private exchange


Also found in: Acronyms.

private exchange

[′prī·vət iks′chānj]
(communications)
Telephone exchange serving a single organization and having no means for connecting to a public telephone system.
References in periodicals archive ?
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 programs.
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.
Private exchanges 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 or co-op.

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