As Healthcare costs continue to rise, Employers are desperately seeking a long term strategy to predict and control Health Insurance costs. In the last year, some large employers such as AT&T, General Electric, Time Warner and UPS have used a new strategy for benefits called a “private exchange”.

When you think about it, every company has to make one of three choices every year: 1) pass more healthcare costs onto employees, 2) spend even more on benefits, or 3) cut or decrease benefits.  All three are unsustainable, and all three lead to a dead end.  Most companies are still buying into one-size fits all health plans, leaving many or most of their employees underinsured or over-insured.   At renewal, employers often agonize about picking 1-3 plans on behalf of their employees, hoping that all employees will fall into one of their selections.  Under a Private Exchange model, employers now have the option to offer up to 10 medical plans, as well as several dental, vision, life, and accident insurance plans, and even pet insurance.  In addition, consolidated billing and ease of administration are invaluable tools that Private Exchanges offer to Human Resources managers.   More employers are considering a defined contribution strategy for health insurance, similar to how a 401k is set up.  This is helping CFOs make strategic decisions based on 3-5 year future timeframes regarding their company’s healthcare budgets.


  • In the next 3 years, 47% of employers plan to move to a private exchange model ( J.D. power and Associates 2013)
  • 80% of employers are willing to choose a private exchange model in the future.( J.D. power and Associates 2013)


If interested in seeing how a private exchange solution could help your business, please call us at 1-800-275-1891 or visit