L O C K T O N C O M P A N I E S

Benefits Survey ReportPresented to Arkansas State University SystemSeptember 2017

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Table of Contents

2 Executive Summary

3 Highlighted Observations

4 Participant Demographics

6 Coverage Breakdown

6 Opinion Summary

Executive SummaryThe Arkansas State University System (ASU) partnered with Lockton Companies to conduct an Employee Benefits Survey to capture employees’ opinions on the health benefits offered at ASU.

The survey consisted of participant demographic questions and 11 benefit opinion questions. Lockton aggregated the results from each question and included demographic breakouts of certain questions, as appropriate.

Lockton conducted the ASU Employees Benefits Survey between August 21 and August 28, 2017. Lockton emailed invitations to 2,361 ASU Employees and received 1,435 survey responses. The resulting 60.8% response rate is on the high end of most internal survey participation rates observed by Lockton.

Response rates over 35% are statistically valid and response rates greater than 50% have strong reliability. It is Lockton’s opinion the results of the ASU Benefits Survey are relevant and reliable, and ASU may use the survey findings to make future changes to the employee benefit plan.

PARTNER ING FOR SUCCESS

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Highlighted ObservationsSome highlighted observations from the ASU Benefits Survey are as follows.

Demographics À The vast majority of respondents (74.8%) are between the ages

of 36 to 65

À Most respondents (61%) have been with ASU 10 years or less

À The vast majority of respondents (72.4%) are legally married

Benefits Election Summary À Of those who identify as being married or having children, 60%

elect family coverage

À Family coverage is the most popular election for employees ages 26 through 55

À Of those who do not elect dependent medical coverage through ASU, the majority state they receive family coverage through a spouse’s plan

Participant Opinion Summary À The majority of respondents agree the total benefits package is

competitive

À 74% of respondents feel their cost of healthcare is reasonable

À Most feel the total benefits package offered by ASU has significant influence over the their decision to stay at ASU

À 78.5% of employees state they are satisfied with the benefits offered at ASU

À Over 60% of respondents support higher healthcare premiums for tobacco users

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AGE GROUP

28.0%

24.4%

22.4%

16.5%

5.9%

2.7%

Age Group

46–55 56–65 36–45 26–35 Over 65 25 and Under

JOB TENURE

38.0%

25.1%

23.1%

13.9%

Job Tenure

5 years or less 11–20 years 6–10 years 21 years or more

Participant Demographics

PARTNER ING FOR SUCCESS

Arkansas State University System

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CLASSIFICATION

63.8%

35.3%

1.0%

Classification

Staff Faculty Retiree

CAMPUS

67.9%

12.3%7.2% 6.6% 6.1%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

ASU Jonesboro ASU Beebe ASU Mid-South ASU Newport ASU MountainHome

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CURRENT ELECTION—ALL

43.2%

27.8%

14.5%

6.8%

0.7%

7.1%

0.0%

20.0%

40.0%

60.0%

Single Coverage Family Coverage Employee +Spouse

Employee +Children

Covered by anASU-employed

parent or spouse

I do not receivemedical benefits

through ASU

Coverage Breakdown

Opinion Summary

Question 12: ASU offers benefits that are important to me.

ALL

70.51%

27.18%

1.05%0.98%

0.28%

ASU offers benefits that are important to me–AllStrongly agree Agree Disagree Don't know Strongly disagree

PARTNER ING FOR SUCCESS

Arkansas State University System

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Question 13: I believe the total benefits package is competitive with other companies.

ALL

48.1%25.1%

13.7%

10.4%

2.7%

I believe the total benefits package is competitive with other companies - All

Agree Strongly agree Don't know Disagree Strongly disagree

Question 14: My total benefits package has significant influence on my decision to stay at ASU.

ALL

42.4%

33.1%

14.4%

6.5%

3.6%

Agree Strongly agree Disagree Don't know Strongly disagree

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Question 17: I am satisfied with how ASU’s benefits are communicated to me.

ALL

58.6%

17.1%

15.5%

4.6%

4.1%

Agree Disagree Strongly agree Don't know Strongly disagree

Question 15: Overall, I am satisfied with the benefits offered at ASU.

ALL

59.4%

19.1%

13.8%

4.7%3.0%

Agree Strongly agree

Disagree Don't know

Strongly disagree

Question 16: I believe my cost for healthcare at ASU is reasonable.

ALL

57.1%

16.9%

14.6%

8.4%

3.0%

Agree Strongly agree

Disagree Don't know

Strongly disagree

PARTNER ING FOR SUCCESS

Arkansas State University System

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Question 18: Please rank your preferred methods for communicating the

total benefits package.

Please Rank Your Preferred Methods for Communicating the Total Benefits Package

Overall Rank

Communication Type 1st 2nd 3rd 4th 5th 6th

1 Email 56.1% 24.4% 9.7% 6.3% 3.0% 0.5%

2 Website 19.1% 32.1% 20.3% 16.2% 11.2% 1.1%

3 Employee meetings 14.0% 14.6% 29.8% 21.8% 18.1% 1.8%

4 Printed material 7.9% 20.0% 23.2% 16.0% 32.3% 0.6%

5 Slideshow/video presentation 2.1% 8.4% 16.4% 38.9% 32.5% 1.6%

6 Other (please describe) 0.8% 0.5% 0.6% 0.7% 3.0% 94.4%

Question 27: Please rate the importance of the following features.

PLAN FEATURE IMPORTANCE BY MOST IMPORTANT TO LEAST IMPORTANT (LEFT TO RIGHT)

47.9%

24.4% 21.2% 20.3% 16.3% 16.2% 16.9%

28.5%

26.3% 23.8% 23.2%19.5% 18.8% 18.2%

15.3%

24.7%26.0% 22.7%

24.8% 19.5% 20.0%

5.7%15.6% 20.0% 23.7% 30.5%

21.1% 19.7%

2.6%9.1% 9.1% 10.1% 9.0%

24.4% 25.3%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Nationwide in-network access to

primary care,specialists, and

hosptials

Access to moreArkansas mentalhealth providers

Nationwide in-network access to

mental healthproviders

Access to moreArkansas

chiropractors

Nationwide in-network access to

chiropractors

Access to BaptistHospital in

Memphis (but notMethodist or Le

Bonheur)

Access toMethodist and LeBonheur (but not

Baptist inMemphis)

Very Important Important Somewhat Important Not Important No Opinion

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Question 28: Please rank your preferred method for additional cost sharing in 2018 if additional funding is needed in the plan.

Overall Rank

Item 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th

1 Increase outpatient copay for chiropractic services (currently $20)

31.3% 12.2% 11.1% 25.9% 6.3% 3.5% 2.9% 2.2% 1.6% 1.2% 1.8%

2 Premium increase (the amount which comes out of your paycheck)

29.4% 5.8% 6.2% 4.3% 3.8% 3.3% 2.5% 2.2% 3.5% 4.9% 34.2%

3 Increase outpatient copay for primary care, mental health, and outpatient rehab (currently $35)

9.1% 27.7% 10.3% 8.3% 6.1% 5.5% 5.5% 5.7% 6.4% 10.7% 4.8%

4 Increase outpatient copay for specialist (currently $50)

3.8% 11.8% 31.0% 12.1% 12.2% 7.7% 7.1% 6.1% 5.1% 2.4% 0.8%

5 Increase ER copays (currently $60 plus deductible and coinsurance)

8.5% 15.6% 10.3% 14.5% 29.9% 8.9% 6.2% 3.4% 1.5% 0.9% 0.2%

6 Increase Rx copays (currently $12 for generic, $35 for preferred, and $60 non-preferred)

1.1% 2.2% 2.7% 4.4% 10.0% 30.9% 9.5% 12.1% 9.8% 11.6% 5.7%

7 Increase deductible (currently $600 in-network)

2.1% 3.7% 3.8% 4.7% 6.6% 11.3% 33.8% 11.7% 10.3% 8.4% 3.6%

8 Increase out-of-pocket maximum (currently $2,500 in-network)

2.5% 3.2% 4.4% 5.8% 5.8% 8.4% 11.6% 33.2% 10.7% 9.5% 5.1%

9 Add hospital confinement copay (currently no copay, only deductible and coinsurance)

5.1% 6.9% 7.2% 8.4% 7.3% 6.0% 6.7% 10.3% 32.2% 6.9% 3.0%

10 Add copay for advanced imaging service (e.g., MRI, CT Scans, PET Scans, etc.)

5.4% 9.0% 9.2% 7.4% 7.2% 7.1% 6.3% 5.4% 9.2% 31.5% 2.2%

11 Add 20% coinsurance for labs done in office (currently covered at 100% after office copay)

1.7% 2.0% 3.8% 4.2% 4.8% 7.5% 8.0% 7.7% 9.8% 12.0% 38.5%

PARTNER ING FOR SUCCESS

Arkansas State University System

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Cost-Saving Measures By Response Prevalence

COST-SAVING MEASURES BY RESPONSE PREVALENCE

COST SAVING MEASURE PREFERENCES

64.9%

30.6%

23.9% 23.3%

4.7% 3.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Higher premium fortobacco users

Higher premium forspouses when the

spouse has access tohealthcare coverage at

their own employer

None Eliminate chiropracticcare coverage

Other More restrictivepharmacy formulary

62.9%

19.5% 19.1%15.3% 13.5% 12.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

None Pre-certification foradvanced imaging

(e.g., MRI, CT Scan,PET Scan, etc.)

Pre-certification forsleep studies

Pre-certification fordurable medical

equipment

Pre-certification forsurgery

Pre-certification forhospital stays

“Other” Reasons Count

Wellness program tied to premiums 23

Higher premiums for tobacco users 6

Reduced coverage 5

Premium increase 4

Premiums linked to number of dependents 4

Eliminate coverage for spouses eligible for coverage elsewhere 4

Focus on preventative care 2

Reduce administrative overhead 2

Offer flexible spending accounts/HSAs 1

Premiums linked to salary 1

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