eBenefits Network Sales Training for Infinisource February 2014

1. eBenefits NetworkSales Training for InfinisourceFebruary 2014

2. Today’s Topics • What is eBenefits Network? • Overview • Key capabilities • Carriers • How it works • Set-up & production processes • Small group enrollment (SGE) support • Open Enrollment (OE) support • Marketing & Selling • Market segmentation • Target prospect profile • OE-driven buying cycle • Positioning benefits to customer (employer) • Marketing & sales materials available 2

3. What is Ebenefits Network? 3

4. What is eBN? Medical Dental iSolved eBN Life Employee Enrollment Data • Cloud-based • Automated • Employee enrollment data exchange 401k, FSA Others 4

5. Key Capabilities • Secure end-to-end data exchange; HIPAA privacy compliance • Large carrier network (over 300 health & non-health today) • Supports all carrier data formats • Supports hosted and on-premise deployments • Automatic scheduling and file transmission • On-going EDI/file management (including OE support) • Initial and on-going customer and carrier communications 5

6. Carrier Network (April 2013)

7. How eBN Works customers (iSolved Users) Benefit Carriers Employee enrollment data eBN Cloud Server Carrier File-out eBN Web Service Data mapping, translation & validation Standard data formats (HIPAA 834, etc.) Carrier-specific data formats All file types Extract employee enrollment data From iSolved system Transmit to cloud server Workflow & business rules Virtual connections Scheduled, triggered, on-demand Secure and Private

8. eBN End-to-End Process Pre Set-Up Carrier Set-Up Regular Processing Production (eBN) Testing (eBN) Preparecustomer DB (customer/Infinisource) Data Mapping (eBN) • Generate data set • customer Data Analysis • Carrier Business Rules • customer-carrier data mapping configuration • Complete Data Transformation • customer Test File • Carrier Testing • Data Reconciliation (customer & carrier) • Transmission Schedules • Monitoring transmissions • Manage data Discrepancies • Performance analytics • Define plans • Enter data • Validate database Multiple test cycles may be required, Based on qualify to customer’s data 8-10 weeks (estimate) 8

9. Small Group Enrollment (SGE) Support • What is SGE Support? • Intended for use with carriers that do not support EDI inputs from employers due to small enrollment sizes. • Instead the carriers may accept alternative inputs from these “small group” employers • Manual data entry via carrier-provided secure Web portal (becoming more common) • For SGE customers whose carriers support Web portal or spreadsheet inputs, eBN… • Automatically extracts the enrollment data from the iSolved system • Performs the manual data entry into the carrier portal on behalf of the employer 9

10. How SGE Support Works in eBN • Enrollment data automatically extracted from iSolved per the schedule. • Changes Report generated by comparing current data to last. This identifies all adds/changes/terminations. • Work Order triggered to the eBN data entry team. • eBN staff log in to carrier portal (using employer-authorized log in credentials) and manually enter the changes. • Email sent to employer confirming that the changes were successfully entered. 10

11. Guidelines for Selling eBN with SGE • Many carriers have group size minimums that fall below 100 lives • Check with eBN team before selling eBN to customers with <100ee size • Provide customer name & location • Carrier names and contacts • eBN will check if SGE can be supported by the carriers • SGE support (if available) is included in regular iSolved eBN pricing 11

12. About Open Enrollment (OE) • Most benefit carriers designate a “plan year start date” – driven by health insurance – 66% Jan 1st • Carriers need electronic submissions to be delivered 2-4+ weeks in advance of plan year start date. • Employers offer a 1-4 week window each year in advance of this date for employees to change/renew their benefit elections for the new plan year. • Employers often make changes prior to OE and new plan year start • Change plans and/or renegotiate rates with current carriers • Add/drop carriers • Replace carriers 12

13. Aligning eBN with OE Process customer: 3 wks 3 wks 2 wks 1 wk Add/Change Carrier… OE End iSolved Updated OE Start Elections Approved; Data to Carrier (customer) Plan Year Start ~8 weeks from carrier negotiation complete until plan year starts eBenefits Network: 6-8 weeks eBN ordering Guidelines: Existing iSolved – 6 weeks New iSolved – 12 weeks (prior to OE start date) Elections Approved; Data to Carrier (customer) Plan Year Start Carrier Connection Tested & Approved iSolved Updated ~8-10 weeks from iSolved ready to approved carrier connection

14. eBN Open Enrollment Support • Existing eBN customer Carrier • Update carrier map with any changes • Read the approved OE elections from iSolved • Send the elections to carrier automatically on next scheduled post-OE file • Can over-ride auto schedule and send OE elections on-demand if needed to meet a carrier deadline • New or Add-On Carrier • Create the map for the new carrier • Coordinate testing approval to coincide with carrier’s deadline • Read the approved OE elections automatically and send to carrier • Can send a “one-time” enrollment file to carrier if testing approval cannot meet deadline (if carrier supports) 14

15. Guidelines for Selling eBN with OE • Determine customer’s OE dates: • OE start and end dates • Plan year start date • Follow order submission lead-time guidelines: • Existing iSolved user – 6 weeks before OE start date • New iSolved user – 12 weeks before OE start date • Be aware of the Fall OE “Season” and work closely with eBN team to plan orders & implementations • 66% of customer OE’s done in Sep, Oct, Nov for Jan 1st plan years • Some carriers may have cut-off dates for starting new connections • Carrier responsiveness may be slower during this time 15

16. Marketing and Selling 16

17. Market Segmentation 75,000 Employers 85,000 Employers 160,000 Employers • Outsource: • HRO • PEO • Broker • TPA • In-house: • HRIS • Payroll Services (HRIS) • Ben Admin Platforms Ben Admin Alternatives/Competitors To Your Solution 17

18. Why Include eBN in Your Solution? Over 50% of employers consider carrier connections to be “Very” or “Somewhat” important Sixth Annual Study of Employee Benefits: Today & Beyond. Prudential Group Insurance, 2011

19. Target Prospect Profile • Administers employee benefits In-house • Uses iSolved to administer benefits • 100+ benefits eligible employees (FT active + LOA) • You will likely find: • 3+ carriers (medical, dental, vision, 401k, FSA, COBRA…) • They do manual enrollment updates to their carriers • They do manual carrier premium billing reconciliations in-house 19

20. The OE-Driven Buying Cycle • Annual Open Enrollment is the single largest challenge and resource drain on the HR department every year. • Every employer offers their workforce an annual 2-4 week “open enrollment” period to select new plans and make coverage changes. • In the months leading up to OE, your customers are: • Negotiating new plans and rates with their carriers • Selecting new carriers • Communicating with employees, • and … making benefits admin technology and service purchasing decisions! 20

21. The OE-Driven Selling Cycle Employer Annual OE Period • October – December for January 1st plan year • 2/3 recently completed their 2012 OE • The challenges of OE are fresh on their minds • Beginning new planning & purchasing cycles for OE 2013 • January - September • 1/3 are gearing up for 2013 OE now • In planning & purchasing cycles now.

22. eBN Ordering Guidelinesto Meet customer OE Start Dates

23. Positioning 23

24. Santeon eBenefits Network Taking the Mystery Out Of Electronic Benefit Carrier Connections

25. Why Automate Carrier Enrollment Reporting? • Improve and simplify annual open enrollments • Eliminate cost “leakages” • Keep your enrollment data in synch with your carriers • Improve employee benefits usage experience • Simplify and reduce benefit admin burden on HR • Comply with current and evolving legislative and regulatory requirements 25

26. The Old Way: Manual Burden How do you report enrollment changes to your carriers today? • Write custom reports/programs to isolate and flag changes • Enter changes manually into carrier websites (as well as into iSolved!) 26

27. The Old Way: Manual Burden How do you ensure that carrier’s enrollment records are correct? • Perform data reconciliation analyses against carrier reports (i.e., premium billing invoices) • Manual process • Time consuming • Involves HR, accounting and IT 27

28. The New Way: Automated Electronic Benefit Carrier Connections

29. Key Capabilities • One Internet connection to all your benefit carriers • Automated scheduled file transmissions, no user intervention required • Complies with HIPAA privacy requirements • Connects over 200 benefit carriers today (med, den, vision, drug, FSA, COBRA, life, LTD, STD…) 29

30. eBN Helps ImproveOpen Enrollment Performance • The “last mile” of the open enrollment process: • Getting your employees’ annual elections to your carriers • Short deadlines to make the carrier’s cut-off for new plan year 30

31. eBN Open Enrollment “Back End” Solution The eBN service becomes part of your OE planning and delivery team to handle carrier data-delivery tasks 31

32. eBN Helps Reduce Costs How do enrollment cost “leaks” occur? • Enrollment errors due to multiple manual data entry points • Carrying terminated employees or ineligible members on plans due to reporting delays eBN plugs these leaks via regular and automatic enrollment reporting 32

33. Reducing Health Plan Premiums • The largest cost is group health premiums • $10,251 average annual premium (workers contribute 23%)* • $7,893 ($658/mo) employer cost per employee • Enrollment errors impact costs and employee experience • 5% - 7%+ enrollment error rate impacting premium costs** • $22,800 = 300 employee company potential annual cost savings by eliminating these errors • 300 employees x 77% enrollment rate*** = 231 members on plan • 231 members x $658 = $151,998/mo employer premium • $151,998 x 5% = $7,600/mo due to errors (12 employees w/errors) • $7,600 x 3 = $22,800 based on carrying the errors for 3 months • * Kaiser Foundation 2011 • ** GAO, Minnesota 2007, Arizona 2012 • *** AHRQ 2004 33

34. eBenefits Network ROI - Example < 3 months payback possible 34

35. eBN Helps Improve the Employee Experience eBN catches “missed enrollments” • Why might employees or dependents be denied coverage at point of service? • No carrier record of employee or dependent coverage • Recent coverage changes not processed by carrier 35

36. Pricing & Ordering 36

37. Pricing • Carrier Set-up (each carrier connection) • Monthly recurring (PEPM) 37

38. How to Place the eBN Order • Key Info Needed • customer ID and contact information • Vendor (carrier) ID’s with carrier contact information • Types of plans carrier is providing (medical, dental, life, etc.) • # of employees • Open Enroll period (EO start & end dates) • Plan year start date • Order Submission Notes • Indicate Direct/Partner or Reseller Sale (include reseller info) • Process order to Santeon promptly (delays while Partner processes order must be avoided) 38

39. Marketing & Sales Materials Available • Brochure • Carrier List • Industry Papers 39

40. Implementation Process

41. Implementation Process 41

42. Questions? 42

43. For More Information… Caroline Guirguis, Account Manager 813-333-9079 Caroline.guirguis@ebenefitsnetwork.com Tom Tillman, Business Development 813-504-0414 ttillman@ebenefitsnetwork.com