3.The Rise of Private Exchanges
Private HIX (created by health plans, brokers, or other groups) offer health plans more freedom than public exchanges in terms of their level of participation and the products they offer. Employers are using private HIX as a vehicle to transition employees from self-funded plans to a defined-contribution model offering, where the employer contribution to healthcare benefits is capped.
The shift means more revenue for insurers because fully insured memberships typically generate four to five times the profit contribution of self-insured memberships.
Aetna is among the insurers developing their own proprietary HIX where only its products will be offered to employers. The insurer plans to focus on population management and will allow consumers to customize products and services for their individual needs.