Officials are estimating that using a private exchange
platform will cost $5.
Over one-quarter of the employers that are not using a private exchange
today are open to using this concept in the future, and another one-quarter are still undecided.
Condeluci said he thinks an overhauled ACA public exchange systems could take two different forms: It could focus on serving as an enrollment system for Medicaid and other programs aimed mainly at low-income people, or it could end up competing head-to-head to private exchange
Some companies have talked about launching major efforts to offer private exchange
services to employers.
It generally takes longer for larger clients to move to a private exchange
solution because they have to get buy-in across multiple parts of their organization, including the C-suite.
Unlike public exchanges, which are offered by the federal and state governments, private exchanges
are run by a variety of companies.
for health coverage made headlines last fall as a number of companies signed up for the new format.
Under a private exchange
, workers are given a subsidy to pick from a limited number of health plans and the insurer takes on the risk.
Currently, health insurance companies are accepting enrollments in the private exchange
for a six-month open enrollment period, which runs until March 31 for coverage effective dates of January 1 and thereafter.
For purchasing group insurance through private exchanges
, employers will generally set up pretax payroll withholding defined-contribution plans, such as Section 125 cafeteria plans, from which contribution funds can be used by employees to cover costs of buying insurance.
With all the new information, organizations need to answer several questions in order to make informed decisions about private exchanges
: how do they differ from public exchanges and how does a company determine if a private exchange
is the right fit for its organization?
Most states are unlikely to be able to deploy and reach full operational readiness within CMS timelines--many states would either subscribe to the federal exchange or look to a private exchange