Mondelez International, Inc. · NASDAQ:MDLZ
Mondelez International — Investor Presentation (March 2016)
17 slides from Mondelez International's investor presentation, March 2016
Slide 1: BCTGM Presentation: Health Care Benefits
BCTGM Presentation Health Care Benefits
Slide 2: Objectives
Objectives • Provide competitive benefits • Manage health care costs • Have healthy and productive employees • Manage Cadillac Tax impact • Support overall business objectives 2
Slide 3: Health Care Trends
Health Care Trends • Nationally, health care inflation is outpacing the Consumer Price Index (CPI) – Hospital-related spending continues to grow – People continue to use the emergency room rather than urgent or primary care – The rate of chronic diseases is increasing CPI (All Items) and Health Care
Slide 4: National Health Care Trends
National Health Care Trends • According to the 2015 Milliman Medical Index: – The cost of health care for a typical American family of four was $24,671 (nearly triple the amount in 2001): • Costs have increased in part due to prescription drug prices • Costs for a typical family have more than doubl
Slide 5: Health Care Benefit Trends
Health Care Benefit Trends • Eighty-one percent of employees with employer-provided health insurance must meet an annual deductible before most services are paid for by the plan – Even employees with no annual deductible often face other types of cost sharing when they use covered services, like cop
Slide 6: The Case for Action: Current Health Plan Costs
The Case for Action Current Health Plan Costs • Annually, the total health care cost for BCTGM-represented employees is $47 million • The average per employee cost for BCTGM-represented employees is $19,400/year – compared with $12,400 per employee for our peers • The cost of the current represented
Slide 7: Health Plan Data: Mondelēz Costs by Union
The Case for Action Health Plan Data: Mondelēz Costs by Union PMPM Costs by Union $500.00 • BCTGM-represented $450.00 +5% +13% employees had the highest cost per $400.00 member per month $350.00 (PMPM) – compared to +9% other Mondelēz unions $300.00 $250.00 • As of the 4th quarter of 2015, BCTGM hea
Slide 8: Health Plan Data – Costs and Utilization in 2015
The Case for Action Health Plan Data – Costs and Utilization in 2015 PMPM Costs by Service Category $180.00 $160.00 • Compared to non-union $140.00 employees – and all Blue $120.00 $100.00 Cross Blue Shield of Illinois $80.00 (BCBS IL) national plan $60.00 $40.00 participants – BCTGM- $20.00 represe
Slide 9: Health Plan Data – By Chronic Condition
The Case for Action Health Plan Data – By Chronic Condition BCTGM-represented employees continue to have a higher incidence of chronic conditions – and therefore higher costs – than peer organizations PMPM Costs by Union $80 $70 $60 $50 $40 $30 $20 $10 $0 BCTGM Union: Current claims incurred 11/2014
Slide 10: The Case for Action – Key Actions
The Case for Action – Key Actions Our healthcare benefits must strike a balance between quality of care and cost sensitivity Current Benefits Future State • Uncontrolled Care • The Right Care at • Health not Managed Right Time • Emergency Room • Managing Health usage high • Attention To Cost • High
Slide 11: Current Health Care Plan: Comparing Our Benefits to Peers
Current Health Care Plan Comparing Our Benefits to Peers • Mondelēz recently benchmarked our health care plans to those of peer companies to compare similarities and differences • For a comparison, we included U.S. manufacturing companies with strong union representation in our benchmarking peer gro
Slide 12: Our Health Care Plan: Comparing Our Benefits to Peers
Our Health Care Plan Comparing Our Benefits to Peers Mondelēz Peer 1 Peer 2 Peer 3 Peer 4 BCTGM Medical Benefits (In Network, single/family) Deductible $0/$0 $300/$600 $400/$800 $500/$1,000 $600/$1,200 Out of Pocket Max $1,500/$3,000 $1,000/$2,000 $2,900/$5,800 $1,750/$3,500 $3,000/$5,000 Coinsuranc
Slide 13: Represented Employee Plan Current Provisions
Represented Employee Plan Current Provisions Plan Feature Current Provision Employee Contributions Employees pay $0 in payroll contributions for health care coverage Preventive Coverage Preventive services, such as annual physicals, are 100% covered Deductible Employees pay copays for standard, in-n
Slide 14: Proposed Health Care Plan Overview of Provisions
Proposed Health Care Plan Overview of Provisions Plan Feature Current Provision Employee Contributions Employees pay a portion of premiums through payroll contributions Preventive Coverage Preventive services, such as annual physicals, are 100% covered Deductible The plan includes a deductible: $400
Slide 15: Health Care Plan Comparison: Current vs. Proposed Plan Features
Health Care Plan Comparison Current vs. Proposed Plan Features Current Proposed Medical Benefits (In-Network unless noted, single/family) Deductible $0/$0 $400 /$800 In-Network Out-of-Pocket Max $1,500/$3,000 $2,000/$4,000 Out-of-Network Out-of-Pocket Max $2,500 $4,000/$8,000 In-Network Coinsurance
Slide 16: What happens when an employee…
Health Care Plan Comparison What happens when an employee… Current Proposed …goes to the doctor for a physical? The employee pays $0 to see a doctor for a The employee pays $0 to see a doctor for a physical physical …gets sick? The employee pays $15 copay to see a doctor The employee pays for the co
Slide 17: Questions
Questions • We’d be happy to answer any questions you may have 17
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