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T 813.984.3200 | Toll-free 866.279.0698 | F 813.984.3201 | www.bks-partners.com

PRIVATE EXCHANGESWHAT YOU NEED TO KNOW ABOUT TODAY’S OPTIONS AND TOMORROW’S OPPORTUNITIES

Private exchanges are emerging as a new alternative to traditional employee benefit plans. This new model makes it easier for employers to stay within their budget while offering employees more coverage options to choose from. When using a private exchange, employers contract with the exchange, set a defined contribution

HEALTHCAREEXCHANGES

and select the health insurance products to be offered to employees. Employees then go to the exchange’s online marketplace and, using the employer contribution, select a plan from the available options.

Private exchanges can provide more flexibility:

• Private exchanges can offer a broader range of insurance products, such as life insurance, and their products can be tailored for different employer segments.

• Although the ACA prohibits large employers from using the Public Exchanges until at least 2017, there is no similar restriction for private exchanges. Thus, small and large employers can use private exchanges to provide group health insurance benefits to their employees.

• Private exchanges are currently operating to provide employees with a choice of health insurance products, while the SHOP’s employee choice model will likely be delayed until 2015.

Private Exchanges are marketplaces which offer different health insurance plans alongside each other. In some cases, these marketplaces can offer plans from different insurance carriers, giving more options to employees. Private exchanges offer flexibility to employer groups and can be tailored to the needs of each specific employer. This is setting a new trend for how employers offer and pay for health benefits. One of the strategies that has emerged is the defined contribution model.

WHAT IS A PRIVATE EXCHANGE?

By JS Gagnon, Employee Benefits Advisor

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Defined contribution allows employers to select a certain monthly contribution amount which can be used to pay for employees’ health insurance premiums. Employees can take this contribution, select the plan that best fits their needs from the exchange, and use this contribution to pay for all or a portion of their monthly premium.

For example, if an employer offers a defined contribution of $200 per employee per month, each employee has $200 per month to use towards their health insurance. If an employee selects a plan which costs $300 per month from the exchange, the employee only has to pay $100 per month for that particular plan through their payroll deductions.

WHAT IS A DEFINED CONTRIBUTION?

Baldwin Krystyn Sherman Partners (BKS-Partners) is proud of its partnership with Liazon Corporation to make the Bright Choices Exchange® available to our clients. Founded in 2007, Liazon Corporation operates the market-leading private benefits exchange for businesses in the U.S. Its flagship product, the Bright Choices®Exchange, is an online benefits store that is changing the way employers and employees buy benefits.

“Our Liazon partnership offers our clients the industry’s leading private benefits exchange,” said Elizabeth Krystyn, Partner at BKS-Partners. “The Bright Choices Exchange helps organizations control long-term healthcare costs while giving their employees a more efficient, educational and comprehensive benefits selection process.”

“We are fortunate to be working with BKS Partners,” said Liazon’s chief revenue officer, Michael Karp. “It’s exciting to partner with a broker who is looking for new solutions to bring to clients and is eager to help deliver to those clients a materially better benefits buying experience.”

The award-winning Bright Choices Exchange creates a personalized shopping experience that allows employees to compare plans side-by-side, view plan costs by pay period, and even make choices based on scenario analyses of project costs.

“We have found that individuals become more engaged in their healthcare and value the benefits more when they have increased control over designing their benefits plan,” said Michael Karp.

To see if private exchanges could be a good fit for your company, please contact us at info@bks-partners.com.

THE BRIGHT CHOICES® PRIVATE EXCHANGE

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T 813.984.3200 | Toll-free 866.279.0698 | F 813.984.3201 | www.bks-partners.com

3SAFE TRAVELS

TRAVEL PREPARATION: WHAT TO DO:• Practice due diligence: Review State Department warning bulletins and CIA country information. Keep local

U.S. consulate phone numbers and addresses handy. Conduct due diligence on your travel location regarding: active terror groups; incidence of crime; labor instability; the likelihood of kidnappings; local, ethnic, political or religious issues; social issues; health and public safety risks; weather and areas to avoid.

• Stay private: Distribute your travel itinerary only to those who need to know, and identify a family member with whom to leave a detailed itinerary that contains hotel information and citizenship documentation. Plan on a system for tracking family members and arrange for a daily communication protocol while traveling.

• Double-up: Make two copies of your wallet’s contents and your passport/visa prior to travel. Bring one copy with you; leave the other with a family member.

• Plan ahead for medical needs: Ensure all medications are packed in their original, labeled containers to facilitate customs processing for your carry-on luggage. Consider wearing a medical alert bracelet or necklace if you have allergies or major medical conditions.

• Be cautious with technology: Avoid publicizing your trip, especially on social media. Wait to post photos until you have returned home safely, to avoid home break-ins.

• Travel insurance: Check your medical insurance to determine whether coverage is available outside the U.S. If not, consider purchasing a short-term medical policy. Additionally, a supplemental travel insurance provides coverage for medical expense and evacuation, lost or stolen baggage, trip cancellation and interruption and 24/7 travel assistance.

• Hotel security: Find a hotel with a solid security track record. When possible, book hotel rooms between the third and seventh floors to eliminate theft while positioning you safely for emergency evacuation. Secure luggage and belongings left unattended in the hotel. Keep important documents and valuables in a hotel safe. Put a “do not disturb” sign on the doorknob even when you are away, and turn on the television or radio just loud enough to hear through the door to deter burglars.

• Protect your identity: Keep bank cards protected and try to use only credit cards while traveling. Keep cards in an FPID-blocking wallet or purse. Never walk around with lots of cash in hand, don’t stand near an ATM counting it and avoid crowds, where pickpocket gangs like to work. Use credit cards or pin-based ATM cards versus check or debit cards.

• Beware of pickpockets: It is common for thieves to distract you by spilling, dropping, soliciting, causing commotion or using children.

• Tour safety: Prior to booking a tour or taking any type of transportation, research the company’s safety records or guest reviews. Don’t always book the lowest fare, as the company may skimp on vehicle maintenance and employee training. Remember: Your safety isn’t worth a few dollars.

Here are some important tips for protecting yourself while traveling from Laura Sherman’s latest Worth Magazine article, “How can I become a smarter traveler”? If you would like a copy of the full article, please email info@bks-partners.com.

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T 813.984.3200 | Toll-free 866.279.0698 | F 813.984.3201 | www.bks-partners.com

ABOUT BALDWIN KRYSTYN SHERMAN PARTNERSBKS-Partners is an independent insurance brokerage firm that offers the client centric approach of a boutique firm with resources and industry specialization. Headquartered in Tampa, with offices in Naples and Sarasota, we create personalized client relationships that allow us to design, implement, and manage holistic insurance solutions for companies and sophisticated individuals—all from a convergent perspective. We are experts in private risk management, commercial risk management, employee benefits, and wellness and safety programs, working with clients wherever life takes them throughout the U.S. and internationally. BKS-Partners is a proud recipient of the 2013 Tampa Bay Times Top Work Places, 2013 Tampa Bay Business Journal Best Places to Work, 2013 Gulfshore Business Best of Business, 2013 IIABA Best Practices Agency and was listed among INC. Magazine’s 2013 5000.

BKS WELCOMES NEW COLLEAGUES!

Kim Alford Account Manager

Christine BergSenior Benefits Consultant

Courtney CrowellPayroll Specialist

Dianne Good Private Risk Advisor

Melodie Jaffe Private Risk Advisor

Janine KirayCommercial Analyst

Ashley McDowelClient Services Manager

Amber MillerEBG Client Services Manager

Sarah Schwirian Marketing Coordinator

Faith ShifrinEBG Client Services Manager

Maria WalshPrivate Risk Analyst

Jodi WorkmanPrivate Risk Management

Relationship Manager

BKS FLOOD INSURANCE REFORM SEMINAR9.13.13

On October 1st, texting while driving became a crime in Florida. Last year, over 4,841 accidents in Florida were attributed to drivers being distracted by their cell phones or other electronic communication devices. Two hundred and fifty-five of those crashes were directly linked to texting, although law enforcement officials say that the actual number of crashes caused by texting is probably much higher.

The ban on texting while driving covers tablet computers as well as mobile phones, but excludes using a talk-to-text feature. It also allows texting while stopped at a red light. A first violation is a $30 fine plus court costs. A second or subsequent violation within five years adds three points to the driver’s license and carries a $60 fine.

Visit www.flsenate.gov for more information on House Bill 13 and Senate Bill 52.

TEXTING WHILE DRIVING BAN IN FLORIDA

EVENT PHOTOS

BKS HEALTHCAREREFORM SEMINAR

10.16.13