Benefitfocus.com, Inc.

Blue Shield of California chooses Benefitfocus® Technology

Benefitfocus eEnrollment™ software to simplify healthcare benefits processes

Charleston, S.C. & San Francisco, Calif. – June 24, 2008 – Benefitfocus announced today that Blue Shield of California has selected Benefitfocus eEnrollment™ software technology for its mid-to-large groups enrollment process. Used by group administrators, brokers, members and carrier representatives, the Benefitfocus eEnrollment platform will make it easier to do business with the not-for-profit health plan by enhancing customer service, streamlining data management, increasing consumer choice, and allowing Blue Shield to more efficiently meet consumer demands. Serving more than 3.2 million members throughout the state, Blue Shield has one of the largest provider networks in California.

"Benefitfocus and its eEnrollment product will help us tremendously as we strive to simplify an overly complicated system for our clients and producers," said Paul Markovich, Blue Shield of California senior vice president & chief executive, Large Group Business Unit.

As the flagship product of Benefitfocus’ suite of solutions, Benefitfocus eEnrollment replaces conventional paper-based enrollment with an easy-to-use, Web-based automated application. Benefitfocus eEnrollment also offers additional tools for benefit management and administration, including coordination of benefits support, COBRA administration support and secure messaging, allowing all forms of eligibility to be completely automated while ensuring appropriate changes for new hires, termination and life events occur seamlessly.

"We are very excited and honored that Blue Shield of California has chosen Benefitfocus to be their healthcare technology provider,” said Shawn Jenkins, president and CEO of Benefitfocus. “We believe that both Blue Shield of California and their clients will be able to reap great benefits from the flexibility, cost savings and ease-of-use relayed by our Benefitfocus eEnrollment platform. This further reinforces our leadership position in the marketplace."

Working with Blue Shield of California will further expand Benefitfocus’ West Coast presence. Benefitfocus is currently increasing its investment in California and plans to open a West Coast office in early 2009. This new facility will provide the opportunity for increased services to the thousands of corporate customers and millions of members in the region.

Benefitfocus eEnrollment implementation is currently underway for Blue Shield. The first phase will be deployed for select members as early as this fall with a complete roll-out to the Blue Shield membership in early 2009.