As an insurance broker, you need to have your finger on the pulse of what your employers are looking for when considering a private exchange. You can help employers find important advantages in adding a private exchange to their dental insurance offerings. According to the Healthcare Trends Institute, private exchanges offer employers three specific advantages: reduced costs, increased options for employees and a simplified plan administration process. Let's take a closer look at 3 key advantages employers seek in a private exchange.

Reduced costs
Many companies are choosing to replace a traditional healthcare plan with defined benefits with a more cost-controlled defined contribution healthcare plan. This helps employers anticipate and control their spending with greater accuracy. By using private exchanges, companies pay a fixed-dollar premium contribution instead of paying a set percentage of each employee's premium cost. 

Private exchanges can also slow premium growth. They do that by sharpening direct competition between insurers for customers. This provides a financial benefit for both employers and employees. Premiums for U.S. workers and their family members who receive coverage through that employment have increased by 80 percent over the last decade. 

More employee options
Employers choosing private exchanges like offering employees a wider range of choices. Some exchanges offer more than comprehensive health plans and include medical, dental, life, disability, and even non-insurance products, too. Having more choices makes it easier for employees find the right balance between meeting their personal healthcare needs and maintaining their financial needs. Employees can shop for the health plan that's right for them. Choosing the appropriate plan that aligns their finances and their need for health care gives them more control over their needs.

Simpler plan administration
There are many responsibilities for employers who sponsor health plans these days. They have to, among many things:

• Be sure they comply with healthcare reform,
• Keep current on mandated and complex employee communications
• Manage vendor relationships

Private exchanges help, with their service-oriented design, to reduce the employer’s administrative burdens. This is a relief to many employers. Besides offering administration assistance, private exchange administrators provide specialized services. These include enrollment reports, expert customer support, a unified bill for all group products bought through the exchange, and more.

When you know what your employers are looking for in a private exchange, you are at a big advantage. You can be their key advisor, steering them in the right direction. And based on your expert knowledge, you become an invaluable partner to them!