Making the Connection Between Benefits Automation, Communications, and Market Leadership:

A Broker Roadmap

Ja’Nene Kane | President/COO

April 11, 2011

Key ChallengesThere 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)

Key ChallengesCost reduction mandates

Compliance requirements and confusion over new healthcare legislation.

Need for mandated and strategic employee communications.

MARKET DYNAMICS/OPPORTUNITY

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.

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.

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

Client CommunicationsBe 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.

Client CommunicationsOffer 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.

Client CommunicationsBe 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.

Employee CommunicationsBenefits 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.

Employee CommunicationsInvesting 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.

Employee Communications

Figure B (Source: Benefits Selling 2010 Health Care Survey)

Employee Communications

Figure C (Source: Get America Fit Foundation)

Cost Burden of Obesity-Related Conditions to Society and Health Industry

Leveraging TechnologyYou 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.

Leveraging TechnologyA next-generation benefits administration platform can offer much more than just online enrollment.

Benefits automation can also improve the employee experience.

Leveraging TechnologyA flexible system also allows you to efficiently manage multiple clients

centrally.

Leveraging TechnologyBuilding Service Capabilities with TechnologyWhich 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)

SourcesMercerhttp://www.mercer.com/press-releases/1391585

Ernst & Younghttp://www.ey.com/Publication/vwLUAssets/Moving_forward_health_care_survey/$FILE/Moving_forward_FINAL.pdf

Hewitthttp://www.hewittassociates.com/_MetaBasicCMAssetCache_/Assets/Articles/2009/Hewitt_HR_Outsourcing_Study_2009_Results.pdf

SourcesNational Business Group on Healthhttp://www.businessgrouphealth.org/pressrelease.cfm?ID=162

The Council of Insurance Agents & Brokershttp://www.ciab.com/news.aspx?id=1625

Benefits Sellinghttp://www.benefitssellingmag.com/Issues/2010/April/Pages/Brokers-Unite-2010-health-care-survey.aspx?k=Benefits+Selling+2010+Health+Care+Survey

SourcesBenefits Sellinghttp://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 Institutehttp://everestresearchinstitute.com/News/10844

IDChttp://www.businesswire.com/news/home/20100825005085/en/IDC-Releases-Forecast-U.S.-Employee-Benefits-Outsourcing

SourcesPewhttp://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

Unumhttp://www.businesswire.com/news/home/20081216005928/en/talk-Boomers-explaining-employee-benefits-gen

Thank You!Please address any questions to:

Ja’Nene KanePresident/COO(916) 421-4000 x1019jkane@benefitsCONNECT.net