This document discusses challenges facing mid-sized companies in managing employee healthcare costs and selecting employee benefits providers. It notes that mid-sized companies are often underserved by both large global benefits consulting firms and local insurance brokers. The document introduces Marsh Consulting Group and their actuarial consultants as an alternative that can help mid-sized companies better control healthcare costs through customized plan designs and expertise in benefits strategy.

1. Colorado Benefit Consultants
On
Employee HealthCare Costs In
Medium sized Companies
Brad Gauen
Marsh Consulting Group
www.EmployeeBenefitSherpa.com

2. 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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3. How Do Firms Currently Choose
Employee Benefits Service
Providers?

4. How Does Your Company Choose?
1. RFP Invites To Local Insurance Brokers?
2. CEO/CFO Personal/Social Network?
3. RFP Invites To Regional Benefits/Insurance Brokers?
4. Referral From Current Insurance Broker?
5. Referrals From Executives At Similar Organizations?
6. Google Search?
7. Look For Niche/Industry Sector Expertise?
8. Look For Benefits, Insurance, Strategic Planning &
Risk Management Expertise?
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5. Local Insurance Broker
Many Insurance Brokers Lack The Willingness And / Or The
Actuarial Expertise Required To Work Out…
The Optimal Set Of Benefit Plan Choices Given The
Multiple Variables Of Healthcare Cost Control
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6. PROBLEM??
Mid-Sized Employers
(100 To 5000 Benefit Plan Participants)
Are Often Caught In The Middle

7. Multiple Variables of
Employee HealthCare Cost Control
1. Funding Arrangements – Self Insurance or Not?
2. Employee Contribution Levels (To Cost of Coverage)
3. Employee Contribution Levels By Coverage Category
4. Choice of Benefit Plan Administrator
5. Choice of Provider Network (CIGNA, AETNA, United
HealthCare?)
6. Employee Geographic Distribution
7. Product Choices (HSA-compatible? CDHP? PPO?
HMO?)
8. Plan Design (Deductible levels? In/Out Network
benefit levels? Stop loss coverage levels?)
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8. Underserved & Overcharged
Under-served & Under-served &
Overcharged Overcharged
By By
Global Benefits Insurance
Consulting Firms Benefits Brokers

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

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

11. How Global Employee Benefits
Consulting Firms Under-serve
Mid-Sized Organizations
Group Health & Welfare Plans For Mid-Sized
Companies & Organizations

12. Under-served By The Global Firms
1. The Fortune 500 Get The Best Consultants, and
Mid-Sized Organizations Get The Rest!
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13. Under-served By The Global Firms
1. The Fortune 500 Get The Best Consultants, and
Mid-Sized Organizations Get The Rest!
2. Generic Benefit Plan Designs & Pricing Not
Customized To Organization
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14. Under-served By The Global Firms
1. The Fortune 500 Get The Best Consultants, and
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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15. Under-served By The Global Firms
1. The Fortune 500 Get The Best Consultants, and
Mid-Sized Organizations Get The Rest!
2. Generic Benefit Plan Designs & Pricing Not
Customized To Organization
3. Very Exorbitant Consulting Fees
4. Often Impersonal Service Or Serviced By “Junior”
Consultants
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16. How Benefits Brokers Under-serve
Mid-Sized Organizations
Brad Gauen
Marsh Consulting Group

17. Under-served By Brokerage Firms
1. Often Lack Actuarial Expertise & Experience For
Complex Benefit Plan Design & Strategy
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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
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19. 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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20. 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 in Handling of Employee HealthCare Cost
Reduction Strategies & Actuary-based Negotiations
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21. The Alternative?
The Actuarial Consultants
Of
Marsh Consulting Group
(MCG)

22. 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

23. Meet Geoff Marsh
Our Clients Average Annual HealthCare
Cost Increases Were About
½ The National Average
(2001-2011)

24. Meet Geoff Marsh – Actuary
Over 25 years Industry Experience
 Founder, Marsh Consulting Group
 FSA Actuarial Designation – One of only
.000006% of population who are Actuaries.
 Both Benefits Consulting & Brokerage
Experience at Mercer (Global Consultancy)
 Independent Benefits Consulting Framework
 Established Speaker & Expert on topics in
Health & Welfare Benefits
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25. Meet Brad Gauen – Actuarial Consultant
Almost 30 years Industry Experience in
Insurance, Employee Benefits & Cost
Control
 Academic Background in Actuarial Sciences
 Worked at Insurance Company Creating &
Pricing 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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26. MCG Client Results
Our Clients Average Annual HealthCare
Cost Increases Were About
½ The National Average Between
2001 and 2011

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

28. 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

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

30. 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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31. 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. Plan Design, Funding,
Employee Communications, Advisory)
 Employee HealthCare Cost Consulting (i.e.
Consolidating Risk Pools, Health Reform)
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32. 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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33. 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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