1. Controlling Healthcare Costs While Improving Quality: Employee Benefits Donald L. Eddleman, Partner efg&m, L.P. 512.671.9385 don@efgmbenefits.com HealthCare Forum

2. Locally owned and operated Independent Employee Benefits firm We work with small to mid-size companies (2- 900) Employee Benefits (Health Ins) is generally the 2 nd to 4 th largest expense for these employers Our challenge – to design and implement affordable Employee Benefit packages to attract and retain quality employees

3. Affordability Gap

4. Strategies for Managing Health Insurance Cost Plan Designs Multiple Option Plan Offerings Consumer Driven Health Plans Employer’s Contribution Strategy

5. Benchmarking Average Deductibles in Texas Source: Data from one of the big four insurance carriers in Central Texas

6. Plan Offerings Plan Designs – Deductibles – Coinsurance – Copays – Prescription Drug Benefits Multiple Option Plan Offerings – Base Plan – Buy Up Plan – CDHP

7. The logic behind Consumer Driven Health Plans Consumers share additional cost through tax favorable accounts such as HSAs To get the consumer more engaged with their health care decisions To reduce unnecessary utilization The idea is that consumers will be better stewards with their own healthcare dollars

8. Consumer Driven Health Plans (CDHP’s) Health Reimbursement Accounts (HRA) Employer sponsored plans. Health Savings Accounts (HSA) HSAs are individual accounts that employers sometimes choose to contribute to.

9. HSA COMPONENTS HDHP High Deductible Health Plan THE INSURANCE PIECE HDHP High Deductible Health Plan THE INSURANCE PIECE HSA Health Savings Account THE ACCOUNT TO FUND DEDUCTIBLE TAX-FREE HSA Health Savings Account THE ACCOUNT TO FUND DEDUCTIBLE TAX-FREE Insurance CompanyFinancial Custodian HSA with Qualified High Deductible Plan

10. Maximum contribution for 2012: (contribution deadline is April 15 th ) Individual - $3,100 ($3,050 for 2011) Family - $6,250 ($6,150 for 2011) Family = employee + 1 or more dependent(s) Catch-up Provision – Age 55 and older can contribute an additional $1000.00 each year Un-used balance carries over each year Portable (i.e. you take your account with you if you leave) Contribution can be made through payroll deductions, online directly, or by check Interest-bearing account Health Savings Account

11. Are CDHP’s changing behavior?

12. Wellness 101 – Costs follow Risks

15. don@efgmbenefits.com 512-671-9385