Making it easy Canadian Worker Co-op Federation (CWCF)

Making it easyCanadian Worker Co-op Federation (CWCF) CWCF Conference & AGM Vancouver October 28 – 30, 2010

Why are we here today? Provide you with information about Health & Dental Insurance for CWCF: Provide cost assurance and access to healthcare services not paid for by provincial health plan Provide you with assurance that in the event of a diagnosis of a range of serious illnesses like cancer you will have access to products that will reduce the financial burden associated with the loss of income often associated with treatment for illnesses like cancer Extremely cost effective Save taxes Preferred supplier – The Co-operators, one of the best insurance companies in the business.

Why did we develop this product? We all know: Governments have fewer dollars to spend on healthcare Hospital beds are closing Treatment is getting pushed away from hospitals and payment is being moved away from Government healthcare plans Prescriptions, dental services, and services like chiropractic care are costs that provincial plans may not cover At the same time only “medically eligible” expenses of more than at least $2,000 are tax deductable Co-operatives and self employed don’t have access to affordable employment benefits plans like employees of government and big corporations

Why did we develop this product? We spent a year working with the insurance industry to develop a product that gives all Co-operatives access to a health benefits plan that is: Underwritten by one of the best companies in the business More affordable Better coverage Guaranteed coverage for groups of 3 or more Tax deductable Affordable options to cover things like income loss in the event of serious illnesses like cancer

Volume Discounts Volume Pricing: Like so many other things in this world, the more you buy, the cheaper it becomes. As the program grows with more and more CWCF members, we will see unit prices decrease It is cheaper for a 2,000 person organization to buy insurance per person than it is a 200 person organization As we add CWCF members, we will approach a program count of 20, 200, and eventually 2,000 people enrolled with the CWCF Health & Dental program No co-operative is too big or too small

CBA consulting services for all plans • Customized plan design *employee retention or recruiting • Carrier negotiations for best possible pricing • Program management, utilization management • Renewal negotiations • Plan design alternatives for cost containment

Customized Program • All programs will be customized to each member’s specifications • Minimum requirement is 4 benefits i.e. Health, Dental, Life, Accidental Death & Dismemberment

Core Health Coverage • Prescription drugs • Vision • Hospital benefits • Travel benefits • Ambulance Service • Hearing Aids • Paramedical Services

Core Dental Coverage • Preventative Services • Xrays • Flouride • Polishing • Sealants • Basic Services • Fillings, etc. • Optional (volume dependent) • Major restorative • TMJ • Ortho

Optional Coverage’s - Sample DISABILITY PROTECTION: Disability due to an accident or illness: Up to $4,000/month Simple Issue qualifying basis: Have you ever had any injury(ies) or other condition which currently restricts your Bodily movement or that Limits you in performing any daily activities? Do you work at least 20 hours per week and 35 weeks per year? 0 – 30 day waiting periods before monthly benefit begins. Coverage periods are either 5 years or until age 70 Automatic Increase benefit in accordance with the Consumer Price Index (Stats Canada) Premium is waived after 30 days of total disability Partial disability: 50% of monthly benefits for up to 180 days Increase in benefit of 25% if insured cannot perform 2 activities of daily living (Eating, Bathing, Dressing, Toileting, Transporting) Lump-sum payment upon permanent total disability Death benefit

Optional Coverage’s - Sample CRITICAL ILLNESS PROTECTION: A tax free lump sum payment to you when diagnosed with a Critical Illness covered condition while insurance is in force Guaranteed Issue product, does have a pre-existing condition clause Coverage's available to both applicant and spouse Coverage amounts range from $5,000 to $25,000 (purchased in $5,000 increments) 16 Critical Illness conditions covered

Clear Stream Wellness Program

A new approach … Clear Stream Health

THE TRENDS The Canadian workforce grew by 200% between 1950 – 2000. The period 2000 – 2050 will see an estimated 5% increase in the workforce. By 2014 the workforce in the age group 45-64 will have increased by 20%. The percentage in the age group 20 – 44 will have reduced by 12%. An aging demographic will lead to higher benefit plan costs – On average a 41 year old employee will submit $1,420 in annual health claims … a 57 year old will submit 55% more – $2,200. The average age of the Canadian workforce is now 41. Insurers are estimating annual trend to be in the 14 – 18% range for health care. At current rates – Health care costs are on track to consume 50% of provincial budgets by 2020.

THE TRENDS • 32% of Canadians are overweight – 16% are obese • 70% of ill health is preventable • 14-17% of Canadians don’t have a family doctor. Those that do, experience an average doctor/patient time of 7 – 10 minutes. • Each health risk can cause a productivity loss of 2.4% of salary

OVER 70% OF HEALTH RISKS ARE PREVENTABLE Based on accurate diagnostic baselines, our programs help your business by helping your employees to live healthy, balanced lives.

WELLNESS PROGRAMChristie Digital Lunch and Learn series with guest speakers: nutritionists, expert on the use body building supplements, expert on self breast exam, expert on stress reduction strategies … Monthly Wellness Bulletin Board and Newsletter. Wellness Roves - Benefits of Drinking Water, Stress Reduction Tips, Packing Healthy Lunches for your Kids, Be Sun Safe, Back Health, healthy holiday recipes, blood pressure checks. Fitness challenges and contests: Become a Walkaholic, Department Participation Challenges, Turkey Shoot, Basketball Games … Programs - Best Shape of your Life, Eat Smart, Smoking Cessation … Health Fairs - cholesterol testing, alternative wellness therapies, nutrition messages.

UNEXPECTED WINS • Over the last several years we have seen a new trend of “low” renewal costs for the Benefits Program (Health, Dental, LTD, Life, AD&D). • 1999 = 12% Pre Fitness and Wellness Program • 2000 = 12% • 2001 = 5.4% • 2002 = 3.3% • 2003 = 4.9% • 2004 = 6.4% • 2005 = 10.5% REDUCTION • 2006 = 4.4% • 2007 = 2.6% REDUCTION • 2008 = 0.7% REDUCTION • 2009 = 7.2% • AVERAGE 2001 TO 2009= 2.0%

UNEXPECTED WINS • In addition - we are on a refund accounting basis for health and dental and saw refunds as follows: • $ 10,000 in 2003 ( 2.3% of total premiums) • $ 8,500 in 2004 ( 1.6% of total premiums) • $ 91,000 in 2005 (14.0% of total premiums) • $ 44,000 in 2006 ( 5.4% of total premiums) • $ 56,000 in 2007 ( 5.1% of total premiums) • $110,000 in 2008 (12.6% of total premiums) • $ 53,000 in 2009 ( 4.0% of total premiums) • The above refunds are a direct offset to renewal adjustments on previous slide (average of 6.4% annually) • After accounting for refunds - average annual renewal is a REDUCTION of 4.4% • At 400 employees - savings in annual benefit plan costs, after Wellness expenses, are estimated to be more than $100,000, when measured against a 5% renewal benchmark (average over 7 years).

CANADA’S TOP 100 EMPLOYERS 2009 Employee Engagement Pulse Survey Report • Participation and Overall Engagement Levels • A total of 295 Christie Digital Systems Canada Inc. employees responded to • the survey, which is a response rate of about 72%.

A WELLNESS PROGRAM FOR THE MEDIUM-SIZE EMPLOYER Employee Health Screens – 15 minute medical reviews with a registered nurse – for ALL employees – voluntary. Blood pressure, Diabetes Testing, Weight, Cholesterol and information on healthy living. Aggregate results reported to employer On-site wellness consultant - 1 day every two weeks – active, focused program management. Bring wellness to the employees…the ones you want to attend a lunch and learn won’t volunteer… Smoking cessation and weight management programs, wellness roves, numerous wellness activities. Turn-key - little drain on HR team

A WELLNESS PROGRAM FOR THE MEDIUM-SIZE EMPLOYER Annual updates to the Employee Health Baseline Reportto measure ROI Benefit plan costs, absenteeism, year over year changes in the employee health screen results etc.

Any questions?

Making it easy Canadian Worker Co-op Federation (CWCF)