hallmark case study - selectquote benefits
TRANSCRIPT
HALLMARK CASE STUDY FOR SELECTQUOTE BENEFIT SOLUTIONS COMPANY BACKGROUND:
Hallmark Cards, Inc. is a $4.1 billion company with over 20,000 employees headquartered in Kansas City, MO. Their products can be found in 100 countries around the world and in more than 40,000 stores in the United States alone.
THE CHALLENGE:
In coordination with other benefit changes Hallmark decided to streamline the management of their retiree medical plan. Employees retiring on or after January 1, 2012, would no longer be eligible for the employer-‐sponsored Group Medicare secondary plan. Effective January 1, 2013 substantial changes were made to the existing grandfather group of retirees who participated in the Group Medicare Supplement plans, including the elimination of a high-‐cost plan and cost increases. Hallmark maintains an enviable culture of respect and support for all of their employees, and senior management was concerned about how the message of new coverage would be perceived.
The decision was driven by unsustainable growth in healthcare costs. Due to the unique demographic composition of its workforce, Hallmark’s medical costs were increasing. As a large employer with a sizable pool of retirees, Hallmark wanted both a benefits AND contribution strategy offering cost savings and greater flexibility for plan participants.
The company was looking for a partner who could provide the needed replacement coverage, communicate the change to their impacted employees and retirees, handle the enrollment of all retirees and service them on an ongoing basis.
THE PLAN:
After a thorough due diligence process SelectQuote Benefit Solutions was engaged.
Working closely with Hallmark’s HR department on both the local and corporate levels, as well as with their internal communications group, SelectQuote Benefit Solutions developed a comprehensive communication plan to educate and inform their impacted retirees about the upcoming changes. It was critical to Hallmark retirees understood that in many cases the new program meant better coverage in the individual market than their current plan often for a smaller contribution by the retiree.
While Hallmark’s active employees have always received benefits through a single carrier, the firm recognized that retiree needs are unique. To provide the greatest flexibility and cost savings to retirees, Hallmark decided upon a multi-‐carrier approach. This option would give retirees freedom to weigh the costs and benefits of multiple plans and select the one best suited to their own specific needs.
A financial analysis allowing the separation of the Retiree Health coverage from the Hallmark “Group Plan” proved that Hallmark could significantly limit cost increases and utilization rates over the next several years.
IMPLEMENTATION:
August 2012 – Hallmark announced the upcoming changes to all impacted retirees. Through various communication pieces retirees were directed to a unique website and 800# for any questions they might have. Below are the highlights of the communication plan.
• Custom posters were created and displayed at each location.
• Post cards were developed and used for ongoing communication. The postcard reminders were coordinated and sent out by Hallmark.
• 30 on-‐site education meetings at all major locations across the country we conducted.
• Custom education materials outlining options, key dates, and enrollment periods and were distributed at the on-‐site meetings and highlighted during the presentation.
• A sample presentation was filmed and made available on the Hallmark corporate intranet site and retire website. DVDs were also available to those that could not make a meeting and did not have internet access.
• A custom website was built for Hallmark retirees, integrated into the Hallmark benefits site and was available throughout.
• Licensed agents were specifically trained regarding the Hallmark program and were available to answer questions and guide the retirees in selecting a plan that was right for them.
• Retiree questions and themes were tracked by SelectQuote Senior and were used to develop FAQs and to monitor the retiree feedback and make real-‐time program adjustments as needed throughout the process.
THE RESULT:
We communicated to over 4,000 retirees, presented to over 2,000, took 1,825 calls and transitioned 1,026 to individual plans.
Retiree feedback has been extremely positive. The communications plan was very well received. Retirees were thankful to hear about their choices and gain a greater understanding of their new benefit options, including no underwriting or pre-‐existing condition limitations with timely enrollment. Through the planning and joint communication effort, -‐ retirees felt appreciated and understood the reason for the change in coverage. We regularly receive calls in our direct-‐to-‐consumer business that are referrals from Hallmark retirees. Hallmark’s feedback was extremely positive. The overwhelming response from their retirees was extremely positive as well.