July 25, 2014
July 24, 2014
Private Exchanges: Consumer-Driven Health Care’s Next Act
Proponents of consumer-driven health care have long advocated for Health Care Reimbursement Arrangements, where employers provide a sum of money to their employees to purchase coverage in the individual health insurance market without any further employer oversight or involvement. Beginning in 2014, this approach to consumer-driven health care will run afoul of the ban on annual limits imposed by the Patient Protection and Affordable Care Act. However, in 2014, the health care reform act’s employer-shared responsibility rules come into play, and by wrapping the employer contribution, if any, into a group market insurance product, private exchanges seek to address these and other issues.
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