The document discusses challenges facing employers related to rising healthcare costs and compliance with new regulations, and opportunities for brokers to help clients address these challenges through benefits automation, communications, and technology solutions. It outlines how brokers can add value by becoming experts in these areas, leveraging technology to reduce costs while improving the employee experience, and investing savings from automation into communications to boost utilization and decision making.

1. Making the Connection Between Benefits Automation, Communications, and Market Leadership: A Broker Roadmap Ja’Nene Kane | President/COO April 11, 2011

2. Key Challenges There are several factors/challenges that will spur employers/clients to seek outside assistance. Administrative and cost challenges due to healthcare reforms. Figure A (Source: Mercer Survey on Healthcare Reform)

3. Key Challenges Cost reduction mandates Compliance requirements and confusion over new healthcare legislation. Need for mandated and strategic employee communications.

4. MARKET DYNAMICS/OPPORTUNITY

5. There are many opportunities to add value to client relationships by being a leader and expanding consultant roles to include technology and communication tools in addressing current market needs.

6. While many may consider benefits enrollment and administration technology a mature market, expansion forecasts are based on the need to meet ongoing and near-term challenges.

7. Clients will rely on you to provide more value above and beyond conventionally conducting plan comparisons and issuing recommendations.

8. Client Communications Be a consultant. Providing added value is critical with increasingly complex benefit offerings, cost reductions, and healthcare reform. Adding value is crucial to your business with broker commissions included under the administrative cap of the MLR provision.

9. Client Communications Offer proactive solutions – don’t be reactionary. Become an invaluable resource to HR to help with their benefits-oriented decision-making. Shop for creative solutions that serve both your needs and your clients’. Be secure in the performance of solutions you use and recommend.

10. Client Communications Be the expert your client needs. Be prepared, and prepare your clients. Utilize social media: To help you manage client/prospect communication, monitor issues, and support online client communities. To provide effective thought leadership to differentiate yourself in the market.

11. Employee Communications Benefits automation reduces bottom line costs for benefits administration and allows allocation of real dollar savings to other beneficial areas. Communications are important because such programs are not valuable unless employees utilize them, and they are not utilized unless they are publicized.

12. Employee Communications Investing savings from automation in printed benefits communications and online tools that help employees make better healthcare decisions and utilize prevention programs offers a win-win. Clients can invest in communications that show the full value of benefit offerings and assist employees in comparing offerings so they can make sound selections.

13. Employee Communications Figure B (Source: Benefits Selling 2010 Health Care Survey)

14. Employee Communications Figure C (Source: Get America Fit Foundation) Cost Burden of Obesity-Related Conditions to Society and Health Industry

15. Leveraging Technology You are ideally positioned to provide trusted advice on benefit offerings, and to help clients select, implement, and support a benefits administration solution to help them battle health care costs.

16. Leveraging Technology A next-generation benefits administration platform can offer much more than just online enrollment. Benefits automation can also improve the employee experience.

17. Leveraging Technology A flexible system also allows you to efficiently manage multiple clients centrally .

18. Leveraging Technology Building Service Capabilities with Technology Which of the following (if any) are focus areas for technical investment at your firm (select up to two)? Figure D (Source: Benefits Selling 2010 Health Care Survey, Oliver Wyman)

19. Sources Mercer http://www.mercer.com/press-releases/1391585 Ernst & Young http://www.ey.com/Publication/vwLUAssets/Moving_forward_health_care_survey/$FILE/Moving_forward_FINAL.pdf Hewitt http://www.hewittassociates.com/_MetaBasicCMAssetCache_/Assets/Articles/2009/Hewitt_HR_Outsourcing_Study_2009 _Results.pdf

20. Sources National Business Group on Health http://www.businessgrouphealth.org/pressrelease.cfm?ID=162 The Council of Insurance Agents & Brokers http://www.ciab.com/news.aspx?id=1625 Benefits Selling http://www.benefitssellingmag.com/Issues/2010/April/Pages/Brokers-Unite-2010-health-care-survey.aspx?k=Benefits+Selling+2010+Health+Care+Survey

21. Sources Benefits Selling http://www.benefitssellingmag.com/Exclusives/2010/4/Pages/Brokers-unite-2010-health-care-survey-extended-content.aspx?k=Benefits+Selling+2010+Health+Care+Survey Everest Research Institute http://everestresearchinstitute.com/News/10844 IDC http://www.businesswire.com/news/home/20100825005085/en/IDC-Releases-Forecast-U.S.-Employee-Benefits-Outsourcing

22. Sources Pew http://www.pewinternet.org/~/media//Files/Reports/2009/PIP_Health_2009.pdf Get Fit America (Obesity Costs) http://www.getamericafit.org/statistics-obesity-in-america.html Unum http://www.businesswire.com/news/home/20081216005928/en/talk-Boomers-explaining-employee-benefits-gen

23. Thank You! Please address any questions to: Ja’Nene Kane President/COO (916) 421-4000 x1019 [email_address] CONNECT .net