Presented By: Robert M. Heffernan, MBA, CFP®

President, Benefits Technologies

Partnering With

Benefits Technologies

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• Introduce Benefits Technologies.• Why supplemental benefits?

– For your client– For you

• Explain our business philosophy & process.• Next steps.

– Pilot program - Success breeds success.– Two pronged approach to your clients.

Agenda

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• Enrollment Solutions Specialists • Over 80 full-time insurance professionals – 22+ years experience• Over 300 contracted Benefit Specialist across the country• 2,000 active client groups across the nation

• Employing over 1.5 million people nationwide• Group sizes ranging from 50 to 130,000 employees• Tools and resources to help employees make informed decisions

Who We Are

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• Our Services– Wide Variety– Partnership with professionals

• Power of Options– No “cookie cutter” approach– Unique circumstances– Specific needs

• Enrollments– What fits best (Business Activities;

Demographics; etc.)– Goal: Educated employees making

informed Decisions• We listen closely to the needs• We assess the whole picture • We offer solutions

• Service and Administration

What We Offer

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By the Numbers:

44% Employer may reduce benefits65% Having enough money to cover

increasing out of pocket costs

Only 25% have 3 month savings cushion

59% Premature death52% Premature death of a spouse

Why Supplemental Benefits?

Reduced benefits Out of pocket costs Premature death Premature death of spouse

44.00%

65.00%59.00%

52.00%

Benefit Concerns

Employee Concerns

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68% Important in managing health care costs

66% Feel they are more financially secure

40% Broader selection of voluntary benefits

43% Interested in working with a benefits specialist

Market Trends & Industry Statistics

Employees Agree Solution – Offer Supplemental Life & Health Protection

68.00% 66.00%

40.00% 43.00%

Employees Agree Supplemental Benefits Offer Protection

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Percentage of employees responding favorably to their benefit package:

Perception is Reality

Those with above average healthcare

benefits

Those with below average healthcare

benefits

With effective benefit communication

83.6% 76.2%

Without effective benefit

communication

25.7% 22.1%

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• Stronger relationship with your client– Protects you from someone else bringing

this to the table– Demonstrates “Full Service” feature of

the BOK

• Referral Revenue*– 250 employee group = $500 - $1,200 in

compensation– 1000 employee group = $1,000 - $5,000*Depends upon participation, products & conditions

What Can This Partnership Do For You?

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• Broker/Consultant Mentality - Objections• Historically core benefit focused

• Belief – many consultants don’t buy into it. Don’t want us diluting the value of benefits

• Healthcare Reform threatens Brokers livelihood

• Health Insurance covers everything medically but not everything financially

• Spreadsheets can be helpful

• Decisions are made based on contractual provisions

• VB products are not mirrors of each other

• Pricing models - voluntary benefits are a poor value – for right or wrong

• Don’t like heaped commissions

• Many consultants like levelized commissions. Need predictable revenue. The way they are compensated doesn’t fit into the traditional VB model.

• Voluntary benefit counselors push too much product on employees

• Billing and administration not worth the headaches – it jeopardizes my client

Brokers and Consultants Barriers to Voluntary??

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The Challenge!

Get past the prejudice, get past the pricing, get past the spreadsheet – and let’s find a solution for your client!

There are millions of ¼ inch “drill bits” sold each year, but nobody wants a “drill bit”; what they really want is a ¼ inch hole!

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unum

• Benefits Technologies• Leading Producer with every major

supplemental benefit carrier• Preferred Underwriting Concessions

• Most Popular Supplemental Benefits• Permanent Life Insurance• Accident• Critical Illness/Cancer• Disability

• Types of Coverage• Voluntary Group – Identical product for all

employees• Individual – State approved product

Carriers & Voluntary Benefits

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Product Mix Analysis

The right product for the right situation• Product Due Diligence• Comparative Analysis • Make use of the total Benefit Marketplace

• Compensate for Increased Employee Cost Sharing

• Reduce Risk Exposure• Provide assistance through it all

Benefit Options

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The Process

System goes offlineReports generated

Reports are audited to safeguard against

inaccuraciesReports are distributed

Benefits Technologies

provides service after the enrollment

for the employer and employees for the Voluntary Benefit

plans(Billing, general

customer service, claims, perpetual enrollments, etc.)

Post Processing & Servicing

Educate employees on the benefits

made available to them

Assist all employees in selecting or

waiving their benefit options

Those choosing to select benefits, will

receive assistance in choosing coverage

levels, adding/changing

dependents, beneficiaries and

personal data

Enrollment

Beta releaseIn-house testing and

validationBenefit Specialists

account trainingBenefit Specialist

software and equipment readiness

checkLive version

launched

Testing & Training

Communication campaign is

developed and executed

Data validation begins

Configuration of the customized

scheduling & enrollment system

Post enrollment files are defined and file

specifications and delivery are outlined

Communication & Construction

Plan activities and required resources

needed for the project

Data requests are executed

Case Profile is developed along

with roles, responsibilities and

project timelineDefinition Document

is developed

Collaboration & Fact Finding

Agreement to offer our services

Initial set-up meeting

Identify client’s specific goals

Review business

driversDefine the

scope of the project

Inception

With our focused experience, we are proficient in executing enrollment projects successfully using our proven 6 step implementation process

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Pre-CommunicationiSelect Enrollment SchedulerScheduling Efficiency Ensures A Successful Enrollment

iSelect Scheduler

• iSelect Online employee scheduling tool• Used with Call Center and Face-to-Face • Ensures efficient scheduling• Minimizes wait/down times• Enrollment date and time sensitive based on

available Benefit Specialists

• Simple login and user interface• Employee freedom, flexibility & convenience• Time zone flexibility• Customizable with logo and scrolling text

communication

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iSelect Scheduler

Scheduling Efficiency

Easy 3 Step Scheduling Process For Your

Employees

Instant Email Confirmation and

Scheduled Reminder 1 Day Prior

Proactive Approach With Live Monitoring & Report Capabilities

Personal Educational ConsultationsThe professional benefit enrollment specialist provides the “missing link”

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The Benefit Specialists

Professionals with high regard to security and confidentiality Benefit education focused Non-commissioned

Making informed benefits decisions without inappropriate “pressure” Technology savvy on the enrollment systems, call queues, communication messaging and various

other tools necessary to complete their job of educating employees

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Privacy and Security

Multi-Layered Approach to Privacy and Security Taking proactive control over the security of sensitive information following HIPAA

Guidelines and beyond

Physical:• Controlled access to facilities• Protected infrastructure and

equipment• Physically separated networks

as appropriate• Use of headsets for

telephonic enrollments

Administrative:•Only licensed Insurance Professionals

• Background checks by state and Insurance Carriers

• HIPAA Compliance and Confidentiality Agreement

•Strict security training• Best practices for data

transmission and storage•Periodic security protocol review

Technical:• Enterprise-class anti-virus and

firewall software• Multiple security zones• Enrollment systems use SSLv3

and 128-bit encryption• Secured software-based VoIP• Encrypted data transmission

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The Power of OPTIONS

Professionalism Our consultative approach ensures that your employees are getting “best-in-breed” benefit programs and that you understand how the programs help your employees

Education Our experienced non-commissioned

benefit enrollment specialists ensure that your employees make educated

benefit decisions for themselves and their families

Customization Our entrepreneurial approach result in unique solutions and custom branding for each client

Proven ProcessOur state-of-the-art-

enrollment/communication strategies ensure that all

aspects of your enrollment are successful from the pre-

communication campaign through post-enrollment wrap

up

Cutting Edge From our front end state-of-the-art enrollment system to our back end technology/data management systems, we use customized software to make sure that we are providing the most efficient and best enrollment process available

Why Benefits Technologies?

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• Pilot Program– Identify suitable clients– Initial Contact

• Use Enrollment Questionnaire• Setup Questionnaire

– Set follow-up appointment with BENTEC representative

• Success breeds success

Moving ForwardNext Steps

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Employee Enrollment• Do your clients have….• a geographically challenging population?

• outdated or missing employee data?

• a self service enrollment system with low utilization?

• Do your clients still…• enroll their benefits on paper?

• manually key in employee elections?

• pay for communication services?

Administration• Are your clients….• paying for ineligible dependents on the benefit plans?

• bogged down with ongoing plan administration?

• having difficulty with new hire processing?

Get into their HeadsTalk Their Language

Feel Their Pain

Advantages Of Offering Voluntary Benefits

Prudential 2011

2008 vs. 2011

2008* 2011** Change

Voluntary benefits often cost less than if you purchase the same benefits outside the workplace 39% 49% +10

Voluntary benefits offered by your company give you access to a wider range of useful benefits than you might otherwise have available

33% 47% +14

I don’t know enough to say 27% 13% -14

*2008 base: Percentage of all plan participants**2011 base: Percentage of plan participants whose employer currently offers one or more voluntary benefit

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The Power of OPTIONS

Questions?

Benefits Technologies