Private Or Public Exchanges…Which Is Right For Your Business?

Offering health care through private exchanges is becoming increasingly popular among employers. Almost 3 million Americans have registered for health care through private exchanges during the year 2014, surpassing the estimated amount by almost 3 times! What is a private or public exchange? Any exchange is an internet-based health coverage market where individuals can online-shop for health care. In a private exchange, the employer offers coverage to their employees instead of using the public marketplaces that are created under the Affordable Care Act. Private exchanges offer more customizable plans, and sometimes cost the employer less money. Typically, the employer will allot a certain amount of health coverage money to their employee. The employee then has the freedom to select which coverage option they want. There are 2 basic forms of private exchanges. The first is referred to as a single-carrier exchange. The insurer, who only offers their sponsoring carrier’s health care plans, controls this exchange. A third party, who will offer options from more than one insurer, controls the second form of private exchange- a multi-carrier exchange. The growth in popularity can be attributed to the increasing number of smaller businesses that employ less than 1,000 people who are using private exchanges. By the year 2018, experts predict that the number of people enrolled will rise to a whopping 40 million! Additionally, private exchanges are predicted to be more popular than state and federal exchanges by 2018. Every exchange is different, so in order to make an educated decision for your business, it is crucial to sit down with an employee benefits expert to determine which one is right for you. If you would like assistance from the best full-service employee benefits brokerage firm in California, then please give the Pacific Group a call! Located in Laguna Hills, we have the knowledge needed to assist you during every step of your search for the perfect employee benefits package!