Regardless of a company’s historical approach to health care benefits, the time is right for employers to revisit their long-term direction and take a fresh look at benefit plan options. For nine out of ten employers surveyed, the future holds either a movement to a more demanding philosophy of employer-sponsored health care, or a Corporate Exchange.¹ A health care exchange is a marketplace that connects insurance companies with individuals or employees wishing to purchase health insurance.
The more exchange participants, the greater the economies of scale that increase carriers’ ability to offer competitive prices. In this insurance marketplace, as in every consumer market, the element of competition will ultimately reduce prices. While there are different configurations of exchanges, the Aon Hewitt Corporate Exchange is a first-of-its-kind private sector approach that uses a multi-carrier model to maximize competition among insurers on the basis of consumer choice.
This Aon Hewitt white paper details how the Corporate Exchange works and how it can provide better health care results for both employers and employees.
¹Aon Hewitt Corporate Health Care Exchange Survey: The Time is Now–Rethinking Health Care Coverage, 2012.