Blue Cross and Blue Shield companies are setting up their own insurance exchange for retirees switching to individual Medicare plans, a bid to secure lifetime customers from in a new population of seniors.
The BCBS Marketplace, using exchange technology from the company Connecture, will start selling BCBS Medicare Supplement Insurance, Medicare Advantage plans and Part D drug plans in 45 states plus Washington D.C. for the 2016 plan year.
"BCBS Marketplace will provide an intuitive and personalized shopping experience to help retirees purchase the Medicare coverage that best meets their needs," said Maureen Sullivan, senior vice president and chief strategy officer for the Blue Cross Blue Shield Association. "This exchange will ensure that more retirees continue to benefit from the security and stability of Blue Cross and Blue Shield insurance."
The BCBS Marketplace comes amid a boom in both health plan shopping and Medicare Advantage enrollment, which is growing with the aging population and likely be boosted even more by the replacement of the Medicare sustainable growth rate formula. The Blues HIX joins a number of web-brokerages and exchanges selling Medicare plans, including eHealthInsurance and HealthMarkets.
It's being pitched to employers as a way to reduce the costs of benefit administration in contributions to retiree coverage, with a "near-paperless process for Medicare-eligible members." Companies can opt to co-brand with the BCBS Marketplace with their logo.
"BCBS Marketplace supports employers' commitment to their employees by facilitating a seamless transition to individual coverage when they retire," said Sullivan. "We look forward to bringing this solution to the employer market this summer."
The exchange may be a play for life-time Blue customers among Baby Boomers who may have spent their whole careers in an employer-sponsored BCBS plan, but now have a choice for Medicare Advantage from insurers like Aetna, Humana, United Healthcare or even local provider-sponsored plans offering uber-low premiums. The BCBS Marketplace will also sell vision, dental and life insurance plans.