The US health insurance industry is undergoing a major transformation from a system controlled by employers to one where employees and consumers are more involved with their choices. Private health insurance exchanges incorporating an approach that focuses on defined contributions rather than defined benefits. Instead of being forced to accept health benefits as chosen by employers, employees make cash contributions to purchase their own insurance options.

Paypro is proud to be a part of this paradigm shift by partnering with Liazon Corporation to offering the Bright Choices® Exchange for our valued clients. If you’re considering moving over to a defined contribution model for your company, you probably have some questions about what this partnership means.

What is a private exchange? A private exchange is essentially an online store where purchasers can shop for and research health insurance benefits. Shoppers can choose from medical, dental, vision, disability and life insurance coverage that suits their needs. Employers that offer a private exchange will set up accounts to hold funds contributed by individual employees, and it’s from this source that they pay for their coverage choices.

Private exchanges are distinct from the public exchanges defined in the Affordable Care Act (ACA), in that they’re managed by insurance companies and brokers. ACA public exchanges are run by government agencies.

The Bright Choices Exchange is an online benefits store that is changing the way employers and employees buy benefits. Bright Choices helps employers save money on their health care costs by setting predictable budgets while allowing employees to personalize their benefits package with a selection of health, dental, vision, life, disability, and other benefits from top national and regional providers.

How do Paypro clients and their employees benefit from the new partnership with Bright Choices®

  • Benefits for Employers: Companies that choose the Bright Choices® Exchange solution save on insurance costs, as they can set predictable budgets and streamline benefits administration. Other benefits include:
    • Improving the employee experience by giving them control over their coverage;
    • Focusing on business operations instead of running the company’s insurance plans; and,
    • Offering a wider range of benefits as compared to public exchanges.
  • Advantages for Employees: Your employees are more involved with their health insurance decisions rather than being forced to go with the options you choose for them. In addition:
    • Employees can find the best plans to suit their needs and those of their families;
    • They know their own coverage rather than having to ask; and,
    • Employees become better consumers in the health insurance market because they’re responsible for their decisions. 

The employer is supported.pngWill this new solution be difficult to implement?

At Paypro, our goal is to ensure a smooth transition from your existing health insurance plan over to our Bright Choices® Exchange. We offer training and support from the early stages of implementation through your renewal a year down the road, including:

  • Defined contribution advice and calculation tools;
  • Self-service administrator portal;
  • The “Tell Me More” educational hub with resources for employees, including videos, FAQs and articles to help them make responsible choices. 

The Bright Choices® Exchange is just one component of the many employee benefits and administration solutions offered by Paypro. To learn more about the benefits of a private exchange or with additional questions, please contact us to request a consultation with one of our Bright Choices® Exchange specialists.

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