Private Health Insurance Exchanges, Are You Ready?

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Oct. 1 (Bloomberg) -- Bryce Williams, managing director at Towers Watson, and Stanley Crouch, CIO at Aegis Capital, discuss the health insurance exchange business with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)


What is the difference between the private exchange and the ones set up by various states and the government?

Our private exchange for medicare was built off of some bush-era legislation passed 10 years ago.

So we organized all of the new medicare plans and turned on a private exchange the retirees of companies like chrysler and ford and dupont have used to give folks money and let them shop for an individual plan.

Weak the person in the right plan and we created -- we put the person in the right plan and we created value for these corporations.

A public exchange was set up in the wake of obamacare.

Those are live in 36 states.

Some variation of 14 or 16 others are is standing up their own exchanges.

It is a big undertaking.

It has gone off bumpy this morning.

Not unlike what happened with medicare 10 years ago.

But then it sorted itself out.

Bryce williams, can you speak who can now go to these private exchanges?

You have to be part of a big organization?

What kind of demand have you seen?

On our private exchange business, that continues to grow.

Ibm announced they are moving through our private exchange.

In addition to the medicare exchanges that have been around the many years, you're going to see private exchanges help early retirees who don't have a lot of options.

Part-time and seasonal workers, people who may not qualify because they don't work enough hours will have options on the state exchanges.

And then lastly, as you may have seen, walgreens moved to an active exchange.

They now will move to a private exchange that offers options and choice and competition.

That remains to be seen.

These are areas where private exchanges can connect corporate america to better value for their retirees.

Is this a good investment opportunity?

If you're looking at expansion of benefits to americans, what about the private exchange?

Never mind the one set up by the state.

I think there is fantastic opportunity.

Between the advancements being made in biotechnology and other areas, the delivery, the problem we have is the payer system and the management of that system by the government.

Not just the federal government but the state government.

I think what mr.

Williams is doing is interesting.

He is tapping into what is ostensibly a free market that has created.

What i have always advocated is full-blown free health care at minimal clinics.

And then a parallel universe which would be extremely robust of private pay, private insurance market.

Because the minimal we could do at the clinic level would satisfy a lot of the cost that get loaded.

What that does is leaves less for the government to administer.

It has become such a big part of our gdp, it is a major industry.

But the problem, i am sure mr.

Williams would attest to, when you insert lobbyist's into the process directing self-interest, you get skewed benefits.

We are still miss delivered and misappropriated and misallocated and mispriced.

Obamacare, the affordable care act, which i'm hearing more and more replacement for a negative brand.

Obamacare is a damaged.

. i think the president was noble to try to do something to get health care on a better playing.

The problem is -- better plane.

The problem is it gets skewed in that you have this major fight politically.

Look what did has done.

It has created mayhem, or has the potential.

I would rather say let's go to a real market-based, like a road.

I can pay the toll to get into manhattan or i can drive around through the bronx and go over the bridge.

Bryce williams, what do you think of that suggestion?

I would say what is missing in the health care system is a true consumer.

Consumer that has price transparency, that selects their own plan, that matches their type to any condition they have.

To take it up a level, the lack of a consumer being empowered and having choice in making decisions, that has created some interesting dynamics in the actual service side of the business.

We focus on major corporations.

So one of our strategies in moving our clients to high- performing health plan ideas is to use our active exchange because it does turn on more consumer dynamics.

People get to select their own plan.

They get to have a say in which carriers they select.

So it is this kind of empowered consumer we believe, working through american corporations today, is a first step to creating real consumers.

The last question about what is -- does the mri cost?

If we can empower consumers and get them engaged, i think we

This text has been automatically generated. It may not be 100% accurate.


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