Private exchanges are an integral part of the health insurance industry. In recent years, private health insurance exchanges have become immensely popular among employers and employees. Here is everything you need to know about them:
Defining private exchange
A private exchange is simply a commercial marketplace where employees can buy health insurance or other benefits.
It’s also known as a private healthcare or benefits exchange and is different from the usual one-size-fits-all insurance model.
Through a private exchange, employees can choose and pay for their own health insurance and other benefits plans. Employers will fund the employee’s insurance plan.
How does a private exchange work?
Health insurance has always been a controversial topic in the United States. Different administrations have implemented health insurance programs. Keeping healthcare costs under control is one of the main challenges facing the country.
A private exchange allows employees to purchase health insurance and other employee benefits, which includes but is not limited to vision and dental.
However, employees can choose from the benefits that are selected by their employers. An employer will join the private exchange. Thereafter, they will choose specific employee benefits, insurance plans and carriers that they want to provide their employees. In addition to this, the employer will allocate a premium for each employee who will participate. Then, employees will access and choose the insurance and benefits programs offered by their employers. Depending on their specific needs, they can select the right products.
If you’re an employer, you get to decide what type of products you want to offer to your employees. You can negotiate prices and contracts with carriers as well.
On the other hand, employees can pick products that are tailored around their needs.
Coupled with its flexibility, a private exchange can help employers and employees save money on premiums and taxes. It’s a smarter model than traditional employee benefits plans.
Interested in registering for a private exchange? Contact JS Benefits Group now! With more than 25 years of experience, JS Benefits Group is one of the leading consulting firms for employee benefits programs, including private exchanges in the Mid-Atlantic.
Their staff consists of skilled and experienced professionals who leave no stone unturned in offering businesses cost-saving employee benefits and HR consulting services.
JS Benefits Group provides customized solutions tailored to the specific needs of their clients. They operate in Pennsylvania, Delaware, and New Jersey.
From consultation to getting group health insurance quotes, they are a one-stop source for all your HR and employee benefits needs.