Benefitfocus and NASCO announce strategic alliance

Charleston, S.C. – Dec. 16, 2010 – Blue Cross(r) and Blue Shield(r) (BCBS) Plans can now take advantage of a certified, integrated solution that combines the BENEFITFOCUS(r) Platform for shopping, enrolling and managing benefits with NASCO's back-office systems for claims processing, membership and billing. The combined solution offers proven, scalable data integration between Benefitfocus' Web-based Platform and NASCO's membership system, MembersEdge(r). This allows BCBS Plans to make the latest technology available to their customers without a lengthy implementation or a cost-prohibitive investment in custom software.

"NASCO and Benefitfocus have strong existing partnerships with Blue Cross and Blue Shield Plans. Together we have a deep understanding of the unique technology and business needs of these Plans," said John Lagada, CEO of NASCO. "This alliance is an expansion of a long relationship with Benefitfocus. We have worked together for several years to bring complementary solutions to market."

Several BCBS Plans have already implemented joint offerings from NASCO and Benefitfocus. Blue Cross Blue Shield of Michigan currently uses the companies' combined billing solution for its consumer, small and large group markets. Benefitfocus and NASCO also provide CareFirst BlueCross BlueShield with online enrollment and automated data exchange in the large group market.

"We're eager to work with NASCO to offer online enrollment and billing capabilities to Blue Plans," said Shawn Jenkins, President and CEO of Benefitfocus. "We share a common goal of delivering the technology they require to operate efficiently, maintain a competitive advantage and expand their customer base."

Insurance carriers are increasingly interested in technology delivered via Software as a Service (SaaS). Benefitfocus SaaS solutions offer reduced implementation and maintenance costs because technology upgrades are quickly and automatically deployed. This allows insurance carriers to meet the increasing demand for value-added technology as market needs and consumer expectations evolve. The combined Benefitfocus and NASCO technology is now available to BCBS Plans.

About NASCO
Formed over 22 years ago through a partnership among several Blue Cross and Blue Shield Plans, NASCO provides information technology solutions designed to ensure that Plan members' insurance claims are paid accurately and efficiently. NASCO's Plan customers benefit from an integrated claims processing system, a highly configurable membership solution, and a multitude of performance-based services designed to improve operational efficiencies and reduce costs. Having processed over 1 billion claims, the NASCO Processing System is unsurpassed in the market for reliability, flexibility, scalability and operational performance. For more information, visit www.nasco.com.

About Benefitfocus
Benefitfocus is the largest healthcare and voluntary benefits software provider in the U.S. with 11,147,387 consumers, 329,026 employers, 57,537 brokers and 3,009 carrier representatives live on the Benefitfocus Platform. Benefitfocus offers a single Web-based platform for benefit shopping, enrollment, management and industry-standard data exchange. Benefitfocus – All Your Benefits. One Place. www.benefitfocus.com