More plans act on private insurance exchanges

Worried that small employers might drop their group health plans and shift employees to the individual market, Highmark, Inc. launched its private health insurance exchange in 2010. Initially, the Blues licensee targeted employer groups of 100 or fewer lives, and then in 2013 expanded its online platform to accommodate all group sizes.

Highmark created separate platforms: one for commercial groups of active workers and one for group retirees. And while the model first attracted employers who liked the idea of online enrollment, its single-carrier exchange's tools, capabilities and product lines have kept evolving-to the point where consolidated billing and online payments will be featured for 2016.

Related: BCBS to launch retiree health insurance exchange

Brown"Obviously, our goal is to keep group 'group,'" says Bill Brown, Highmark's manager of digital distribution who focuses on private exchange offerings."[I]n our region a lot of web-based brokers are trying to break up groups and enroll them as individuals in the public exchanges." He says Highmark wants an intermediate step for small employers, offering defined contribution and employee choice, as it works to "leverage broker partners so they can use our technology to help keep groups in group." 

At first, Highmark "thought just of private exchange and defined contribution," Brown says. But now its model also includes a defined benefit (traditional 70% to 80% coverage) and integrated self-funding for smaller groups. "What we've seen over the last two years is that people like the technology. They want to do enrollment, make payments online [etc.], so we're looking at private exchanges more as e-commerce now, beyond defined contribution," he says.

 

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