Understanding Benefits Technology and Best Practices Presented By: Tim Purkis VP, Sales & Marketing © 2013, National Association of Health Underwriters

© 2011, National Association of Health Underwriters Agenda Industry Climate Benefit Administration vs. Other Platforms Your Clients’ Current Environment – The Opportunity How it Works – Technology and Terminology Which Clients are a Good Fit? How to Select the Right Partner – Questions to Ask Success Stories Q&A

© 2011, National Association of Health Underwriters Industry Climate “TIMES THEY ARE A-CHANGIN’” Increased competition in an uncertain economy Increased pressure on brokers to add more value Payroll providers as benefits brokers

© 2011, National Association of Health Underwriters Industry Climate PAYROLL INVASION Paychex has been the most aggressive; building its own benefits brokerage practice with 95 licensed agents throughout the US. Ranked #30 in the list of largest brokers Paychex recorded $1 Billion in insurance premiums and $42 Million in Health & Benefits Insurance Revenue in its 2011 Annual Report.

© 2011, National Association of Health Underwriters Benefits Technology WHAT’S THE DIFFERENCE? Enrollment OnlyCarrier PortalBen Admin Initial Enrollment EE Benefit Portal Ongoing Reporting Qualifying Events EE Status Update Billing Reconciliation New Hires Terminations

© 2011, National Association of Health Underwriters How it works… Export Files Pre-Filled Enrollment Forms Any 3 rd Party System Carriers 3 rd Party Administrators Payroll Vendors HRIS Systems Corp Accounting Systems Other Company Data Employee Data Benefits Data HR Admins Employees and Dependents Broker or TPA

© 2011, National Association of Health Underwriters HR People Need Your Help! Recruiting Training Retention Benefits Management Employment Law Compliance Conflict Resolution PPACA Organization Development Team Building Compensation Leadership Vendor ManagementPayroll Insurance

© 2011, National Association of Health Underwriters Reducing HR Overhead Employers must manage: Ongoing benefits changes throughout the year Life events that effect coverage status Rate changes based on age And much more! Employers are required to understand these events and complete the necessary changes in a timely manner Manually administering these tasks range from $12-$45 per task Source: CFO.com

© 2011, National Association of Health Underwriters Which Clients are a Good Fit? PRE-QUALIFY WITH SOLID FACT-FINDING Group Characteristics 100+ Employees Tech Savvy Number of Locations Multi-Lingual Turnover Rate Current Benefits Administration Practices Manual or Automated HR Processes Time Spent on Annual Enrollment Voluntary Participation Rates

© 2011, National Association of Health Underwriters Selecting the Right Partner DO YOUR HOMEWORK! Easy to work with – broker-friendly Accommodates all group sizes (e.g., sub-1000) Offers a variety of carrier connections Technology & Industry experts with in-house developers Quick and reliable Implementation time-frame Implementation provided or self-implemented? Flexible and customizable – able to handle complex groups

© 2011, National Association of Health Underwriters DO YOUR HOMEWORK! Secure Environment (e.g., vendor has completed an SSAE 16 Audit) Transparent Improves Participation Health Care Reform Compliant Selecting the Right Partner

© 2011, National Association of Health Underwriters Enhanced Communication DECISION MAKING TOOLS TO DRIVE SALES Case Study - Allstate Critical Illness Avatars spoke French and Spanish to describe Critical Illness Avatars were played 525 times Results: 30% enrollee increase 38% premium increase

© 2011, National Association of Health Underwriters Enhanced Communication Hello! Hola! Nǐ Hǎo! Ciao! Hello! Hola! Nǐ Hǎo! Ciao!

© 2011, National Association of Health Underwriters Benefits Technology BENEFITS ADMINISTRATION AS A COMPETITIVE STRATEGIC ADVANTAGE As enrollment technology continues to become the norm, affording employers reduced overhead and efficiency, brokers can solidify their relationship with their clients by offering enrollment as a competitive and strategic advantage.

© 2011, National Association of Health Underwriters Best Practices Summary SET YOURSELF UP FOR SUCCESS! Know your benefits technology options Ask the right questions Pre-qualify clients Pre-qualify vendors Choose the right option for your client Partner with an expert – let them handle the technology

© 2011, National Association of Health Underwriters Benefits Technology Best Practices QUESTION & ANSWER For additional questions, please contact: Tim Purkis VP, Sales & Marketing (916) x1020 CONNECT.net