With the signing of PPACA into a law, things have been moving at a fast pace in the healthcare industry. The ‘individual mandate’ clause of the Affordable Care Act has further galvanized everyone into action.
While health care corporates and insurance providers are striving hard to quickly set up stable,
efficient healthcare portal; individuals are grappling with the ‘individual mandate’ and planning for an appropriate healthcare plan before the ‘tax penalty’ becomes applicable in January 2014
What is a Private Health Exchange?
A private health exchange is an exchange that is operated and managed by a private sector company or a non-profit company. A private health exchange is similar in principle to a state run health exchange. All the health plans and participating carriers listed on an exchange need to fulfill several basic eligibility requirements.
Private Exchanges act as a one-stop marketplace where one can compare, select and purchase health care insurances put on offer by the participating health insurance carriers. Private exchanges act as an extension for the insurance carriers and help bridging the gap between an insurance seeker and insurance providers.
Advantages of private health exchange
Although, the concept of private exchanges is still in its nascent stage, but it is a trend which is catching up fast among the U.S. health care practitioners! Knowing fully well that Private exchanges are a trend to watch out for, some companies are designing customized solutions for healthcare providers and intermediaries to help them track and maintain better control over their health plans.
Benefits of Private Exchange for carriers
Affiliating with a private health exchange can help insurance providers expand their client reach and can also help them remain informed about the latest products on offer by other insurance carriers? Some of the advantages of listing with a health exchange are:
F Larger client baseF Remaining abreast with the latest products on offer by other vendorsF Reduced paperwork F Efficient filing, tracking and maintenance of client records.
Benefits of Private Exchange for employers
For small business owners, the advantages offered by private exchanges may prove to be invaluable. Some of the advantages associated with private exchanges have been listed below:
F Reduced stress associated with choosing a health planF Reduced complexityF Reduced paperwork, time consumption and manual labor F Flexibility of affiliating with any health carrier listed on the private exchangeF Single platform to apply for different types of insurances such as health, disability, dental etc.F Improved employer-employee relationship with more power extended to employees to pick an appropriate health plan from a preferred health carrier.
Benefits of Private Exchange for employees
If your employer has provided you an option to choose your own healthcare plan from a private exchange portal, more power to you! Private exchanges have made the entire process of choosing the best health care plan as easy as grocery shopping from a central market place.
F An easy, streamlined process for procuring the best health care planF Freedom from related complexitiesF A central marketplace to view all the health plans offered by a particular health carrierF No brokerage chargesF Reduced or no paperworkF Online eligibility verificationF Track available subsidies
Benefits of Private Exchange for brokers Brokers and health insurance agents also have a lot to gain from the private health exchange setups. Brokers can search and compare from the best available health plans for their customers. If brokers and agents are well informed and aware of the new products or any applicable subsidies on offer, they can effectively guide their customers. Some key benefits of associating with a private exchange are:
F Real time, updated information on all available health care optionsF Ease of searching and picking up the best healthcare planF Online eligibility verificationF Reduced related paperworkF Increased efficiency and time saving
