Lancaster, PA—On April 1 EHD launched two private healthcare exchanges aimed at providing employers with greater control and management of their employee-benefits budget while expanding plan choices and coverage flexibility for employees, according to Scott Radcliffe, executive vice president of EHD’s employee benefits services division.
Like healthcare.gov, the federal government exchange created as a result of the Affordable Care Act, a private exchange is an online marketplace, or store, where employees can shop for and purchase health insurance in a secure, competitive environment. Unlike healthcare.gov, however, a private exchange enables an employer to maintain its group plan and interest in the good health and productivity of employees.
A key component of both EHD exchanges—one designed for companies with 50+ employees and one serving smaller firms—is the ability for employers to allocate a fixed dollar amount to a defined contribution program for each employee to spend on health insurance. Employees can then choose and customize a benefits plan with the coverage levels and deductibles and co-pays that work best for them and their families.
EHD’s exchanges also provide specific advantages to employers, including business data management and integrated compliance support for the ACA’s record-keeping requirements, which can significantly reduce a company’s administrative workload and pare costs.
“The model for defined contribution plans is really not new at all,” Radcliffe said. “However, the technology available today through our exchange platforms makes it all work—more choices for the employee through a portal that actually reduces the employer’s administrative burden.”
EHD’s private exchanges offer access to national and regional insurance providers as well as to a wide range of supplemental carriers that offer benefits such as dental, vision, life, and disability insurance. Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) are also available through the exchanges if offered by participating employers.
For more information on EHD’s private healthcare exchanges, please contact Scott Radcliffe at 717-394-5681 or skradcliffe@ehd-ins.com. Learn more about EHD at www.ehd-ins.com.
