Choosing a health plan is personal, that’s our philosophy

Think about this: employers don’t choose their employees’ car or homeowner insurance. So, why do they unilaterally select health plans? Everyone has individual needs and preferences. That’s why we believe the health insurance industry must transition to more of a retail mindset – where consumers have choice, flexibility and greater control. To accommodate this shift, insurers, producers and employers will need to add capabilities and technologies, such as those offered through the Array Health Private Exchange platform.

Reduce costs with a defined contribution plan

Traditional defined benefit health plans are becoming too expensive for many employers. A defined contribution approach allows employers to give a fixed dollar amount toward health benefits – saving the employer money and giving their employees the freedom to select the plan that suits them best.

Understanding Private Health Exchange vs. State Health Exchange

Starting in 2014, small employers will be able to offer coverage through state-run Small Business Health Options Program (SHOP) exchanges – or State Health Exchanges. Unfortunately, this change will cause employers to cancel their traditional group plans and create increased marketing costs for insurers in order to reach employees directly.

Private Health Exchanges, which are available now, operate independently from State Health Exchanges. They combine the defined contribution approach with a menu of health insurance plans and a broad set of ancillary products. Plus, Private Health Exchanges give insurers control over what products are being sold and to whom they’re being sold. In addition, they strengthen relationships with employers and members by offering what each is looking for: a smarter way to offer benefits and personalized coverage.