Benefits Technology. Integrated Platforms. Health Brokers. Service. HAPPY Client!!! - Jay Butcher Benefits Selling Expo

Transcription

1 Health Brokers Benefits Technology Service Integrated Platforms HAPPY Client!!! - Jay Butcher Benefits Selling Expo April 8, 2011

2 Introduction Jay Butcher Managing Partner, Netchex Benefits cell Netchex develops technology for Agents to bring to their clients that better connect that Agent to the Client and their carriers.

3 What I m hearing From Agents I know the feeling!! You will understand, but you won t GET IT until you are behind the wheel!!

4 Why is change happening NOW?! Healthcare Reform (PPACA) Clients have been asking for more consolidation for years New competitors have increased their benefits marketing activity Technology has forced change in almost every industry, now it s our time. - We have huge capacity to reinvent existing industries. (ie. - Music Industry, product is same delivery changed)

5 Blue Ocean Strategy Challenges companies to break out of the Red Ocean of bloody competition, by creating uncontested market space that make the competition irrelevant. Instead of dividing up shrinking demand and benchmarking competitors BOS is about growing demand and breaking away from the competition.

6 Red Ocean = known market space, boundaries are clearly defined and the rules of the game are known. Competitors try to out perform one another to grab a greater share of the existing demand. If customer demand goes down or competition increases then services become commoditized. As activity increases oceans become more bloody.

7 Blue Ocean = unknown market space. - Creates demand by expanding existing industry boundaries. - Rules of the game are waiting to be set. - Red waters will always be important to provide practical frameworks for creating Blue Oceans. - Blue waters are largely unchartered. - Less than 30 years ago these were Blue waters Cell phones Express Package Delivery Coffee bars Snowboards

8 Case Study Cirque de Soleil 20 years of revenue Benchmarks pointed to limited growth Declining Customer base.children with more options Revenue falling per customer Competitive Based strategy unattractive industry Created uncontested market space that made Ring Bros. and B&B irrelevant Targeted Corporate customers and adults Increased profit per ticket The 1 st Cirque production was titled We reinvent the Circus

9 Today s Broker SERVICE is my differentiator - Consultative - Actuaries - Review plans for better renewal rates Rely on our clients to provide us with timely info. Have no visibility into what Benefits activity is happening at the client level until they stop their workflow to send it. How do you get census information today? How do you get COBRA information today? Do you support enrollment for clients? How? Do you provide Total Comp statements. How?

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11 Today s Client - Product vs. Process Health Broker.selects Carrier Track Eligibility - 90 Days First of Month Enroll employee - Online or Manual Update Voluntary Deduction in Payroll Communicate election to Carrier Issue COBRA Notice 401(k) Broker.selects Carrier Track Eligibility - 12 months eligibility Enroll employee - Online or Manual Update Voluntary Deduction in Payroll Communicate election to Carrier - Set up any Loans in Payroll Worksite Broker.selects Carrier Track Eligibility - Eligible anytime Enroll employee - Online or Manual Update Voluntary Deduction in Payroll FSA.selects Carrier Track Eligibility - 90 Days First of Month Enroll employee - Online or Manual Update Voluntary Deduction in Payroll Communicate election to Carrier Issue COBRA Notice CLIENT COBRA Receive Bills from each carrier Reconcile Bills not against Active Employees but Payroll Make payments TOTAL COMPENSATION STATEMENTS

12 Co t of Administering Benefits Error on inputting Voluntary Deduction typo or doesn t match Election. Hourly Employee doesn t work enough hours to cover deduction Employee is on Leave Open enroll or Life Change...change coverage but not deduction. Terminated employee is on the bill months after termination Employee on Vacation, but not enough PTO hours.

13 The Evolved Broker/Client CLIENT BROKER

14 Tomorrow s Broker/Client/ Employee Integrated Experience Is Better For ALL!! Clients Enjoy One call for service Consolidation.meaning that they want to manage Payroll, 401K, Worksite, HR, Time, Health and Core Benefits from ONE platform. Tools to manage their 2 nd largest business expense. Compliance without stopping their work flow (PPACA, COBRA, Taxes, etc.) Employees Enjoy Enrolling online with spouse at home. Reprint W2 or Paycheck anytime. Summary of Benefits available anytime. Request time off online and see balances real time. View work schedule online Brokers Enjoy Additional revenue - Payroll - 401K - Worksite - LTC, other?? Client visibility - Census info - Adds/Changes /Deletes - Eligibles - Reconciliation capable Protect existing clients Offensive Differentiator

15 Can you resist Evolution? Maybe but Technology will NOT let you stand still. You must somehow remain nimble!!

16 If Technology.which partner? o Non-Competitive o Revenue share available o Sales and Service support for all products - Payroll - 401K - Worksite - Time clocks.etc. - COBRA o Broker Portal for client activity o Automated products submit payroll & done.

17 Ready for Take Off??? Jay Butcher