Sage Abra Benefits Messenger Positioning and Pricing for Abra Business Partners

1
Sage Abra Benefits MessengerPositioning and
Pricing for Abra Business Partners
2
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?

3
Todays 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

4
Enrollment Data Management Process
Planning Analysis
Plan Selection Negotiation
Admin Preparations
Planning
Data Verification
Open Enrollment Period
Employee Communications
Initial/Annual Enrollments
New Hires, Terminations, Life Events, Etc.
Ongoing Changes
Enrollment Changes
Carrier Updates
Carrier Changes Take Effect
Data Entry
Data Transfer
5
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

6
Abra Customer Base Benefits Profile
7
There is No Common Data Update Method
How Do You Send Data to Your Carriers?
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
ADD 45 23 10 14 8
8
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

9
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
10
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

11
Abra End-End Benefits Data Management Solution
Abra Benefits Enrollment
Abra HR
Abra Benefits Messenger
12
Sage Abra Benefits MessengerNuts Bolts
13
Carrier Connectivity Process
Insurance Carriers
Abra Benefits Messenger Servers
Benefits Manager
Enrollment Information
Abra HR ABC Utility Required (AWC BE ABC
Utility optional)
Transformed Data
Confirmation
Confirmation
14
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

15
Abra Benefits Messenger Overview
16
Abra Benefits Messenger Overview
17
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

18
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!
19
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

20
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

21
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)

22
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
23
Sage Abra Benefits MessengerPricing Marketing
24
Pricing
Employee Tier Abra 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) (Applies for each carrier to which the customer is connecting)
25
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
carrier Abra Benefits Enrollment implementation
partner determined
26
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

27
Partner Opportunities

• Marketing and selling Abra Benefits Messenger! ?
• Current customer add-ons
• 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

28
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 lt1,000ee
• 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

29
Contact Your Abra RAM

• Questions regarding active opportunities we
  will get answers right away
• Other questions email to RAMs. We will try to
  include in the detailed training/FAQ in December

30
Questions?