A Company Who Did Not Employ Private Exchange
Though many businesses find success in private exchanges, some companies find it’s not the right fit culturally. One large, successful company that is a Northwestern Benefit client decided not to implement the private exchange after the firm evaluated the technological facets of the platform.
One of the firm’s biggest deterrents was concern about the capabilities of the workers – who were not as savvy when it comes to computers and to healthcare benefits – to navigate the technology. Employees enrolled in a private exchange would need to have a basic understanding of a computer and also have access to the Internet in order to log into the system and to complete the questionnaire. Another concern for the company was the ability of employees to pick the plan that would truly be the best fit for their families. The company was concerned that the primarily blue-collar employees would choose the least expensive plan, rather than the plan that would most benefit their families.
Another concern that was satisfied was that the company wanted every employee to have a basic life insurance policy, without having to explicitly choose that plan. Fortunately, this issue can be addressed within the technology platform. The private exchange platform allows employers to select a benefit that would cover every employee.
After careful consideration, the company did not select the private exchange. As many of their initial concerns could be solved as the platforms evolve, the company may change its mind in the future and opt for the private exchange.
Northwestern Benefit would be happy to work with your organization to talk through the entire process, weigh the platform’s challenges, analyze what’s available in the marketplace and help you decide if private exchanges are the best solution. Please contact your Northwestern Benefit consultant to initiate a discussion to determine whether a private exchange is the best fit for you and your employees.