| Aon discussed with management various alternative plan designs to achieve these objectives, including consumer driven healthcare. Aon educated the client about consumer driven health models, including such factors as:
- Alternative plan design options;
- Reasonable expectations of results from a consumer driven model;
- Total replacement vs. offering as an option;
- Adverse selection and how to address that concern;
- Communication efforts required.
The client decided to offer a consumer directed health plan (CDHP) to its medical benefit options for the next plan year. Aon prepared an RFP to bid the traditional medical program, as well as to add the CDHP option.
Aon worked with management to perform an actuarial review of current medical costs and to establish budgeted cost targets for the new plan year that were lower than medical trend rates. The company expected the CDHP to be cost-neutral in the first year, but expects savings in future years from CDHP.
Aon and management replaced the underperforming HMO option, and added a CDHP option with a specialty consumer driven healthcare vendor.
Aon also worked with the client to redesign the retiree health program, taking into account the new Medicare prescription drug legislation and incorporating the new CDHP as a retiree option.
Aon helped the client develop an extensive communication campaign with its workforce to introduce the CDHP program. The objective was to have 10-15% of employees enroll in the CDHP. |
