WASHINGTON, D.C. June 24, 2015 - The (PEC) has announced its formation to help guide the rapidly growing private exchange industry. The PEC will serve as a forum for those in the industry to share ideas and best practices, and increase awareness of the powerful ways in which private exchanges improve the selection, administration and use of employee benefits – while empowering consumers at every point in the decision-making process.
Against the backdrop of health reform – and with shared goals to eliminate waste, provide greater transparency and increase accessibility to health insurance and other benefits – the PEC aims to help establish private exchanges as a long-term solution for enabling consumers to easily evaluate and select employee benefits that best meet their health care, economic and lifestyle needs.
"PEC members share a common goal – to enhance the insurance and benefits experience by bringing the most modern tools and technologies to employers and consumers," said Simeon Schindelman, CEO of Bloom Health and PEC co-chair. "This coalition provides a collaborative platform for industry-leading private exchanges to expedite industry transformation and connect consumers to the insurance products they require. We are thrilled to work in-hand with other PEC members to promote awareness of the value and shape the future direction of private exchanges."
"Private exchanges represent a fundamental shift in insurance distribution channels that allow for consumerism to flourish and issuers and brokers to deliver increased value," said Rich McKeown, CEO of Leavitt Partners, a health care intelligence firm. The PEC engaged Leavitt Partners to convene and advise the coalition and has selected its five founding members based on different market vantage points:
The need for an authoritative body to provide information and counsel to consumers, employers, insurers and policy makers, and to develop and share data standards across the marketplace, has been underscored by recent data that suggests private exchanges will outpace enrollment in public marketplaces by 2018.
"With private exchanges we have the ability to eliminate many of the complexities that historically made the health insurance purchasing process more difficult and costly than it needs to be," said Ryan Howells, vice president at Connecture and PEC co-chair. "This coalition will help foster the dialogue required to ensure the interoperability of relevant systems and adoption of shared standards while simultaneously presenting employers, brokers, and consumers as a trusted source prepared to address questions on private exchanges."
The PEC is founded by private exchange companies with the express purposes of increasing literacy relative to private exchanges, establishing a common voice to advocate on behalf of the industry and developing data interoperability standards.
Empowering the nation's first state health benefit exchange since 2008, Softheon's vision and strategic direction address healthcare payer, provider, and government agencies’ goal of meeting Affordable Care Act (ACA) milestones. Softheon provides HIX Integration, Direct Enrollment, Premium Billing, and Edge Server solutions for insurance carriers of all sizes participating in Federal and State Health Insurance Exchange (HIX) Marketplaces. Softheon's Marketplace Connector Cloud (MC2) has been trusted by health plans in all 50 states as an accelerated federal, state, and private exchange integration platform. Softheon MC2 is a Software-as-a-Service (SaaS) solution where insurers pay a one-time activation and ongoing PMPM fees for exchange members only, while eliminating most, if not all, risks associated with ACA enrollment compliance and other mandates.