How Health Insurance Exchanges Can Improve Health Care Coverage for Your Employees

May 21, 2010

The executive director of the Massachusetts Health Connector, in an article published in the American Journal of Medicine, makes a strong case for the advantages of health insurance exchanges. One of the important advantages he notes is something we’ve been saying too: the exchange model provides greater choice and that’s good for insurance consumers:

“There is then another step in an exchange’s sales process: approved plans compete with one another for individual customers. This “retail sale” differs from the process for most group insurance, whereby an employer picks one health plan, partly on the basis of ease of administration, and the employee has one choice — take it or leave it. Offering just one plan averts the need for annual enrollment fairs, dealing retroactively with employees’ dissatisfaction over their choice of plan, the administrative hassles of working with multiple carriers, and the need to worry about and police risk selection. The one-plan model favors health plans with the largest provider networks. So that no employee (or spouse or child) has to switch doctors, employers prefer to offer a health plan that permits access to virtually every doctor and hospital, rather than health plans offering limited networks of physicians integrated into prepaid systems of care. Therein lies the root of frustration on the part of many managed-competition enthusiasts, who yearn for a radical restructuring of health plans into competing delivery systems.”

To read the full article, click here.

One Response to “How Health Insurance Exchanges Can Improve Health Care Coverage for Your Employees”

  1. It’s brilliant what things Google can bring us too..I would’ve never found your blog otherwise. 😛

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