The federal government isn’t the only player in town when it comes to rethinking health care—Walmart is considering the launch of a private health insurance exchange for small businesses. These exchanges aren’t new; several Fortune 500 companies currently operate them for their employees.
Private exchanges operate for the benefit of the employees of the sponsoring company. The company prepares a menu of health insurance plans; providers then compete for the right to sell these plans to employees. This competition lowers premium costs for employees, and providers are interested because it gives them access to a large pool of customers.
Walmart’s exchange would be open to participating small businesses and would permit them to leverage Walmart’s scale and expertise in negotiating with health insurance providers. Stay tuned for more information on this developing news.Read the full article at the Orlando Business Journal.Read more Finance Watch articles.
Photo: Getty Images