Carriers to promote voluntary products on private exchanges

Those products typically are among the most popular voluntary products offered through the workplace, according to Towers Watson.

Eastbridge said carriers believe that “voluntary products offered on an exchange will be more standardized and pre-packaged in terms of the benefits offered.” Carriers also said that pricing, underwriting, and commissions may be adjusted, depending on the exchange model.

Private exchanges work similarly to the public exchanges set up by the Patient Protection and Affordable Care Act in that consumers will be able to compare and choose their own health plan. For the most part, employers give workers a set amount of money to spend on health insurance and other ancillary benefits in a private exchange.

Private exchanges are booming in popularity, being developed by consulting firms such as Aon Hewitt, Mercer and Towers Watson.

A recent study from Accenture predicted that although enrollment in private exchanges will start “slowly” — with one estimated million enrollees in 2014 — and trail public exchanges  for several years, private exchanges enrollment will catch up by 2017 and even exceed public exchange enrollment by 10 million members in 2018.

Also read:

• Tax credits will offset PPACA sticker shock
• 7 voluntary products to watch in 2013
• Are consumers ready for consumer-driven health care?