Agency Blue Print So if you think insurance is not a commodity you’ll have some issues with my presentation. If you still disagree, ask an employee

What is Your Long Term Agency Strategy? Account managers are stuck cleaning up mess created by producers….This is very stressful & inconsiderate

Paper Based Agencies Have a Strategy, They Just Don’t Know it Carrier Selection Long term relationships with carrier reps Avoid carriers with poor customer service Avoid carrier that are buying business Customer Support Conduct employee meetings for large clients Create customized materials for large clients Pay staff when they sell new lines of coverage

An Ounce of Prevention is Worth a Pound of Cure Agencies w/ Strategy No Strategy Less Work More Work Paper

Avoid Situations Which Create More Work Having plans renew on different months Paper: just let us know if something changes Online: a plan must be renewed with new rates Customizing the enrollment messages for each customer regardless of revenue Total cost of ownership: Understanding the rate is only a part of the total cost of offering a plan

Agencies with a Blue Print are Becoming More Efficient and Growing Rapidly Get the entire staff using the system Product design Teach them the system Create an implementation strategy Deadlines Group structure Develop a product/carrier strategy Define a support strategy: Tie the amount of support to commission (or potential) What areas of the system will you support?

Automating enrollment management Forms Population: Coming this Fall Excel Self-Bill Wall: Key Enrollment HIPAA 834 EN’s Marketplace

Let’s Get Started

Consider An “Organizational Blue Print” HR Services Benefit Enrollment Dedicated Staff Webinars Client demos Onboarding Call center support for HR Customer Team Configure enrollment Carrier & plan selection Enrollment to carriers that are not centrally managed

Implementation: Get the Whole Team to Help Producer Admin Accounting HR Add company X Learn department & class structure Add carrier, rates & plan year Pay periods Communication materials Employee contributions x Import employees (it’s more secure) Customize employee experience Payroll deduction reporting Importing

Have a Implementation “Game Plan” HR has a 5 day administrative period after OE Paperwork Due: X days before OE OE must close 25 days prior to e-date Enrollment is sent to carriers 20 days prior to renewal Train HR 10 days before e-date

Candidates For the Service Should Meet Certain Guidelines Establish recommended # of class structures (3-5 maximum) Payroll Number of payrolls & pay schedule should not be too excessive Have a consistent # of deductions for all benefits Be careful with 26 pay periods and 24 deductions What will your guidelines for high turnover companies be? Are there a high number of: Grandfathered employees (try to handle them outside of the software) Grandfathered plans Exceptions made by HR

Candidates….continued Computer: Availability for employees Capability of employees Capabilities of HR (has HR had a prior bad experience?) Optimal time of the year for an implementation Get renewals dates in sync Recommend 1st of the month eligibility & consistent end of policy for terms Would you recommend another plan if it didn’t work in EN?

Considerations For Companies Employee population HR person Single classes: eligibility, contributions Time of the year Get the renewals in sync DC plans must have benefits in sync The HR has to follow their own benefit rules Grandfathered employees Eligibility, 1st of the month Which carriers are easy to set-up regardless of size

Producers Should Consider A Product Strategy GOOD BAD Strategically target carrier consolidation and get HR buy-in Broker helps HR become self-sufficient Keep all existing plans & carriers when converting to digital enrollment Broker does everything for HR

Carrier Strategy: Maintenance Costs Correspond Directly to the Number of Carriers Minimize the # of carriers used by companies Use Employee Navigator’s automated COBRA & FSA and other integrated partners Sell a same voluntary life plans & carriers since these care the most complex to set-up Modernize Policies: some cases may have been won by “duplicating benefits” and the policies are very old

Create a “Box” for the Sales to Work Within, But Allow Exceptions Use Employee Navigator’s integrated COBRA & FSA Ancillary Self-bill with carrier Combine lines of coverage Medical, dental & vision Determine threshold for 834 data file feeds Caution on bundled plan strategy Building and reusing plans Customize when necessary

Supported Plan Designs Worksite Plans Group contract vs. individual High, Low, No (Avoid EOI) Avoid employees selecting riders individually Bundled Plans Creates COBRA issues Avoid non-carrier or custom bundles Medical and life on a single 834

Standardization Reduces Overhead Medical: Companies select any carrier Ancillary: Combine as many lines as possible Worksite: Preferred carriers and plan designs Add-ons: Create a list of supplemental service providers: Telemedicine Legal Identity theft Preferred Carriers Which ones do you find easy to work with Avoid carriers that require paper applications

Some HR Want To Be Involved… others will retire sooner or later Let HR Manage their own documents Set-up on boarding Empower HR to manage employees Importing of new employees Adds, terms & changes Exceptions Sending out bulk employee communications Require HR to configure the employee experience Home page news and articles Email templates Logo

Managing Enrollment

Data Transmission Options Spreadsheet HIPAA 834 Data Feed Self-bill 2nd Generation Data Feed Paper ➔ key into portal Carrier or TPA

EDI & HIPAA 834 Is Still Not Very Scalable Hello Everyone, A Welcome to e-Exchange Conference Call is scheduled for Employee Navigator - Group #146E We will begin the implementation process for the automated enrollment move to e-Exchange using the automated enrollment vendor Employee Navigator Please forward this call invite to others as you see appropriate. Listed below are some activities that maybe discussed: an overview of e-Exchange exception reports the file layout how the file will be processed Attached is the group structure that will be referred to during the call.

Is Keying Data Into A Portal Cost Effective? 10 Life Events Assuming 3 carrier feeds Data Feeds Key enrollment Set-up 3 834 file feeds 21 hours 0 hours Manage error reports (4 minutes per carrier per week) 10.4 hours Manual Change (5 minutes per change) 10 hours Create Open Enrollment Excel 2 hour Total Hours 31.4 12 Labor cost @ $30 per hour $942 $360 EDI Software ($0.45 PEPM) $810 $0 Total Cost $1,752 ($0.97 PEPM) $360 ($0.20 PEPM)

Keying Data Into A Portal Receive alerts and key change into carrier portal Employees Enroll Online Send OE Elections to Carrier on Excel

Carrier Will Modernize in the Next 5 Years Management of enrollment will decrease The decrease will not be measurable as brokers put more groups online

Blue Print: Minimizing Projected Labor Costs Regardless of data transmission method: Strategy to minimize the # of carriers #1 Medical #2 Dental #3 Vision #3 Core Ancillary #4 Worksite #5 COBRA & FSA #6 Identity protection/health advocacy #7 Telemedicine

Analysis of Ways to get Enrollment to Carriers Carrier EDI file feed support costs (based on 3 carriers) Requires weekly review of carrier error reports 15 Minutes per week: (13 hours per year) Setting up carrier feeds takes 30-50 hours per group in year 1 20 hours in year 2 Best case year 1 labor costs: 43 hours

How Many Changes Can Be Completed Manually in 43 hours? 172: 3 carriers @5 minutes per change=15 minutes 100 life company time estimates (10% turnover) Compile spreadsheet for OE: 1 hour(s) 10 new hires 2.5 10 terminations 2.5 5 Life events 1.25 Total Time ~7.25 hours

Administrative Cost to Manage Groups Let’s round the 7.25 hours to 10 Hourly rate for employee $30 Labor costs for 10 hours $300 Monthly cost per employee $0.25 PEPM

Costs to Manage 10% Turnover: Review of error report not included+ 13 hours per error reports Hand Key Optimized hand key Carrier Feed Carrier Feeds Medical 5 420 Dental 120 Vision With dental Core ancillary Self bill Worksite Hand key FSA& & COBRA Total Time 25 minutes 20 minutes 2,100 minutes 540 Minutes 20 Changes per year 8.3 hours 6.6 hours 35 hours 11.25 100 Life group 11.25 hours 250 Life Group 20.75 hours 16.5 hours

Financial Analysis of Managing groups Hand Key Optimized hand key Carrier Feed Carrier Feeds 100 Life group 8.3 hours 6.6 hours 35 hours 11.25 hours Labor costs (60K)/$29/hr $240 $191 $1,015 $326 2 Year Cost (EDI 80% less) $480 $382 $1,218 $391 250 Life Group 20.75 hours 16.5 hours

Product Blue Print HR: Making life easy for HR Dedicated support team to help get HR start using the software Onboarding configuration support Standardize 2-3 COBRA/FSA & give clients choice Already have over 1,000 companies using integrated partners Preferred payroll relationships You’ll see us add in more payroll integrations than anyone in the industry over the next 12 months Negotiate simplified product issue and underwriting Core ancillary Voluntary products’ Block underwriting is coming

Questions?