Services provided by Mercer Health & Benefits LLC

Communication Approach Discussion Guide

February 1, 2010

2Mercer February 1, 2010

Agenda

Overview of Plan Changes

Changing Behavior

Communication Recommendations

Communication Estimates

Case Studies

Next Steps

3Mercer February 1, 2010

Multi-Year Transition to a Full CDHP Strategy

PPO A

PPO B

7/1/2009 7/1/2010 7/1/2011 7/1/2012 +

PPO C

PPO A

PPO B

CDHP 1

CDHP 2

CDHP 1

CDHP 2

PPO A

CDHP 1

CDHP 2

Existing Employees

New Hires

4Mercer February 1, 2010

In-network Medical Plan Designs

Welln

ess(F

ully

pa

id b

y H

ertz)

Fully Paid by Hertz

Deductible & Copays

Current PPO A 2010 PPO A

Copays for all Services

90% ER Paid

Fully Paid by Hertz

Deductible

Health Reimbursement Account

(Funded by Hertz)

2010 CDHP Plan

Welln

ess(F

ully

pa

id b

y H

ertz)

10% EE

Paid

80% ER Paid

20% EE

Paid

Prescription drugs are carved out

Balance Paid by Hertz

5Mercer February 1, 2010

Lessons Learned – Creating Productive Behavior Change

The company must be championing the change, not just HR

Internal support from key stakeholders – both top-down and bottom-up – is critical … and takes time … particularly in resistant cultures

Inertia is the enemy

Employees are skeptical about employer motives … set expectations for results … and plan for long-term to overcome

A “win-win” in messages and tactics is essential … what’s in it for me?

Integrate all people-related initiatives into messages and behavior change efforts … to multiply the impact and achieve desired results

Traditional communication only does not work anymore

6Mercer February 1, 2010

Adult Facts of Life (Not X-rated)

Adults don’t like to change Advertisers aim at 18–24-year-olds not because they buy more; adults over 25 are unwilling to change buying habits and brands

Adults think learning means change and represents hard work

Never underestimate the lack of time available, or overestimate adults’ desire to overcome laziness and use time wisely

Adult learning only starts after overcoming inertia

There needs to be a Big Bang, which only comes once and can’t be wasted

Adults follow leaders; they follow crowds and early adopters

Don’t start by aiming at the masses; get leaders and influencers up to speed first

Adults learn not from altruism but self-interest

It’s old-fashioned marketing: discounts, and promises of a better life

Adults learn personally – by pressing flesh and talking to real people

Web sites and newsletters are not enough; training means door-to-door canvassing, campaign rallies, and real folks on the phone

7Mercer February 1, 2010

Communication RecommendationsCore and Optional Elements

Building Education and Awareness (February – April)

Core Elements18-Month Communication Approach (Finalize by March 1) Identify audiences and communication

needs/preferences Develop key messages Identify targeted media and timing for broad-based and

specific audiences

Alignment of UHC messaging and materials (Ongoing) Conduct high-level inventory of vendor communication

materials and review for message consistency Review vendor administrative processes (claims and

HRA payments) to ensure accuracy of descriptions in communication materials

Align with UHC education efforts and communications

Pre-Enrollment Communication (Mail April 16) Focus on 2010 plan changes, introduce CDHP concept Similar to last year’s pre-enrollment fold-out

HR Representative Training (Week of April 12) Training session providing expert-level CDHP training,

delivered in person or as Web conference Purpose is to build a baseline understanding among HR

staff about plan changes and wellness initiatives Provide previews of communication and tools

Optional ElementsDirector and Above Meetings (Week of April 12) Executive summary-level education on Enrollment

communication strategy and CDHP education Briefing, delivered in person or as Web conference

“Cheat Sheets” for Managers (Week of April 12) Talking points document for all managers on Open

Enrollment and the CDHPs Distributed via email

Communication Advisory Group (Week of March 15) 12-15 employees invited to participate (minimal time

commitment, group would meet quarterly) Asked to provide input to communication strategy,

messaging and materials

Poster/Postcard/Table tents (Week of April 12) Heads-up notice of 2010 benefits changes and

upcoming Open Enrollment Poster and table tent cards for location distribution Postcards could be mailed to homes of all employees

8Mercer February 1, 2010

Communication RecommendationsCore and Optional Elements

Open Enrollment Communications (April – June)

Core ElementsOpen Enrollment Guide (Sent to OK City April 12 week) • Includes additional section with different CDHP examples

showing Hertz-paid and employee-paid expenses, including rollover scenarios for Years 2 and beyond

Medical plan comparisons (PPOs and CDHP options) Summary of other benefits and wellness benefits• Follow similar layout and approach as prior year’s guide

(20-24 page booklet) but consider one-page “wrapper” that highlights all changes

Employee Meetings (Late April through mid-May) Kick off active Open Enrollment season with educational

session that focuses on plan changes Option 1 – Develop Meeting PowerPoint presentation Option 2 – Introduce Flash eLearning tutorials, and

deliver them in employee meetings (where HR reps and managers can schedule and run them through shifts, with employees dropping in to watch)

Update UHC Website & Estimator (Done by April 19) Post enrollment materials to UHC website Update plan estimator tool Optional – deploy Mercer’s “one-screen” flash MPCE

Optional ElementsFlash eLearning Tutorials, Modules (Week of April 26) Two modules: 1) Enrollment choices; 2) CDHP

education Flash technology supports simple graphic depiction of

complicated concepts Optional Spanish subtitles feature Delivery method targeted to audience:

• Field – included in employee meetings; played in a loop on kiosks in break areas; available as a DVD on request (also available on Hertz or UHC website)

• Corporate – pushed to employees via email with a link to Hertz or UHC website

Poster/Postcard/Table tents (Week of April 26) Open Enrollment reminder Poster and table tent cards for location distribution Postcards could be mailed to homes of all employees

Benefits Fairs (Timing TBD; ongoing education) Opportunities for employees at site locations to meet

benefit plan representatives and ask questions, pick up plan materials

Supplement with Enrollment communication materials

9Mercer February 1, 2010

Communication RecommendationsCore and Optional Elements

Ongoing Education and Support (July – December)

Core ElementsGuide to Biometric Screenings (Mail week of June 21) Explain biometric screenings and their value Communicate the Hertz “vision” and key message on

why they are “mandatory” and detail process and logistics to getting a biometric screening

Print piece mailed to employees homes

CDHP Toolkit/How the Plan Works (Week of July 5) Reference resource for CDHP enrollees Includes visual flowchart of the step-by-step process on

how to use the CDHP, Explanations of Benefits or other documentation and trouble shooting steps

Mailed to employees’ homes or email link to online PDF

New Hire Enrollment Guide (Done by week of June 21) • Follow similar layout and approach as enrollment guide

(20-24 page booklet) but with new hire plans only

Review/Audit of Hertz Benefits Website (Timing TBD) Review opportunities to update benefits-specific info on

Hertz intranet site and implement changes, coordinating with overall Hertz web strategy

Update Handbook (Complete by October 1) Update handbook to reflect new plans

Optional Elements“Ask the Experts” Benefit Sessions (Ongoing after July 1) HR or UHC representatives at larger locations at regularly

scheduled quarterly sessions Employees can attend sessions to discuss benefits or

wellness-related questions and issues

CDHP Feedback Channels (Ongoing after July 1) Periodic “user group” meetings for currently enrolled CDHP

members to ask questions; share ideas or “tips and tricks” for using their CDHPs and provide testimonials for communication to non-members

Postcards/suggestion boxes/email box for submission of questions and comments

Optional – Establish CDHP “user blog” for plan participants to post experiences/questions (carefully moderated in order to dispel myths about the plans and connect users with appropriate resources)

Flash eLearning Tutorial, Module (Launch August 2) Focuses on all of Hertz “wellness” resources and tools One-stop shopping for information on how to use available

wellness resources

Poster/Postcard/Table tents (Week of August 2) Promotion of wellness resources/programs

10Mercer February 1, 2010

Communication DeliverablesEstimates for Building Education and Awareness (February – April)

Communication Specifications Mercer Vendor

18-Month Comm. Approach

• Mercer will work with Hertz and UHC to develop key messages, audiences, media/channels and timing

$12,500 Not applicable

Alignment of UHC messaging and materials

• Peer review UHC materials for message consistency, including review of administrative processes (claims & CDHP payments) to ensure accuracy of materials

$7,500 Not applicable

Pre-Enrollment Communication

• Introduce short & long-term changes and key messages• 8-panel fold-out (similar to last year’s communication)

$27,500 (includes design)

$25,000 (includes postage)

HR Reps Training • Meeting materials – assumes PowerPoint presentation of 30-40 slides and speakers’ notes with FAQ document

• Hertz and/or UHC to conduct training session

$15,000 slides$5,000 FAQs

$2,500 for PPT voiceover

Director and above Meetings

• Meeting materials – assumes PowerPoint presentation of 15-20 slides and speakers’ notes

• Hertz and/or UHC to conduct training session

$10,000 $2,500 for PPT voiceover

Cheat Sheets for Managers

• One- to two-page key talking points for managers on Open Enrollment and CDHP (delivered by email)

$5,000 Not applicable

Communication Advisory Group

• Mercer to develop meeting “format” and approach• Mercer, Hertz and/or UHC to facilitate (TBD)

$3,500 approach$1,500 facilitate

Not applicable

Poster/Postcard/Table tents

• Heads-up notice of 2010 benefit changes and Open Enrollment

$2,500 per each (UHC capability)

TBD

11Mercer February 1, 2010

Communication DeliverablesEstimates for Open Enrollment Communications (April – June)

Communication Specifications Mercer Vendor

Open Enrollment Guide

• Explain the 2010 plan changes and other benefit options• 20 -24 page booklet (similar to last year’s guide)• Optional – one-page “wrapper” that highlights all changes

$32,500 (includes design)

$13,000 plus shipping (wrap optional)

Employee Meetings • Meeting materials – assumes PowerPoint presentation of 20-30 slides and speakers’ notes

• Hertz and/or UHC to conduct training session• Alternative option – use eLearning Tutorial, Modules

described below

$15,000 $2,500 for PPT voiceover

Update UHC Website & Plan Estimator Tool

• Post enrollment materials to UHC website• Update plan estimator tool• Optional – deploy Mercer’s “one-screen” flash MPCE

UHC to provide estimateMercer – TBD

Not applicable

Project Management and Technical Review

• Conduct weekly team calls from March through June• Technical Peer review from Mercer Health & Benefits team

$30,000 Not applicable

Flash eLearning Tutorial, Modules

• Two modules; Enrollment choices and CDHP education• Approximately 7-8 minutes per module (optional video

introduction to each module); Custom graphics and Flash animation; Delivered online or possibly DVD

$42,500 $37,500 flash programming (optional video – $7,500)

Poster/Postcard/Table tent

• Open Enrollment reminder $2,500 per each (UHC capability)

TBD

Benefits Fairs • Site location benefit fairs for employees Hertz and UHC Not applicable

12Mercer February 1, 2010

Communication DeliverablesEstimates for Ongoing Education and Support (June – December)

Communication Specifications Mercer Vendor

Guide to Biometric Screenings

• Explain biometric screenings and their value and detail the process and logistics (print piece mailed to homes)

$22,500 (includes design) (UHC capability)

TBD

CDHP Toolkit • 8- to 12-page “CDHP Overview” guide of how the plans work, with additional examples including Year 2+

• “Placemat” or “Z-Card” of visuals/flowchart

$22,500 (includes design) (UHC capability)

TBD

Update Handbook • Update handbook to reflect new plan designs TBD TBD

Update Hertz Website • Review Hertz website for benefit specific content TBD TBD

Ask-the-Expert Benefit Session

• Planning, logistics and materials for these sessions• Hertz and/or UHC to conduct session

$3,500 format Not applicable

CDHP Feedback Channels

• CDHP User’s Group – initial charter & guiding principles• Postcard/Suggestion Boxes/email box or “blog”• Hertz and/or UHC to conduct session

TBD Not applicable

Flash eLearning Tutorial, Module

• Wellness and Biometric screening module (approximately 7-8 minutes module (optional video introduction)

• Custom graphics and Flash animation; Delivered online or possibly DVD

$30,000 $20,000 flash programming (optional video – $7,500)

Poster/Postcard/Table tents

• Open Enrollment reminder $2,500 per each (UHC capability)

TBD

13Mercer February 1, 2010

GapSurvey

Research and enrollment materials to support the introduction of new HRA plan options

Research Summary

Enrollment Guide

Benefits Overview

HRA Guide

Flash Tutorial

14Mercer February 1, 2010

Weston

Wellness Brochure

Campaign Announcement

Posters

Materials to support the previously introduced CDHP options and new wellness initiative

Postcard

Annual Enrollment Web Site

15Mercer February 1, 2010

Kroger

Video

Newsletters

Roadmap

Statement (password = Mercer_Kroger

Decision Guide

Flipbooks

HR Presentation

Integrated large-scale health and retirement change

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