(PRWEB) December 26, 2012
Zane Benefits, the leader in Defined Contribution and Health Reimbursement Arrangement (HRA) solutions for business health benefits, today published a simple guide to offering a private health exchange.
The biggest buzzword of this decade in the employee health benefits market is "Private Health Insurance Exchange". Numerous entities ranging from start-ups to new divisions of leading insurance companies have been created to offer new Private Health Exchanges. A private health insurance exchange is a health insurance exchange run by a private company. Here's how to offer a private health exchange in three easy steps.
What is a Private Health Insurance Exchange?
Webster defines an exchange as a place where things or services are exchanged, such as a store or shop specializing in merchandise usually of a particular type. So, at a basic level, a private health insurance exchange is a store or shop specializing in health insurance merchandise. More specifically, a health insurance exchange is a broker’s health insurance offering to individuals and/or employees.
(1) Private health insurance exchanges typically include the following components:
(2) A choice of two or more health insurance options
(3) Advice and recommendation on what health insurance options best fit needs
(4) Automated billing for the chosen health insurance plan premium(s)
(5) On-going support for the chosen health insurance plan(s)
Thus, a Private Health Insurance Exchange is nothing new!
The following are three steps a health insurance broker may use to help employers offer health benefits through a broker's Private Health Insurance Exchange:
1. Create a Private Health Exchange
Most carriers provide brokers with everything they need to offer a private health exchange. For example, UnitedHealthOne, Cigna, and Aetna all provide a broker with a website and quoting tool that provide clients with:
(1) A choice of two or more health insurance options
(2) Advice and recommendation on what health insurance options best fit their needs
(3) Automated billing for the chosen health insurance plan premium(s)
(4) On-going support for the chosen health insurance plan(s)
So, to create a private health exchange, simply re-brand existing offerings as a "private health exchange".
2. Connect the Employer and Employees to the Private Health Exchange Services
Most employers will choose to offer an HRA defined contribution solution as their primary employee health benefit offering, and then provide a gateway to a broker's private health insurance exchange for employees to purchase their own individual health insurance plans. The HRA defined contribution allowance can be used to reimburse employees for their health insurance costs 100% tax-free.
3. Employees Use the Private Health Exchange to Purchase a Plan
Employees use the Private Health Exchange to shop, select and purchase their individual health insurance plan. Employees use the tax-free allowance provided by their employer to reimburse themselves for the coverage that best suits their family.
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About Zane Benefits, Inc.
Zane Benefits, Inc, a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software. Zane Benefits does not sell insurance. Using Zane’s platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice. Learn more at http://www.zanebenefits.com.