Sage Abra Benefits Messenger Positioning and Pricing for Abra Business Partners.

Sage Abra Benefits MessengerPositioning and Pricing

for Abra Business Partners

Objectives

Bring you up to speed on the new Sage Abra Benefits Messenger solution so you can begin discussing it with your customers and prospects What is Abra Benefits Messenger? What customer problem does it solve and how does it work? When will it be delivered? How is it priced and how are we launching it? What is the Abra Partner role?

Today’s Agenda Market need Sage Abra Benefits Messenger

Concept Features & benefits Requirements & compatibility Carrier support

Overview of order, set-up and operations processes Pricing and margins

Enrollment Data Management ProcessPlanning &

AnalysisPlan Selection & Negotiation

AdminPreparations

DataVerification

Open EnrollmentPeriod

EmployeeCommunications

Carrier Changes Take Effect

Data Entry

Enrollment Changes

New Hires, Terminations,

Life Events, Etc.

Data Transfer

Planning

Initial/Annual Enrollments

Ongoing Changes

Carrier Updates

Benefits Enrollment Data Management Common

Internal benefits admin is common in mid-size companies (50-1,000ee)

Complex Typically use multiple providers/insurance carriers, driven by

• Types of plans offered• Competitive ‘shopping’ for cost management

Enrollment data, formats, media & update schedules vary by carrier and plan

Costly Errors in enrollment data between employer and carrier can be costly

• Missed enrollments• Inaccurate billing by carriers• Premium – deduction mismatches

Consuming HR dept. is often responsible for managing data updates with carriers Most carrier data updates are still via paper, but many carriers are moving to require

some form of electronic files

Abra Customer Base Benefits Profile

0% 10% 20% 30% 40% 50% 60%

Abra HR

Manually/Excel

Outsource

Other

How Do You Administer Benefits?

About 90% handle benefits in-house

0% 5% 10% 15% 20%

One

Three

Five

Seven

Nine

More than ten

How Many Plans Do You Offer?

66% offer 5 or more plans

0% 5% 10% 15% 20% 25% 30%

One

Two

Three

Four

Five

More than five

How Many Carriers Do You Use?

69% use 3 or more carriers

0% 20% 40% 60% 80% 100%

Health

Vision

Dental

401(k)

Life Insurance

AD&D

Other

What Types of Plans Do You Offer?

They offer a range of plans

There is No Common Data Update Method

Paper Upload File Email File Other N/A

Health 49% 28% 12% 11% 0%

Vision 40% 15% 11% 8% 26%

Dental 49% 24% 12% 11% 4%

401(k) 43% 36% 8% 7% 5%

Life Insurance 52% 24% 10% 12% 2%

AD&D 45% 23% 10% 14% 8%

How Do You Send Data to Your Carriers?

Sage Abra Benefits Messenger

BPO (business process outsource) service for Sage Abra HRMS

Automates communication of employee benefits enrollment data with insurance and benefit carriers: Establishes the data exchange relationship with each benefit

carrier on behalf of the Abra customer Extracts the benefit enrollment data from the Abra HR database Transforms (reformats) the data to the exact format required by

each carrier Transmits the data electronically (Internet) to each benefit carrier

per the schedule determined by that carrier

Value Proposition – Abra Benefits Messenger

Benefit How Abra Benefits Messenger Delivers

Eliminates complexity of dealing with multiple carriers

Takes care of the details of communicating with all of the carriers

Eliminates costly data entry errors and “missed enrollments”

No data entry required, ABC ensures that data is complete and timely

Saves HR staff time No need to manually prepare data for carriers

Saves IT time and resources IT no longer has to build and maintain separate and custom file links

Makes it easy and inexpensive to switch carriers

Handles all of the setup for new carriers

Other Key Selling Points

Supports virtually all carriers Includes health, dental, vision, life 401(k), disability… Pro-active carrier contracting Respond to specific customer requests Supports wide variety of data formats

Easy to set up and use Only needs Internet connection Technical details with carriers are handled Automatic email confirmation and status notifications

Secure SFTP & SSL, PGP encryption, authentication certificates

When combined with Abra HR and Abra BE, offers a complete benefits management solution

Abra End-End Benefits Data Management Solution

Benefits Manager

Employees

Employees

Insurance Carriers

•Enrollment “Census” Data•Benefit Elections•Dependants•Beneficiaries•Life Events

•Create and manage benefit plans•Analyze benefits data•Census reports•Benefit reconciliation reports•Liability reports

Abra Benefits Enrollment Abra HR Abra Benefits Messenger

Sage Abra Benefits MessengerNuts & Bolts

Carrier Connectivity Process

Insurance Carriers

Abra HR + ABC Utility Required

(AWC BE +ABC Utility optional)

Benefits Manager

Transformed Data

Enrollment Information

Confirmation

Confirmation

Abra Benefits Messenger Servers

Abra Benefits Messenger Utilities

Client side data capture utilities Supplements Sage Abra to support information capture and

transmission• Captures and stores additional employee data, dependent data, benefit plan

data and carrier information• Coordination of benefits• Provider details• Policy number

• Extracts and transmits data sets to central servers• Schedules and performs transmissions at specific intervals• Assists with configuration and trouble-shooting activity

Abra Benefits Messenger Overview

Abra Benefits Messenger Overview

Abra Benefits Messenger Servers

Server side components Receive and respond to end users transmissions Maintain a library of benefit carrier data interchange protocol

requirements Carry out data transformations according to the carrier

requirements Transmit formatted and secured data to benefit carriers:

• EDI: ASC X12 834 standard and extended • ASCII: fixed, comma delimited, tab delimited, etc• XML

Dispatch confirmations and status messages to end user Maintain operational logs to support history of activities

Set-up and Operations Process

Order is placed Messenger Utility CD is sent to customer

Customer installs Utility and begins 5-step process to become connected to benefit carriers

Step #1: Sign Up Request - Welcome email. Introduction of steps and information to be confirmed.

Step #2: Sign Up Verification – Customer verifies information with Registration key, Sage Abra Customer number, password. Customer receives email confirmation that sign up request is received

Step #3: Testing Preparation – Customer receives email confirmation that carriers have been contacted. Customer sends test file

Step #4: Carrier Testing – Test file to carrier verified.

Step #5: Go to Production – email confirmation to customer that test file verified with carrier. Customer downloads the carrier transmission schedule for each carrier. Ready to go live!

Behind the Scenes

Abra Customer Service in St. Petersburg• Process the customer orders

Abra Technical Support in St. Petersburg• Customer contact and support for Data Utilities and transmission concerns

Abra Benefits Messenger transformation servers in Texas• Manage all transaction processes between customer and carriers

Abra Benefits Messenger CRM center in Virginia• Establish and manage all carrier relations• ID carrier formats, protocols, schedules

Requirements & Compatibility

Required: Abra HR

Optional: Abra Benefits Enrollment

Compatibility: v7.5 or v8.2 (or greater)

Internet connection

No additional hardware or software required

Carrier Support

List of supported carriers published to PRO

Carriers not currently supported will be added once order is placed (typically 2-3 weeks additional lead-time) Establish relations Create the transformation mapping Bring up on server (testing and confirmation prior to processing

customer data)

Partial List of Carriers (over 100 currently)Aetna Great-West Healthcare

AIG/US Life Insurance Group Health

Alta Health and Life Guardian Life

American Specialty Hartford Life

Ameritas Health Market

ARC (Administration Resources & Consulting) Health Net

Associated Administrators, Inc. (AAI) Health Plus

Assurant Humana

Avesis Jefferson-Pilot

BCBS of FL Kaiser Permanente

Benefit Coordinators Corporation (BCC) Lifewise Assurance Company

Blue Cross of California (Wellpoint) Mass Mutual Financial Group

Blue Shield of California (BSC) MetLife

California Choice Mutual of Omaha

Sage Abra Benefits MessengerPricing & Marketing

Pricing

Employee TierAbra Benefits Messenger

Annual Service Price

75 900

150 1,650

300 3,000

500 4,000

1000 6,000

Add'l 500 1,000

Add'l 1000 2,000

Set-up Fee 500

(Applies for each carrier to which the customer is connecting)

“Benefits Management Solution” Promotion

Employee Tier

Abra Benefits Enrollment

License (25% of List)

Abra Benefits Enrollment

Support (Annual 100%)

Abra Benefits Messenger

Service(Annual 100%) Total 1st Year

Total 2nd & Additional

Years

75 375 510 900 1,785 1,410

150 870 745 1,650 3,265 2,395

300 1,690 1,235 3,000 5,925 4,235

500 2,095 1,380 4,000 7,475 5,380

1000 2,935 1,925 6,000 10,860 7,925

Add'l 500 520 345 1,000 1,865 1,345

Add'l 1000 1,040 690 2,000 3,730 2,690

Abra Benefits Messenger set-up fee 500 per carrierAbra Benefits Enrollment implementation partner determined

Partner Annuity – Abra Benefits Messenger

Annual service fee 1st Year = 20% 2nd and subsequent years = 10%

Set-up fees = 0%

Orders and billing will be directly between Sage and Customer

Partner annuities are paid from invoiced amounts

Partner Opportunities

Marketing and selling Abra Benefits Messenger! Current customer add-on’s Part of Abra HRMS solution for new customers

Assist customers with Abra Benefits Messenger ordering (help collect required info and submit order form)

Customer benefits consulting opportunities, such as: Benefits planning Data management strategies, processes, etc. Abra HR benefit plan definitions, etc. Abra BE implementations

Abra Benefits Messenger Market Advantages

Expands Abra HRMS capabilities to be comparable with major service bureau offerings ADP HR/Benefit Solution (Employease)

• Hosted-only service; on-going fees• HR/benefits features $3-$6/PEPM + $5K-$8K implementation• Abra HRMS solution is cost-effective in-house/service combination

Positions Abra as fairly unique in HRMS market for <1,000ee Ascentis is the only other HR software vendor offering similar

• Limited - supports health, dental, vision plans• Abra Benefits Messenger is 40%+ less expensive

Easy, cost-effective add-on for installed Abra HR customers

Contact Your Abra RAM…

Questions regarding active opportunities – we will get answers right away

Other questions – email to RAM’s. We will try to include in the detailed training/FAQ in December

Questions?