“THE MARKETPLACE RESPONSE TO A DOWNTURN”
Dan Nagle CEBS, RHU
CADP Conference
May 28, 2009
WHAT COMPANY LOGOS WILL LOOK LIKE WHEN THE FINANCIAL CRISIS ENDS ...
SMALL EMPLOYER RESPONSE
• CLOSED DOORS
• MID-YEAR PLAN CHANGE
• VOLUNTARY PLANS
• PROFESSIONAL EMPLOYER ORG. (PEO)
• MORE CONSUMER DIRECTED BENEFITS (HSA)
LARGE EMPLOYER RESPONSE
• WORKFORCE REDUCTIONS• PAY REDUCTIONS• 401(K) MATCH• VOLUNTARY SEPARATION PROGRAM• SUSPEND CAPITAL EXPENDITURES• AVOID ADDITIONAL DEBT• REVISE BUDGET PROJECTIONS
$1,000,000
BENEFITS OPTIONS
MEDICAL
• NETWORK
• 80% HMO
• RX
• COST SHARING
BENEFITS OPTIONS
DENTAL
• ANNUAL ELECTION
• COST SHARING
• VOLUNTARY PLAN
BENEFITS OPTIONS
VISION
• DISCOUNT PLAN
• VOLUNTARY PLAN
EMPLOYEE ASSISTANCE PLAN
• COORDINATE WITH LTD
TRAVEL ACCIDENT PLAN
• ELIMINATE
BENEFITS OPTIONS
LIFE AND AD&D INSURANCE
• REDUCE COVERAGE
• VOLUNTARY PLAN
DISABILITY INSURANCE
• BASE + BUY-UP
• VOLUNTARY PLAN
CLIENT DECIDED TO:
• REDUCE STAFF
• STREAMLINE SYSTEMS
• STOP 401(K) MATCH
• MEDICAL & DENTAL—50/50%
• VISION—75%
• EAP—COORDINATE WITH LTD
• OTHER PLANS—MAINTAIN AS IS
WHAT WILL EMPLOYERS DO IN 2010?
• DEEPER BENEFITS CUTS
• CDHP
METLIFE’S 7TH ANNUAL EMPLOYEE BENEFITS TRENDS STUDY
EMPLOYERS
• EMPLOYEE RETENTION & PRODUCTIVITY
• CONTROLLING COSTS
• 14%
METLIFE’S 7TH ANNUAL EMPLOYEE BENEFITS TRENDS STUDY
EMPLOYEES
• DENTAL, LIFE, DISABILITY, ETC.
• APPRECIATE WORKPLACE BENEFITS
• FINANCIAL PROTECTION
HOW WOULD YOU FIX THE ECONOMY?
40 MILLION PEOPLE OVER 50 YEARS OLD IN THE WORKFORCE
THREE CONDITIONS:
• UNEMPLOYMENT—FIXED!• AUTO INDUSTRY—FIXED!• HOUSING CRISIS—FIXED!
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