Major insurers join Towers Watson health insurance exchange
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Several major health insurers will provide coverage in a private health insurance exchange that Towers Watson & Co. is launching for employee coverage.
The insurers include Aetna Inc., Anthem Blue Cross and Blue Shield, Blue Cross and Blue Shield of Georgia, Empire Blue Cross Blue Shield, Kaiser Permanente and UnitedHealthcare Inc.
Through the exchange, employers can decide how much they want to contribute toward health insurance, with employees using the premium contributions to purchase coverage through the exchange.
For example, an employer could design its program so that if the exchange plan selected by an employee costs less than the employer's premium contribution, the difference could be transferred to a flexible spending account or health savings account to pay for uncovered expenses, such as those that fall under a plan deductible.
“Towers Watson is committed to partnering with leading national health insurers to offer best-in-class plans that help employers manage health care costs while meeting the needs of their employees,” Dave Ostendorf, chief health care actuary in Milwaukee for Towers Watson, said in a Monday statement.
The exchange for active employees will complement one that Towers Watson offers for Medicare-eligible retirees. That exchange, which provides coverage for about 500,000 retirees who had worked for more than 250 employers, including 45 Fortune 500 companies, was launched by Extend Health Inc., which Towers Watson acquired last year.
Private health insurance exchanges have become one of the hottest developments in the employee benefits arena, with several other major benefit consultants launching new ones as employers look to hold down their health care costs while giving employees and retirees more plan choices.
Additional health insurers are expected to join the Towers Watson exchange for active employees, with the first policies to be available for coverage starting Jan. 1, 2014.
