ConnectedHealth President Joe Donlan was recently interviewed for the article, “Next Wave of Multi-Carrier Exchanges May Come From State Chambers of Commerce,” published by Atlantic Information Services in their April 18, 2013 issue of Inside Health Insurance Exchanges.
According to the article, health-reform law is causing a shift among several state chambers of commerce to embrace multi-carrier private exchanges. Some of this change is being driven by an expected increase in employer adoption rates of defined-contribution strategies. However, one of the biggest challenges is attracting insurers to a multi-carrier exchange.
Ultimately, as the health-care industry continues to evolve, Donlan points out that insurers will need to find new ways of distributing their products and services to potential customers — similar to the path airlines have taken in selling tickets through various travel sites.
Excerpt from the article:
While a multi-carrier private exchange is a compelling idea, convincing carriers to participate in a market that will consist of mostly small employers could be difficult, adds Joe Donlan, president of ConnectedHealth, which works with health insurers to enable their private exchanges.
“This is one of the challenges multi-carrier exchanges have had. But over time, there could be more opportunities because the market will continue to grow more competitive, and [as consumer demand for choice grows] the health plans will need to sell through multiple distribution channels…across all of their lines of business,” he says. Donlan says insurers might follow the path of airlines, most of which now allow the sale of tickets through a variety of online travel sites.