CONNECTIVITY SBAM’s HCMS Solution Powered by

Private Health Insurance Exchange Enrollment  2015 – 6 million  2016 – 12 million  2017 – 22 million  2018 – 40 million Estimates In the small employer market (100ees and fewer) few technology providers have emerged. This may be the result of business reluctant to compete with the public SHOP Exchanges. However, Those public small group exchanges have seen enrollment well below expectations. The door may be open for new commercial alternatives to provide an exchange experience for small firms. Accenture – April 2015

Opportunities & Threats Playing Offense Shift to defined benefits is coming for employers of all size Average SBAM member joining BCBSM/BCN over the last 7 months has subscribers Average BCN group has subscribers COBRA and CDHP plans continue to grow Playing Defense Agents are looking for this solution – do not want to lose clients SBAM needs the same product for the same reason

Additional Considerations Movement toward Defined Contribution requires a complete HCMS platform Affordable Care Act “commoditizes” the products and the prices – Market Differentiating Product ACA requires a more technical sales approach (group vs. individual coverage), understanding measurement periods, stability periods, etc. Economics make it harder and harder for “traditional” open enrollment activities Regulatory requirements (COBRA, etc.) make it costly to run a health plan

Additional Considerations Employer Mandate – Employers need a path to comprehensive coverage Employers that Maintain Coverage – Need a way to manage the costs. Defined contribution is a method to do that Cadillac tax – Defined Contribution gets employers out from under this burden Compliance & Reporting – including ACA, IRS/DOL - Audits

Goals Aligns with SBAM goal of providing products and services available to larger businesses. Scalability Deliver a solution for our market Connects with current billing and enrollment platform and coverage for companies Service to small business owners, their employees and agents “One Stop Shop” for HR, Payroll, Time & Attendance and Benefits Administration (for small business owners that generally do not have an HR staff person). Revenue Growth

Connectivity : Centralized Administration A platform that connects the following elements in order to make the job of administering benefits less time consuming, less costly and more accurate: Human resource management, payroll, time & attendance, benefits enrollment and management (ee self service) Insurance Billing and Plan administration (group, individual and voluntary) COBRA Administration CDHP administration – Section 125, HSA and HRA ERISA Compliance – Checklists, SPDs, SBCs, Measurement Periods and Reporting

9 Benepay HR technologies OneTouch. One Solution. ACA Compliance HR/Benefits Time/Labor Payroll The first truly integrated, paperless solution that automates benefits administration, HR, time and attendance, payroll and ACA compliance.

10 HR Problems Today #1 time Tug of war between strategic initiatives and administration 60-80% of HR time is spent on repetitive administrative tasks* *According to SHRM data

11 OneTouch saves time Automate Integrate Communicate  Automate manual tasks  Bring data together  Communicate with your workforce

12 HR Problems Today #2 cost Typically $ pepm* administrative cost $1m over 5 years for a 250 person organization *According to SHRM/Price Waterhouse data

13 OneTouch reduces cost  Integrated approach eliminates duplicate efforts  33-50% of HR time reclaimed/saved  Up to 50% cost reduction Single Sign On One User- Friendly Interface Automatic Data Updates One Database Paperless Review/Approval

14 HR Problems Today #3 compliance

15 OneTouch keeps you compliant  Free ACA Compliance Calculator  Automatic policy updates Data Repository Data Management Compliance Calculator & Dashboard Complete workflow & Data Package for IRS audit request

16 We build technology that helps you… OneTouch is a total benefits administration and HR solution for your organization Seamless flow of information between payroll, benefits, and human resources Paperless environment, resulting in greater efficiencies and cost savings. Enhanced user experience for HR management and employees.

OneTouch BenAdmin™ includes… Eligibility & Enrollment Qualifying events Open Enrollment Task Management/Workflow Payroll calculations/reports Premium calculations Employee self service –Benefit deductions –Demographics –Employment data New Hire/Onboarding Terminations Carrier File Feeds Broker Portal Document Repository

OneTouch HR™ includes… ACA Reporting (1094/1095) Services Automatic carrier upload of HR data changes Employee Self Service Organization Structure: –Locations –Departments –Jobs –Activities –Projects and/or Clients Employee Self Service Employee Personal Info – address, contact information, driver’s license, I9, job, EEO, etc. Position History Employment/Job profile – license/certifications, training, education, skills, salary range, etc. Analytics HR Reporting All the HR basics in OneTouch BenAdmin™ plus…

SBAM Total HCM Solution Value and Retention Client Employees Agent Ancillary Product

The Employee Wants things now Wants to be able to conduct business anywhere at any time Wants to be efficient and paperless

Needs to be compliant Wants to be integrated Wants to save time and money Client

Needs to compete in a changing world Growth Retention Perceived Value Agent

Needs to provide as much member value as possible Connectivity

Open Enrollments Change Management

How It Works Client/EEs

Add / Change / Deletes Client/EEs

OneTouch HR/BenAdmin™ Pricing

Chris McMillan – Kellie Neirynck – Jeff Thomas – Hub Copp – Questions?