In the months after the October 1 launch, almost all of the media attention has been focused on the Obamacare marketplaces. I have personally seen the ruckus created around the launch and launch errors, the bad publicity, and the negative reviews gracefully accepted by the government. However, in this fiasco, one thing has gone completely ignored – the stupendous success of private health exchanges.
In the months that Obamacare was suffering, private health insurance exchanges slowly built their reputation, and are now completely in sync to tap the attention moving towards it. It is widely estimated by industry experts that private health exchanges are going to grab a huge chunk of enrollments in the first half of 2014. In fact, traction has already started happening in favor of these private health insurance exchanges. Several companies are already moving their retirees to these exchanges, and plan to move their current employees to private health exchanges in the years to come.
Naturally, organizations are viewing these exchanges as a cost and effort friendly means to provide an improved healthcare service to Americans. If I were to list down the major factors that are motivating large organizations, such as Time Warner, to move their retirees to private exchanges, my vote would go to
1) Cost reductions – private health exchanges are proving to be a cost efficient method of providing health insurance to employees. Generally, the more the number of employees in the organization, the better the costs savings would be.
2) Administrative overhead reductions – through a private benefits exchange, organizations do not have to worry about the challenges of complying with the system for providing health benefits to employees.
3) Improved healthcare offerings – it has been observed that private health insurance exchanges generally offer a better set of health insurance plans to employees. Due to more options and a better kitty, employees feel more satisfied while choosing their health insurance plan.
Naturally, these reasons are way too strong for any organization to ignore. Although several organizations feel that these facts are mere predictions as of now, which is true to some extent, the industry is predisposed towards these private exchanges, and it won’t be long before more players jump onto the wagon and provide better private health exchanges with more benefits and more health plans. It seems true that private health insurance exchange is going to dominate the American healthcare system in the coming years.
In the months that Obamacare was suffering, private health insurance exchanges slowly built their reputation, and are now completely in sync to tap the attention moving towards it. It is widely estimated by industry experts that private health exchanges are going to grab a huge chunk of enrollments in the first half of 2014. In fact, traction has already started happening in favor of these private health insurance exchanges. Several companies are already moving their retirees to these exchanges, and plan to move their current employees to private health exchanges in the years to come.
Naturally, organizations are viewing these exchanges as a cost and effort friendly means to provide an improved healthcare service to Americans. If I were to list down the major factors that are motivating large organizations, such as Time Warner, to move their retirees to private exchanges, my vote would go to
1) Cost reductions – private health exchanges are proving to be a cost efficient method of providing health insurance to employees. Generally, the more the number of employees in the organization, the better the costs savings would be.
2) Administrative overhead reductions – through a private benefits exchange, organizations do not have to worry about the challenges of complying with the system for providing health benefits to employees.
3) Improved healthcare offerings – it has been observed that private health insurance exchanges generally offer a better set of health insurance plans to employees. Due to more options and a better kitty, employees feel more satisfied while choosing their health insurance plan.
Naturally, these reasons are way too strong for any organization to ignore. Although several organizations feel that these facts are mere predictions as of now, which is true to some extent, the industry is predisposed towards these private exchanges, and it won’t be long before more players jump onto the wagon and provide better private health exchanges with more benefits and more health plans. It seems true that private health insurance exchange is going to dominate the American healthcare system in the coming years.
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