Components of Private Exchange
Even with a traditional health insurance offering, choosing the right plan can be overwhelming and confusing for employees. To help employees understand and navigate these choices, private exchange platforms offer comprehensive support tools that can make plan selection easier.
Employees begin the process by answering a questionnaire that uncovers financial need, health conditions and other aspects vital to creating the best benefits portfolio for each employee.
Other advantageous components of the private exchange may include administrative simplification through consolidated billing and the potential waiving of participation guidelines. The waiving of participation guidelines ensures that every employee can have access to any benefit, such as pet insurance, even if they’re the only individual in the company who needs it.
Some private exchanges consolidate billing so employers don’t have to pay a myriad of vendors. Instead, the employer receives two bills, one for medical and one for all other benefits
An additional benefit of a private exchange is the transparency the platform provides employees. The defined contribution is shown according to the employer’s preference – either per pay period, monthly or annually. Employees often focus on their salaries as being their total compensation. However, the private exchange platform allows employees to see a larger portion of the investment that employers make in each associate through benefits.