Private health care exchanges, fully or self-insured marketplaces of preselected coverage options through which employers can offer their active employees health and certain other benefits, can provide an appealing way to deliver coverage. They expand employee choices and can reduce costs while improving services and support.
However, a private exchange may not be an ideal fit for every organization. Because the model is complex, “an in-depth analysis is critical for any organization considering this change,” noted Matthew Kersting, vice president with Sibson.
Sibson recommends that decision makers:
Sibson discusses each of these considerations in detail in a new publication.
Michele Manfreda, senior consultant at Sibson, observes, “Some of our clients have experienced significant savings through carrier diversification achieved by moving to an exchange. Others were not ready to relinquish control of the selection of plan designs that they offer to their employees to an exchange.”
Switching from a traditional health plan arrangement to a private exchange is a major undertaking, with both pros and cons to consider.
To speak with one of Sibson’s consultants about evaluating private health care exchanges, please contact Erin Burns.
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Sibson Consulting (www.sibson.com), a member of The Segal Group, provides strategic human resources solutions to corporate and non-profit employers and professional service firms. Sibson’s services include benefits, compensation, human capital management and change management consulting.
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