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Sample three-year strategic plan

Lockton teams work in collaboration with your team to develop a multiyear strategic plan. Annually, our teams typically meet with our clients 3-4 times
Sample Three-Year Strategic Plan
for the sole purpose of level-setting year to date performance and using that data to develop solutions and evaluate options available in the marketplace.
Discussion items at these meetings can include cost drivers, detailed experience information including details on high cost claimants, collective bargaining
strategies and the status of current negotiations, marketplace/carrier updates and opportunities, population health, and compliance.

2020 (current) 2021 2022 2022
 Medical self-insured  Assessand recalibrate stop- loss  Implement co-pay /  MandateCOE facilities and
Purchasing  Rx self-insured risk transfer strategy coinsurance differentials providers for designated
services
for using COE facilities
Efficiency  Stop loss reinsurance  Reassessself-insured TPA/PBM and designated high
terms and provider network(s)
quality providers
 Broad national PPO  Implement telemedicine service  Adopt local narrow  Consider ACO
Healthcare network  Validate effectiveness of Rx network options where plans/networks by market
available
where proven cost effective
Delivery  Mandatory Rx mail-order mandatory mail-order and
for maintenance
adjust as needed
medications
 EE annual discounts:  Continue biometric testing  Continue biometric  Continue biometric testing
Health and  $40 per month for  Add spouses to biometric testing  testing  Continueoutcomes-based
completing health
contribution differentials
Implement outcomes-
Risk
Improvement evaluation and based contribution based on health risk factors
biometric screening
differentials based on
 73% employee health risk factors
participation
 1.38 covered dependents  Amnesty dependent audit  Engage third party for
Eligibility per covered employee  Assessand recalibrate employee dependent eligibility
audit
Management  300 estimated covered contributions for adding spouses
as needed to mitigate risk
spouses
 4-tier contributions exposure
 HDHP / HSA option  Eliminated HSA seed and require  Reduce dental plan  Only offer one medical plan
 78% coverage value employee contributions to subsidy to 50% option that is HSA qualified
 PPP option receive any XYZ Company match  Reinvest savings into  Make dental plan 100%
Participant  80% coverage value  Start process of implementing a medical plan employee paid
Experience  ABC Company total defined contribution strategy;
medical plan premium
subsidy at 70%; total cost cost neutral to XYZ Company
regardless of plan elected by
subsidy at 57% employee
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Overview — Lockton Total Rewards Practice 15 Lockton Companies