Predicting health exchange models
As the Supreme Court debates the constitutionality of the Patient Protection and Affordable Care Act, some states are taking a wait-and-see attitude on health insurance exchange implementation, while others are forging ahead. Meanwhile, private exchanges are gaining some traction.
As the Supreme Court debates the constitutionality of the Patient Protection and Affordable Care Act, some states are taking a wait-and-see attitude on health insurance exchange implementation, while others are forging ahead. Meanwhile, private exchanges are gaining some traction.
In a webinar that is archived here the National Institute for Health Care Management (NIHCM) discussed emerging models of public and private health insurance exchanges with a panel of experts from Booz & Company, WellPoint Health Care Service Corporation and Leavitt Partners.
The webinar included an overview of Bloom Health’s defined contribution arrangements and private exchanges. Bloom Health works with employers to set defined contribution levels, then presents employees with a platform to purchase their care.
“What you see is employers usually setting the cost or the expenses around 70-80% of the total cost of the plan and using that as a benchmark to establish a defined contribution,” said Jeffrey Welch, divisional vice president of Consumer Markets, Health Care Service Corporation. “As employees go through the tool and are educated in the process, we’ve seen 69% of the participants are choosing a higher deductible.”
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