What You Should Know About Private Exchange
The private exchange, also known as a marketplace, is a new online healthcare platform that a growing number of companies are adopting. A private exchange is based on a defined contribution from the employer to the employee to cover healthcare costs. Using the set contribution, employees pick the health plan portfolio – which can include dental, wellness, life disability, and even pet insurance products – that is most advantageous to them. This platform is hastening the move away from a one-size-fits all model for health insurance toward individual tailored healthcare programs.
Private exchanges provide employees with a high level of transparency. Employee paystubs will show the true costs of benefits, seeing in real dollars what their employer pays toward their benefits and the actual full cost of healthcare benefits.
Another advantage of private exchanges is the access to easy-to-use decision support tools. These tools, such as questionnaires, FAQs and videos, are necessary to help employees navigate the myriad of choices provided in the private exchange platform.