Essenture Broker Revised 2010

The Next Generation of Worksite Marketing


Who is Essenture?

Essenture is a marketing and enrollment company that comprises over 150 years combined experience with their management team. With four principal founders and 9 Regional VP’s spread out in PA, OH, WV, VA, NC and NV, Essenture is a premiere organization in Workplace Benefits. Essenture works to:

• Empower employees

• Strengthen broker/client relationships

• Save Employers’ time, money, and resources


Brief History

Essenture was founded in May of 2006 by four partners who spent most of their career in providing benefits at the workplace. It was born out of the following beliefs:

• Felt there was a better structure than a single company structure

• Recognized the important role Brokers play in the market and placed an emphasis on partnering with them to work as one unit to the client

• Saw an increased need to be flexible to take advantage of a wide array of opportunities


MissionEmpower employees, strengthen broker relationships and save employers’ money.

VisionTo redefine voluntary, supplemental, benefits as benefits that are essential to every employee’s future


Reality of Healthcare

Health Plans Face Cost Spike

Businesses Caught in Benefits Squeeze

The Shrinking Employer $$$$$

Sky Rocketing Deductibles and Co-pays

Today’s employees are at great risk

Cost sharing is a must with ALL Benefits


Employer Need

No direct cost or contribution

Enhances benefit structure

Turn-key education and enrollment service

Delayed billing – no fronting of funds

No coordination of benefits

Bottom line tax savings – through pre tax deductions


As medical bills mount, so does credit card debt36 million Americans carry some amount of medical debt

NEW YORK - Peggie Sherry is a cancer survivor. Her treatment took two years. Even with health insurance, she was left with $40,000 in uncovered medical bills."I would wake up and say, 'Oh my God, I have cancer,' and then the second thought is, 'How are we going to pay for this?'" After depleting her savings, Sherry charged the rest of her medical expenses, some $10,000, to her credit card.


Cambridge Health Alliance/Harvard Medical Study June 2009

• 60% of all bankruptcies caused by Illness and medical bills

• Affected over 2 million Americans

• Over 77% had health insurance

• 56% owned a home and attended college

• 92% direct result of high medical bills

$17,943 average out of pocket – insured

$26,971 average out of pocket - uninsured


Employee Need:

• Convenience of payroll deduction

• Affordability

• Financial security

• Benefits paid directly to employee

• Portable into retirement

• No coordination of benefits

• Customization


ProductsIndividual Worksite

• Short & Long Term Di

• Accident

• Cancer

• Critical Illness

• Hospital Confinement

• Dental

• Vision

• Life

Voluntary Group Products

• Short & Long Term Di

• Accident

• Cancer

• Critical Illness

• Hospital Confinement

• Dental

• Vision

• Life


https://agent.ahlcorp.com/index.asp

https://securewww.bnlac.com/bnlwww/bnlac/index.asp

http://www.illinoismutual.com/


Services

• Professional turn-key enrollment Services

• Section 125 Cafeteria plans

• Employee benefit communication

• Employee benefit statements

• New employee orientation

• Billing administrative services


Services• Benefit survey assistance

• Easy to administer payroll summaries

• Multi-location/Multi-state capabilities

• Comprehensive employee benefit menus

• Voluntary case take-over

• ACH Credit Union services


Why Essenture is Specializing in Worksite Voluntary Benefits:

• Non competitive market with our current broker network

• “Niche” market that requires specialists

• Brings value to all involved

• Meets needs

• Gives choice

• We BELIEVE in what we do !!!


Which issues are your clients facing?


Rising Cost Of Benefits?



RISING COST OF BENEFITS?

Health insurance premium grew 30 times faster than the growth of real earnings during 1999–20071

Source: (1) Kaiser Family Foundation, 2007; (2) Watson Wyatt


Participation in HDHP/HSA health plans

Source: Harris Interactive Study, 2007 www.nejm.org

– 24% implemented a medical plan with a deductible over $1000 in 2007.

– 15% of employers implemented a high-deductible health plan in 2008.

– Of employers surveyed, 80% believed that HDHP/HSAs would help control costs; however, 65% also said they expected these plans would cause consumers to forgo needed health care*.


The Benefit Enrollment Process?



The Benefit Enrollment Process?

• 76% agreed that employees would be more informed of their benefits choices if they speak with an insurance consultant during enrollment.

• From 2005 to 2007 the number of employees interested in having benefit advisors at the workplace increased from 11% to 47%.

Source: Carrier Proprietary Broker Study 2008

Enrollment Study


Communicating Benefits & Educating Employees Effectively?




– In a recent Watson Wyatt study the following was concluded…

Source: “Benefits 101: Would Your Employees Pass the Course?, 2007”

Communications Perception of Employee

Strong benefit package Poorly communicated 22% happy with benefits

A less rich benefit package Strong communication 75% happy with Benefits



– 85% agreed that one of their biggest challenges is getting employees to understand their benefits.

– 76% agreed that employees would be more informed with their benefit choices if they sat with an insurance consultant during enrollment.

– Over 75% agree that a well communicated benefits program leads to reduced turnover.

– 65% stated they do not have the HR staff to effectively communicate the benefits.

Source: “Benefits 101: Would Your Employees Pass the Course?, 2007”


Worker’s Comp Challenges?



Worker’s comp challenges?

• Workers’ comp claims are lower when voluntary accident and disability is offered, especially among mid to large size employers.

Company Size Strongly Agree

100-999 46%

1,000-4,999 65%

5,000+ 58%

Source: American Family Life Assurance Company of Columbus Proprietary Broker Study 2008

Source: LIMRA Survey 2008 for American Family Life Assurance Company of Columbus


Worker’s comp challenges?

• What day of the week are approximately 60% of comp claims filed?

• Larger deductibles implemented due to rising cost of healthcare and employees not having Accident, Short Term Disability coverage leaves opportunity for a weekend accident to become a fraudulent worker’s comp claim.

• This has an adverse affect on the business and the employees as a result of less revenue, increased overhead expenses and lower pay for employees.Source: American Family Life


Employee Request For More Benefits?



Employee Request For More Benefits?

Source: “Worksite Solutions Strategic View for Cambridge Advisory Group Inc”, 2007


HOW CAN ESSENTURE HELP?


Review Case Studies


Why Use Essenture?• TIME! – How much time do you spend meeting

with various carrier reps and looking over products to see what fits for your client?

• MONEY! – How much more money can you make by prospecting new clients are serving your existing ones instead of doing voluntary benefit research and comparisons?

• DUE DILIGENCE! - Have the piece of mind of knowing that you are taking the best value and product fit back to your client in black & white.


Why Use Essenture?• Experience – Our management team brings

over 100 years of practical experience in the field in VA alone.

• Professionalism – “seasoned enrollers”• Dedication –The market we know the best

…… voluntary benefits !!• Commitment – To our Business Partners,

Business Providers and to those we serve !!

Essenture Broker Revised 2010

Documents

worksite voluntary benefits

workplace benefits

rising cost of benefits

medical plan

benefit enrollment process

employee need

medical expenses

hdhphsa health plans