Over several years, a number of programs were phased in:

• -Implemented full replacement CDHP, maintaining same economic value of benefits
• -One plan initially with an HRA; later offered choice of HRA or HSA
• -Moved to partially self-funded plan
• -Employee cost incentives for no-tobacco, wellness
• -Health screenings showed areas for focus

• • –Company saved $2.5 million over 5 years, through benefit design that also resulted in lower renewal increases (average 3.2% per year)
  • -Multiple years with no premium cost increases for employees
  • -Average claim cost per covered member reduced
  • -HR reduced time in implementation/explanation of plan through benefit harmonization
  • -No reduction of benefits

• -Implemented immediate full replacement CDHP for one division, improving economic value of plan
• -“Super charged” HSA funding year 1 (18 months of employer funding up front)
• -Multi-year strategy for other division. Introduced CDHP alternative year 1, alongside 2 traditional copay plans
• -Merged divisions/plan designs year 2 into 1 plan w/ 2 CDHP designs
  -Self funded plan provided transparency and savings
• -Employee cost incentives for non-tobacco/wellness program participation, to align economic
  objectives of employer and employees

• • –Company saved $2.98 million in 3 years
  • -Employee costs flat/reduced for “low option”
  • -Participation significantly increased
  • -Benefits now on positive side of employee survey, rather than negative
  • -No reduction of benefits