Array Health Now Offering its Private Exchange™ to Health Insurers
Using Array Health's Private Exchange™ platform, health insurers can now distribute and manage their individual health insurance plans and other ancillary products in an employer setting.
Seattle, WA (PRWEB) December 21, 2010
Array Health, a software and services company specializing in health insurance Exchanges, is now selling its Private Exchange™ to health insurers.
The Array Health Private Exchange™ enables insurers to quickly deploy a custom-branded insurance Exchange. It marries an account-based employer benefits plan to a insurer’s individual health insurance plans and other ancillary products. Employers can use the Private Exchange™ to manage their benefits plan. Employees can use it to select, apply, and enroll in the individual health plan and ancillary products that best meet their needs. The Private Exchange™ allows insurers to preserve many advantages of the traditional group model, while retaining members, maintaining lower member acquisition costs, and building healthy risk pools.
“Health insurance insurers are seeking proven ways to prepare for and eventually compete with the state insurance Exchanges,” says Jonathan Rickert, CEO. “We are thrilled to be offering our Private Exchange™ to help insurers in this rapidly changing post-health-care-reform world.” The company had previously sold its Private Exchange™ exclusively to employers through insurance brokers.
Under health care reform, states are required to establish insurance Exchanges that support both consumers and employers. These Exchanges present two problems to insurers. First, there is a threat that the State Exchanges will erode existing fully insured membership. As employers shift to offering coverage through State insurance Exchanges, the incumbent insurer will lose members, since employees will be able to choose from competing insurers’ plans. Second, it will be hard for insurers to succeed in the state insurance Exchanges due to adverse selection, plan commoditization, and higher member acquisition costs.
“The insurer response to the Private Exchange™ has been tremendous. As a result of health care reform, our proven product and unique expertise are more relevant today than ever before. We’re very excited to be working with insurers on the opportunities created by health reform,” says Christopher Moneta, Director of Business Development.
About Array Health
Since 2006, Array Health has been managing Private Exchanges™ for employers ranging in size from 5 to 1,000 employees. From facilitating employee policy selection and application, to employer billing, census management, and administration, Array Health’s proprietary platform enables carriers to roll out and operate a Private Exchange™.
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