Benefitfocus.com and IBM announce project partnership

Mt. Pleasant, SC, June 24, 2002 – Benefitfocus.com,Inc. and IBM today announced a complete innovative Internet and kiosk-based Electronic Enrollment Solution for health insurance carriers.

Benefitfocus provides the software application technology, client
implementation services, and ongoing client support. The solution is based
on an IBM technology infrastructure, including IBM hardware, hosting
services, security and disaster recovery capabilities. This Internet and
kiosk-based solution is designed from the ground up to be multilingual
capable as well as easily adapted to an individual carriers own private
label and web site standards.

This solution is rapidly deployed in an IBM hosting facility or can be set up directly in a health insurance carriers own data center. The technology exchanges enrollment information in industry standard HIPAA 834 EDI transaction sets or proprietary data exchange formats. Data is dynamically integrated with the carriers existing membership and billing systems.

The Benefitfocus and IBM offering is built 100 percent around Internet architecture, making the solution accessible to virtually any health insurance client or member. This solution has been designed for use with innovative touch-screen kiosks placed at corporate locations. These kiosk stations become a year round 24/7 access point for all employees to get updated human resource and benefits information.

A combination of factors is driving the incredible demand for Electronic Enrollment within the health insurance industry. Legislation such
as the Health Insurance Accountability and Portability Act (HIPAA) and the
E-Signs Act paved the way for Internet and kiosk-based Electronic Enrollment
and communication of benefits. Additionally, replacing costly error prone
paper-based enrollment processes with Internet technology is unlocking
millions of dollars of savings for carriers. Finally, the adoption of new
consumer-driven health products, along with market demand of corporate
clients, have all resulted in a massive adoption of Internet-based
Electronic Enrollment, by health insurance carriers, for their groups.

“We have seen for some time the emergence of Internet technology in
the health care marketplace. Possibly the most exciting area in health care
where change is taking place is the rapid adoption of consumer-driven health
products combined with replacement of paper with innovative Electronic
Enrollment technology,” says Pat Falotico, vice president, sales, SMB
Americas, Emerging & Competitive Markets, IBM. “The combination of IBM
technology with the Benefitfocus solution, provides the health care world
the best that IBM has to offer in security as well as hosting technology and
infrastructure, combined with the tremendous innovation and support of
Benefitfocus.”

This new Internet and kiosk-based solution provides the secure, robust ability to rapidly deploy this technology for health insurance carriers and their clients. Additionally, as security is a major concern of health insurance carriers, Benefitfocus and IBM have designed and developed the solution around the most substantial security practices available. This solution is deployed in conjunction with the health carrier’s internal security policies and procedures, as well as the substantial resources of the IBM security practice.

“We have built a robust and scalable Internet application for health insurance carriers,” states Doug Moreland, Chief Technology Officer of Benefitfocus. “Our combined deployment with IBM brings further enhanced scalability and security to the overall system. This gives any health insurance carrier the peace of mind that they have leading edge technology combined with substantial technology resources to stand behind it.”

Benefitfocus.com, Inc., 2001 Emerging Business of the Year award winner, is the leading producer of employee benefits software for use via the Internet and easy to use touch-screen kiosks. Its application provides employees and employers 24/7 access to all benefits and HR information securely over the Internet. Noted for its ease-of-use, the Benefitfocus application allows even unsophisticated users the ability to find information and make changes on all employer sponsored benefit programs.

Linking this data to payroll vendors and benefits providers, the
Benefitfocus application seamlessly exchanges data reducing errors and costs
associated with traditional paper-based forms. This allows companies to
focus on the benefits and not on the paperwork. Benefitfocus can be reached
at 843-849-7476 or via the Internet at www.benefitfocus.com.

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