1. Business Unit Strategy
Employer Medical

2. Employer Medical Current Strategy

3. Arenas Arenas Staging & Pacing Economic Logic Vehicles Differentiators
Customers
Employers
Small market; target 10 – 100 lives
Products
Self-funded medical with stop loss requiring individual underwriting
Ancillary
Where
United States
States without legislative barriers
Markets where partner network discounts are most competitive

4. Arenas Where we are active….
Products
Individual underwriting (assessing the risk at the member level) is required regardless of employer size
Group ancillary products (Life, AD&D, Short & Long term Disability)
Sold as package with Medical and Stop Loss
Where
States without onerous regulations related to small group self-funding/stop loss
Markets where sufficient network discounts exist to offer competitive pricing

5. Arenas Where we aren’t…
Employers who aren’t agreeable to individual underwriting
Mid-size and large employers (above 100 lives)
Self-funding without stop-loss
Stop loss without administrative services

6. Vehicles Arenas Staging & Pacing Economic Logic Vehicles
Differentiators
Distribution
Brokers via MBS and/or MGA relationships
Products/Services
Core: build or buy
Non-core: borrow
Key suppliers
Networks/PBM

7. Vehicles Brokers Products/Services
Accessed through Managing General Agents (MGA) and Multi-Benefit Services (MBS; a Trustmark subsidiary)
A TPA or MGU could have a distribution arm and function as a MGA as well
Corporate Account Marketing (CAM)
Unique arrangement (NY Life)
Products/Services
Non-Core (Borrow)
Key Suppliers
Networks: Aetna/CIGNA
PBM: CVS

8. Differentiators Arenas Staging & Pacing Economic Logic Vehicles
General Differentiators
Trustmark integrity
Broker support and service
Telephonic or online enrollment options
Additional differentiators against fully insured competitors
Ability to individually underwrite
Flexible broker compensation
Medical product options/flexibility

9. Differentiators Categories of competitors: Fully insured
Carriers following the 2014 rating requirements of ACA (no underwriting)
Self funded with stop loss
Large carriers
Moving into the small self-funded space
TPAs with a stop loss carrier
Creating self-funded product for smaller groups
Insurance carriers similar to Trustmark (Assurant, IHC)
Competing in our same space

10. Economic Logic Arenas Staging & Pacing Economic Logic Vehicles
Differentiators
Identifying the “right” employers
Individual underwriting
Self-funding viewed as favorable option

11. Economic Logic Individual underwriting
Need to ensure the premium is appropriate for risk
Self-funding product viewed as favorable option
Brokers and employers
Results in higher margin

12. Staging and Pacing Arenas Staging & Pacing Economic Logic Vehicles
Differentiators
2013/14: Transition fully insured medical to self-funded/stop-loss
2014: Determine claim platform solution
2014: Move to one product framework

13. Staging and Pacing
Transition 25%/$35M (groups/revenue target) existing fully insured groups to self-funding with stop loss product during 2013 and 2014.
Determine current claim platform solution
New ICD10 compliance requirements in 2014
Need for greater efficiency
Revisit PathForward solution and alternatives
React accordingly to post 2014 ACA rating reform