Blue Cross and Blue Shield of Kansas City is partnering with Benefitfocus to set up a private insurance exchange for the health insurer’s large-group clients starting early next year.
The companies announced Wednesday that Benefitfocus will offer Blue KC a retail platform that lets employer groups and their employees “shop for benefits in a marketplace setting.”
“Launching this private exchange is key in our goal to provide employers with a better way to manage employee benefits and adapt to the changing health care market,”Danette Wilson, Blue KC group executive of external operations and chief marketing executive, said in a release. “Employers are looking for defined contribution support and consumer-centric solutions that are both cost-effective and user-friendly.”
The Benefitfocus platform lets employers filter plans so employees can see only those for which they are eligible. Also, a personal shopping cart shows employer-allocated funds and an employee’s out-of-pocket costs, the release said.
The platform, available on any device with Web access, puts all benefit options in one place, including Blue KC medical coverage plus dental, vision and life insurance. In addition, plan information and rates show up in real time, and the cloud-based technology lets Blue KC add new products as they become available.
“The emergence of private exchanges turns the world of benefits into an e-commerce market, transforming the way employers and individuals select plan options,” Benefitfocus CEO Shawn Jenkins said in a release. “Benefitfocus has developed game-changing technology for carriers to support defined contribution as it quickly becomes the preferred funding method for benefits by employers.”
Blue Cross and Blue Shield of Kansas City offers health coverage services to 1 million residents in the Kansas City region.