MM_Suite_of_Services_client_presentation_11.08_Master by cuiliqing



Middle Market Suite of Services –
Client Presentation

 Company Participants

    – John Doe, CFO

    – Mary Smith, VP HR

    – Jack Welch, Benefits Manager

 Aon Participants

    – Name, position

    – Name, position

    – Name, position

Our Discussion Today

1   Meeting Objectives

2   Client and Market Overview

3   Our Core Beliefs

4   A Proven Approach

5   Proof of Outcomes

6   About Aon Consulting

7   Appendix

Meeting Objectives - SAMPLE

 We understand your objectives to be:

    – Establish measures to help you manage and control costs

    – Reduce your HR department workload

    – Communicate true value of your benefit programs

    – Ensure your plans are compliant

    – Maximize your strategies to attract and retain people

 Together we will prioritize your objectives and determine appropriate action
  plans and timelines

 Aon Consulting believes a Mid Market Suite of Services could typically
  save a 1000 employee firm $375,000 to $750,000 per year

Our Discussion Today

1   Meeting Objectives

2   Client and Market Overview

3   Our Core Beliefs

4   A Proven Approach

5   Proof of Outcomes

6   About Aon Consulting

7   Appendix

Executive Overview
 Employers are constantly facing challenges in controlling healthcare costs, effectively
  communicating their benefit offerings and ensuring compliance with all the federal
  and state regulations imposed on them
 Common approaches to controlling cost include increasing co-pays, deductibles and
  out-of pocket maximums for employees, which provide short-term relief but do not
  address the root causes
 Aon Consulting:
    – Drives the lowest costs and most comprehensive benefits
    – Facilitates employee navigation of the health care system, thereby reducing
      employers’ administrative burdens and increasing their HR productivity
    – Helps employers reduce exposure to unidentified risks by ensuring regulatory
    – Helps employers reduce time and expense in 5500 preparation
 Aon Consulting believes our comprehensive suite of services supported by state-of-the-
  art proprietary pricing tools and effective communication techniques will create a
  measurable impact to ABC Company’s bottom line

The Problem: Confusion about Solutions
                                       Communication                     Health Plan
       Absence Management
                                   How can we improve what        Our vendor’s service is poor
     Are PTO banks right for us?
                                    we give our employees?          and we’re not sure our
                                                                    discounts are the best

 Consumer Driven Plans
                                                                       Preventive Care/Wellness
 HRA vs HSA vs Nothing
                                                                       How can we “legally” drive a
                                                                          change in employee

  Data Warehousing
Why? How? How much?

  Disease Management
                                          ?                                         Rx
                                                                        Transparency? Is our deal
                                                                           the best? Why is our
                                                                            generic use so low?
How to measure what could
     happen anyway?
                                                                         Total Benefits
                                                                    Our benefits offerings in
                                                                   aggregate are not viewed
             Enrollment                Retiree Medical            by our employees as world
       What can we do to make      We won’t offer it but how do   class, are not highly valued
              it easier?              we help fill the void?         and are not affordable

Our Understanding of Critical Client Issues in
Middle Market

                  Develop a strategy to address the rising cost in

                  Improve the productivity of our employees?

  How can         Improve employee appreciation of benefits?

                  Ensure compliance with the latest regulations?

                  Eliminate unproductive time spent on employee
                  questions and benefit administration?

Most Mid-Market Companies Observed Between 5 to
10% Increase in Health Care Costs from 2006-2007

100%           % of Employers

                                                                  24%                              100%


                 < 5%                  5 to 10%                10 to 20%                   > 20%   Total
                                     % Increase in Health Care Costs over Prior Year

Source: 2007 Aon Benefits Survey, Sample represents companies with 100 to 2000 employees
Top Ten Strategies For Health Care Cost Management

                                         Focus is on                                                          Implementing in 2007
           % of Employers               employee well -                                                       Planning for 2008
                                          being and
 30%                                      awareness

 20%                     18%
               16%               16%15%
                            14%          14%
                                      13%     13%   12% 12%
                                                             12% 11%
                                           11%   10% 10%       10%
                                                           9%      9%

           Internet or   Promote    Promoting Disease     Preventive Smoking Telephonic     Weight   Stress   Voluntary/
           intranet-     exercise   importance mgmt.      care       cessation healthcare   mgmt.    mgmt.    elective
           accessed      and        of health &                                coaching                       benefits
           healthcare    activity   productivity
           tools                    to staff

Source: 2007 Aon Benefits Survey, Sample represents companies with 100 to 2000 employees
What Are We Hearing From Clients?

 “Our benefit costs are second highest to payroll.”
 “We would like to know how employees perceive our benefits before we
  implement major changes.”
 “We need to implement a prevention and wellness program in order to
  make healthier lifestyles part of our culture.”
 “We need employees to understand what is driving our health plan costs
  so that they value their benefits and appreciate the investment we are
  making on their behalf.”
 “We need to find a more efficient way to enroll our employees.”
 “Employees are not utilizing the numerous benefits communications we
  produce. Employees would rather call the benefits department than
  self-navigate the materials we send them.‖
 “We need to be sure we are complying with changing state and federal

Our Discussion Today

1   Meeting Objectives

2   Client and Market Overview

3   Our Core Beliefs

4   A Proven Approach

5   Proof of Outcomes

6   About Aon Consulting

7   Appendix

Aon Consulting’s Perspective (Core Beliefs)
Build and execute a work plan which    Needs to be considered in the planning process:
aligns with our clients philosophy     •   Service calendar
and culture, service delivery,         •   Timelines
executive meetings, and other          •   Pre-renewal & renewal process
important milestones                   •   Stewardship

Manage the client investment in        Aon resources:
health care spending using a           • Provider discount database
combination of network discounts,      • Coalition purchasing
multi-year guarantees,                 • Contribution and plan modeling (AonMed, Aon Rx, AonCDH)
administration ease, market leverage   • Benchmarking
& performance guarantees
                                       • Negotiating expertise

Incorporate employee perspective on    Aon’s Suite of Services provides:
value of benefit offerings,            • Online employee decision-making (MyAonAssist)
streamlining of information,           • Call center advocacy
communication and advocacy             • Employee survey
                                       • Highlights of benefits brochure
                                       • Enrollment capabilities

Integrate employee benefits program    Prioritization of employee benefits needs based on:
to meet broader business objectives    • Employee productivity
                                       • Benefits for talent retention
                                       • Compliance
                                       • Benefits statements
                                       • International risk

Health & Benefits Team

Senior Benefits Consultant                                                  Financial Manager
Add Name, #                                                                 Add Name #
 Lead strategic planning process                                            Pre-renewal projections
 Prepare & deliver stewardship                                              Health cost forecasting
  report                                                                     Renewal negotiations
 Create service plan                                                        Contribution strategies
 Conduct peer review                             Client                     Utilization review
 Coordinate Aon resources                        VP HR                      Claims monitoring
 Monitor market conditions                        CFO
                                              Benefit manager
                                               HR manager
                                               HR generalist

Benefits Consultant                  Set strategic direction and timeline       Support Services
Add Name, #                         Provide approval of recommendations        Call center - responds to employee
 Answer day-to-day questions                                                   questions
                                      Provide feedback on deliverables
 Resolve carrier issues                                                       Team Analyst - Implements
 Review contract                                                                employee website
 Benchmark plan data                                                          Pharmacists, Actuaries, Clinicians -
 Conduct request for proposal                                                  perform special projects
  process                                                                      Legal Research Analysts - respond
 Execute plan implementation                                                   to specific legislative/ legal questions

Aon’s Suite of Services Offers a Range of Services to
Effectively Address ABC Company’s Issues

 Curbing Costs                                  Reduce HR Workload
    Claim reporting                               Aon team
    Utilization review/monitoring strategies      MyAonAssist
    Discount analysis                             Plan implementation
    Aon pricing tools (AonMed, AonRx,             Enrollment capabilities
     AonCDH)                                       HR training
    Provider disruption                           InfoLinx for clients
    Wellness & disease management
    Subject matter experts                     Maximize Strategies to Attract &
                                                Retain Talent
 Communication                                   Benchmarking
  MyAonAssist                                   Employee survey
  Employee call center                          Wellness & disease management
  Employee plan highlight brochure                 assessment
                                                 Elective benefits
                                                 Executive benefits review
    H&B compliance review
    5500 preparation
    SAR preparation
    SPD/contracts in place

Our Discussion Today

1   Meeting Objectives

2   Client and Market Overview

3   Our Core Beliefs

4   A Proven Approach

5   Proof of Outcomes

6   About Aon Consulting

7   Appendix

Our Proven Approach Involves 4 Distinct Phases …

     Health & Benefits Client Service Model –
     4 Step Process
     Step 1 – Conduct Program Review and Benchmarking        Step 2 – Develop Short and Long Term Strategic Plan
      Review and benchmark current Health & Welfare plans         Gain understanding of your organization & business
      Evaluate and benchmark employee contributions               Review corporate benefit philosophy
      Assess and analyze claim data                               Conduct pre-renewal meeting (current cost projections)
      Evaluate HR regulatory compliance issues                    Develop prototype plan design
      Evaluate and benchmark Executive Benefit programs           Forecast future healthcare costs
      Evaluate and benchmark Elective Benefit programs            Discuss employee communications
      Survey employee needs                                       Prepare timeline for execution of strategic plan
Identification of:                                           Defines:
    – Plan costs                                                 – Client’s benefit philosophy
    – Plan design competitiveness                                – Common understanding of client expectations
    – Compliance issues                                          – Plan’s cost projections
    – Benefit liabilities                                        – Financial impact of making plan changes
    – Employee Feedback                                          – Timelines to execute plan

      Step 4 – Evaluate Program Performance                           Step 3 – Execute Strategic Solutions
      Monitor financial performance of plans                      Market your plan using Aon proprietary tools
      Perform claim data analysis                                 Analyze and negotiate benefit renewals
      Monitor critical milestones                                 Conduct renewal and marketing results meeting
      Monitor performance guarantees                              Institute performance guarantees on new/existing
                                                                    vendor relationships
      Establish service calendar for next plan year
                                                                   Develop employee communications programs
      Prepare stewardship report and conduct meeting
                                                                   Develop on-line employee benefit site
      Adhere to transparency and compliance requirements          Implement programs
Assures:                                                     Delivers:
   – Plan provisions are being met
   – Adherence to performance metrics                              – Optimum market-based solutions & plan pricing
   – Mutual understanding of client expectations                   – User friendly benefits information for employees
   – Deadlines for next plan year are defined
                                                                   – Appropriate time to communicate plan decisions
   – Full disclosure of our services and compensation

Step #1: Conduct Program Review & Benchmarking

 Review and benchmark current health & welfare plans

 Evaluate and benchmark employee contributions

 Assess and analyze claim data

 Evaluate HR regulatory compliance issues

 Evaluate and benchmark executive Benefit programs

 Evaluate and benchmark elective Benefit programs

 Survey employee needs

                                                     Client Outcomes
                                                       Identification of:
                                                           – Plan costs
                                                           – Plan design competitiveness
                                                           – Compliance issues
                                                           – Benefit liabilities
                                                           – Employee feedback

Step #2: Develop Strategic Plan

 Gain understanding of your organization & business

 Review corporate benefit philosophy

 Conduct pre-renewal meeting (current cost projections)

 Develop prototype plan design

 Forecast future healthcare costs

 Discuss employee communications

 Prepare timeline for execution of strategic plan

                                                     Client Outcomes
                                                        Defines:
                                                           –   Client’s benefit philosophy
                                                           –   Common understanding of client expectations
                                                           –   Plan’s cost projections
                                                           –   Financial impact of making plan changes
                                                           –   Timelines to execute plan

Step #3: Execute Strategy

 Market your plan using Aon proprietary tools

 Analyze and negotiate benefit renewals

 Conduct renewal and marketing results meeting

 Institute performance guarantees on new/existing vendor

 Develop employee communications programs

 Develop on-line employee benefit site

 Implement programs

                                                    Client Outcomes
                                                      Delivers:
                                                            – Optimum market-based solutions & plan pricing
                                                            – User friendly benefits information for employees
                                                            – Appropriate time to communicate plan decisions

Step #4: Evaluate Program Performance

 Monitor financial performance of plans

 Perform claim data analysis

 Monitor critical milestones

 Monitor performance guarantees

 Establish service calendar for next plan year

 Prepare stewardship report and conduct meeting

 Adhere to transparency and compliance requirements

                                                   Client Outcomes
                                                     Assures:
                                                        –   Plan provisions are being met
                                                        –   Adherence to performance metrics
                                                        –   Mutual understanding of client expectations
                                                        –   Deadlines for next plan year are defined
                                                        –   Full disclosure of our services and compensation

Sample Deliverables

Our Discussion Today

1   Meeting Objectives

2   Client and Market Overview

3   Our Core Beliefs

4   A Proven Approach

5   Proof of Outcomes

6   About Aon Consulting

7   Appendix

A Mid Market Suite of Services Could Typically Save a
1000 Employee Firm $375,000 to $750,000 Per Year

IMPACT AREA                 RANGE                               POTENTIAL

                            Reduce annual medical trend by
                            50%                                 Reduce healthcare costs by
Health care costs
                            Decrease absenteeism costs by       $300-$600 per employee

                            90% of employees have a
                                                                Savings of $50-$100 per
Communicate benefit value   greater appreciation of
                            employer-provided rewards

                                                                Avoid penalties of up to $110
Ensure health plan          Reduced exposure to                 per day (with a max cap of
compliance                  unidentified risks and litigation   $1100) for certain
                                                                communication violations

                                                                Increased HR productivity
                            Increase use of on-line
HR workload                                                     Better availability of information
                            information tools by 25%
                                                                ($35 to $45 per employee)

  Review of Plan for Competitiveness and Cost
  Results in $240,000 Savings and Enhanced Benefit

                                                                                      Aon Consulting Delivers
 Client Situation                            Aon Consulting Approach
                                                                                      Distinctive Client Impact & Value

• Midwestern financial organization        • Aon Consulting reviewed the entire     • The change to the single, identified
• 400 employees                              program for competitiveness:             carrier for all benefits saved the
                                               – Confirmed that the STD benefit       organization $240,000 over three
• Client situation:
                                                 was low                              years.
    – Benefits including medical, life,
                                               – Discovered that the guaranteed     • With the savings, the employer was
      AD&D, voluntary life, STD and
                                                 benefits in the life program was     able to “give back” to the employee
      LTD were offered through
                                                 not adequate                         and enhance the STD program and
      different carriers.
                                                                                      guaranteed life program.
    – STD benefit was thought to be        • Aon Consulting also used their
      so low that employees could not        proprietary Aon’s Online
      support an illness and were            Marketplace system to evaluate
      making “back door”                     costs of carriers.
      arrangements to work from            • Aon Consulting:
      home while on disability,                – Identified one carrier for all
      resulting in low productivity and          benefits that would result in a
      low use of benefit                         significant cost savings
• Aon Consulting was engaged to                – Advised appropriate levels for
  review the organizations entire                the STD and guaranteed life
  benefit plan, including medical, life,         programs.
  AD&D, voluntary life, STD and LTD.

    Aon’s Plan Design Review at a Health Care Facility
    Lead to Drop in Medical Trend, Down To 3% in Y2

                                                                                  Aon Consulting Delivers
   Client Situation                         Aon Consulting Approach
                                                                                  Distinctive Client Impact & Value

 A Massachusetts health care facility    Aon began by gathering data:          Following the plan design changes
 2,000 employees                            – Reviewed the medical plans         and implementation of the disease
                                               along with the company’s goals     management program, medical
 Union presence                               and expectations                   trend has been decreasing:
 Client situation:                                                                 – Before plan: double-digit
                                             – Conducted focus groups to
    – Three years of double-digit              gather employee perspective          – Y1: 8-12%
      medical increases
                                             – Reviewed union contracts             – Y2: 3%
    – Rich benefit plan with multiple
      choices                                – Mined medical data

    – 17% renewal increase                Aon recommended:

    – Knowledgeable employees                – Plan design changes

    – Self-funded plan                       – An aggressive communication
                                               strategy to communicate the
 The client wanted to control costs,          cost of care and the
  lower the year-over-year medical             competitiveness of the program
  trend and continue to offer a              – Disease management program
  competitive plan

   Aon Consulting Review of Carrier and Provider Data
   Saves Money for Employer and Employees

                                                                                    Aon Consulting Delivers
  Client Situation                         Aon Consulting Approach
                                                                                    Distinctive Client Impact & Value

• World’s leading manufacturer of        • Aon Consulting’s initial review of the   • All employees are now using the
  high-quality musical instruments         organization’s three plans and             identified carrier. The union
• 2,300 employees, 14 manufacturing        employee population showed that no         enthusiastically supported the
  plans with union presence                significant amount could be saved          change recognizing the benefit to
                                           through a consolidation.                   the employee.
• Client situation
                                         • However, though use of Aon’s             • The organization will save 10% or
    – Organization was comprised of                                                   $800,000.
                                           Discount Analysis Tool, where
      three acquired companies, all
                                           employee zip code data is evaluated
      had different benefit plans
                                           against carrier networks, Aon found
    – Client had never used a benefit      that the employer could save
      plan consultant to review and        money by using one national carrier
      advise plans                         as opposed to the local carriers that
    – Organization thought they could      were in use. The national carrier
      save money with one                  offered significant discount.
      consolidated plan.                 • And, using Aon’s Disruption Analysis
    – Plan needed to work within union     tool, Aon evaluated the use of
      contract.                            providers and in-network/out-of-
    – Plan must be competitive.            network data to determine that using
                                           the identified carrier would save
                                           employees money as they would
                                           encounter more in-network

Our Discussion Today

1   Meeting Objectives

2   Client and Market Overview

3   Our Core Beliefs

4   A Proven Approach

5   Proof of Outcomes

6   About Aon Consulting

7   Appendix

Aon Consulting Scale, Scope and Resources
Whether you’re acquiring a company, realigning your talent and reward strategies, or
creating a global staffing strategy, Aon Consulting pools the best thinking and most
advanced technology from hundreds of global disciplines through one local point of
contact to deliver creative, customized solutions, seamlessly, anywhere in the world.

                             6,300 employees worldwide

                               Operates in 98 countries

                             2007 revenue: $1.36 billion

                            Serve half of the Fortune 500

                     Serving more than 10,000 clients worldwide

Single Point of Access to the World of
Aon Consulting Solutions

                           Your Needs

Health and Welfare

        Retirement   Aon
   Human Capital

Overview of Aon U.S.

• 52 U.S. Offices
• 850 Health & Benefits
  Professionals                          Portland

• 6000 Middle Market                                                                                                                                                                 Portland
  Clients                                                                                                                                                                                     Newburyport
                                                                                                             Minneapolis Green Bay                             Syracuse             Boston
                                                                                                                                        Grand Rapids                                             Hartford
                                                                                                                          Milwaukee             Detroit                           AvonProvidence
                                                                                                                                                   Cleveland                     Greenwich      Stamford
                                                                                                              Cedar Rapids Chicago                       Philadelphia         New York
                              Sacramento                                                              Omaha                                                                   Parsippany/Somerset Jericho
                                                                                                                                                    Pittsburgh                                        Melville
                       San Francisco                                                                                            Indianapolis                                 Owings Mills
                           San Jose Fresno                   Salt Lake City                                                                  Cincinnati
                                                                                 Denver                          Kansas City
                                                                                                Overland Park                                                            Baltimore
                                                 Las Vegas                                                                                                  Richmond     Washington, D.C.
                                                                                                                    St. Louis
                                                                                                                                  Louisville                     Raleigh
                           Los Angeles                                                                  Tulsa                  Nashville                    Charlotte
                                                                                                                      Little Rock                       Greenville
                                                               Phoenix Albuquerque                                                                 Atlanta
 Client’s Locations

 Aon's Locations                                                                             Ft. Worth     Dallas

                                                                                                         Houston                                           Orlando


    Honolulu                                                        The Power of Aon – Additional Consulting Resources:

                                                                      • Communication                              • International
                                                                      • Elective Benefits                          • Outsourcing
                                                                      • Executive Benefits                         • Retirement
                                                                      • Executive Compensation                     • Talent Solutions

Why Aon Consulting Health & Benefits?

PIONEERS                                           EXPERIENCE WITH SCALE

 Aon’s foundation is middle market clients (92%      Approximately 6000 Middle Market clients
  of our Health & Benefits clients)                   Teams specialized on mid-sized client needs
 Aon is the second largest employee benefit          Financial underwriting and actuarial expertise
  consulting firm in the U.S.                         Data driven solutions
 Aon has pioneered many new concepts like            Leverage with insurance companies
  Consumer Driven Health plans, being one of the      850 Health & Benefits consultants
  first to implement with own employees               Best terms and pricing

VALUE-ORIENTED                                     THOUGHT LEADERS
 Reduce healthcare costs by $300-$600 per          Leading-edge pricing tools (AonMed, Health
  employee                                           Plan Discount Analysis)
 Provide access to employee call center for        Cutting edge concepts to incorporate
  employee benefit questions                         wellness & disease management into
                                                     overall strategy
 Provide certified online training to HR
  professionals for HRIC recertification            Subject matter expertise – actuaries,
                                                     underwriters, pharmacists, clinicians,
 Provide employee benefit website which yields
                                                     health & productivity strategists
  $35-$45 per employee in savings through
  reduced HR workload

Overview Of Aon Consulting’s
Health & Benefits Clients

Mid-market is 92% of our client base             Multi-industry expertise

                                                                              Public sector

                    8%                                    Other              17%
                                                                                   11% Consumer

                                                    Technology 7%                  10% Prof.
                            92%                                      8%       10%      services
                                                         Financial      9%
                                                        institutions               Heavy
                  Fewer than 5,000                                    Healthcare

                                       100% = ~ 6,000 Clients

Overview of Aon Consulting’s Tools & Technology

Health Plan                  Evaluates the relative cost advantages of both national and local/regional
Discount Analysis*           managed care networks.

Provider Disruption          Uses provider name, address, and specialty to ensure credible and consistent
Analysis*                    measure of disruption uniformly across all vendors participating in the analysis.

                             Models different deductibles, out-of-pocket maximums, co-payments and
AonMed                       changes in provider discounts to assess the impact of design changes on
                             plan costs.

                             Intranet site where Aon maintains superior knowledge sharing tools, and
InfoLinx                     incorporates best practices of our consulting research/intellectual capital for the
                             benefit of our clients.

Managed Care                 Provide indicator of which plans’ service areas cover the employee population,
Plan Availability Reports*   using 5-digit zip codes.

Carrier Rating               Provides the most recent ratings information directly from the top rating
Database                     agencies.

                             Gather client-specific information while increasing accuracy by gathering
Electronic RFPs              pertinent plan and financial data.

Thought leadership (Aon Consulting White papers)

        ―Controlling Health Care Costs:       ―Total Reward Statements Morph
        Strategies for Employers‖             From Value-Add to Call to Action‖

        ―The Impact of Consumer-Directed      ―Total reward statements promote
        Health Plans with Integrated Health   attraction, retention‖
        Improvement Services on Health
        Care Consumers‖

        ―Health promotion and Disease         Aon ―Alerts‖ – inform clients of the
        Prevention as a Corporate Economic    latest trends and legislative
        Strategy‖                             developments in the benefits field

Our Discussion Today

1   Meeting Objectives

2   Client and Market Overview

3   Our Core Beliefs

4   A Proven Approach

5   Proof of Outcomes

6   About Aon Consulting

7   Appendix

Project Team Bio’s SAMPLE

               Senior Benefit Consultant Kathryn Soto, Vice President
     , 312.381.4285
               Kathy Soto is a Vice President in Aon Consulting's Health & Benefits Practice in Chicago. Her primary
               responsibilities are as a Senior Benefits Consultant managing client accounts.
Insert Photo   Kathy has over 16 years of experience in employee benefits consulting and brokerage assisting clients with
               strategic planning, plan design, administration, and funding of Health & Welfare plans. She has consulting
               experience across a broad range of industries.
               Kathy holds a BA in Economics from the University of Chicago. She has also earned her CEBS - Certified
               Employee Benefits Specialist designation.

               Financial Manager Mike Lorenzini, Assistant Vice President
     , 312-381-4949
               Mike is a Financial Manager in Aon's Health & Benefits Practice in Chicago. His primary responsibilities
               include developing claim projections; renewal negotiations; modeling of contribution strategies; and analysis of
               utilization statistics for Middle Market clients.
               Mike has over 20 years of Health and Welfare experience. He started off with a prominent insurance firm and
               has extensive experience in self funding, working for NBR and as a consultant in the middle market.
               He is a Chicago native, attending St Ignatius and Northwestern University where he received a Bachelor of
               Arts in Political Science.

               Benefit Consultant Carmen Ramirez, Assistant Vice President
     , 312-381-4963
               Carmen Ramirez is a benefit consultant and project specialist in the Chicago office of Aon Consulting’s Health
               & Benefits Practice in Chicago.

               Carmen has over 11 years of experience marketing, preparing benefit proposals and financial analysis,
               assisting account managers in client renewal negotiations and assisting clients with a wide variety of
               administrative, and claim service issues.

Client Feedback
 “We have employees residing in several states and many of them work offshore.
  MyAonAssist provides our employees with access to their benefit information 24
  hours a day, 7 days a week. It also enables employees an opportunity to research
  the answers to their questions at their leisure, reducing HR assist time. Great tool!” –
  Chief HR Officer of a growing energy company

Aon Consulting’s Commitment to Our Clients

“We were convinced that cost-shifting was the only way to bring down our health
care costs. Aon analyzed all of our benefits. At their suggestion, we introduced a
consumer-driven plan, wellness program and elective benefits. We saved money
and our employees now place increased value on their benefits.

Aon Consulting professionals don’t tell you what they think
you want to hear—they tell you what you need to know.‖
Aon Consulting Is Ahead of the Trends With
Perspectives and Benchmarking

       ―The Growing Talent Crisis:        2008 Benefits and Talent Survey
       Challenges and Solutions‖
       White Paper

       ―Retirement and the Aging
       Workforce‖                         2008 Replacement Ratio Report
       White Paper

       ―Innovative Approaches to Impact   2007 Call Center Monitoring Survey:
       Medical Spend and Employee         Strategies for Realizing Greater
       Productivity‖                      Return
       White Paper

Committed To Being Our Clients’ #1 Choice
                            Best Employee Benefits
                             Consulting Firm, 2006, 2007, 2008
                            Women to Watch: Kathryn Hayley,
                             Cindy Keaveney, Michelle Futhey
                            Highest Levels of Privacy and
                             Transparency, Aon Consulting
                             Canada, Nymity, Inc.,(a leading
                             Canadian privacy research firm)
                            Over 92 Communication Awards
                             in 2008, including Gold Quills and
                             Hermes; 24 Communication
                             awards through Q2 2008.
                            Four top retirement brokers
                             named in 2008.

          Over 100 Integrated Services to Shape Your
          Entire Workplace
           HEALTH & BENEFITS               HUMAN CAPITAL               HUMAN RESOURCE             RETIREMENT                      GLOBAL BENEFITS            RADFORD AND
                                                                       OUTSOURCING                                                                           MCLAGAN

          • Absence and Disability     •    Assessment Products       • COBRA Administration      • Accounting Services*      •    Account Management        • Compensation Advisory
            Management*                •    Best Places to Work       • Defined Benefit           • Actuarial *               •    Actuarial / Valuations      / Counsel
          • Capital Consulting         •    Call Center Monitoring      Administration            • Consulting Analysis of    •    Benchmarking              • Compensation Plan
          • Consumer Driven            •    Change                    • Flexible Spending           Stock Option Expenses     •    Benefit Audit               Design
            Healthcare                      Communication*              Account Administration    • DB Funding Valuations*    •    Benefit Calculations      • Compensation Surveys
          • Disability Claims          •    Change Leadership*        • Health & Welfare          • Defined Contribution /                                     / Benchmark
                                                                                                                              •    Benefits Accounting
            Administration             •    Communication Audits        Administration              Defined Benefits /                                       • Expense Benchmarks
                                                                                                                              •    Benefits Design
          • Expatriate Services        •    Competency Modeling*      • Participant Call Center     Hybrid Plans                                             • Market Share Studies
                                                                        Services                                              •    Captives
          • Flexible Benefits          •    H&B Communication*                                         • Benchmarking                                        • Pay and Productivity
            Consulting*                                                                                                       •    Expatriate                  Studies
                                       •    HR Optimization*                                           • Conversions*
          • Governance Consulting                                                                                             •    Financial / Benefits
                                       •    HR Outsourcing                                             • Fiduciary/Trustee*        Accounting
          • Group Life & Health             Consulting                                                 • Governance*
            Benefits Administration                                                                                           •    GBM Tool
                                       •    Human Capital Strategy                                     • Member Annuity       •    Global Account
          • Healthcare                                                                                   Services*
            Collaborative              •    Individual Benefits                                                                    Management
                                            Communication                                              • Member               •    Global Benefits Broking
          • Health Data Analytics &                                                                      Communication
            Reporting                  •    Leadership Assessment                                                             •    Merger and
                                       •    Leadership                                                   /Education*               Acquisitions
          • Individual Life and                                                                        • Strategy & Design*
            Disability Broking              Development*                                                                      •    Multinational Pooling
                                       •    M&A Consulting*                                            • Vendor Selection*    •
          • Integrated Health and                                                                                                  Strategy / Trusted
            Productivity*              •    Organizational                                        • Exec. Life/Disability          Advisor / Governance
          • Plan Design                     Development*                                          • Exec. Pensions            •    Total Retirement
            Benchmarking*              •    RP/EP Consulting                                      • Investment Education           Solutions
          • Post Retirement            •    RPO/EPO                                               • Investment Strategy*      •    Total Reward
            Healthcare Valuations      •    Retirement                                            • Legal and                      Consulting
          • RFP and Vendor                  Communication*                                          Documentation             •    Vendor Selection
            Selection*                 •    Survey Products                                         Services*
          • Retiree Medical            •    Talent Audit                                          • Liability Reserves *
            Benefits                   •    Talent Management*                                    • M&A Due Diligence*
          • Strategy Design &          •    Team Building                                         • Manager Selection*
            Implementation*                                                                       • Measurement &
                                       •    Total Rewards
          • Workers Compensation                                                                    Evaluation
            Claims                     •    Workplace of the Future
                                       •    Workforce Planning                                    • Multi-employer
          • Workers Compensation                                                                    Consulting
            Healthcare                 •    Workforce Training
                                                                                                  • Settlement Markets
                                                                                                  • Trustee Indemnity

                                                   Regional Practices                                                                             Global Practices

Note: * Denotes Multi-Local Services                                                                                                                                                   44
Suite of Services – Implementation Timeline
                                                                            Week 1   Week 2   Week 3   Week 4

 MyAonAssist – OnlineBenefits Website*

 Aon’s Benefits Service Center*

 Employee Survey*

 HR Training

 Health & Welfare Compliance Review*

 Executive Benefits Review*

 InfoLinx for Clients

* Timeline begins from date all data elements are received in Aon office.

The Aon Difference

 State-of-the-Art Brokerage    Innovative Consulting
   – Program Analysis             –   Strategic Planning
   – Benchmarking/Marketing       –   Product Development
   – Financial Management         –   Pharmacy Expertise
   – Day-to-Day Account           –   Actuarial Expertise
                                  –   Clinical Expertise
   – Extension of HR
                                  –   Industry Expertise
   – Employee Support

The Aon Difference – Industry Expertise
 Aon Qualifications
    – Revenue:
    – Number of Clients:
    – Other:
 Industry Differentiators
    – Staff retention
    – Union involvement
    – Wellness culture
    – Highly skilled labor force
    – Longer than average length of service
    – Mid-career hires
    – ROI focused

Market Leverage

Executive Benefits Review – Sample
 The following chart summarizes our preliminary assessment of your executive benefit
  programs. The key below provides descriptions of the symbols used in the summary

                                  Review Symbols

                                  Review Symbols

  Plan does not meet            Meets industry best           Further investigation
  best practices or is          practices                     recommended and/
  out of compliance in a                                      or opportunities for
  key area                                                    improvement noted

Executive Benefits Review – Sample

                                 Deferred        Supplemental Executive   Executive Life   Executive Disability
                             Compensation Plan      Retirement Plan         Insurance          Insurance

Plan established

Plan design best practices

Tax and regulatory
(e.g., 409A, SOX)

Replacement ratio adequacy          N/A

Total compensation                  N/A                   N/A                  N/A

High group-term rates due           N/A                   N/A                  N/A
to increased claims

Adequate post-retirement            N/A                   N/A                                      N/A
insurance coverage

Plan financing                                                                                     N/A

Administrative efficiency

Health & Welfare Compliance Review – Sample
 The following two pages present a series of charts designed to indicate, at a single
  glance, the overall compliance status of the various welfare benefit plan documents
  that were submitted for review. The information “keys” on this page will facilitate
  understanding of these tables

                             Compliance Status Symbols

  Document and/or                Document satisfies             Document contains
  provisions are                 applicable statutory           required elements but
  noncompliant relative          requirements                   may not be current or
                                                                pending statutory
  to statutory                                                  changes may make
  requirements                                                  document noncompliant

Health & Welfare Compliance Review – Sample

Compliance Status Summary – By Plan Documentation


 Drug, Vision                                                                              N/A
 & Dental

 Long Term
                         N/A       N/A        N/A     N/A     N/A     N/A    N/A           N/A

 Short Term
                         N/A       N/A        N/A     N/A     N/A     N/A    N/A           N/A

 Life, AD&D &
                         N/A       N/A        N/A     N/A     N/A     N/A    N/A
 Dep. Life

Health & Welfare Compliance Review – Sample

Compliance Status Summary – By Plan Documentation

                        Group Health    Life        LTD   STD

 Plan Document


Health & Welfare Compliance Review – Sample
Review Comments
Based on our review, our primary observations relative to the documentation provided are summarized in the
following table. The comments provided are limited to specific mandates imposed under federal law. In some cases
additional document and/or plan design provisions may be prudent, but if not required by law these style or design
considerations fall outside the scope of this review.

Also note that for purposes of our review, if requested documentation was not provided, our working assumption is
that the documents do not exist.

               Issue                                                                 Recommendation

               Group insurance policies and administrative agreements for            Draft a “wraparound” document to
               the life, disability, dental and medical benefits do not constitute   create a single ERISA plan for
               valid plan documents.                                                 all benefits.

               The required HIPAA-II privacy language, relative to the               Add required HIPAA–II privacy
               medical, dental, prescription drug and vision benefits and the        language in the “wrap-around”
               H-FSA, is not present.                                                (ERISA #509) document and the
                                                                                     Flexible Benefit Plan document.
               Although not reflected in the charts that follow, the medical,        If not previously completed, initiate
               drug, vision, dental and Health-FSA benefits will become              HIPAA-II data security compliance
               subject to HIPAA-II data security regulation effective                assessment immediately.
               April 20, 2006.

MyAonAssist – OnlineBenefits Website
MyAonAssist includes:
 Detailed explanation of
  benefit plans and HR
 Decision support tools
 In-depth health & wellness
 HR’s site to convey
  information to entire
 Personal Health Record
 News
 Links
 Client Branding Flexibility
 Other resources

Aon’s Benefits Service Center – Call Center
A dedicated team will assist you with:
                                            A o n ’s B e n e fits S e rvic e C e n te r c a n h e lp yo u w ith yo u r b e n e fit
 Information about plan design             q u e stio n s s u ch a s:
                                                 E lig ib ility in fo rm a tio n fo r yo u a n d yo u r d e p e n d e n ts

 Eligibility information for an employee        In fo rm a tio n a b o u t yo u r p la n d e sig n su c h a s co in su ra n ce /
                                                       co p a ys, h o s p ita l a d m issio n s , p h a rm a c y co sts
                                                 M e m b e r s e rvice s to ll-fre e p h o n e n u m b e rs
  or family member                               E xp la n a tio n o f h o w to p ro ce ss q u a lifyin g life e ve n ts su c h a s:
                                                               M a rria g e
 How to process qualifying life events                        D ivo rc e /L e g a l S e p a ra tio n
                                                               B irth o r A d o p tio n o f a C h ild
                                                               C h a n g e s in S tu d e n t S ta tu s
 Claim filing                                                 D e a th o f a D e p e n d e n t
                                                               D e p e n d e n t G a in in g o r L o sin g C o ve ra g e

 Provider questions                                       A ssista n ce c o n ta ctin g ca rrie rs to re so lv e cla im s iss u e s.

 ID cards
 And more…

                                                                   B e n e fits S e rv ic e C e n te r
                                                                                    M o n d a y – T h u rsd a y
                                                                                8 :0 0 a .m . – 7 :0 0 p .m . E T
                                                                                              F rid a y
                                                                                8 :0 0 a .m . – 6 :0 0 p .m . E T
                                                                   P hone:       (8 6 6 ) 7 4 0 -2 2 2 6
                                                                   Fax:          (8 0 0 ) 3 0 5 -1 8 0 4

Health Advocate – Call Center
   Trained professionals, typically
   Registered Nurses will assist you
   24/7 with:
 Clinical support
    –   Care coordination
    –   Physician locator
    –   RX advocate

 Administrative support
    –   Claims and billing assistance
    –   Fee negotiation
    –   Appeals advice

 Healthcare coaching
 Information & service support
    –   Locating home health, private duty nursing
        services, adult day care,…
    –   Senior Care Navigator

 And more…

HR Training
Learning Library includes four
approved HRCI recertification courses:
 Interviewing and hiring practices
 Workplace harassment
 Diversity in the workplace
 Code of conduct

Employee Survey
 The employee survey allows clients to efficiently and effectively:
    – Gauge employee opinion
    – Define value of benefits
    – Establish platform for strategic planning
    – Assess which benefits are of importance to employees

          If offered, would you want to purchase any of the following voluntary coverages?

  90                                                                            86
  50                                                         45
  40           32                                   33                                     35
  30                             20                                                                18
  20                       15              10

        Voluntary AD&D           Long Term Care          Voluntary Disability        Critical Illness
        Pet Insurance            Legal Insurance         Auto Insurance              Homeowners Insurance
        Voluntary Dental         Voluntary Vision

Wellness & Disease Management Assessment
 Assessment Process includes:
   – Wellness/disease management continuum
   – Plan inventory
   – Incumbent health plan/TPA capabilities
   – Marketplace best practices
   – Components of a successful strategy
   – Possible next steps

Wellness & Disease Management Continuum

             Health                    Care                   Case/Diseas
           Promotion                Management                     e

                Staying Healthy       Getting Better         Living w/Illness
                 (70% population)     (14% population)       (16% population)

                15% costs                  25% costs             60% costs

     Risk Factors                   Acute Care          Complex Cases
       –    Alcohol/tobacco usage    – Broken leg          – Transplants
       –    Physical inactivity      – Kidney stones       – Cancer
       –    Poor nutrition           – Pneumonia           – Trauma cases
       –    Health history                                Chronic Care
       –    Unmanaged stress                               – Diabetes, asthma
       –    Inadequate self care                           – CAD, CHF, COPD
                                                           – Depression

Wellness & Disease Management Plan Inventory
                                                    Plans & Programs
   Plan Design                                        Disease Management           Immunizations
    –   Emphasis on preventive care (e.g., first        –   Asthma                    –   Influenza (flu)
        dollar basis)
                                                        –   Cancer                    –   Pneumonia
    –   Eliminate compliance barriers (e.g.,
                                                        –   Cardiovascular            –   Tetanus/diphtheria
        reduced copays for medication compliance)
                                                        –   CHF                       –   Hepatitis A
   Health Promotion/Wellness
                                                        –   COPD                      –   Hepatitis B
    –   Web content/health information
                                                        –   Depression                –   Meningitis
    –   Health Risk Assessment (HRA)
                                                        –   Diabetes                 Screenings
    –   Personalized feedback report
                                                        –   ESRD                      –   Cholesterol
    –   Lifestyle management programs
                                                        –   High risk pregnancy       –   Osteoporosis
    –   Telephonic healthcare coaching
                                                        –   Hypertension              –   Glucose
    –   Incentives administration
                                                        –   Low back                  –   Hemoglobin A1c
    –   Smoking cessation
                                                        –   Obesity                   –   Blood pressure
    –   Seminars, lectures
                                                        –   Osteoporosis              –   Body Fat (BMI)
    –   Group meetings
                                                                                      –   PSA
    –   Individual, on-site coaching
                                                                                      –   Tuberculosis
    –   Health Fairs
                                                                                      –   General lab (CBC, thyroid)
    –   Discounts to fitness centers
    –   Pedometers

ACclaimTM Powered by HDMS -
Sample Reporting Capabilities
   Standard report packages with
    automated mass production
   Ability to take a specific online view,
    in the form of a report or graph, and
    import it directly to a presentation
    software such as PowerPoint, for
    management presentations

ACclaimTM powered by HDMS –
Sample Reporting Capabilities
   Customized Desktop report and
    graphic content that can be pulled and
    formatted into standard report
   Manipulated information can be
    extracted as a single file and imported
    into a reporting medium of the user’s
    choice, such as Microsoft® Excel and

Health Plan Discount Analysis*
 Health Plan Discount Analysis provides:
     – The relative cost competitiveness of the negotiated provider reimbursement contracts
     – The ability to compare network to network discounts allowing the client to review the most
       competitive networks for their workforce

Provider Disruption Analysis*
                               Provider Disruption Analysis allows:
                                – A fair and accurate comparison across
                                  the marketplace
                                – An enhancement in client satisfaction by
                                  providing a truer projection of the impact
                                  on employees
                                – Consistent benchmark for the
                                  measurement of disruption across plans
                                  and networks

                  Aon’s Benchmarking reports provides:
                   – Overall cost by plan design, industry,
                     geography and employer size
                   – Comparative of contributions
                   – Observations regarding findings

Client Service Calendar
                                                                                     Aon responsibility       Client/Aon responsibility

                                                  Benefit Year                       Carrier responsibility   Client responsibility

              January                                  February                                            March
 Prepare stewardship report              Conduct stewardship meeting                Utilization review meeting
                                                                                      Due diligence on consumer driven models in the
                                                                                      Quarterly service meeting

                    April                                 May                                              June
   Distribute quarterly claim funding    Present pre-renewal analysis and           Request renewals from carriers
    analysis                               determine course of action                 Notify senior management of the benefit
   Review/distribute final accounting                                                 strategy/course of action
   Benchmarking meeting                                                              Quarterly service meeting
   Determine renewal/marketing
   Strategy

                  July                                   August                                         September
 Distribute quarterly claim funding      Meet with client to review renewals for    Communicate open enrollment changes
  analysis                                 upcoming policy year                       Communicate accepted rates and plan design
 Review renewals received                                                             changes to carriers
                                                                                      Quarterly service meeting

                October                                November                                          December
 Distribute quarterly claim funding      Conduct open enrollment                    Quarterly service meeting
  analysis                                Finalize contracts
 Prepare open enrollment                 Prepare and distribute renewal
                                           confirmation letters

Planning Timeline –
Renewal/Open Enrollment/Marketing
                                                                                  AB C C o rp o ratio n
                                                                            P la n n in g T im e lin e fo r 2 0 0 6
                                                                         E ffe c tive D a te : J a n u a ry 1 , 2 0 0 7

                                          May-06          Jun-06         Jul-06          Aug-06           Sep-06             Oct-06        Nov-06         Dec-06          Jan-07
                                        1-15   16-30   1-15   16-30   1-15   16-31    1-15    16-31    1-15   16-30       1-15   16-31   1-15   16-30   1-15   16-31   1-15   16-31

      Data Collection/Decision

      Conduct "Needs" Meeting

      Determine Objectives

      Conduct Data Collection

      Analyze Data

      Renewal Process
      Request Renewals from

      Renewals Due from Carriers

      Analyze/Negotiate Renewals
      Prepare Report for ABC on
      Renewal Results
      Meet to Discuss Renewal &
      Contribution Strategy

      Finalize Contribution Strategy


      Plan Open Enrollment Strategy

      Deliver Carrier/ABC OE Material

      Conduct Carrier Meetings

      Open Enrollment
      Approve distribution of COBRA
      OE info.
      Confirm Employee Elections to

      Implement Plans

      Monitor Plan Performance

      Market Survey Process
      Determine Coverages to
      Market, if necessary
      Prepare and Release RFPs to
      Receive Proposals

      Analyze Proposals
      Report to ABC on Marketing

      Select Finalists

      Negotiate with Finalists
      Decide on Finalist(s)

Request for Proposal Timeline
    RFP Objectives/Data Collection                                      1   2   3    4     5   6   7   8   9   10      11   12    13   14   15   16   17   18   19   20
   Meet with client to determine goals/objectives of
     Issue Data Request Letter to client outlining necessary
 information for marketing
    Issue Data Request Letter to incumbent carrier(s) outlining
   additional information required for marketing

    Complete data collection from client and carrier(s)

    Request for Proposal Processes
        Develop the RFP incorporating the information captured above
             Relationship Manager completes Marketing Overview
         and Objectives
            Benefit Consultant completes General Information,
             Proposal Qualifications and Additional Information
            Financial Manager completes financial data
           Entire team reviews questionnaire
    Develop supporting exhibits to accompany RFP
       Benefit summaries
         Rate and employee contribution history
       Claim reports
        Copies of relevant SPDs

    Send RFP to client and obtain sign-off on content
   Finalize market selection and submit RFP                                         Date
    Follow-up with markets to confirm receipt of RFP and confirm
 adherence to deadline
     Address questions from markets and provide additional
 clarifications as needed
        Receive proposals from markets and distribute to all team
            Team meeting to review and discuss

    Review and analyze proposals, summarize results

    RFP Results/Decision Making
    Present report with initial marketing results to client
     Identify finalists, submit RFP questionnaire and negotiate
 additional terms
        Present final marketing results to client and determine next

                                                                                                                            Key Date
 Client decision making

     Confirm final decisions to carriers including carrier selection,
 rates and plan design

   Implementation if new vendor is selected
           Client to review and sign-off on service agreements
      and contracts
        New plan documents
         Establish banking arrangements
           Develop and distribute communication materials for
      open enrollment

 Open enrollment period

 Effective date of plan                                                                                                                                              Key

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