Risk & Business Magazine California Risk & Business Magazine Summer 2017 | Page 2

MULTI-CARRIER HEALTH INSURANCE
Four Benefits of a Multi-Carrier
Health Insurance Program
BY: KEVIN TIMONE
CHIEF SALES OFFICER OF ORANGE
A
lthough multi-carrier health
insurance programs— such
as the CaliforniaChoice
small business private
health insurance exchange,
—have been operating for years, many
businesses and individuals had little
awareness of these exchanges before the
Affordable Care Act (ACA) took effect and
the federal marketplace opened.
Today, more and more employers of
every size have access to at least one
multi-carrier exchange, and it’s easy
to understand the growing appeal of
these exchanges. A multiple-carrier
health insurance program offers several
benefits—for businesses and their
employees.
1. COMPETITIVE PRICING
When you offer multiple health insurance
options, the participating health plans
are competing for your business, so
they are more likely to offer competitive
pricing (and cost savings for you and your
employees). Using a Defined Contribution
approach gives your business another
way to control costs while still offering a
range of plan choices to employees and
dependents. It also helps guard against
overinsuring, which can mean savings for
employees and your business.
2
2. GREATER EMPLOYEE CHOICE
Multi-carrier health insurance
programs are very appealing to
employees because they are able to shop
and purchase the coverage that works
best for their individual or family health
insurance needs. After all, your health
care needs are likely not the same as
those of your employees. And “Bob” and
“Elaine” certainly have different health
care needs from one another, so giving
each of them a choice in what coverage
they elect helps them find the right plan
at the right price to fit their budget.
3. SIMPLIFIED ADMINISTRATION
A multi-carrier health insurance
program like an exchange offers
streamlined administrative support
for your business, your employees, and
enrolled dependents. Participants can
typically enroll online and can often use
a single website and toll-free customer
care number for answers to questions
and problem resolution. Exchanges
may also help reduce a business’s
administrative burden by offering
assistance with the rigorous compliance
requirements of health care reform—a
welcome relief in today’s changing
regulatory environment.
4. SHARED RESPONSIBILITY
A multi-carrier health insurance
program shifts more of the buying
power and responsibility for decision
making to employees. While employers
are still involved in selecting the carriers
and plans (or the private exchange that
is packaging the options for employees),
the ultimate decision regarding health
coverage is left with employees (and
their dependents). If an employee
chooses a higher deductible plan or
chooses not to take part in supplemental
or voluntary coverage, that decision can
reduce the employer’s financial risks
and costs.
For more information about offering
your employees access to multiple
health insurance carriers in a single
program, talk to your broker or visit
www.mycalchoice.com to find a
CaliforniaChoice broker in your area. +
Kevin Timone is the Chief Sales Officer
of Orange, California-based CHOICE
Administrators, the nation’s leader in
developing and administering group
employee-choice
health
insurance
exchanges.