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ICYMI: Carmin Grandinetti discusses private exchanges vs. group coverage in Business First of Louisville

Did you miss this Legal Forum Column in Business First of Louisville? Bingham Greenebaum Doll LLP attorney Carmin D. Grandinetti discussed the difference between a private exchange and group coverage, as well as the issues employers must consider with a private exchange.

Read on below to get caught up, and catch our monthly Legal Forum column in your copy of Business First of Louisville!

Is private exchange an alternative to providing group coverage?

A private exchange is a private business that offers health insurance on an exchange or private marketplace. If an employer elects to participate in a private exchange, it would purchase health insurance through the exchange and direct its employees to “shop” on the exchange for the policy that best suits their and their family’s needs.

A private exchange can allow the employer to provide its employees with a greater selection of policy types than an employer would normally be able to do with one or two employer-sponsored plans. Additionally, the private exchange can facilitate the employer’s migration to providing health care benefits as a defined contribution rather than a defined benefit.

There are many issues with joining a private exchange. For example, if an employer offers its employees access to a private exchange, those employees may not receive premium assistance subsidies available under the ACA. Additionally, the private exchange must qualify as group health coverage if the employer wants the defined contribution to remain pre-tax to the employees.

  • Partner

    Carmin D. Grandinetti has practiced in the legal field for more than 30 years with a focus in complex strategic transactions involving health care operations, including mergers, acquisitions and dispositions, real estate ...



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