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media, etc., is now the starting point for consumer- facing platforms. • Risk-pooling: Multi-carrier exchange provides oppor- tunity for better risk pooling through the use of tech- nologies, such as EMR and HIE records, that provide a more accurate health history.

Challenges and strategic considerations for private exchanges

Health plans need to address several challenges while setting up private exchanges to increase member base: • Operational model: In a multi-carrier environment, the governance model, execution strategy and business rules definition are significant challenges. Although health plans can opt to set up a single-carrier exchange, the complete execution strategy definition is still a challenge.

• Brokers: Exchanges cannot simply be the new portal for broker interaction. Just as life insurance, property and casualty (P&C) insurance, and travel and leisure sectors redefined the role and opportunities of the agent/broker, private exchanges (and the health insur- ance industry) need to do the same. Services provided by brokers will transform from primarily sourcing and registration to value-adds that will support improved health delivery and cost take-out.

• Infrastructure set up and integration: Serving millions

of consumers requires a well-defined infrastructure strategy based on population characteristics and insur- ance market environment. Integration with health plan administrative and operational systems is crucial for data integrity as well as an automated and accelerated transactional environment. Sound integration strategies reduce administrative burden and associated costs.

• Consumer acquisition and relationship management: Assessing the market potential and developing new strategies are required for consumer acquisition and retention.

• Marketing strategy: Differentiation for the health plan has to be achieved through marketing, outreach and communication plans.

• Adverse selection: Innovative approaches are needed to address the issue of adverse selection and must be sup- ported with appropriate risk adjustment mechanisms and strategies.

• Data security and privacy: While implementing pro- cess automation and integration, the data flow needs to be controlled with a secure channel and requires stakeholder buy-in as well as infrastructure availability.

Setting up private exchanges: Strategic and operational approach People: Governance for a private exchange is typically by an independent body comprising of the IT platform provider,

Health plans need to cover both IT and opera onal services in a harmonized manner Challenge

Strategic considera ons Exchange opera onal model

• Innova ve consumer engagement and revenue models • Well-defi ned stakeholder management plan and governance set up with business process management for plan and benefi ts selling • Upfront Value Realiza on Framework set up

Consumer acquisi on and rela onship management

Marke ng strategy defi ni on and broker support

Adverse selec on Infrastructure and integra on

• Rich user experience, mul -point decision support • Support for aff ordability • 24/7 consumer support • Social media support, educa on and outreach

• Plan marke ng • Educa on and outreach: webinars, seminars, online educa on • Mobility support for educa on, surveys • Case management, quo ng and educa onal services for brokers

• Decision-support tools, mechanisms • Risk assessment, adjustment, pooling strategy

• People, process and technology integra on for end-to-end service landscape, with process automa on • Seamless interac on and exchange of informa on and transac ons between health plan systems, consolidated billing

• Scalable and secure cloud-based infrastructure, hosted deployment model, privacy support HEALTH MANAGEMENT TECHNOLOGY November 2012 13

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