The manufacturing industry is made up of companies engaged in the transformation of materials or components into new products, from the smallest computer chip to the largest airplane. But while all who work in manufacturing have a role in creating the final item, their day-to-day jobs, backgrounds, health care needs and budget can be extremely different. That’s why offering health insurance through a private exchange is an option many in the industry are turning to. Since employees will always have different health care needs, private exchanges make it possible for an employer to offer different insurance plans geared towards all employee segments, from your newest operations manager to contractors and soon to-be retirees.
A true shopping experience
Private exchanges operate like a retail shopping experience, where employees can choose from a variety of plans hand-picked by their employer. Whether it’s a high-deductible plan or one with lower cost-sharing, individuals choose plans based on their families’ specific health care needs and budget. Online registration and personal support makes private exchanges easy to operate for managers and human resources personnel.
A way to control health care spending
Another reason private exchanges are so ideal for the manufacturing industry is that they allow companies to control their health care spending. Each year, decision makers and human resource managers decide how much to spend per employee on health care, which becomes the budget that employees use when shopping for a plan. Eighty percent of employers listed that financial predictability of a defined contribution plan as either the number one or number two reason why they chose to adopt a private exchange, according to a recent Accenture survey. Beyond defined contribution, private exchanges are also desirable because of the level of support they offer. Blue Cross Blue Shield of Michigan has a support team that walks employees through the process from beginning to end, making the transition to a private exchange easier for everyone, including human resources personnel and management
Planning for the future of your business
Finding and retaining qualified and skilled employees continues to be a challenge with many manufacturers, but providing a competitive benefits package by offering insurance through a private exchange is a great way to recruit and keep top talent while also keeping the bottom line in mind. To learn more about private exchanges and how they can help you and your employees, keep reading:
- The Small Business Owner’s Guide To Private Exchanges
- Private Exchanges Cater Perfectly To The Restaurant Industry
About the Author
Jason Hover is vice president of Private Exchange for Blue Cross Blue Shield of Michigan. He’s responsible for driving the company’s strategy and solutions in the private exchange market, which includes developing the company’s proprietary GlidePath℠ private health insurance exchanges. Hover also leads strategy development for the Blue Cross Commercial Business division. Hover joined Blue Cross in 2009 and previously served as director of Commercial Business Strategy and director of Strategy and Planning.