Technology Innovator Recognized for Best Practices in Processes and Controls

Charleston, S.C. – Jan. 5, 2011 – Benefitfocus, the largest U.S. healthcare and voluntary benefits software provider, today announced the successful completion of its Statement on Auditing Standards No. 70 (SAS 70) Type II certification. The certification was awarded by independent accounting and auditing firm Ernst & Young, LLP and follows Benefitfocus' SAS 70 Type I certification. SAS 70 provides valuable documentation to Benefitfocus customers and confirms that the Company meets or exceeds industry best practices for system controls. It also verifies that the Company is following procedures to ensure data accuracy and security.

The SAS 70 certification demonstrates that Benefitfocus has efficiently-designed controls and repeatable processes for client-facing products and services in the areas of discovery, engineering, delivery, implementation and production support, and affirms that the controls are operating effectively. The SAS 70 controls are a significant part of Benefitfocus' business management and technology development, ensuring that data processed through the BENEFITFOCUS(r) Platform is sufficiently audited, logged and reported for accurate inbound and outbound delivery.

"Our customers, which include some of the largest insurance carriers and employers across the country, rely on Benefitfocus to manage key components of their businesses, including delivering accurate data to health and voluntary benefits providers, TPAs, financial institutions and employer payroll systems," said Benefitfocus Chief Operating Officer Andy Howell. "After a three year investment in technology processes and controls, this certification reiterates our ongoing commitment to providing operational excellence to our customers."

The SAS 70 Type II certification for Benefitfocus is an expansion of the SAS 70 Type I certification the company received in August 2009. SAS 70 Type I identified 10 control categories and 53 individual controls as critical to the safety and security of the business information and data that Benefitfocus manages for its customers. SAS 70 Type II includes the results of testing against the identified controls by Ernst & Young.

SAS 70 is an international auditing standard developed by the American Institute of Certified Public Accountants (AICPA). A SAS 70 report validates that a service organization has been through an in-depth audit of its control objectives and control activities, which includes information technology and related processes. These audits demonstrate that a service organization has adequate controls and safeguards in place when hosting or processing its customers' data.

About Benefitfocus
Benefitfocus is the largest healthcare and voluntary benefits software provider in the U.S. with 11,116,157 consumers, 329,071 employers, 58,824 brokers and 3,015 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