Array Health’s Spectrum™ Private Exchange Solution Enables Insurers to Meet Demands of Small Businesses
Insurers help small business employers cap benefit costs, increase employee choice while complying with new rating requirements
SEATTLE, Wash. – October 22, 2013 – Array Health, a leading provider of private insurance exchange technology, today announced support of the Affordable Care Act (ACA) Adjusted Community Rating (ACR) system through its Array Spectrum™ private exchange technology platform. The platform’s built-in, flexible rating architecture enables insurers to comply with the ACA rating mandates required to support small employer groups. According the U.S. Small Business Administration 2011 census data, 98 percent of U.S. businesses will be considered “small group” under the ACA’s 2016 definition (of less than 100 employees).
The complex and evolving regulatory landscape including changes in the ACR system for individual and small groups means that insurers can no longer rely on traditional underwriting to determine their pricing. Array Spectrum allows insurers to comply and better manage the complex ACR requirements regardless of business locations or group sizes. It can also seamlessly transition small groups as they grow and become eligible for large group status, all while staying compliant as the rating rules evolve.
Many small employers are forced to choose between paying more for the same coverage, offering less coverage or dropping employee health benefits altogether. Insurers with their own private exchange can offer their small business customers an attractive solution to their health insurance challenges.
A single-carrier private exchange built using the Array Spectrum platform allows insurers to handle evolving ACA regulations with a sophisticated and flexible rating engine. Array Spectrum enables insurers to retain existing groups, grow market share and better manage risk. It also provides rich data analytics, along with comprehensive support for the defined contribution model that helps control costs.
“The demand from small groups for an affordable, convenient benefits solution continues to grow, but unfortunately the shifting healthcare ecosystem has made shopping for and selecting insurance plans confusing for small employers,” said Jonathan Rickert, CEO at Array Health. “We look forward to working with insurers to help them succeed in the small group market by meeting their customers’ needs with an intuitive and personal shopping experience.”
One of those insurers is Highmark Inc. The nation’s fourth-largest Blue Cross and Blue Shield-affiliated company serves 5.2 million members in Pennsylvania, Delaware and West Virginia. According to Bill Brown, Highmark’s Manager of Digital Distribution, “Array’s private exchange technology allows Highmark to effectively meet the needs of all of our customers, including those in the small group market, and continue to provide options for those looking for new ways to provide health insurance to their employees.”
About Array Health
Array Health is a leading provider of private insurance exchange technology. Its cloud-based software platform enables insurers of any size to power their own branded online exchanges—a strategic channel that helps them compete and thrive in the post health-reform world. With its next generation Member Marketplace and support for diverse funding models, insurers win and retain business by giving employers a way to control costs and members a better way to buy benefits. Array Health is a privately held company based in Seattle. To learn more, visit www.arrayhealth.com.
For Array Health
Contact: PR@arrayhealth.com