With the implementation of the Affordable Care Act (also referred to as Health Care Reform and Obamacare), public health care exchanges were set up throughout the country offering subsidized health insurance options. Private exchanges, such as the Bright Choices®Exchange, aren’t bolstered by government subsidies but by fixed employer contributions.

We are proud to be a certified distributor of the Bright Choices®Exchange, a revolution in buying and delivering employee benefits.

Private exchanges are also distinct from public exchanges in that they allow consumers to select from a much broader range of benefit options. In addition to medical, dental and vision programs, private exchanges may offer life and disability insurance, wellness benefits, legal plans and a range of financial benefits as well, such as HSAs and FSAs.

For employers looking for a simple and effective benefits solution, private exchanges, such as the Bright Choices®Exchange, offer controlled costs and smooth, efficient administration. For employees, private exchanges are able to produce more customized and comprehensive benefits packages, along with better informed and more participatory benefits utilization.

foremployers
foremployees
Private exchanges can also maximize the potential of benefits as a retention and recruitment tool for employers. With Bright Choices® detailed reports are used to break down the cost-share of benefits. Employees can see exactly how much they’re contributing to their benefits and how much is contributed by their employer.

Qualities of a Great Private Exchange

Automated payments ensure that employer contribution and paycheck withholding funds reach the appropriate insurance carriers on schedule.
Employees select health care plans that accommodate their needs
Availability of products beyond medical–such as dental, vision, and wellness–help employees fill “gaps” in their medical coverage.
Analysis of employee personal data is used to recommend plan and plan combinations. Comparison charts, plan summaries, cost analyses, and other tools help employees make informed choices.
Continuous support ensures employers are assisted with set-up and administration of exchange, and employees are assisted with benefits shopping and selection.
Beneficiaries
Public exchanges are available to anyone though generally serve individuals who’ve had difficulties acquiring af-fordable healthcare elsewhere. Private exchanges are established by employers and available only to serve the employer’s active and retired employees.

Operators
Public exchanges are operated by government entities at the state and federal level. Private exchanges are operated by private companies.

Products
Offerings on public exchanges are limited to medical, dental and vision. Private exchanges offer a broader product range including risk-management, financial, wellness, critical illness, and several other product types.

Subsidies
Public exchanges are financially supported by government subsidies, generally available to households with incomes less than four times the federal poverty level. Private exchanges are not government subsidized but supported by a defined employer contribution.

Private exchanges have existed for years and are not related to Health Care Reform in any direct way, but they can provide a cost-effective and expedient infrastructure for employers seeking to comply with Health Care Reform mandates.