What Should You Look For in a Private Exchange?
By Christopher E. Condeluci
A recent report by Accenture projects that by 2018, over 40 million people will be enrolled in private exchanges, surpassing enrollment in state and federally funded Exchanges . Will your employees be among them?
If you’ve found your way to this blog, chances are you already know something about private exchanges, and you may even be considering one for your company. You may have heard about the advantages of offering your employees benefits that they choose themselves, from your pre-determined set of options for health and ancillary products – with a defined contribution amount for spending also set by you.
“If You’ve Seen One Private Exchange, You’ve Seen One Private Exchange”
Not all private exchanges are the same. If you’re wondering if one might be right for your company, read our latest whitepaper to learn more about what you should look for, including:
• A wide variety of products, including medical, dental, supplemental health, vision, life, disability, money accounts, and more to best protect the well-being of employees and their families
• A broad range of plans that provide meaningful choice along a range of dimensions such as price, provider networks, and deductible
• Advanced decision support tools to help guide employees to a benefits decision that is right for them
• A sophisticated algorithm that matches employees’ individual needs and preferences to the best combination of benefits
• A recommendation engine that considers employees’ health status, plan preferences, financial situation, comfort level with risk, concerns for the future, and more, when recommending plans and products
• Education about insurance via different learning formats
• Side-by-side plan comparisons of key coverages, plan features, and costs
• Summarized plan information including deductibles, copays, prescription coverage, and out of pocket maximums
• Benefit summaries provided by the carriers of health and ancillary benefits offered through the private exchange, or a third-party administrator in the case of self-funded benefits
The more variety in products, and the better decision support a private exchange provides, the greater the likelihood that it will produce satisfying results for employees.
To better understand how decision support aids employees in choosing benefits, read our latest whitepaper: “Decision Support Systems for Benefits: Framework and Evaluation.”
Christopher E. Condeluci is Principal and sole shareholder of CC Law & Policy PLLC in Washington, D.C. Prior to forming CC Law & Policy, Chris served as Tax Counsel to the U.S. Senate Finance Committee where he actively participated in the development of portions of the Patient Protection and Affordable Care Act (ACA), including the ACA Exchanges, the state insurance market reforms, and all of the new taxes under the law.
 “Growing Pains for Private Health Insurance Exchanges,” Accenture, June 2014