2014

Learning &
Performance
Department
Meeting
L&RB Private Exchange
Strategic Direction
Patrick Sullivan
Head, Alternative Distribution Strategies
2014
Learning &
Performance
Department
Meeting
Agenda
Types of exchange models
Private exchanges - Aetna Open Market vs.
3
rd
Party Broker
PHX strategy: 2014 2020
Contacts / resources
2
2014
Learning &
Performance
Department
Meeting
Whats your hot spot?
3
Defined contribution

Guided shopping

Off-the-shelf products (limited choice)

Benefit administration

Carrier choice

Pre-65 and Post-65

Consistent employee/retiree experience

Consistent care management

Influence over products offered

Individual medical underwriting

Government tax credits and subsidies
**
Managed by federal or state government
Group Private Individual Private
*

Public
Types of exchange models
4
2014
Learning &
Performance
Department
Meeting
Aetna Proprietary
Our private exchange solution: Aetna only products
Higher likelihood of cross-sell success
Generally lower PEPM cost
Maintains full integration value story
Longer retention of business
Maintains greater control of sales/management
processes
More flexibility around product offerings
3
rd
Party Broker
We put our product on another self
PROs
Good distribution channel for membership
More access to membership
Ability to retain existing membership
Continues to reinforce producer tiering
CONs
Loss of control over the process
Higher PEPM/additional fees
Limited ability to cross-sell Aetna products
Middle Market - Private Exchange Strategies
Aetna proprietary vs. 3
rd
party broker
5
2014
Learning &
Performance
Department
Meeting
6
IVL/Individual
- 10-50
- Available in 18 states
- Medical, Dental, Life,
STD
- Member shopping
Middle Market
- 3,000+
- Employer
offerings for
active/retiree
(available 3/1/14)
National Accounts
Small Group
- Aetna Open Market
fixed plans
no flexing
quicker install
- Aetna Marketplace
more flexibility
payroll integration
Aetnas proprietary private exchange
options
2014
Learning &
Performance
Department
Meeting
7
Variety of benefit options
Enrollment & life changes
Billing & accounting
Compliance
Data management &
reporting
Online
Secure
Full EDI connectivity
Advanced data capability
Full range of benefits
Advanced decision
support
Easy navigation
Administrative ease
for employers
State of the art
platform for all
Consumer choice for
employees
Aetna Open Market
Becoming easier to do business with
2014
Learning &
Performance
Department
Meeting
8
What are 3
rd
party private
exchanges?
Partnerships being formed between brokers and
technology vendors to deliver a multi-carrier private
exchange solution
In some cases, alliances with specific carriers being formed
for exclusive participation
When Aetna is approached for participation we evaluate
each exchange opportunity on a case by case basis
These exchanges create competition for our own
proprietary exchange, Aetna Marketplace
2014
Learning &
Performance
Department
Meeting
9
Private Exchange
Private Exchange
Private Exchange
Private Exchange
Private Exchange Private Exchange
Private exchange participants
2014
2014
Learning &
Performance
Department
Meeting
Private exchange strategy:
2015 - 2020
Promote our LRB proprietary solutions in all markets
- Aetna Open Market 100+
- Aetna Marketplace 1000+
Continue to participate in 3
rd
party exchanges
- Begin to narrow our relationships depending on volume
Be thoughtful and innovative on our solutions
Evaluate all new distribution channels to stay ahead of
technology / competition
Gather information, feedback and analysis in the PHX
space to push new ways to deliver our solutions
2014
Learning &
Performance
Department
Meeting
11
Private Exchange
Strategy
3
rd
Party Private
Exchanges
Aetna Marketplace
Todd Slawter
National Head,
Enterprise
Distribution and
Strategy
Marie Spadorcia
Director, Strategy &
Product
Lori Esernia
Director, Product &
Development
Patrick Sullivan,
Head, Alternative
Distribution
Strategies
Dave Goodrich
Director, Strategy &
Product
Jason Toper
Technical Manager,
Product & Development
Angie Pellegrino
Implementation
Manager, Private
Exchanges
LRB private exchange team
2014
Learning &
Performance
Department
Meeting
Salesweb:
Private Exchanges Information
List of all participating exchanges
Questionnaire for evaluating new exchanges
Other tools for launching exchanges
MM standard plans for medical and non-medical
Specific information on national exchanges
Exchange contacts
Aetna Open Market:
www.aetnaopenmarket.com
12
Additional information/resources
2014
Learning &
Performance
Department
Meeting