: http://www.twitter.com/#!/BradGauen
www.EmployeeBenefitSherpa.com
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32. Or For Health Reform Resources:
www.HealthReformAudit.com