Public health insurance changes that were created by the Patient Protection and Affordable Care Act, or ACA, have been the norm for quite some time. Public exchanges are set to expand and standardize health care coverage for more than 30 million individuals by 2017. These public exchanges are also helping to pave the way to private health insurance exchanges that have rapidly grown.
The growth of private health exchanges is expected to lead to 18 percent of the American public to purchase their health insurance through exchanges. These private exchanges are aiding employers and their push to have a defined contribution funding plan that will help to better manage the future trends and cost, while also providing employees with more choices and greater flexibility in a retail-like shopping experience. More than 1 in every 4 employers is considering changing to a private exchange system for their health insurance in the next three to five years. To meet the growing demand, many benefit consultancies and health plans are debuting private exchanges.
If you’re thinking of changing to private exchanges, it’s important to keep in mind that 83 percent of all consumers are not aware of the concept. However, most of the public is also not aware of public exchanges for health care plans. Most people who are aware of private exchanges are mostly drawn to the personalized product selection, flexibility, and the overall shopping experience.
As of right now, private exchange providers are focusing on educating employers of the benefits of the program in order to entice more employers to switch over from public exchanges.
For more information about private exchanges for your California business, contact Pacific Group with locations in Laguna Hills and Palos Verdes Estates. We will work closely with your company to ensure you’re able to offer the right health care plans to your employees.