Dependent Eligibility Audits

1
AFLAC
How To Use

• Dependent Eligibility Audits

To Grow Your Business
The Big IDEA ? Internet Dependent Eligibility
Audits
2
Whats Important to Brokers?
ClientValue
CommissionIncome
MarketShare
GROW
ADD
INCREASE
3
Dependent Eligibility Audits
We find and remove ineligible dependents
4
Benefits to Employer
REDUCE
DECREASE
MAINTAIN
HealthcareCosts
Plan FiduciaryResponsibility
Claim Risks(stop loss)
5
Employer Trends
70
3,000
4-8
Percent of large firms over 2,000 employees
conducting audits
Average annual cost to provide dependent coverage
Percent of dependents found by audits to be
ineligible
6
Results From Hospital Audit
Dependents2,400
Dependents Removed7.8
1st Year Savings393,498
7
Results From Manufacturer Audit
Dependents4,500
Dependents Removed6
1st Year Savings750,000
8
Results From School Audit
Dependents700
Dependents Removed6.8
1st Year Savings300,000
9
Significant Income Growth Opportunity

Employee Interviews
Broker Income
Mandatory Audit Process
10
Employee Interviews
The Counselor Process

• Meet Individually with Employees
• Complete Web-Based Affidavit
• Explain Document Requirements
• Offer Aflac Voluntary Products

11
Project Stakeholder Roles and Contributions
The Big IDEA
Impact
Broker

• SPD Review
• Customized Website
• Counselor Training
• Document Adjudication
• Post-Audit Reporting
• Communications Templates
• Employee Call Center

• Sell the Account
• Select Counselors
• Choose Products
• Provide Project Timetable
• Schedule Employee Appts
• Manage the Project
• Enjoy the Results

Dependent Eligibility Audit Aflac Product
Offering
PLUS
12
Benefits of the Big IDEA
Benefits You Receive for your business
Benefits You Provide for your clients

• Face-to-Face Opportunity
• Sell More Product
• Differentiation from Others
• Viewed as Problem-Solver
• Open Additional Doors
• Close More Accounts

• Remove Ineligibles
• Update Dependent Records
• Gather Additional Data
• Reduce Healthcare Costs
• Reduce Claim Risks
• Meet Fiduciary Responsibilities
• For better HR decision-making (spousal
  carve-outs, SSN reporting, etc)

13
Typical ROI on Audits
Client Profile

• 1,000 Employees
• 500 with Covered Dependents

• 1,000 Dependents
• 3,000 Average Annual Healthcare Costs

Percent Removed 3 5 8
1st Year Savings 90,000 150,000 240,000
Savings Over 3 Years 219,600 371,000 585,600
Communications Cost 1,500 1,500 1,500
Return on Investment 60 Times 100 Times 160 Times
Letters to employee homes