New Market Dynamic
Transforming health care through exchanges
In the United States today, health care costs are spiraling due to many factors employers can’t control—decreasing health, an aging population, and the often high costs of medical care. At the same time, as the sponsor of health benefits for 50 percent of Americans, or 156 million out of 314 million people, employers have been forced to respond. They’ve done so by making changes in vendors, plan designs, wellness programs, and cost sharing, but none of those efforts go far enough to fix the system.*
Amid this dynamic, Aon saw the opportunity to change the way market forces interact in health care. We believe that a competitive market for private health insurance is one of the best ways to encourage innovation and mitigate costs over time. We leveraged our extensive health advisory, vendor management, and administrative capabilities to bring free-market principles and competition to employer-sponsored health care. The result is a suite of private health exchange solutions that are built on a more sustainable dynamic and deliver groundbreaking benefits—for employers and consumers. Aon Exchange Solutions™ align risk and accountability by injecting new levers like competition, consumerism, and free-market dynamics into health benefits. This suite of thriving exchange solutions has the power to deliver a better future for health care.
A healthier ecosystem from end to end
Aon Exchange Solutions take a tremendous burden off employers by curbing the health care cost trend, giving them flexibility over how to manage their risk, and increasing cost predictability. Employees become more active, engaged consumers of health care by being able to choose between multiple plans and carriers for the first time. And in the free-market environments of our exchanges, carriers gain new incentives to keep rates affordable and service strong.
A better future for health care
Because our exchanges align incentives and accountability among employers, individuals, and insurance carriers, all players can participate more sustainably. Within our exchanges, carrier responsibility increases as they bear more risk, which incentivizes them to find new efficiencies and work with providers to lower costs. And as health care providers incur pressure from carriers to be more efficient, deliver high-quality care, and improve outcomes, health care delivery also becomes healthier. In this way, Aon’s private exchanges are catalysts for change throughout the entire health care system.
*Source: Employee Benefits Research Institute, Sources of Health Insurance and Characteristics of the Uninsured: Analysis of the March 2013 Current Population Survey, September 2013.
Aon Exchange Solutions Founding Principles
XCHANGES TODAY VOLUME 3
Learn how employers are leveraging the tools of private health exchanges to provide retirees with greater value in an environment of rising costs.
Download XChanges Today Volume 2Learn which type of exchange solution can best support your benefits strategy. This issue explores the spectrum of options and their impact for employers and employees.
Download XChanges Today Volume 1This edition of XChanges Today can help you understand more about private health exchanges, including some key considerations for your active and retiree populations.