Utah has selected a financial services vendor to provide payment-processing solutions and health savings account administration for its planned health insurance exchange.
Draper, Utah-based HealthEquity will be the banking solutions provider for the exchange and will collect premium payments from employers, perform risk factoring and disburse payments to health plans based on product selection and allocation of risk.
The company is also providing access to premium-only plans (POPs) and HSA administration.
The Utah Health Exchange is the result of state legislation mandating a health insurance "marketplace" that connects consumers to a single shopping point where they can evaluate insurance options in a standardized format.
The state developed and launched the Web-based exchange in conjunction with private sector firms. More than a dozen companies and 500 members are enrolled in the pilot phase.
"The Utah Health Exchange is a critical component in moving the state of Utah towards a consumer-based system that is funded through a combination of defined-contributions by employers, community groups, employees and other funding sources," said Norman Thurston, health policy and reform initiatives coordinator for the state of Utah.
According to Thurston, the exchange has the following core functions:
- provide consumers with transparent information about their healthcare options;
- provide a mechanism for consumers to compare and choose a health insurance policy that meets their needs;
- provide a standardized electronic application and enrollment system; and
- provide guaranteed-issue, tax-deductible insurance choices for small businesses.
State officials hope the element of consumer choice will help reduce prices and simultaneously improve quality. A similar exchange exists in Massachusetts, and some anticipate that a health insurance exchange will be part of any health reform legislation that comes out of Congress.