84 Lumber Company Alcoa, Inc. Allegheny County Airport Authority Allegheny Technologies Incorporated American Eagle Outfitters Ampco-Pittsburgh Corporation ANSYS, Inc. ArcelorMittal Tubular Products USA Corp. Ariba ATI Flat Rolled Products Bayer Corporation Big Heart Pet Brands(formerly Del Monte Foods) Butler Area School District Calgon Carbon Corporation Carmeuse North America Carnegie Mellon University Carpenter Technology CENTRIA City of Pittsburgh Clearview Federal Credit Union Cleveland Brothers CONSOL Energy Inc. Crown Castle International Development Dimensions International Dick’s Sporting Goods, Inc. Dollar Bank, F.S.B. Duquesne Light Company Duquesne University Eat’n Park Hospitality Group Eckert Seamans Cherin & Mellott, LLC Education Management Corporation Electronics for Imaging, Inc. Elliott Company Ellwood Group Inc. Emerson Process Management FedEx Ground Package System, Inc. First Commonwealth Bank First National Bank of PA FirstEnergy GENCO Distribution System General Nutrition Centers, Inc. Genesis Worldwide II, Inc. Giant Eagle, Inc. The Hillman Company H.J. Heinz Company Joy Global Inc. King’s Family Restaurants L.B. Foster Company Leed’s Levin Furniture Management Science Associates, Inc. Members MARC USA Matthews International Corporation Microbac Laboratories, Inc. Mine Safety Appliances Company Mt. Lebanon School District Murray Energy Corporation NEP Broadcasting, LLC NOVA Chemicals Penn United Technologies, Inc. Peoples Natural Gas PITT OHIO PPG Industries, Inc. Reed Smith LLP SMC Business Councils Transtar, Inc. Trib Total Media Tucker Arensberg U.S. Steel and Carnegie Pension Fund University of Pittsburgh Wabtec Corporation Wesco Distribution, Inc. Westinghouse Electric Company LLC Abbvie Aetna Allergan, Inc. Aon AstraZeneca BMI Audit Services, LLC Boehringer Ingelheim Pharmaceuticals

2014ANNUAL REPORT

Reed Smith LLPSMC Business CouncilsTranstar, Inc.Trib Total MediaTucker ArensbergU.S. Steel and Carnegie Pension FundUniversity of PittsburghWabtec CorporationWesco Distribution, Inc.Westinghouse Electric Company LLC

Associate MembersAbbvieAetnaAllergan, Inc.AonAstraZenecaBMI Audit Services, LLCBoehringer Ingelheim PharmaceuticalsBuck Consultants, LLCCastlight HealthCigna CorporationCowden Associates, Inc.CVS CaremarkDelta DentalEisaiGateway Financial GroupGenentechHenderson Brothers, Inc.Highmark Inc.MedExpress Urgent CareMercerMerck & Co., Inc.sanofi aventisSeubert & AssociatesServices USA, Inc.Special Risk Insurance Services, Inc.TFG Partners, LLCTowers WatsonUnited ConcordiaUnitedHealthcareUPMC Health PlanWells Fargo Insurance

New Members 2015 Employer MembersAllegheny CountyAMD3 FoundationArxcel Consulting, LLCCHC ManagementEat’n Park Hospitality GroupFirst Niagara Financial Group MitsubishiMt. Lebanon School DistrictMurray EnergyPNC Financial ServicesSAE InternationalSimpson & McCrady, LLCSumma Technologies

Associate MembersAonBenefits Network, Inc.MedExpress Urgent CareMorneau ShepellSagewell PartnersTango HealthTriad USA

Employer Members84 Lumber CompanyAlcoa, Inc.Allegheny County Airport AuthorityAllegheny Technologies IncorporatedAmerican Eagle OutfittersAmpco-Pittsburgh CorporationANSYS, Inc.ArcelorMittal Tubular Products USA Corp.AribaATI Flat Rolled ProductsBayer CorporationBig Heart Pet Brands(formerly Del Monte Foods)Butler Area School DistrictCalgon Carbon CorporationCarmeuse North AmericaCarnegie Mellon UniversityCarpenter TechnologyCENTRIACity of PittsburghClearview Federal Credit UnionCleveland BrothersCONSOL Energy Inc.Crown Castle InternationalDevelopment Dimensions InternationalDick’s Sporting Goods, Inc.Dollar Bank, F.S.B.Duquesne Light CompanyDuquesne UniversityEckert Seamans Cherin & Mellott, LLCEducation Management CorporationElectronics for Imaging, Inc.Elliott CompanyEllwood Group Inc.Emerson Process ManagementFedEx Ground Package System, Inc.First Commonwealth BankFirst National Bank of PAFirstEnergyGENCO Distribution SystemGeneral Nutrition Centers, Inc.Genesis Worldwide II, Inc.Giant Eagle, Inc.The Hillman CompanyH.J. Heinz CompanyJoy Global Inc.King’s Family RestaurantsL.B. Foster CompanyLeed’sLevin FurnitureManagement Science Associates, Inc.MembersMARC USAMatthews International CorporationMicrobac Laboratories, Inc.Mine Safety Appliances CompanyMt. Lebanon School DistrictMurray Energy CorporationNEP Broadcasting, LLCNOVA ChemicalsPenn United Technologies, Inc.Peoples Natural GasPITT OHIOPPG Industries, Inc.

This annual report is a tribute to you, our members, who made 2014 yet another successful year.

As I reflect back on my 365 days at the helm, I think about the many challenges with which we were presented. We were witness to a rapidly evolving health care landscape with changes on a massive scale not see in decades.

Nationally, we saw health care fragmentation and confusion as employers struggled to find solutions and to make the right decisions during the first year of the Affordable Care Act. We served as an information source to cut through the clutter and provide timely answers to the Act’s many questions.

Regionally, we had a front row seat to a mighty and unprecedented struggle between two health care giants, UPMC and Highmark. It was a street fight that played out in our newspapers and on our television sets, scaring consumers and leaving employers with tough choices.

It was this conflict, however, that allowed us an opportunity to be a true advocate for you – our members, earning our seat at the highest of levels as the collective voice of employers in western Pennsylvania. We demanded to be heard from government officials tasked to find answers; solutions that allow for everyone in our region to have access to the best possible health care. We helped to ensure that hard working families did not live in fear of having to change trusted doctors or providers.

In 2014, PBGH’s total income grew by 16 percent, in part by generating a higher revenue return for the annual symposium. And, for the first time, that gathering had dynamic theme: Punt or Pass, How to Score in Today’s Health Care Game. In other words, we stepped up our game, pun intended.

As we emerged on as a thought-leader expert on these and other health care issues concerning employers, the media begin to take notice with PBGH garnering attention on NPR and in Modern Healthcare magazine, among numerous interviews and Opinion Editorials we generated regionally.

On the pages of this report, you will see evidence of a dynamic, growing organization poised to grow in both influence and stature in 2015; you will see a blueprint that you as employer members have collectively created through your membership and input.

Thank you. We look forward to many more successes.

Sincerely,

Jessica L. BrooksExecutive Director

Jessica L. Brooks

Thank you!

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About PBGHThe Pittsburgh Business Group on Health (PBGH) is a non-profit, employer-led coalition

representing more than 75 private, public and government employers. PBGH and its members advocate value and innovation in health and benefits with a focus on cost, quality and

delivery. PBGH provides resources, tools, solutions and information and brings together the collective knowledge and expertise of members to support the execution of

benefit strategies.

We are a member of the National Business Coalition on Health (NBCH), an organization providing expertise, resources and a voice to 55

coalitions across the United States. NBCH serves as a resource, clearinghouse and information center linking coalitions and

the 7,000 employers (25 million employees, retirees and dependents) they represent.

PBGH, as the only employer-led coalition in the Pittsburgh region, promotes health care and benefits strategies through education, collaboration and innovation among members, and in the community, to deliver value and quality for members and their employees.

Mission

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Core Strategies• Provide Innovative Thought Leadership• Promote Education and Raise Awareness• Leverage Group Purchasing• Bring Ideas to Action• Provide Leadership• Collaborate with the Community

(both internal and external)

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Core Values• Advocacy• Collaboration• Integrity• Quality• Value

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Vision

PBGH, as the voice of business for healthcare and benefits, will:

• Be the organization of choice for employers in its market area• Be recognized, respected and sought out by employers, payers, legislators

and other key stakeholders• Expand its reach beyond Western Pennsylvania to include members from

other counties and states

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Health Care ProgramPBGH Health Care Program is a customizable, self-insured option administered by Aetna. This cost-effective option includes wellness resources, enhanced reporting and local and national provider networks.

TRUVENA data analytics tool that enables users to better understand health care cost data associated with four common shoppable health care procedures in the Pittsburgh region. Allows members to educate their employees on how to make educated decisions about their providers.

eValue8™eValue8™ measures and evaluates health plan performance for PBGH members by asking health plans probing questions about how they manage critical processes that control costs, reduce and eliminate waste, ensure patient safety and close gaps in care.

Prescription Drug ProgramAdministered by CVS Caremark, the Prescription Drug Program gives self-insured employer members the ability to create company-specific, customizable benefits along with access to a prescription drug benefits program complete with performance guarantees. PBGH companies have seen $47 million in savings.

Flu Shot ProgramIn 2014, 4,000 flu vaccines were administered to employees and dependents. The PBGH Flu Shot Program provides competitive prices at convenient locations.

LivingMyLife™ Program for Diabetes A PBGH-developed program designed to assist participants to manage diabetes, while supporting employer efforts to manage costs. Employee participants have access to one-on-one coaching with a certified professional.

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Education and NetworkingPBGH provides access to information for all of its members

on the latest trends in health care management. A series of seminars, member-only sessions, community meetings and

the annual symposium are all hosted by PBGH. For those who are unable to attend or wish to know more, they

can access information online including audio and video presentations to keep informed on the ever-changing

health care industry.

WellnessPBGH equips employer members with a variety of resources

to help empower employees to make healthy life changes. Ready to implement with personalized support, PBGH

members take advantage of the opportunities to supplement their health and wellness promotional efforts.

Corporate Wellness ChallengeIn its fourth year, PBGH’s Corporate Wellness Challenge

continues to support members’ efforts to improve the health and wellbeing of their employees. This healthy competition

has inspired 4476 participants to get on their feet and log a total of 175,080 miles.

Auditing ServicesMedical claims and dependent eligibility auditing from BMI

Audit Services are available to employer members at a discounted rate. Also, volume incentive discounts based on

the total number of lives audited across PBGH employer members. Members have the potential to realize cost

savings by validating each medical claims against benefits and/or reducing the number of ineligible dependents from the plan.

Quick QueriesQuick Queries is PBGH’s simple way for a member to gain

information for benchmarking their own strategy. This tool is used to poll fellow members on hot button issues and

provide a summary of results available to all members.

Hot TopicsFuneral Leave

Substance Abuse Testing

Exchange Notices

Nicotine Testing

Biometric Screening

Wellness Program and

Premium Reductions

Communications Strategies

The 15th annual Health Care Futures Symposium, “Punt or Pass: How to Score in Today’s Health Care Game”, took on a football-theme that focused on the rising cost of health care and benefits. With nearly 450 employee benefits and health professionals, it was a day dedicated to education on leading edge concepts, strategies, and perspectives regarding employee healthcare, benefits and wellness trends.

Annual Health Care

Futures Symposium

Topics Covered• CDHP and HDHP benefit design• Health Care disparities• Rising cost of specialty drugs• Private exchange• Driving a performance network

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Pittsburgh Business Group on Health Profit & Loss

January through December 2014

SymposiumRevenue up

Total incomeincrease of

Increase inDues Income

28%16%

23%11

Total Income $512,706

Total Expenses $447,642

Net Income $65,604

2013: -$41,898

2014: $117,167

Total Expense $385,745

Net Ordinary Income $187,286

Total Other Expense $90,088

Net Other Income $90,088

Net Income $97,198

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PBGH Services Inc.Profit & Loss

January through December 2014

$13.8K

$35.9Kbelow budget

better than budget

Project expenses

Profit

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PBGH OfficersPresident: Mark Mollico, Vice President Human Resources, 84 Lumber CompanyVice President: Christine Kealey, Vice President of Benefits & Compensation, MARC USATreasurer: Myra Kilgore, Benefits Manager, Eckert Seamans Cherin & Mellott, LLCSecretary: Wendy Doolan, Director-Human Resources, Clearview Federal Credit Union

PBGH Board MembersScott Kovaloski, Manager, Health & Welfare Benefits Consulting, Alcoa Inc.Karen Marchi, Director, Benefits Planning, Bayer CorporationVeronica McDonough, Global Benefits Manager, Electronics for ImagingMarie Russo, Director, Benefits & Human Resources, Ellwood Group, Inc.Michelle B. Ward, Senior Manager, Benefits, FedEx Ground Package System, Inc.Shar Matters, Employee Benefits Supervisor, PITT OHIOPaul Dolan, Director, Employee Benefits, Wesco Distribution, Inc.Kristen M. Miller, Manager Global Health and Welfare Plans, Westinghouse Electric Company LLC

PBGH Services, Inc. OfficersPresident: Donna Steed, Assistant Director Human Resources, Benefits, Duquesne UniversityVice President: Amy Cox, Director, Corporate Benefits, Wabtec CorporationTreasurer: Diane McClune, Director of Operations, Pittsburgh Business Group on HealthSecretary: Jim Giel, Assistant Vice President - Human Resources/Benefits, Dollar Bank, F.S.B.

PBGH Services, Inc. Board MembersLaurie Rendin, Manager, Corporate Benefits, Carpenter Technology CorporationMatthew Hooks, Managing Director, Benefits & PayrollGene Leis, Benefits Director, General Nutrition Centers, Inc.Irene Fostyk, Vice President, Human Resources, Levin FurnitureLynette Bauer, Manager, Benefits & Employee Relations, Microbac Laboratories Inc.

StaffCEO/Executive Director: Jessica L. BrooksVice President of Operations: Diane McCluneDirector of Quality Initiatives: Christina BellExecutive Administrator: Laura Wicker

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