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Private Exchanges

Private Exchanges. March 12, 2014 Presented by: Brent Wick. Understanding Private Exchanges. What is a private exchange The competitive landscape Carriers and exchanges Determining if this is a good solution for your company. Private Exchanges.

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Private Exchanges

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  1. Private Exchanges March 12, 2014 Presented by: Brent Wick

  2. Understanding Private Exchanges What is a private exchange The competitive landscape Carriers and exchanges Determining if this is a good solution for your company

  3. Private Exchanges • Defined Contribution model or Fixed Contribution • Offer greater choice to employees • Create employee ownership of benefit choices • Remove the employer from deciding the best benefit plan • Can include all benefit options • Private Exchange is the distribution system…think of a grocery store for insurance products. What a Private Exchange is not….complicated! Take a Look!

  4. It is Very Simple!

  5. The Mechanics of a Private Exchange

  6. Defining the Mechanics Employer HRA Enrollment System Decision Support Insurance Carrier

  7. The Private Exchange Market • 100’s of platforms to administer an exchange • Nearly all consulting/brokerage firms have a solution • Including Russ Blakely & Associates • These are almost all technology platforms • The critical component is the Insurance Carriers

  8. The Key to Insurance Company Participation Single Carrier Option • Most all solutions • Eliminates anti-selection • Allows any funding • Typically 4-6 options • Available today for larger employers • More limited in smaller markets – but developing Preferred Carrier Option Multiple Carrier Option • Examples: AON, Buck, Extend • Typically fully-insured • Mostly in place for very large employers • Value of transferring risk and defined cost

  9. The Local Private Exchange Market

  10. Critical Fact to Consider Statistics from Bloom Health

  11. How Are You Going to Control Cost? • If majority stay in the same plan • Cost increase by 10% • Employer contribution only increase 3-4% • Employee will see significant increase in cost year-over-year • Cost control are even more important in Private Exchanges • Clinical programs • Wellness • Limited networks • Managed Pharmacy Private Exchanges don’t take you out of managing benefits!!

  12. Is a Private Exchange For You?

  13. Questions?

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