A short walk-through about how private health insurance exchanges work, and why they're so important in the post-healthcare reform environment.

1. PRIVATEYOUR GUIDE:
HEALTH INSURANCE
EXCHANGES

2. Today we’re going to look at “private health
insurance exchanges.”
THEY’RE PRIVATE.
THEY’RE EXCHANGES.
This has been a frequent buzz phrase in the health
insurance industry over the past couple of years for
a number of different reasons.

3. The biggest reason though, is HEALTHCARE REFORM.
Whole new
ballgame.
With the implementation
of new provisions in the
Affordable Care Act, the
way that employers offer
health insurance to their
employees is changing.

4. We’ll take a look at the structure of private health insurance
exchanges, and how they work.
So buckle your
seatbelts.
We’ll also describe the
different components that
make-up a private health
insurance exchange, the types
of businesses that should be
taking the closest look at
these exchanges, and why
they’re growing in importance.

5. …They’re exchanges
that are set up
privately through
an employer.
PRIVATE HEALTH INSURANCE EXCHANGES ARE EXACTLY
WHAT THEY SAY THEY ARE:
No help from the
government.

6. #1) Technology
and software.
#2) Group health
insurance plans.
Many private health insurance exchanges
utilize TWO important components:
There are two.

7. LET’S TAKE A CLOSER LOOK A THESE TWO CONCEPTS.
THEY PLAY A PIVITOL ROLE IN THE STRUCTURE OF
“PRIVATE HEALTH INSURANCE EXCHANGES.”

8. Software programs help
facilitate administration
of private health
insurance exchanges.
This technology keeps the
private exchange concept
simple for both the employer
and the employee.
#1: TECHNOLOGY AND SOFTWARE.
Time to
tech up.

9. One example is www.liazon.com.
Liazon’s platform allows an employer to “define a
contribution” (much like an allowance), and then
employees select their own health benefits.
SIMPLY: Employees decide on the plans that fit them best.
You pick
your plan.

10. Like a store.
The software keeps
track of funds spent,
and also shows the
employee what kind of
health insurance
options are available at
the private exchange.
THERE’S AN INTERACTIVE PLATFORM TO WORK WITH ONLINE.

11. NOW THAT WE KNOW THAT TECHNOLOGY AND SOFTWARE
ARE THE FIRST IMPORTANT COMPONENT OF PRIVATE HEALTH
INSURANCE EXCHANGES, LET’S TAKE A LOOK A THE SECOND.

12. #2: GROUP HEALTH INSURANCE PLANS.
People had
limited choices.
In the past, many employers
only offered one group
health insurance plan.
Why?: Because administration
of multiple plans could be a
challenge.

13. THE IMPORTANT WORD HERE IS MULTIPLE.
More than one.
So to fix that problem, software
companies (like Liazon) now
have arrangements with
insurance companies that
allow employers to offer
multiple group health
insurance plans from multiple
carriers more easily.

14. With the software and
technology that’s
available, it’s not nearly
as difficult to offer a
selection of group
health insurance plans
anymore.
ONE OF THE BIGGEST GOALS OF PRIVATE HEALTH
INSURANCE EXCHANGES IS TO PROVIDE CHOICE.
PRIVATE EXCHANGE =
EMPLOYEE CHOICES.

15. …But businesses with
+50 fulltime equivalent
employees will almost
always be utilizing the
two concepts we’ve just
described.
There are additional ways to set up private health
insurance exchanges…
Mandated employers:
THAT’S YOU.

16. And certain smaller businesses can also
work with this exact same strategy…
Tune in.
…So if you’re a business that
is at 20 employees or above,
you’ll want to understand
the concepts in this
presentation.

17. As we’ve mentioned, private health
insurance exchanges provide
choice. So instead of being “stuck”
in one group health insurance
plan, employees can more
efficiently choose which plan fits
them (and their family) best.
QUESTION: WHY ARE PRIVATE HEALTH INSURANCE
EXCHANGES BECOMING MORE IMPORTANT?
Everyone is
different.

18. Having choices is now more important than
ever before…
THAT’S IMPORTANT.
…Because dependents (spouses and
children) will most likely need to be able
to participate in the plan.
If employees’ dependents have access
to an “affordable” group plan, they DO
NOT have access to public health
insurance exchange subsidies.

19. In the past, sometimes it was flat-out too expensive
for an employee to include their dependents.
Affordable options.
The private health insurance
exchange concept helps alleviate
that issue.
Dependents will need to have better
access to group health insurance
plans in the post-reform environment.

20. Additionally: businesses with +50 fulltime equivalent
employees are mandated to provide coverage.
More predicable.
A private exchange is a
cost-effective and
budgetable way for
employers in the “large
group” category to
provide coverage.

21. You decide on the amount. It’s called a “defined
contribution.” It’s just like an allowance.
That was easy.
You give that
amount to each
employee.
Then they pick the
plan they want.

22. Lastly: Efficiency. If employees are making their own
decisions and picking their own plans…
Smart
consumers.
…The whole system runs
more efficiently.
Instead of you telling them what
they get: they pick what they want.
By making choices, they’ll be
more conscience about where
money is being spent.

23. AS MENTIONED, PRIVATE EXCHANGES CAN BE AN EXCEPTIONALLY
IMPORTANT CONCEPT FOR BUSINESSES IN THE +50 EMPLOYEE RANGE.
THEY ACCOMPLISH THREE VERY IMPORTANT THINGS: #1) BUDGETABLITY,
#2) SELECTION, #3) FLEXIBILITY. THOSE QUALITIES WILL BE VERY
IMPORTANT TO BUSINESSES MANDATED TO PROVIDE COVERAGE.

24. And that’s the basic breakdown of private health
insurance exchanges.
Your money.
On-site.
Unlike public health
insurance exchanges (state
and federal exchanges),
private exchanges are
completely administered
within the private workplace.

25. We work with private health insurance exchanges
at Policy Advantage Insurance Services.
And that’s a
wrap.
If you’re an employer that is
interested in learning more,
contact us anytime for further
information. Thanks for stopping
by today. We hope you found our
information to be valuable.

26. TYSON J LESTER, RHU, REBC
President, Policy Advantage Insurance Services
Toll Free: (800) 617-0089
Los Angeles Area: (424) 442-0170
Email: info@policyadvantage.com
www.policyadvantage.com | CA Insurance License #0F22799
ARTICLE WRITTEN BY

27. We help individuals and businesses sort out all of the aspects
when designing an individual or business health plan.
Please contact us if you have questions. We share high-value
information and look forward to working with you. Thanks for
stopping by.
Toll Free: (800) 617-0089
Los Angeles Area: (424) 442-0170
Email: info@policyadvantage.com
www.policyadvantage.com | CA Insurance License #0F22799
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