In the latest development of private health insurance exchanges, one large Blue Cross company is betting on the single-carrier model as a way to keep group business, or hopefully expand it.
Greater Philadelphia's largest insurer, Independence Blue Cross, is introducing a new private exchange to sell medical, pharmacy, dental and vision plans to employers with at least 100 workers.
IBC's exchange will debut in October for January 2015 coverage, feature defined-contribution and bundling options for employers, and include online shopping guidance tools for workers.
The exchange's defined contribution model lets employers gain more predictable healthcare costs, while the online shopping guide lets employees find plans based on their preferences and healthcare experience, "such as how often they like to visit their primary care physician," the company said.
"Our customers are unique and so are their employees, which is why we remain committed to offering market-leading, innovative health plans and solutions that fit each of their individual needs," said Linda Taylor, IBC's chief sales executive, in a media release.
"The Independence private exchange allows employees to play a key role in their personal health care decisions and make plan selections through an easy-to-use online shopping experience, while providing employers with cost-effective options for managing health care coverage offerings for their employees," said Taylor.
IBC joins other Blues and large insurers in betting on the single carrier private exchange model, rather than taking the chance of making plans available on an exchange with multiple insurers, where sales are less certain.
Further south on the East Coast, Blue Cross and Blue Shield of North Carolina is also rolling out its own private exchange this year for employers with more than 50 workers.
And both IBC and BCBSNC are following the footsteps of their Blue peers.
Back in 2011, Health Care Services Corp. -- parent of Blue insurers in Illinois, Montana, New Mexico, Oklahoma and Texas -- partnered with WellPoint and Blue Cross and Blue Shield of Michigan to share technology resources in the joint purchase of Bloom Health, a Minneapolis-based company that makes private exchange and employee benefits software.
Cigna also started its own private exchange this year, while keeping a presence in other private exchanges as well.