ENVISIONING A PARTNERSHIP

andGALLAGHER

Arthur J. Gallagher & Co.

© 2017 GALLAGHER BENEFIT SERVICES, INC.

Objectives

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Accountant, Senior - Aviation Department $55,873.38 - $89,174.31

Assistant Building Official $69,411.70 - $110,780.62Behavioral Health Clinician $48,349.23 - $77,165.54Food Service Supervisor $36,203.47 - $57,780.94

$23.19 - $31.70 hourlyTransit Mechanic

Attract Retain

Engage Employees

47 Posted Positions

Benchmarking

Annual Employee Benefits Survey

Overview

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• Progressive Plan Management• 4 plan offerings including HRA/HSA components

and Consumer Driven Health Approach• Narrow Network for 2018 – Community Care Plan

(CCP)• Offers subsidy for part-time employees’ medical

benefits• Engagement Incentive / Wellness

• Strong Incentive and Focus• Linked to HRA/HSA Funding – for 2 of the plans

• Completion of One Wellbeing Event• Self Funded Offerings

• Medical since 2015 • Pharmacy over 15 years

• Stand Alone Pharmacy Programs• CCP Plan uses EnvisionRx• All other plans use OptumRx

Challenges

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• Plan Funding• 2015 required additional County funding• Projected to increase at a rate of 9.5% per year

• Employee Contribution Fluctuations• 2016 contributions changed from (80%) - 400% forcing

large migration• 2017 contributions changed from 0% - 17%• Wide swings in County HSA/HRA contributions

• State Filing Issues• Medical State filings

• No year end filing for 2015• Required additional funding

• Pharmacy State Filings• Several not accepted by the OIR

• Provider Losses & Replacement Carriers• RFP process recommended vendor was not implemented• Selected UnitedHealthcare post-RFP based on Network

changes• Potential Revenue Loss / Budget Issues

• Proposed increase to Homestead Exemption

Is Your Benefits Program Sustainable?

Sustainability

© 2017 Gallagher Benefit Services, Inc.

2015 Actual

2017 Projected

2019 Projected

Payroll(in millions)

$265.2 $277.7 $289.3

TotalExpense(in millions)

$52.6 $56.0 $67.1

Benefits as a Percent

19.8% 20.2% 23.2%

Plan Benchmarking – 2017 Comparison of Richest Plans Offered

Type of Benefit OOP/Cost

Annual Employee Deductible

$1,300

Annual Employee Out of Pocket Maximum

$2,800

Coinsurance 80%

Total Monthly Cost $755

Monthly Employee Contribution

$151

Type of Benefit OOP/Cost

Annual Employee Deductible

$0

Annual Employee Out of Pocket Maximum

$1,264 - $2,500

Coinsurance 100%

Total Monthly Cost $633 - $771

Monthly Employee Contribution

$0 - $30

7Arthur J. Gallagher and PROSPECT NAME

South Florida Public Entity Clients

Requested Services and Other Gallagher Capabilities

Executive Benefits

Human Resources& Compensation

Voluntary Benefits

Exchange SolutionsCompliance

HR & Benefits Technology

Health & Welfare Healthcare Analytics

Institutional Investment &

Fiduciary ServicesLife/Wholesale

Multinational Benefits & HR

Retirement PlanWellbeing

& EngagementPharmacy Benefit

Management

Gallagher has the local resources to meet all requested outlined services. In addition to those the RFP, Gallagher can provide other capabilities and services.

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** ** **

** **

Broward County’s Dedicated Team

© 2017 Gallagher Benefit Services, Inc.

Our client-centered focus means we work as part of Broward County’s Team

Dr. Love, Kate Siano and John Hughes

Wellness Consultants

Glen Volk and Sharon Leach

Consulting Actuaries

Barbara L. Crowe, Area President, Lead Consultant

Paul Hebert,Lead Benefit

Counsel

Jeff AngelloFlorida Market

President

Michelle Nathan, Account Executive and Back Up Lead

Consultant

Gerry Desmond, Retirement

Plan Consulting

Rebecca Pitilon, Yvonne Blackford, and Gerry Smith-

Copeland Account Services

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Strategic ApproachMulti Year Strategy

Immediate – Upon AwardIdentify Goals & Objectives•Understand the County’s directives and

strategic HR goals•Immediate financial opportunities•Present benchmarking•Review historical claims and design data –

medical and Rx•Conduct thorough compliance review and

update•Compliance gap analysis•Healthcare Reform compliance & financial

impact•Forensic contract analysis to eliminate waste,

ineffective programs, and contractual gaps•Assess financial stability •State filings both on medical and RX•Stop Loss Review and Marketing

2018 – 2019Focus on Vendor Partnerships•Evaluate vendor relationships•Define contract language and terms•Leverage analytics to drive and validate benefit strategy•Workforce Evaluation - drives communication style &

benefit mix•Operation Unit wellness environment audit (CDC scorecard

based)•Cost containment philosophy - incentive versus steerage•Competitive landscape for benefits & recruitment•Identify retrospective and prospective risk score based on

claims data•Identify key cost drivers by operational unit/plan•Overview and areas for negotiations•Data Warehouse•Stop Loss Marketing

2019 & BeyondOptimize Plan Effectiveness•Aggressively manage cost by identifying drivers in plan data•Review changes to ensure their effectiveness•Evaluate the market for best contract terms and conditions•Review contribution structure and effectiveness•Consider cost-saving plan design options•Overall plan designs•Network optimization (including limited networks)•Consumerism/Communication tools•Alternative payment models to align physician and plan goals•Identify retirement readiness and the impact that has on long-term health costs

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Partnership Model

Strategy & DesignWellbeing & Engagement

Communication & Education

Compliance

Reporting and Analytics

Plan Management & Benefits Administration

• Multi-Year Planning • Sustainability modeling• Benchmarking • Evaluate Emerging Trends

• Actuarial Services• Underwriting• Benefits Dashboard• Monthly Reporting• M&A / Transactional Analysis

• 27 Attorneys• Monthly Directions• HCR Updates• Technical Bulletins• CE Approved Webinars• Quarterly Seminars

• Workforce Evaluation• Calendar• Multi-media deliverables• Aligned with culture

• Annual Service Calendar • Benefit Advocate Call Center• Benefits Administration Consulting

• The Gallagher Way for Wellbeing

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• PBM Procurement Services

• Ongoing Post-Implementation Audits

• Medical Claim Audits

• Prescription Drug Electronic Audits

• Pre-implementation Audits

• Dependent Eligibility Audits

• In-depth Data Analysis

• Predictive Modeling• Benchmarking• Quarterly Trend Updates

• Rate Renewals/ Plan Pricing

• Reserving• Plan Redesign• Retiree Valuations

• State Filings• Benefit Valuations

Actuarial Services Data Warehousing Audits PBM

Services

Healthcare AnalyticsSuite of Services

What would Broward County have experienced under Gallagher’s model?• 3 to 5 year regularly updated forecast• Deep dive into cost drivers• Comparison of network contracting / discount analysis• Gallagher’s propriety underwriting and plan design factors• Premium rate setting to ensure plan solvency• Annual State filings

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The Multiple Dimensions of Wellbeing

The WHOLE person comes to work every day....

each employee’s wellbeing influences individual and organizational performance

&&

Physical Health

Physical Health

Social/Emotional

Health

Social/Emotional

Health

Financial Health

Financial Health

Community Health

Community Health

Career HealthCareer Health

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Getting Started

Our consultative process

Well-being & Engagement Strategy FrameworkHealth Benefits

(Design, financing, risk management andadministration)Well-being & Engagement

(Optimization of workforce productivity through engagement and good health)

Alignment to Business ObjectivesDeeper discovery, finding new ways to demonstrate well-being as an enabler to internal

business strategies and company mission

Understand Data, People, Culture

Create Guiding Principles, Goals, Objectives, &

Success Metrics

Create Plan Design to Encourage Healthy

Decisions and Manage Costs

Create formal Wellness Advocate Network

Conduct Market Survey for Wellness Partner, if

appropriate

Build Internal Alignment with Stakeholders

Adapt Workplace Policies & Environment to Support

Vision for Health

Evaluate Opportunities for Onsite Care Integration

Dedicated ResourcesDr. Love, Kate Siano and John Hughes

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Gallagher Wellbeing Microsite

•Turnkey Wellbeing Communications– Created by Gallagher wellbeing experts– Very simple, no cost solution

•12 Month Wellbeing Website– Monthly topics and strategies to promote

through information, resources and programs

•Monthly Categories of Information– Newsletters (English & Spanish)– Posters (English & Spanish)– Toolkit/Challenge/Activity

Website URL is https://gbs.ajg.com/wellness2017/

© 2017 Gallagher Benefit Services, Inc.

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National Scope

• We shoulder your compliance needs and help you avoid compliance risk.

• Our resources are dedicated to removing fear and uncertainty on compliance issues.

• We provide up-to-date legislative and regulatory monitoring and support.

• We provide toolkits, checklists, and other resources to put the compliance landscape in an actionable perspective.

Compliance

Local Execution

• Access to a dedicated local team member for compliance who will help navigate both day-to-day and strategic compliance issues.

Common Ways We Provide Help

• Honing your “game plan” for the employer mandate and related IRS reporting.

• Spotting gaps in reporting and disclosure requirements under ACA, COBRA, and HIPAA.

• Design issues for wellness programs and consumer-driven health care.

Dedicated Resources:Paul Hebert, Local Attorney and over 27 compliance attorneys

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Communication Consulting & Development

Listen Design Digital Personalize Print

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Workforce SegmentsStage Career Priority Life Stage Characteristics Benefits Needs Communication Style

Preference

Entry-Level20 – 30 year olds

(Gen Y)

• Professional development• Job advancement• Income growth• Establishing financial stability• Recognition

• Single or recently married• Childless• No or little savings• Does not own a home

• Light user of medical benefits• Health and wellness activities

that are fun, social and affordable

• Financial planning for the future

• Work environment and corporate culture are important

• Expects technology• Prefers multiple focal points

in presented information• Needs guidance and structure

Mid-Career30 – 45 year olds

(late stage Gen Y + Gen X)

• Focus on job and income advancement

• Recognition• Professional development

and certifications

• Young family• Growing financial obligations• Day care needs• Work/life balance is important

• Moderate to heavy user of medical benefits

• Wellness efforts aimed at preventing health problems and sustaining good health

• Financial planning for the future

• Heavy user of time off and leave benefits

• Prefers summarized and visually appealing communications

• Requires detail• Expects to be asked for

feedback

Established45 – 55 year olds

(late stage Gen X +Boomers)

• Professional respect• Leadership• Mentorship opportunities

• Lessening family obligations• Established financial routines• Elder care needs (for aging

parents)

• Moderate to heavy user of medical benefits

• Wellness efforts aimed at preventing health problems and sustaining good health

• Retirement savings• Long term care insurance• Life Insurance

• Requires individual attention• Prefers practical and factual

information• Requires to be asked for

feedback

Pre-Retiree55+ year olds

(Boomers + Traditionalists)

• Preparing for transition into retirement

• Focus on securing steady income during retirement

• Lighter family obligations

• Heavy user of medical benefits

• Wellness efforts aimed at preventing health problems and sustaining good health

• Retirement savings• Long term care insurance• Life Insurance

• Requires individual attention• Prefers peer advice• Requires to be asked for

feedback

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Publications

Healthcare Reform Updates Directions Newsletters Technical Bulletins Webinars

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What is a Trusted Advisor?

© 2017 GALLAGHER BENEFIT SERVICES, INC.

What Gallagher Brings to the Table…

Accurate & Responsive Account Management• Gallagher’s internal Business Operating Standards and Systems ensure Broward County Board of County Commissioners will have

a measurable and clearly defined service plan• The account management team servicing Broward County Board of County Commissioner has expertise with the public sector area,

direct access to local subject matter experts and qualified redundancies to ensure consistencyPartnership in Strategic Planning and Execution• Gallagher’s consulting team has the expertise to guide Broward County Board of County Commissioners through future challenges

and the ability create and execute a strategic plan• Our Public Niche works with companies of Broward County Board of County Commissioners ’s industry and size enabling us to

provide precision guidance and perspective• Supported by robust analytics, underwriting, communications, compliance, health management and other resourcesMeasurable Engagement• Our communications team combines insight based on a deep understanding of employee tendencies with imaginative delivery to

create a final product for Broward County Board of County Commissioners that is unique and effectiveTeam and Cultural Stability• Broward County Board of County Commissioners can count on Gallagher for a locally consistent service team and stable,

conservative corporate backingMarket Clout• Gallagher’s presence as one of the largest benefit consultants in the world translates to favorable negotiations and renewals for

Broward County Board of County Commissioners

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• Premium in Excess of $2 billion

Proudly GLOBAL, Fiercely LOCAL

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Presence3300+

Benefit Services Employees Nationally

190+Benefit Offices

Nationally

103+Local

Benefit ServicesEmployees

Arthur J. Gallagher and Broward County Board of County Commissioners

AwardsS. Florida Business

JournalChief Executive

Magazine

World’s Most Ethical Companies

2012 – 2017• Best Companies• Largest Public Entity

Consultant in Florida

Over 90 Florida Public Entities

A True Partnership

At Gallagher, partnership means we actively invest in your success and

continually earn your trust.

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