default avatar
Welcome to the site! Login or Signup below.
Logout|My Dashboard

The Power Of Private Health Insurance Exchanges

Font Size:
Default font size
Larger font size

Posted: Thursday, April 24, 2014 4:44 am | Updated: 1:34 am, Fri Apr 25, 2014.

(NAPSI)—With our nation in the midst of a health care revolution, government-driven health insurance exchanges are grabbing headlines, often for the wrong reasons. From political haggling to technical gaffes, it’s been a bumpy road for federal- and state-run public exchanges.

For private insurance exchanges, however, the story couldn’t be more different. In fact, it is these private exchange programs that will likely be the bigger—and better—option for many small businesses and workers in America.

While the Affordable Care Act (ACA) put a spotlight on government-run exchanges, private versions have been operating for nearly 20 years in numerous states. Thanks to health care reform momentum, private exchanges are poised to transform health care for the estimated 60 million U.S. workers employed by small businesses.

According to a 2013 report by Booz & Company, “Health insurance in the U.S. is at the cusp of a major transition from an employer-driven payor model to a model directly involving many more employees and consumers. Private health insurance exchanges with a defined contribution approach represent a significant step toward catalyzing this change.”

So what is a private exchange? It is a marketplace of health insurance and related benefits offering access to a single or multiple health plans in one, unified program. Working directly with insurance brokers, employers purchase insurance through the exchange. Employees then choose from reputable carriers such as Aetna, Kaiser Permanente, Anthem Blue Cross or others, depending on the specific exchange.

Through a private exchange, employers allocate a set amount of dollars toward the program through what’s called “defined contribution.” This provides cost controls while supporting an employee’s health care.

For workers, an exchange offers choice and flexibility. They select and purchase their coverage from available options. If they want to upgrade their plan or add other benefits like life insurance beyond what’s covered by the employer contribution, they have the option to pay to do so.

With more than 55 percent of all U.S. workers employed by businesses with one to 50 people, private exchanges are proving to be an especially powerful, viable and valuable option.

In California, the nation’s most populous state and where approximately 12 percent of the country’s residents live, more and more of its 3.4 million-plus small businesses are turning to private exchange solutions.

Take CaliforniaChoice, for example. The nation’s first-ever private exchange established over 18 years ago works with brokers and small businesses as the state’s only private exchange. It offers multiple health plans and other business-related products and services in one, easy-to-use program. Today, CaliforniaChoice serves more than 10,000 employers and 150,000 members statewide.

“If you are a small-business owner, private exchanges help drive down health care costs and reduce administrative burdens in an increasingly complex regulatory environment, all while expanding the benefit choices for your employees,” said Ron Goldstein, president and CEO of CaliforniaChoice.

He added, “Well-run private exchanges are very effective because they are held to the highest free-market standards. They must deliver value—the best service, choices and prices—in order to stay competitive.”

While media attention around federal- and state-operated exchanges will likely persist in the near term, established private exchanges such as CaliforniaChoice will continue to quietly build steam. In fact, private exchange participation nationally is projected to exceed public exchange enrollment by 2018, says a 2013 report by Accenture.

Given this trend, employers may be wise to take advantage of private exchange programs when seeking solutions to cost-effectively address the changing landscape of traditional employee benefits programs.

For more information about private health insurance exchanges, visit www.calchoice.com.


On the Net:North American Precis Syndicate, Inc.(NAPSI)

Rules of Conduct

  • 1 Use your real name. You must register with your full first and last name before you can comment. (And don’t pretend you’re someone else.)
  • 2 Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually oriented language.
  • 3 Don’t threaten. Threats of harming another person will not be tolerated.
  • 4 Be truthful. Don't lie about anyone or anything. Don't post unsubstantiated allegations, rumors or gossip that could harm the reputation of a person, company or organization.
  • 5 Be nice. No racism, sexism or any sort of -ism that is degrading to another person.
  • 6 Stay on topic. Make sure your comments are about the story. Don’t insult each other.
  • 7 Tell us if the discussion is getting out of hand. Use the ‘Report’ link on each comment to let us know of abusive posts.
  • 8 Share what you know, and ask about what you don't.
  • 9 Don’t be a troll.
  • 10 Don’t reveal personal information about other commenters. You may reveal your own personal information, but we advise you not to do so.
  • 11 We reserve the right, at our discretion, to monitor, delete or choose not to post any comment. This may include removing or monitoring posts that we believe violate the spirit or letter of these rules, or that we otherwise determine at our discretion needs to be monitored, not posted, or deleted.

Welcome to the discussion.


What would you like to see in Lodi's parks?

Lodi's Parks, Recreation and Cultural Services Department is hosting a public workshop at 7 p.m. at Hutchins Street Square to find out how it can better meet the needs of the community. What would you like to see in Lodi's parks?

Total Votes: 28


Your News

News for the community, by the community.

Featured Events

Mailing List

Subscribe to a mailing list to have daily news sent directly to your inbox.

  • Breaking News

    Would you like to receive breaking news alerts? Sign up now!

  • News Updates

    Would you like to receive our daily news headlines? Sign up now!

  • Sports Updates

    Would you like to receive our daily sports headlines? Sign up now!

Manage Your Lists