Four Benefits of a Multi-Carrier Health Insurance Program

 Although multi-carrier health insurance programs, such as the CaliforniaChoice small group private health insurance exchange, have been operating for years, many businesses and individuals had little awareness of exchanges before the Affordable Care Act (ACA) took effect and the federal marketplace opened. Today, more and more employers of every size have access to one or more multi-carrier exchange, and it’s easy to understand their growing appeal. A multiple-carrier health insurance program offers several benefits – for businesses and their employees.

1. Competition Among Insurers / Reduced Costs

When you offer multiple insurers in a health insurance program, the participating health plans are competing for your (and your employees’) business, so they are more likely to offer competitive pricing (and cost savings for you and your employees). Using a Defined Contribution approach gives your business another way to control costs, while still offering a range of plan choices for employees and dependents. It also help guard against over-insuring, which can mean savings for employees and your business, according to the Healthcare Trends Institute.

2. Greater Employee Choice

Multi-carrier health insurance programs are very appealing to employees because they are able to shop and purchase the coverage that works best for their individual or family health insurance needs. After all, your health care needs are likely not the same as those of your employees. “Bob” and “Elaine” certainly have different health care needs from one another, so giving each of them a choice in what coverage they elect helps them find the right plan at the right price to fit their budget.

3. Simplified Administration

A multi-carrier health insurance program like an exchange offers streamlined administrative support for your business, your employees, and enrolled dependents. Participants can typically enroll online and can often use a single website and toll-free customer care number for answers to questions and problem resolution. They may also help reduce a business’s administrative burden by offering assistance with the rigorous compliance requirements of health care reform – a welcome relief in today’s changing regulatory environment.

4. Shared Responsibility / Reduced Financial Risk

A multi-carrier health insurance program shifts more of the responsibility for decision-making and buying power to employees. While employers are still involved in selecting the carriers and plans (or the private exchange packaging the options for employees), the ultimate decision regarding health coverage is left with employees (and their dependents). If an employee chooses a higher deductible plan (or chooses not to take part in supplemental or voluntary coverage), that decision can reduce the employer’s financial risks and costs. You can find a local CaliforniaChoice broker to speak more about your employees’ health insurance needs and whether a multi-carrier program makes sense for your business.