Agenda
Introduction
General Company Information
Account Service Team
Design & Contribution Strategy
Actuarial & Financial Support
Compliance
Communication
Vendor Management
Fees
Reference
Introduction
Thank you for the opportunity to be considered in your broker selection process. We are excited to introduce our capabilities and we look forward to speaking with you and the evaluation team.
Changing the paradigm of what an organization can and should expect from their employee benefits consultant is what drives us to be the most innovative, service-driven, and transparent consulting firm in the industry.
As Ace Relocation Systems, Inc. (Ace) moves into your next planning cycle, we understand you are seeking a trusted partner and expert to act as a shepherd, guiding you through the vast complexities related to your health insurance and employee benefits plans, and provide the level of service. I am confident our team’s passion, energy, expertise, and oversight will bring a fresh approach from a strategy, resources, and ideation perspective.
NFP has many clients in the logistics industry, as our service delivery complements your needs. Our detailed, analytical approach allows organizations to maximize cost savings —a priority in today’s market. Furthermore, we are proactive and hands on, providing ample time, options, and support for managing your program. This is especially important for logistics organizations as it eliminates last-minute surprises, allowing our clients proper time for budgeting and forecasting.
Our expertise is matched by our commitment to each client’s goals and is enhanced by our investments in innovative technologies in the insurance brokerage and consulting space. Our expansive reach and footprint gives us access to the most highly rated insurers, vendors, and financial institutions in the industry; while our consulting teams tailor solutions to meet each client’s needs. We’ve become one of the largest insurance brokerage, consulting, and wealth management firms by building enduring relationships with our clients and helping them achieve their goals.
As you work through the RFP process, we are always available to discuss any questions about compensation and the services we can offer Ace — as well as any additional services you would like to take advantage of moving into your next renewal.
Please do not hesitate to contact me anytime at 512.697.6172 or kb@nfp.com.
Sincerely,
Kevin Brown
Managing Director
General Company Information
NFP was established in 1999, a publicly traded company between 2003 and 2013, and is currently majority owned by its employees and private equity firms Madison Dearborn Partners, LLC and HPS Investment Partners, LLC. NFP is a leading employee benefits, property and casualty, and retirement consulting firm that provides solutions enabling client success through the expertise of over 6,900 global employees, investments in innovative technologies, and enduring relationships with highly rated insurers, vendors, and financial institutions.
NFP has achieved international recognition for our commercial insurance and risk management capabilities, as well as for our personal lines, individual and employee benefits, financial planning, consulting, program administration, and claims services. Hallmarks of our service capabilities include product and service specialization, broad technical expertise and talent, and unmatched service culture.
NFP is the 5th largest benefits broker by global revenue, 7th largest privately-owned broker, and 13th largest broker of US business (all rankings according to Business Insurance). Headquartered in New York City, with a full-service resource center in Austin, TX, the company has grown organically and through acquisitions across the various lines of business.
Benefits Consulting Experience
Number of years in the employee benefits consulting business
24 years
c. Number of clients that use your benefit brokerage/consulting services; average client size
(Your Salesforce Enablement Lead, John Roegner, should be able to help you get these numbers)
We have x clients that use our benefit brokerage/consulting services. Our average client size is X lives.
d. Number of employees in and organizational structure of your benefits practice
Your Austin office has X employees dedicated to the benefits practice.
NFP has established an organizational structure that provides multi-level service to each of our clients. By establishing a dedicated team that is assigned to each client, we are able to take advantage of each team member’s individual strengths in order to provide the most comprehensive level of service.
Locations
Headquarters
340 Madison Avenue
20th Floor
New York, NY 10173
Local Corporate Office
1250 S. Capital of Texas Highway
Bldg. 2, Suite 600
Austin, TX 78746
NFP's Philosophy
Our service philosophy is to assist our clients wherever we can. This drives the development of our people, processes and partnerships and enables our teams to deliver our value proposition, allowing us to leverage our scale, global expertise and footprint in your best interests.
We strive to exceed our clients’ expectations by anticipating both your needs and opportunities for improvements. This proactive approach lends itself to clients who rely on us to guide them through the increasingly complicated world of healthcare and benefits. Our job is to ensure your objectives are accomplished, regardless of the time commitment on our end.
We are willing to tie your service satisfaction to our compensation in the form of a performance guarantee.
Mission, Vision, and Values
To empower organizations and people to overcome challenges and uncertainties with tailored solutions driven by active listening, hands-on guidance, specialized expertise, and human connections.
Account Team
We have assembled a team of industry professionals who specialize in employee benefits, finance, human resources, and benefits administration technology. Your dedicated team of experts includes:
Escalation Process
NFP targets same-day response to all customer service issues. The service coordinator for each team works diligently to communicate with the plan participant while the issue is being resolved. Over the years, NFP has established itself as a strong force in the national employee benefits arena. As a result, NFP’s service teams have established very strong relationships with the carriers.
Consequently, we are able to identify patterns or common issues which ultimately results in proactive avoidance of problems and a faster resolution. Many of the carriers have designated dedicated representatives with whom we work on escalated issues.
Billing & Carrier Issues
Your NFP account team will assist with all claims-related issues, from submitting claims and clarifying how and why claims were processed, to researching denials and submitting appeals. Based on your preference, we relay information to your HR team or directly to employees. While claims turnaround times vary depending on the carriers, providers and members, our account team advocates to ensure both the employee and, when applicable, the employer receive updates on all latest information.
Meeting Frequency
Quarterly meetings are built into our strategic plan. However, we will meet as often as it takes to deliver results. This varies per client depending on their needs.
During these quarterly meetings, topics often include issues of cost containment, trends, benefits, and new developments in the industry. We will actively participate in regularly scheduled meetings with the Insurance Committee, Board, and other appropriate staff.
The NFP Difference
NFP has a deep bench of experienced specialists who stand out from our competition. NFP has dedicated resources to specific core services such as compliance and legislative support, well-being and medical management, communication and education, vendor selection and support, plan operations, plan analysis and reporting, and strategic planning.
Our success differentiates us from our competitors because of our ability to be flexible and act as an extension of your benefits department. Our regional and national leverage gives us the ability to negotiate best-in-class competitive pricing and contracts. NFP sets the standard for strategic consultation, customer service, and leadership across chosen markets as well as charitable actions in communities in which we do business in.
NFP is unlike the competition: large consulting firms with high price tags and standardized delivery models or smaller traditional brokers with limited resources and reactive, rather than proactive approaches. We are strategic in our solutions, accountable for implementation, and responsible for all outcomes. We listen, learn, and leverage to go beyond the expected and deliver results.
Trends & Best Practices
NFP offers a comprehensive training and development program for our employees, as we believe it is vital to maintain a people-centric culture. As it relates to ensuring each employee is educated on current market trends and legislative developments, our internal training program includes:
- AcadaMe – NFP’s learning portal for professional development, industry knowledge, leadership development, live virtual and traditional classes, and curated external educational content.
- The NFP Benefits Insight Survey is used by our staff to stay informed of the latest employer benefits trends and emerging developments within our industry. This survey touches on all traditional benefits programs (medical, dental, vision, disability, life insurance). It also surveys employers on their programs and interest in specialized benefits areas such as the pharmacy pipeline, genetic therapies, direct primary care, reference-based pricing, direct provider contracting, telemedicine, clinical care programs, well-being programs, voluntary benefits, financial wellness and many other areas.
- Through internal communication platforms, NFP Innovation Lab communicates with our employees globally on new ideas and vendors, as well as foster introductions with organizations who are developing forward-thinking programs.
- Ninjio – monthly cyber security awareness training that uses engaging, micro-learning “Hollywood storytelling episodes” to empower NFP’s employees, executives, organizations and their families to become defenders against cyber security threats.
- Weekly webinar events and compliance webinars on emerging regulations.
- Monthly staff in-house training sessions are held on regulatory and compliance issues such as Healthcare Reform, HIPAA and FMLA. In addition, every two weeks our compliance team distributes Compliance Corner, a newsletter containing state and federal updates and addressing important topics.
- Insurance carriers are slotted for monthly meetings to keep personnel informed of products, contract changes and new offerings.
- NFP requires continuing education in benefits systems, Zoom, Excel and other systems applications that better enable us to service our clients and be more efficient in our internal process.
- Staff attends seminars provided by a prominent ERISA Specialty Employee Benefit Law firm.
- The entire NFP staff is Life and Heath licensed and must attend continuing education classes to keep their licenses active and current.
NFP supports this educational process both financially and through the provision of up-to-date compliance information in the form of newsletters, bulletins, webinars, and periodic national and local training. Certain internal compliance policies also require annual training and/or certification of compliance, which are regularly monitored by our administrative staff.
Implementation Plan
If NFP is selected, we will work directly with Ace’s HR team and carriers to lead the transition. The key members of the NFP service team lead the transition and remain involved on an ongoing basis. Our transition framework includes the following:
· Setting expectations
· Establishing a communication structure that will set the tone for the relationship
· Meeting with key constituents to learn about Ace’s culture, internal processes, technology, philosophy, etc.
· Efficiently gathering/analyzing data
· Establishing a transition timeline with key items and ownership
Measuring Successs
NFP recommends mutually agreed-upon measures and metrics in order to determine performance guarantees based on the specific needs and goals of Ace. NFP will work with Ace’s benefit committee to set these measures and metrics and will negotiate the most appropriate performance guarantees with the selected vendor(s).
Design and Contribution Strategy
Self-Funded Experience
Mark O'Leary currently works with nine self-funded clients. In his prior roles at other firms, the majority of his clients were large, multi-site, self-funded plans. The Texas office has 21 self-funded clients in various programs (traditional self-funding and captives).
Mark has 27 years working with self-funded clients across multiple industries, regions, and sizes. He manages the benefits for companies that have specialized benefit needs in terms of supervision and program innovation. His clients are of various sizes, complexity, and plan designs with different TPAs and stop-loss carriers and PBMs. Mark has talent for identifying and explaining to clients features which can be implemented to protect the plan from unforeseen situations. Plus, he is able to source specialty carve-out programs, including transplant riders, renal services, and direct contracting, which help to manage the plan to the greatest efficiency possible. He is very familiar with the critical elements of plan monitoring through utilization reports, vendor performance management and guarantees, network discounts and how they affect claims pricing, claims systems capabilities, navigating complex stop-loss situations, and building impactful pharmacy programs.
Mark is also the consultant for our clients which are examining more forward-thinking strategies that align with client goals of concierge-level care navigation and cost management. These employers are considering a wide range of solutions, including direct primary care, direct contracting, bundled surgical arrangements, innovative pharmaceutical arrangements, and enhanced virtual care.
Both self-funding and well-being programs come with additional compliance responsibilities and plan document requirements which both our compliance team and Mark can advise you about.
Actuarial and Financial Support
Analyzing Claims
As a data-driven organization, NFP’s analytic system collects premium, claims, and membership information file feeds directly from carriers. We aggregate this data into a single repository and use financial modeling to identify cost drivers, including top conditions, high-cost claimants by diagnosis, and other critical metrics. To the extent you implement health management and well-being programs, this same warehouse allows you to track the efficacy of these programs.
Medical and Pharmacy Claims Analytics
NFP has partnered with Innovu to provide detailed claims analytics and a turnkey reporting system.
About Innovu
Innovu is a web-based decision support system emphasizing the use of the plan’s various data components to provide a more comprehensive and ongoing evaluation specifically targeting the underlying cost drivers. Plan data is secured by a bi-monthly EDI feed from all of the necessary and various components of the plan.
In addition to medical and Rx data, Innovu has the capability to include other, formerly “siloed” data sets, including HRIS, workers’ compensation, and retirement information. This allows NFP to have a cohesive approach that takes into consideration more than just the impact on medical benefits.
NFP uses the Innovu platform to secure, combine, and analyze these various data feeds to give a complete understanding of employee, spouse, and dependent costs. This data analytics tool allows us to drill down by disease state, member type, and more to target engagement levels and project future cost drivers within your benefits program. The cost of Innovu is included in our service fees, and additional information about Innovu is included in Attachment _.
Actuarial Resources
NFP’s Actuarial Services Team provides our clients with the precision required in today’s complex benefits landscape. Their services include consultations, analyses, and valuations related to all Employee Benefits Programs and Plans. Our actuarial staff is committed to assisting in implementing the financing, risk, administration, and marketing of healthcare arrangements.
Financial Reporting
We offer our clients a comprehensive reporting package with a focus on actionable outcomes and dashboard/executive reports. Performance is measured versus normative benchmarks and prior year data. Trends, risks, gaps, etc. are identified through this process, and solutions are offered when appropriate.
We have regular meetings (quarterly, annually, and as needed) to discuss claims experience, exposure changes, and general administrative matters that affect overall plan performance. The level of detail included in each of these reports varies depending on the amount of claims experience available but may include the following reports:
Reporting
Compliance
The level of support required in the area of compliance continues to grow and evolve rapidly. This is an area in which we have made a significant investment and have the capability of handling clients with unique ACA challenges.
Our dedicated team of in-house compliance specialists aggregate, interpret, disseminate, and provide specific action steps for each piece of legislation. Our compliance team, which works closely with our consulting team, is well versed in a variety of benefits compliance topics, including ACA, HIPAA, COBRA, etc. Our team is entirely focused on keeping up to speed with the rapidly changing environment and ensuring content is provided to our consultants in a timely manner. We will provide clients with ad-hoc industry update notices when significant events take place.
Some of the compliance resources we offer include:
Compliance Portal
Our Benefits Compliance Portal is a comprehensive tool to assist employer plan sponsors with their compliance efforts with federal requirements such as the ACA, ERISA, COBRA, HIPAA, FMLA, Nondiscrimination, and Section 125. Each requirement is identified on a checklist containing model notices, an employer’s obligation, and timeline for compliance and penalties for noncompliance. Using the portal, your Account Executive works with you to conduct a complete benefits compliance review that is customized by size and plan type. The compliance checklist review was designed to assist in responding to an actual IRS/DOL audit.
Communications
Our regular compliance newsletter, Compliance Corner, is distributed on a bi-weekly basis updating clients on changes in the legislative and regulatory environment — at the federal and state levels. While this is not meant to be the sole source of compliance communication to our clients, the email’s format was created based on feedback from our clients to ensure we are giving you quick updates of the most noteworthy and timely items. In addition, Washington Update is an ad hoc white paper that is issued promptly after major developments surrounding the ACA or any other legislative changes that may impact the employee benefits and/or Human Resources world.
Regular seminars and webinars on complex compliance topics help you gain a thorough understanding of legislation. We also provide you with one-on-one compliance training.
Communication
Open Enrollment
Open enrollment is a stressful time of year for employers and employees. NFP is committed to not only providing hands-on support during this challenging time, but much needed employee education.
From annual open enrollment support to new hire individual enrollment assistance, our team members will be here to provide the expertise your organization requires. We will run group meetings to review the benefits programs followed by one-on-one participant meetings that may be scheduled on an as-needed basis. Health fairs provide an opportunity to inform employees of their benefits and the best way to use them. Health Risk Assessment programs help to inform employees of potential health issues and emphasize the value of regular well-being examinations. Our service team members can also schedule on-site, one-on-one sessions to address individual issues with employees as needed. Below are some of the core functions we provide to our clients during open enrollment:
- Develop, and continuously review, effective communication methods to educate your employees on their benefits package.
- Deploy web-based video meetings that provide all employee access to accurate consistent messages from the employer.
- Create, if needed, an Enrollment Guide that would provide information on eligibility, summaries of all available benefits, important phone numbers/web sites, the enrollment process and timeline.
- After open enrollment, this guide can be modified for use with new hires throughout the year.
- Prepare a presentation for use in conducting employee education meetings related to Ace's benefits programs. These meetings can be delivered in-person (locally) or via webinars.
- Coordinate with vendors to order meeting materials and arrange for representation at the meetings, as necessary.
- Track enrollment progress, as well as mailing of enrollment packets, ID cards, etc.
- Be your first call if you need assistance with eligibility issues, plan-specific questions, enrollment errors, etc.
Virtual Enrollment Via NFP Connect
NFP offers an interactive landing page for our clients to help ensure their employees are educated, engaged, and enabled through processes such as open enrollment. In a world where we are more virtual than ever, these customized landing pages help clients deliver convenience, accessibility, personalization, and cost-effective communications to all of their employees across the globe.
Vendor Management
Leverage: Nationally and Locally
National Leverage: With several million insured employee lives and a multi-billion-dollar premium book of business, NFP is one of the largest independent producers for the leading Health and Welfare carriers throughout the country. The leverage this provides is one of the most significant competitive advantages within our given service lines. It provides tangible, meaningful, and realizable benefits to clients in several ways, including preferred pricing, proprietary products, greater access to data, access to key executives and dedicated underwriting teams, renewal negotiations, service commitments and guarantees, and administrative authority.
Local Leverage: As a local, independent firm, NFP generates sufficient volume throughout the country to maintain preferred broker status with all the major insurance carriers. Our clients benefit from our preferred broker status by receiving more timely information, as well as increased negotiating power. NFP’s negotiation skills have resulted in significant reductions for our clients’ insurance renewals. In fact, the Austin Business Journal named NFP as the #1 Employee Benefit Firm in Austin.
Kevin Brown, Managing Director for NFP’s Austin office, has served on the Executive Advisory Council for BCBS of TX and the National Advisory Council for UnitedHealthcare. His 20-year history of insurance carrier relationships and nearly 15 years of Health and Welfare consulting background in Austin magnify the already outstanding credibility and leverage that NFP, as an organization, enjoys in the local market.
We are 100% independent, which means we are able to work with any insurance carrier that best meets our clients’ objectives. Our experience in working with all of the major carriers and vendors has provided us with insight into the strengths and weaknesses of each, including their customer service capabilities, account operations, national scale, hidden fees, and supplemental services. In addition, we know that you may have had experience, both favorable and not, with certain carriers and vendors. Based on your preferences from past experience and on our industry insight, we will select the appropriate products, services, and providers and negotiate contracts to meet the needs of your company and your employees.
Increasing Performance
One of our primary day-to-day responsibilities is to ensure Ace’s vendors are performing at or above expectations. The first thing we will do is set performance metrics and negotiate performance guarantees on Ace’s behalf. This will ensure there are documented expectations and financial consequences for failure to adhere to them. All carriers have strengths and weakness. Utilizing our extensive client base and carrier interactions we have a better understanding of carriers’ capabilities. Additionally, we know what they are good at, and what challenges they tend to have. We will work with them to highlight their strengths and improve upon their weaknesses. Examples of successes would be:
· Increased custom reporting packages from carriers
· Dedicated customer service and account specialist to address systemic claim issues
· Pre-negotiated early renewal release timing
· Increased plan design flexibility
· Improved visibility and oversight into disease and catastrophic case management
· Greater access to carrier medical directors and clinical expertise
Bidding Process
Our ability to obtain the most competitive pricing through the renewal process is the cornerstone of our firm’s successful history. The insurance community holds NFP in high regard pertaining to our business practices, ethics, and overall production. As a result, renewal negotiations are handled in a respectful and effective manner. Our renewal management process is predicated on proactively negotiating from a position of intelligence, experience, and market leverage.
Selecting best-in-class benefits program designs and vendors requires an effective game plan that is consistent with establishing and understanding the client’s objectives. Our renewal negotiation process is as follows:
Utilizing our robust RFP database, we are able to effectively draw from a wide variety of benefit line and carrier-specific questionnaires and scorecards to begin the process. Entirely independent from all insurance carriers, our process includes:
- Selecting a benefit line and carrier-specific RFP from our database and customizing it to meet client needs
- Utilizing industry experience and client feedback to determine the list of vendors that will receive the RFP
- Aggressively managing the RFP process and holding carriers to firm deadlines
- Aggregating data and preparing a “scorecard” which is designed to weigh different elements of the RFP according to the client’s desires and our counsel
- Utilizing market leverage, plan analysis, and in-house underwriting to negotiate the most competitive offering
- Performing contract and carrier due diligence (client site meetings and/or carrier site meetings)
- Evaluating and selecting a provider with the client and preparing for implementation
RFP Scorecard
Utilizing a weighted average scoring system based on client priorities, we present the results of our RFP to our clients in a clear, concise, and easy to understand manner. This allows us to discuss pros and cons of each alternative with respect to several critical factors:
• Pricing
• Service Platform
• Stability and Solvency
• Performance Guarantees
• Implementation Considerations
• Administration
• Provider Access
• Employee Disruption
• Discount Analysis
• Technology
• Comparable Clients
• Investment Options (if appropriate)
• Additional Resources (well-being, disease management, etc.)
• Client Compatibility
• Communication
Negotiation
NFP has a proven ability to effectively negotiate with vendors and carriers to deliver the best possible value to our clients. The extensive underwriting, financial, and analytical ability of our staff enables us to identify opportunities and challenges other brokers and consultants miss. This puts us at a distinct advantage when negotiating with carriers and vendors on your behalf. Our consultants and actuarial team have both the skills and the knowledge to challenge a carrier’s renewal methodology and construct a persuasive business case for rate relief. We dive into the financial components driving a rate and intelligently negotiate that rate to the best possible price. Our knowledge of underwriting methodologies allows us to put logical business cases in front of the carriers and demonstrate proper risk assessment.
NFP has also built a database of all marketing and renewal information. In addition to tracking individual client renewals and carrier rate concessions, we track ASO fees, performance guarantees, plan design decrements, plan design attributes and associated costs (tied to geographic region and demographics), and carrier data reporting availability. This data is updated throughout the year as we renew client business. This helps us to negotiate the best possible deal for each of our clients.
Our first goal is always to optimize the client’s current carrier arrangements; however, obtaining alternative proposals remains an effective strategy during the renewal process. Upon completion of our internal and external analysis and armed with the appropriate level of “intelligence,” we will coordinate meetings with the respective carriers.
Contract Review
NFP reviews all plan documents, summary plan descriptions, and administrative service agreements prepared by carriers/vendors prior to presenting to clients for review. NFP will work in conjunction with inside or outside counsel, if applicable, to review documents and will act as coordinator with the vendors/carriers and counsel to provide information.
Pricing
In accordance with strict organizational guidelines, our compensation model is 100% transparent. We require formal “sign off” (compensation disclosure) among all parties. Compensation transparency is vital. We offer a flexible compensation structure designed to meet the needs of our clients. We are willing to work on the following terms:
• Commission
• Fee-based
• A combination of fees and commissions
Pass-Through Costs
Generally speaking, NFP has an “all-in” approach and does not charge additional costs for our services. The only exception to this is when we implement a solution for which there are pass-through costs. Examples of this could be a well-being platform that we help to implement, the online enrollment solution that we identify, or the printing and mailing of communications materials that we develop.
Disclosure of Compensation
In accordance with strict organizational guidelines, our compensation model is 100% transparent. We require formal “sign off” among all parties. Compensation transparency is vital. Consequently, we have no reservations whatsoever regarding making all compensation documentation available to Ace. This includes any compensation that would not be reportable on a 5500 form. There will not be one facet of compensation that you are not aware of during the entirety of our relationship.
References
It is our practice to always obtain permission and confirm availability of our clients, prior to sharing contact information, as a courtesy to our client and to make the best use of our prospective client’s time. Given the current environment related to COVID-19 and additional strains on HR departments, we ask for your understanding in our decision to withhold contact information at this time.
Should we be selected to move forward in your evaluation process, we will reach out to the below contacts at that time to obtain permission and ensure their availability in the timeframe you’d be reaching out. We would provide Ace with the same respect as a current client.