The world is changing, and Liazon is helping.
What's the problem?
Health insurance costs are rising. Business is getting tougher. You want to provide quality benefits for your employees, but high costs and limited options force you to do the dreaded annual renewal trim and tweak of benefits and to constantly switch carriers. You’re trying to do what’s right, but your employees only see what’s going away.
There is now a better way that many businesses like you are discovering —a private exchange model.
What is an exchange and how does it work?
An exchange is an online store where employees can purchase benefits. Exchanges offer multiple options of health insurance plans, and may also offer other benefits, such as dental, vision, life, disability, and other options. Exchanges that are “private” are run by industry, while “public” exchanges are run by the government.
In most cases, the employer uses a defined contribution strategy to give each employee a set amount of money to purchase benefits. The employees and their families can then go shopping in the exchange with the money allocated by their employer and add their own if needed. Depending on the exchange, employees can receive guidance and education about the plans to help them make purchasing decisions.
What about Health Care Reform? Where does that come in?
The Patient Protection and Affordable Care Act (aka “ACA” or “Health Care Reform”) was passed by Congress in 2010 and is being phased in over the next few years. It is expected to reduce the number of people without health insurance by providing people with incentives and options to buy insurance.
Major components of the act include:
- Expanding eligibility for Medicaid
- Providing tax credits that make insurance more affordable for certain people and providing penalties for those who choose not to purchase insurance
- Guaranteeing access to coverage regardless of pre-existing health conditions
- Establishing government-run health insurance exchanges for individual insurance
Learn more about what the Affordable Care Act means for businesses and employees
Understanding Healthcare Reform
- The Henry J Kaiser Family Foundation provides easy-to-understand videos and visuals on this topic:
Making Sense of it All as a Business Owner
Our Experience With Exchanges
We’re helping people figure out how to make Healthcare Reform work best for the people it’s intended to help. We have already seen the positive impact of choice on our customers and their employees. Read what our Executive Team has said:
- Explaining the Exchanges to Employees Won’t be Easy, Workforce
- Maybe Obamacare Won’t be So Bad, Inc.
- Private Exchanges Mull ACA Role, PoliticoPro.com
- Cost Predictability Sparks Interest In Defined Contribution Plans, Health Plan Week
- Liazon Co-Founder: Health Exchanges Put Emphasis on Members’ Personal Responsibility, BestWeek
Costs are high and keep increasing
The average premiums for employer-sponsored health insurance in 2012 were $5,615 for singles and $15,745 for families. That’s 30% higher than in 2007 and 97% higher than in 2002. 1
Employees don't fully value their benefits
80% of employees don’t know how much their employers contribute towards their health insurance premiums. And almost half of employees with employer coverage don’t even know how much they contribute from their salary to their own health insurance premiums! 2
Employees want to be in the driver's seat
A recent survey found that 83% of employees with employer-based coverage feel they are better suited than their employers to choose a health plan for themselves. 3
Giving employees transparency, control, and skin in the game unlocks value.”
Todd Hixon, Forbes.com
Employees want their employers to do four things when it comes to health benefits. These are:
- Make it easy to do.
- Make it personal so I know how to get the best value.
- Make it move me in the right direction.
- Make it meaningful so I feel supported as I try to improve my health. 4
How does Liazon fit in?
Founded in 2007, Liazon Corporation operates the industry-leading private benefits exchange for businesses. Its flagship product, the Bright Choices® Exchange, is an online benefits store that is changing the way employers and employees buy benefits. Bright Choices helps employers manage their healthcare costs by setting predictable budgets through a defined contribution funding strategy while guiding employees to purchase better coverage of health, dental, vision, life, disability and other benefits. Liazon helps employees by giving them the coverage they need at a price they can afford. It makes the whole system work more efficiently. We have years of experience that show how.
1: The Kaiser Family Foundation and Health Research and Education Trust, Employer Health Benefits 2011 Annual Survey.
2: Open Enrollment Survey. National consumer survey conducted in September and October of 2011 by global insights firm Kelton Research and sponsored by eHealthInsurance.
3: Open Enrollment Survey. National consumer survey conducted in September and October of 2011 by global insights firm Kelton Research and sponsored by eHealthInsurance.
4: Findings from Joann Hall Swenson, health engagement best practice leader with Aon Hewitt. In Stephen Miller, “Message to Employees: Get Proactive During Benefits Enrollment”, SHRM, 10/14/2011.