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AGC of ND Benefits Trust
A New Employee Benefits Program
For Member Companies
May 2016
®
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AGC of ND & Bearence
Expanding our Relationship
Bearence & Service Team for AGC ND
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Agent, broker & consultant for AGC members
Long term relationship with AGC ND
Gary Helm, broker for the AGC ND benefit plans, 2006 – present
Jim Egan, Senior Risk Consultant with 20+ years working with AGC and
similar construction Benefit Trust Programs.
 Broker for AGC member companies
 20+ years of building Association benefit plans
Blue Cross Blue Shield of ND
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Long term relationship with AGC
Marketing and Service Representatives throughout ND
Insurance provider for 80% + of all member companies
Strong expertise in North Dakota construction industry
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About Bearence
Celebrating our 10th Year
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One of the fastest growing consulting agencies in the Midwest
specializing in risk management
Top Ten insurance agency by Twin Cities Business Monthly
100+ employees (averaging 20+ years of experience)
3,000 commercial accounts
Areas of Specialty:
Employee Benefits. Property & Casualty. Bonding.
HR Outsourcing. Executive Benefits. Financial Services.
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Changing the Benefits Game
Empowering your employees with a better way to buy benefits
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The benefits process is broken
Traditionally, employers
have 3 options when it
comes to their benefits
costs:
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Imagine a better way
1
Defined
Employer
Contribution
2
Employee
Choice
Employer gives employees
money
People go shopping!
• Gain financial predictability and
control
• Technology supports products for
improved and personalized coverage
• Allow employees to select the plans
that best fit their individual needs
• Personal choices based on individual
needs
• Employer decides which benefits to
contribute to
• One plan does not fit all
• Big benefits store
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Everyone Wins
Employers
Employees
• Greater cost control by choosing
how much to spend/defining benefits
budgets
• Full visibility into employer
contribution towards benefits – see it
and internalize it as part of
compensation
• Streamline administrative tasks
by outsourcing much of the
administrative work, while gaining
access to up-to-the-minute data
• Focus on things that matter (e.g.,
how to attract talent) and get out of
trying to optimize health plans for
diverse needs of employees
• Maximum value from benefits by
tailoring them to individual needs
• Are empowered to be more
engaged in health care decisions
• Gain flexibility from year to year, so
as personal needs evolve, so can
benefits decisions
Employers and employees get the “biggest bang for their buck”
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Introducing
AGC Flexible Choices Program
Empowering your employees with a better way to buy benefits
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AGC Flexible Choices
A quick review
Current program
 Hour Bank plan for Davis-Bacon hourly employees
 Employers contribute dollars based on a Low Hour and High Hour basis
to fund a medical and life plan selected by the Board of Trustees
 Funding of the plans are set annually by Board Of Trustees.
 Salaried and non-Davis-Bacon hourly employees are not eligible for
coverage
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AGC Flexible Choices
Flexible Choices
 Addresses the gap that currently exists by creating a plan targeted to
salaried and non-Davis-Bacon hourly employees
 Recognizes differing needs of member companies
 Recognizes the need for greater employee choice
 Leverages favorable cost and funding advantages of current plan and
extends them to the new program
 Leverages the size and purchasing power of AGC to negotiate favorable
insurance pricing for all participating employers through a joint risk pool
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AGC Flexible Choices
AGC Flexible Choices funding
 Medical and dental plans will be self-funded
 lowest possible cost to members
 leverage current AGC buying power
 Reduced ASO fees and reinsurance premiums
 Self-funding eliminates
 State premium taxes
 State mandated benefits,
 ACA metal plan benefit offerings
 All other benefits will be fully insured
 Each participating employer group will be priced based on their own
demographics and claim experience
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AGC Flexible Choices
Key plan design elements
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Broad benefit choices for employees
• Each participating employer creates their own “benefits store” including;
• The current medical plan(s) (if desired)
• Additional medical plan choices
• PPO, HSA-qualified HDHP options; tele-medicine
• Broad menu of ancillary benefit options are included for all participants
• Life, disability, dental, vision, supplemental medical, group legal,
other
• Virtual shopping allows each employee to create their own personal
benefits package from the menu of options
• Each employer determines how much to contribute; employee
contributions fund the balance
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AGC Flexible Choices
The Benefits Store
Benefits Store
Concept:
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Broad selection to
choose from
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Employees make
their own choices;
customize their
own benefits
package
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Not all benefit
options will apply
to every employee
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AGC Flexible Choices
The Benefits Store
Medical
Vision
Supplemental
Medical
Group Legal
Dental
Group Life
Disability
Accident
Worksite
Other
I choose
what’s right for
me!
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AGC Flexible Choices
The Benefits Store
Medical Options
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Up to 5 plan options
selected by each
employer
Existing plan can be
included in most
cases
Employee health
plan selections are
coordinated with
*Employer-provided
HSAs and FSAs
Tele-health included
for all plan options
Supplemental health
available with all
health options
Medical Options
Current Plan
HSA*
Standard PPO
Options
FSA*
Standard HDHP
options
Limited FSA*
Tele-health
Supplemental
Health
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AGC Flexible Choices
The Benefits Store
Sample enrollment:
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Four plan options
Two PPO; two HDHP
Employee selects one of the four
options
Employee plan selection
determines FSA, HSA, ltd FSA
eligibility
*FSA and HSA plans are not
AGC-sponsored plans
Tele-health included for all plan
options
Supplemental health available
with all health options
Note: all plan designs are for
display only and have not been
finalized
Sample Medical
Enrollment
$500 Deductible PPO
FSA*
$1000 Deductible
PPO
$1500/$3000 HDHP
HSA*
$3500/$7000 HDHP
Limited FSA*
Tele-health
Supplemental Health
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AGC Flexible Choices
The Benefits Store
Health Plan Menu:
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Employer selects up to five
options from the menu of nine
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Employees make their
selections from the options
selected by the employer
Health Plan Menu
PPO Options
HDHP Options
$500 deductible
with copays
$1500 Deductible
$2600 Deductible
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All HDHP options are eligible
for HSAs
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All HDHP deductibles except
the $1500 are embedded
$1000 deductible with
copays
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All plans have 2x family
deductible.
$1500 deductible with
copays
Note: Plan designs are subject
to final approval by BCBS and
subject to change.
$2000 deductible with
copays
$3500 Deductible
$5000 Deductible
$6500 Deductible
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AGC Flexible Choices
Participating employer advantages
• Cost savings from employee “right-sizing”
• Control over initial and future cost funding
• Eliminates traditional renewal process
• Employees determine their own plan design
• Based on individual employee needs and budgets
• Streamlined administration through Benefits Boulevard
• Inclusion of electronic enrollment and administration platform
• Ability to utilize electronic, telephonic and/or traditional paper
enrollment
• Ability to convert paper enrollment data into electronic file system
• High employee satisfaction
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AGC Flexible Choices
Centralized Administration
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AGC Flexible Choices
Benefits Boulevard
Enrollment Services
• Streamlined enrollment process
• Each employer has direct access to the Benefits Boulevard
enrollment system
• Includes electronic, telephonic and/or traditional paper
enrollment
• Conversion of paper enrollment data into electronic files
• Bearence technical support for loading eligibility and enrollment
data and ongoing support
• System remains “live” year-round
• Each employer’s data is stored separately
• Full administrator reporting and access is included
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AGC Flexible Choices
Benefits Boulevard
Premium billing, and COBRA administration
• Monthly premium billing services are included
• Benefits Boulevard data is coordinated with BPA, who will provide
3rd party administrator services for COBRA premium billing services
• 3rd party administrator handles billing and premium collection
• 3rd party updates Benefits Boulevard to reflect active COBRA
plan participation
• Each employer’s data is stored separately within the system
• FSA and HSA contribution and participant eligibility data is stored in Benefits
Boulevard
• Data can be used by each employer for their own employer-provided
FSA, Limited FSA and HSA providers
• There is no AGC-sponsored FSA or HSA program. Each employer
sponsors their own plan(s) and can utilize Benefits Boulevard for
enrollment and data capture purposes
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AGC Flexible Choices
Benefits Boulevard
ACA and other compliance services
• ACA Hotline, ACA Testing, IRS Reporting
• Employer Reporting
• 1094-B/C; 1095-B/C
• Compliance Notices Distribution
• 40+ Forms (DOL/CMS/IRS)
• Summary Plan Description (SPD) Wrap
• Employer Shared Responsibility Penalty Management, DOL Audits
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AGC Flexible Choices
Benefits Boulevard
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HR On-Demand
• Unlimited Access: Ask the Pro Consulting
• Online chat or Over the phone
• Manage workplace compliance and employee relations issues
HR Support Center Tools and Resources
• Ticker tracker
• Employee handbook
• Custom job descriptions and HR documents
• Federal and state law libraries
• Weekly HR emails and articles
Cloud based solution is
available 24/7
Training Center
• 250 courses on HR, wellness, safety and environmental topics
• Training Center
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AGC Flexible Choices
Initial Plan Start-up
Next Steps
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Obtain State of North Dakota MEWA approval
Secure formal confirmation from BCBS of ND
• Agree to the single trust risk pool arrangement
• Finalize specific plan design options
Obtain participation commitments from member companies
• A minimum of 500 enrolled employees will be required to initiate the
trust program
• A one month premium deposit and signed agreement to fund two
months runout in the event of leaving the Trust is required from each
participating member company
Important Note: A commitment of 500 employee-participants is the critical requirement for
moving forward with the program. Blue Cross and State regulatory requirements cannot be met
without at least that minimum level of participation.
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AGC Flexible Choices
Initial Plan Start-up
Next Steps
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Determine interest in program from AGC member companies
Schedule follow-up meetings with interested employers
• Provide pricing proposals to interested member companies
• Obtain formal commitments equal to or greater than required 500
employee participant minimum
Establish an initial effective date; 5-1-2017 is the target date
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Questions?
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