Private Health Exchanges: A Path to Stability

Health care benefits are becoming more and more of a priority for Chief Financial Officers as health care costs rise and impact the bottom line.

By 2016, overall health care costs in the U.S. are projected to have risen 68 percent since 2006, according to an Aon survey from 2015, with employee health care costs rising 124 percent and employer health care costs up 51 percent in that span. These cost increases put pressure on CFOs to find ways to eliminate risk, remove volatility and lower health care cost.

Private exchanges can address these concerns by allowing CFOs the opportunity to achieve financial stability and cost predictability.

This CFO.com publication offers factors to consider when selecting a private health exchange solution, differences between a self- and fully-insured funding model, and efficiencies and innovation that come from using a private health exchange. Christa Davies, CFO of Aon PLC also gives her perspective on Aon’s turbulent claim cost and how a private health exchange improved cost predictability while achieving high employee

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