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Subtitle, Arial, 20pt., .75 Line Spacing, .5 Before Paragraph
Aon Orientation
February 25, 2014
The Affordable Care Act
An Opportunity for Response
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Agenda
Aon/Aon Hewitt Overview
ACA Overview and Heath Care Reform
Whats changing and when?
What is an Exchange?
Aon Hewitt Corporate Exchange overview
Q&A



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AON OVERVIEW
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About Aon
Aon Vision: Aon is universally recognized as the premier global professional
services firm focused on risk advice and human capital management
Aon plc
Aon Risk
Solutions
Aon Benfield Aon Hewitt
Retail Brokerage
Captive Management
Affinity Programs
Select Personal Lines
Premium Finance
Claims advocacy
& Claims
Administration
Risk Assessment
& Advisory
Treaty Reinsurance
Facultative
Reinsurance
Investment Banking
Analytics
Client Services
Health & Benefits
Consulting
Retirement and
Actuarial Consulting
Investment Consulting
M&A Solutions
Talent and Rewards
Benefits Administration
HR Business Process
Outsourcing
Global Benefits
Aon Service
Corp.
Finance
Marketing
Human Resources
Technology
4
Aon plc
Aon plc
The leading global provider of risk management services, insurance and
re-insurance brokerage, and human resource solutions
FY12 Revenue $11.5 billion Aon Revenue
Aon Risk Solutions
Aon Benfield
Aon Hewitt
Empowering results for clients on two of the most important issues
in todays global economy; risk and people
65,000 colleagues

120 countries

500 global offices
HR Solutions
34%
Greg Case
President & CEO
Risk Solutions
66%
Aon Risk
Solutions
Aon Benfield
(Reinsurance)
Aon Hewitt
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Aon Overview | History in the Making
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Aon Overview | Serving Many of the Worlds
Best Organizations
of top Fortune 500 firms
of top P&C insurance firms
of top Technology firms
of top Healthcare firms
of top Consumer firms
of top Financial firms
of top Energy firms
of top Telecom firms
are Aon
Clients
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AON HEWITT OVERVIEW
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The Expansive Reach of Aon Hewitt
30,000
colleagues
around
the world
330
offices in
90 countries
More than
20,000
clients globally
Serve
80%
of the Fortune 500
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An Established, Industry-Leading Focus on HR
Solutions
Most named Top Consultants on Human Resource Executive and
Risk and Insurance magazines annual list of Top Employee Benefit
Consultants for the past five years
Honored with an Outsourcing Excellence Award by the Outsourcing
Center in 2012 and 2013
Named one of 20 Institutional Leaders of the Past 20 Years by
PLANSPONSOR magazine

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Solutions With Scale, Depth and Breadth
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Retirement Health Talent
Three Focused Solution Lines
Consulting
Health and Benefits Brokerage
and Consulting
Absence and Productivity
Elective Benefits
Global Benefits
Consulting
Retirement Consulting and
Administration
Investment Consulting and
Delegated Investment Mgmt.
Executive Benefits
Consulting
Broad-Based Compensation
Executive Compensation
Sales Force Effectiveness
Leadership & Assessment
Employee Engagement
HR Effectiveness
Outsourcing
Health and Welfare Administration
Absence Management
Dependent Verification
Advocacy Services
Reimbursement Account Admin
Compliance Services
Active Health Care Exchange
Retiree Health Care Exchange
Outsourcing
Defined Benefit Administration
Defined Contribution
Administration
Financial Services
AH as Advisor
Self-Directed Brokerage and
Personal Financial Center
Compliance Services

Outsourcing
Talent Acquisition & Recruitment
Outsourcing
HR BPO
Global Workforce & Payroll
Talent Administration Support
Total Rewards + Online
Communications
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Communication, Merger & Acquisition Solutions, Customer Experience
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Macroeconomic Trends
Companies facing huge pension
liabilities and need to de-risk
Move to fixed income
Focus on volatility vs. short
term returns
Settle pension liability
through the insurance
markets and lump sums
Pressure on defined contribution
systems to do more
Focus on financial wellness
and adequacy
Fiduciary rigor and
governance
Shift to institutional from
retail approaches
The Industry Leadership to Deliver: Retirement
Navigate retirement risk while providing new levels of financial
security
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Market-leading Capabilities
#1 DB and #2 DC administrator
$2 billion in DC payments monthly; $25 billion in
pension payments for 2.7M retirees monthly; $667
million in lump-sum pension checks monthly
Investment advice for $4.2 trillion in assets
globally; delegated investment management for
~$37 billion in assets for >130 clients
Experienced leader in all major de-risking trends
and consultant on largest pension de-risking
action
Only firm with integrated and comprehensive
solutions across actuarial (~$1 trillion in global
pension liabilities), plan administration,
investments and insurance
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The Industry Leadership to Deliver: Talent
Cultivate talent to drive organizational and personal
performance and growth
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Market-leading Capabilities
12 global HR BPO centers; support in 11
languages
Large scale transaction capability: 15M payroll
transactions, assess 8M candidates and hire
59,000 client positions annually
5,000 talent clients with 17M employees in
40 countries
50 unique comp & performance surveys
17M+ responses in our engagement database
Supported ~30% of PE transactions over last 3
years and 25% of corporate M&A deals over
$15B in 2011
Macroeconomic Trends
4 out of 10 employees
worldwide are not engaged
Focus required on culture
and engagement to attract
next-gen talent
Emerging economies are
growing faster than
available leadership talent
Increasing need to build
global talent pools
New pay philosophies
need to align to long-term
results
Growing interest in SaaS

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The Industry Leadership to Deliver: Health
Macroeconomic Trends
Health care costs have risen
52% in past 6 years similar
trend expected to continue
Health Care Reform actions
driving major change and new
options
Companies searching for
global benefit solutions
New strategies needed to
improve population health

Redefine health & benefits solutions for greater choice,
affordability, and wellness
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Market-leading Capabilities
Largest provider of health & welfare admin
10k unique health plan designs
Serve more than 9.5 million health and welfare
participants
Direct $8B in health premiums annually
Pioneer in health care exchanges
100,000 employees and their families in our corporate
exchange
200,000 retirees in our retiree exchange
Provide Health & Benefits consulting covering the
health benefits management spectrum
90 locations worldwide
5,000 large and mid-market clients in both public and
private sectors
Help 108,000 employees return to work annually
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Affordable Care Act
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Health Care $2.5 trillion
Food $0.9 trillion
National Defense $0.8 trillion
Clothing $0.3 trillion
Total Pre-tax Corporate Profits $1.3 trillion

Spending by Category (2009)
Sources: CMS, Bureau of Economic Analysis, 2009
Why Are We Talking About This?
Health Care Spending
5.2%
17.6%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2009
(% of Gross Domestic Product)
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About Health Care Reform
On March 23, 2010, the Patient Protection
and Affordable Care Act (PPACA) was
signed into law. The law puts in place
comprehensive health insurance reforms that
will roll out over four years and beyond.

On March 30, 2010, the Health Care and
Education Reconciliation Act of 2010
(HCERA) was signed into law. This act
contains significant modifications to PPACA.

The combined laws are referred to as the
Affordable Care Act or more commonly as
Health Care Reform. These two laws
together make sweeping changes to existing
laws governing employer-sponsored group
health plans, individual health coverage, and
governmental health programs.
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Health Reform: Keeping it in the Forefront
The Headlines
2012 saw the Supreme Court confirmation
of the Health Care Reform Mandate
Congressional repeal remains unlikely
Major implications for
State Governments
Federal Government
Employers
Employees
Providers
Whats Ahead for Health Reform?
2014 State exchanges open
Individual mandate
Employer free rider penalty
Employer Responsibility to provide Minimum
Essential Coverage
Limit of 90 Day Waiting Period for Coverage
Wellness incentives move to 30% differential
2018 Excise Tax on High Cost Employer Sponsored
Coverage (*health insurance issuers and
sponsors of self-funded group health plans
will be assessed an excise tax on any benefits
provided to employees that exceed a pre-
determined threshold. aka The Cadillac
tax)
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Health Care Reform Timeline
2010 2011 2012 2013 2014 2018
Lifetime limits
prohibited
Only restricted annual
limits permitted
Consumer protections
>Preexisting
condition exclusions
prohibited for children
under 19
>Rescission of
Coverage
>Other protections
Coverage for
preventive health
services
Extension of
dependent coverage
up to age 26
Effective appeals
process
Early Retiree
Reimbursement
Program
Expansion of adoption
assistance program
credit
Additional reporting to
State & Federal
governments and Public
Over-the-counter
medication not
reimbursable through
Flexible Spending
Account
Health Savings
Account excise tax
increased
Medicare Part D
discounts for certain
drugs in the doughnut
hole
Medicare Annual
Enrollment period
changes
Employer distribution
of summary of
benefits and coverage
to participants
Employer quality of
care report
Employer reporting
of health coverage on
W-2
Comparative
effectiveness fee*
Notice to inform
employees of coverage
options in exchange
Limit of Health Care
Flexible Spending
Account contributions
Medicare Part D
subsidy to employer no
longer tax-free
Tax on high-income
individuals
Comparative
effectiveness fee*
Individual mandate to
purchase insurance or
pay penalty
State/Federal
insurance exchanges
Employer to provide
minimum health
coverage
Preexisting condition
exclusions prohibited
Annual limits prohibited
Automatic enrollment
(delayed)
Limit of 90 days on
waiting periods for
coverage
Employer reporting of
health insurance
information to
participants &
Government
Increased cap on
rewards for wellness
programs
Transition Reinsurance
Program
Excise tax on high-cost
coverage
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Business Opportunity & Drivers
Note:
Aon Hewitts 2013 Health Care Trends survey of more than
800 employers
Aon Hewitts 2013 Retiree Health Care Trends survey of
more than 500 employers
The Facts:
122 million+ active employees with employer-
sponsored group coverage
94% of employers plan to continue offering
health benefits to active employees
Retiree market poised to grow at 4.5 million
per year
Around 48 million people qualify for Medicare
today. 26% of those have employer-sponsored
coverage
28% of employers plan to move to a corporate
exchange model in the future.
66% of employers use or plan to move to an
individual market strategy for retiree health care
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Four Paths for Employers
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House Money, House RulesRising Cost and Worsening
Health Risk
Source: 2010 World Economic Forum
Chronic illness accounts for 60% - 65% of all health care spending
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Changing Health Behavior
Top Challenges Desired Outcomes Top Tactics
Motivating participants to
promote behavior
change65%
Increase utilization of
wellness and
prevention70%
Offer incentives or
disincentives to
motivate sustained
behavior change61%

Government
compliance and
regulations35%
Increasing participant
decision making related
to health issues62%

Promote a culture of
health in the
workplace48%
Managing the health of
an aging workforce
30%
Lower health risk of
population58%
Move to rewarding
improved health
results or outcomes
44%
Source: Aon Hewitt 2012 Health Care Survey, available at aon.com/betterhealthresults
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Play on a New Field
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Play on a New Field
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Aon Hewitt Corporate Exchange Survey Results
10%
4%
4%
77%
7%
8%
8%
44%
31%
7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Other
No Employer Plan, Employees Access
Individual Market
Joins Corporate Exchange, Provides Fixed
Dollar Subsidy
Provides a Few Options, Employee Pays
Percentage
Provides Single Plan; Pays 100%
Current Future (3-5 Years) Source: Aon Hewitt, 2011 (n=562)
44% of companies believe they will adopt a Corporate Exchange
form of health benefits delivery over the next 3-5 years







Employer Responsibility for Health Care Coverage
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It Is About Managing Through Reform
The Situation:
Employers with modest impact will see costs rise 2%
to 5% in 2014
Employers with low-paid workers, long waiting
periods, 30+ hour employees with no coverage or
low value coverage could see costs increase 20% to
60% in 2014
Some employers will continue to make incremental
changes to health care programs and will offer more
traditional decision-making tools and resources to
employees
For other employers, 2014 will mean radically
redefining their health care offerings and helping
employees optimize their coverage and cost through:
Employer plan, Exchanges, Medicaid
These choices will be heavily influenced by federal
subsidies and state Medicaid entitlement rules as
well as the influx of fully insured lives into state and
federal exchanges
Employers need to continue to monitor legislative
and regulatory changes
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What is an Exchange?
An exchange is a competitive marketplace that consists
of suppliers and buyers


Exchange
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Exchange Benefits to Employers, Enrollees, and
Carriers
Employers
Trend mitigation through competition, efficiency
and best-in-market contracting
Cost predictability
Risk transfer
Focus on health and productivity
Enrollees
Greater choice of plans and carriers
Flexibility to tailor benefit/contribution trade-offs
Superior customer experience
Carriers
Market share opportunity
Earnings potential (full premiums vs. administrative fees)
Product innovation and control
Attractive risk pool
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Corporate/Private Exchange Goals
Create a competitive market in health care benefits at a retail/consumer level
Will drive efficiency and mitigate trend through competitive forces
Facilitate the movement to a defined contribution model for those
employers who are aligned with this philosophy
Jump off the health care trend curve to a compensation-like rate of increase
Treat health benefits as an element of total rewards
Expand choice, drive efficiency and simplicity, but allow consumer
selections that could not be driven unilaterally at the employer level
For example, narrow networks, select formularies
Provide an alternative to state exchanges for large employers before 2017,
and transition to an individual model when the market is ready
Consolidate purchasing power in the private sector to drive systemic reforms
of the health care delivery system
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Aon Hewitt Health Care Exchanges
Aon Hewitt
Navigators
I
n
d
i
v
i
d
u
a
l

H
e
a
l
t
h

P
l
a
n

Medicare
Eligible
Non-
Medicare
eligible
individuals
(i.e., pre-65
retirees,
active
employees)
Aon Hewitt Corporate
Exchange
G
r
o
u
p

H
e
a
l
t
h

P
l
a
n

Pre-65
Retirees
and
Actives
I
n
d
i
v
i
d
u
a
l

P
l
a
n

Non-
Medicare
eligible
individuals
(i.e., pre-65
retirees,
active
employees)
Aon Hewitt State Exchange
I
n
d
i
v
i
d
u
a
l

H
e
a
l
t
h

P
l
a
n

Individuals
eligible for
government
programs such
as Medicaid
and Childrens
Health
Insurance
Program (CHIP)
Employees of
Small Business
I
n
d
i
v
i
d
u
a
l

o
r

G
r
o
u
p

H
e
a
l
t
h

P
l
a
n

Employees
of Large
Business
(over 100)
Now Future
Now Now Future Future
Private Exchange Public Exchange
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Aon Hewitt Health Care Exchange Initiatives
Individual
Exchange
Post-65 Retirees
Aon Hewitt
Navigators
Pre-65 Retirees
Aon Hewitt
Navigators
Actives
Aon Hewitt
Navigators
Group
Exchange
Active + / or Pre-
65 Retirees
Aon Hewitt
Corporate
Exchange
State/Federal
Exchange
Active + / or Pre-
65 Retirees
H&B Consulting
Aon Hewitt Health Care Exchange Portfolio
In development
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Navigators We Make it Easy
EDUCATION
ENROLLMENT CHOICE
ADVOCACY
EMPLOYERS
Significant Cost Savings
Financial Predictability
Turn-key Implementation
Proven network, all major
carriers
Integrated HRA
RETIREES
Free access to personalized
healthcare advisors
Medicare expertise
80 Carriers and 3300 products
Advocate to navigate issues
Over 240,000 retirees served with over 92% satisfaction
With Aon Hewitt Navigators, employers can realize significant cost savings by
seamlessly transitioning retirees to the individual market while still providing
the support they need to navigate the complex Medicare market.
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Corporate Exchange: How It Works
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Value PropositionMaking This Work for All Stakeholders


Employees
Greater choice of plans and carriers
Superior customer experience
Flexibility to tailor benefit/contribution trade-offs
Clients
Risk transfer and predictability
Trend mitigation through competition, efficiency, and
best-in-market contracting
Focus on health and productivity
Carriers
Market share opportunity
Earnings potential
Product innovation and control
Attractive risk pool
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Corporate Exchange Shopping Experience
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Gain Predictability and Risk Transfer without Cost Increases
Insured Plans
Consumerism
Competition
Choice and Flexibility
Defined Contribution
Subsidy
Best-in-Market
Efficiencies
Reduce Trend
Remove Volatility
Ensure Employee Sustainability
In every consumer market,
competition reduces cost
Regional rating bands allows market-
specific insurer strengths to emerge
Consumers will make economic choices if
they can reap the full economic benefit
Freedom of movement across insurers will keep
costs low and service levels high generating
more control and increased satisfaction
Insurers will have accountability for managing
care; price becomes critically important
With competition mitigating trend, plan
sponsors can move to a DC approach without
long-term cost-shifting to associates
No Silver Bullet: Six Key Levers Working in Concert
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Q&A
Aon and ACA: Trivia
1) Who is the CEO of Aon?
2) What does Aon mean?
3) How many people do we administer benefits
for?
4) How many colleagues do we have globally?
5) What is an Exchange?
6) Which company did Aon Hewitt contract for
the Corporate Exchange for benefits in
2014?