Marketplace or Private Exchange
Private Exchanges Offer An Easier Way To Control Benefit Costs
There has been a lot of confusion surrounding private and public exchanges. Private exchanges are run by private industry, whereas public exchanges are run by the government. In essence, private exchanges provide employers with a better way to manage and predict their benefit expenses by giving employees a set amount to shop and select benefits that best fit their needs. The private exchange is a platform that supports defined contribution strategies for employers and employees. Instead of offering a one size fits all employee benefits package; you empower your employees with more freedom to select the benefits that best fit their needs.
By selecting a private exchange option, employers:
- Reduce costs by setting a fixed budget for benefits
- Streamline administration
- Promote consumerism
- Engage your employees in their health care decisions