Office of Consumer Health Services
OVERVIEW The Utah Health Exchange is designed as a marketdriven solution to create a competitive environment while providing multiple medical plan options for consumers. Utah’s approach brings the consumer back into the equation by promoting employee engagement to choose health coverage for themselves and eligible family members. By joining the Exchange, employers can provide a flat-dollar contribution amount toward employee benefits and the flexibility for employees to make their own choices. The Utah approach to reform is based on enhancing consumer choice and the ability of the private sector to meet consumer needs. The Exchange is part of Utah’s overall health system reform effort that is aimed at increasing the number of Utahns with health insurance. A full launch of the small group market occurred in fall 2010 after conducting a limited launch beta test in 2009.
Insurance for the Individual The primary role of the Exchange is to connect consumers with private companies that can help them identify and purchase the product they need. This approach is commonly referred to as the “Farmers Market.” Consumers are given three options to shop for and buy a policy: 1) use a private online shopping service, 2) buy direct from a participating insurers, or 3) search for an agent to get in-person assistance. Currently, there are five private online shopping services, five insurers and thousands of agents available through the Exchange. Defined Contribution Market Employees are an employer’s number one asset. In today’s competitive market, employers need every advantage to attract and retain their workforce. The defined contribution model provides an avenue for employers to provide an extensive array of benefits where employees make selections amongst very rich plans versus high-deductible plans, all offered with a pre-tax advantage. At the same time, employers pay a set amount toward employee benefits, helping them remain within a predictable budget. It may seem quite simple; employers offer a set amount to their employees and employees shop. However, Utah’s defined contribution market is comprised of a
Governor’s Office of Economic Development • Annual Report • www.business.utah.gov
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