Private benefit exchanges

Employer clients and their employees expect innovative technology solutions to meet their needs, even when it comes to health care — and especially when it comes to private exchanges.

As small employers shift from group to individual coverage, private exchanges can be a useful tool to keep brokers competitive and maximize profits during the transition.

As Towers Watson & Co. and Willis Group Holdings Plc head to the altar for an all-stock merger valued at $18 billion, their respective private exchanges could command the roles of best man and bridesmaid.

Employee Benefit News and Employee Benefit Adviser have created the Private Benefit Exchange Index to track the growth of online benefit marketplaces

A group of industry players connected to private exchanges launched a coalition Wednesday to serve as a forum to share ideas and best practices, and to increase awareness of private exchanges.

Private exchange enrollment numbers depend on how one defines a private exchange. For some, a private exchange is simply tech-enabled choice — which most employers are embracing — while others define it as more than technology. Despite the definition, most consultancies agree by 2018, the numbers will be huge.

EPIC Insurance Brokers and Consultants was a long time user of Liazon’s private exchange software, but this week launched its own exchange, developed in partnership with Hodges-Mace. Chris Duncan, EPIC’s chief growth officer, discusses the move and why exchanges may not be for everyone.

HR departments lack a clear understanding of fees and commissions attached to private exchanges, with many early exchange adopters uncovering fees once they start using the model.

Commentary: Preparing a new multiyear strategic benefits plan may require as much (or more) effort than the Affordable Care Act has consumed.

The business benefits of private exchanges are starting to be realized by insurers and brokers alike, with an increased focus on voluntary products, savings for insurers and a reliance on brokers.

After two years of health plan enrollments in the emerging online marketplace, it’s possible that public and private exchanges are finally converging.

For many benefits professionals, the different private exchange offerings and the varied value propositions they present can be overwhelming. So let’s take a step back and examine the issues one at a time.

Employers using Aon Hewitt’s multi-carrier fully-insured private health care exchange experienced average annual health care cost savings more than 4% lower than industry projections.

A 9-million person market is a powerful one to tap. Blue Cross Blue Shield Association, which represents Blues plans across the country, is the latest to launch a retiree private HIX, coming this summer.

Most private health care exchanges are geared toward active employees. But Tampa, Fla.-based Brown Insurance Group has an eye on part-timers who may have lost coverage or who never had access to group plans. Eric Brown, principal, explains how his private exchange allows employers nationwide to provide coverage to such employees through an exchange-like environment. Brown Insurance also assists with Healthcare.gov enrollment.

Health insurance plans purchased through public health care exchanges often generate levels of member satisfaction higher than plans obtained through employers, according to a J.D. Power study.

There is a unique opportunity in retiree health benefits, one that brings a potential windfall for advisers willing to embrace the market.

There may be a convergence of public and private exchanges and if that happens carriers need to adopt a more holistic approach and consider multiple retail channels to distribute their products as part of a multi-carrier approach or alliances such as those seen within the CO-OP market.

Although interest in private exchanges is growing slowly among large employers, many still have reservations about whether exchanges will offer more value than the plans they already offer. So, how does a large employer determine if a private exchange is the right move?

Seattle-based Array Health says it has formed a partnership with HealthEquity providing personal health accounts on Array’s e-commerce platform – Array Spectrum.