private exchanges: build your technology foundation

© 2014 Benefitfocus.com, Inc. All rights reserved. 1

Thursday, July 17 20141:00 – 2:00 p.m. EDT

Dial In Number: 855-307-3005

Conference Code: 62961927

Presented by:

© 2014 Benefitfocus.com, Inc. All rights reserved. 2

Forward Looking Statement:

This presentation may include forward-looking statements related to the future business and financial performance of Benefitfocus and future events or developments involving Benefitfocus. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “might,” “will,” “could,” “would,” “should,” “targets,” “projects” or words of similar meaning. Forward-looking statements can involve a number of risks and uncertainties that could cause actual results to differ materially from those explicit or implicit in the forward-looking statements, including fluctuations in those results, general economic risks, management of growth, the need to innovate and deliver useful products and services, our ability to compete effectively, reliance on key personnel, privacy, security, regulatory changes, and other risks associated with our business as set forth from time to time in our filings with the SEC. Benefitfocus assumes no obligation and does not intend to update any forward-looking statements.

© 2014 Benefitfocus.com, Inc. All rights reserved. 3

Shan FowlerDirector of Product Management, MarketplacesBenefitfocus@ShandonFowler

Tom DuganEnterprise Product ManagerBenefitfocus@tombdugan

Skip SnowSenior AnalystForrester Research, Inc.@SkipSnow

All Your Benefits. One Place.

• Founded in 2000• NASDAQ: BNFT• Headquartered in

Charleston, SC• Offices in Greenville,

Tulsa and San Francisco• Over 23 million

consumers

© 2014 Benefitfocus.com, Inc. All rights reserved. 4

© 2014 Benefitfocus.com, Inc. All rights reserved. 5

1 2PLATFORM MARKETS

© 2012 Forrester Research, Inc. Reproduction Prohibited 6

Healthcare transformation is underway.

© 2012 Forrester Research, Inc. Reproduction Prohibited

The system is pivoting to the consumer:

Payer Provider Pharma Bio Tech Omic

7

© 2012 Forrester Research, Inc. Reproduction Prohibited

Private Exchange Traction

3,000,000 people signed up for health insurance using private exchanges this year New York Times, 6/12/14

This growth was driven by companies of under 1,000 employees New York Times, 6/12/14

Accenture estimates that by 2018 40,000,000 will use private exchanges

The exchange that adds value will prevail

8

© 2012 Forrester Research, Inc. Reproduction Prohibited

Consumer Segmentation is Core

9

Source: Deloitte Center for Health Solutions, 2012 Survey of U.S. Health Care Consumers, 2012 Health Care Consumer Segments

Those who need service are using it via mobile more.

Consumers who use electronic Personal Health Record

Consumers who use paper Personal Health Record

Source: North American Technographics Healthcare Online Survey, Q1 2013 (US)

10

© 2012 Forrester Research, Inc. Reproduction Prohibited

Consumers want health services,but look for savings.

11

75%

26%

25%

23%

78% Higher Deductible

Wellness Program Participation

Less Network Flexibility

Fewer Services Covered

Greater Cost Sharing (e.g. copay)

% of respondents willing to accept tradeoff for reduced monthly premium

Source: Accenture Private Health Insurance Exchange Consumer Research

CX

Patients are empowered

Mobile Mind Shift

mHealth reduces cost and enhances outcomes

Digital Disruption

Flood of new data and tools are changing care

Big Data

Evidence- based medicine

Healthcare’s Age of the Customer

These market imperatives matter for healthcare, too!

12

© 2012 Forrester Research, Inc. Reproduction Prohibited

Zappos Defines Digital Disruption

• People shop in store but buy from web

• Created mobile experience accessible to users in store

• Embraced mobile mind shift

13

© 2013 Forrester Research, Inc. Reproduction Prohibited 14

Turn Big Data into Business Insight

› The data allows for machine generated cognitive insight

Analytics Reveals Evidence

› The New Methodology: Standards of Care are defined by retrospective analysis of big data

Big Data: Google Changes the Game

Google Reveals Flu Trends Faster than the CDC

“We've found that certain search terms are good indicators of flu activity” Google.org Flu Trends 2014

The key to this example is that the way we think about the insights we can gain from the data is unexpected.

15

Image Sources: Google.org Flu Trends, 2014; Google, 2014

Overcoming Bias: The need for choice architecture

17© 2014 Benefitfocus.com, Inc. All rights reserved.

© 2014 Benefitfocus.com, Inc. All rights reserved. 18

© 2014 Benefitfocus.com, Inc. All rights reserved. 19

20© 2014 Benefitfocus.com, Inc. All rights reserved.

© 2014 Benefitfocus.com, Inc. All rights reserved. 21

© 2014 Benefitfocus.com, Inc. All rights reserved. 22

Source: Johnson EJ, Hassin R, Baker T, Bajger AT, Treuer G (2013) Can Consumers Make Affordable Care Affordable? The Value of Choice Architecture. PLoS ONE 8(12): e81521. doi:10.1371/journal.pone.0081521

© 2014 Benefitfocus.com, Inc. All rights reserved. 23

Impacting TrendBending the cost curve

© 2014 Benefitfocus.com, Inc. All rights reserved. 24

© 2014 Benefitfocus.com, Inc. All rights reserved. 25

Q&A

Presented by:

© 2014 Benefitfocus.com, Inc. All rights reserved. 26

Questions?

Contact: Jordan Napper843-284-1052 ext. 6063

Presented by: