Freedom Benefits insurance exchange sets health plan strategy for 2011 and beyond

by Tony Novak   March 16, 2011

Freedom Benefits insurance exchange prepared a strategic statement focusing on its role, activities and priorities of health plans in the era of national health care reform. In the past we worked as a publisher paid through advertising revenues or as an agent for insurance companies and were paid a commission based on insurance transaction. In the future we will work as an advocate for consumers paid by the state or the exchange. The transition will certainly present challenges. Our approach has always been consumer-focused and now, more than ever, it is important that we focus our work on the three specific measures identified to accomplish this transition:

Affordability and sustainability - Despite any other provisions of health care and legal reforms, there is no reason to support an unsustainable health care system where health care costs exceed the reasonable portion of our available financial resources. In plain language, a health insurance premium that exceeds a person's rent or mortgage bill is not a viable economic option. The traditional health plans of the past are no longer an economically viable option. For most Americans, two or more health plans combining a primary and supplemental coverage will be required to provide adequate overall protection. We focus on helping consumers take reasonable and sustainable financial responsibility through enrollment in these new limited benefit health plans. For some individual limited benefit insurance plans, at least until 2014, this role is likely to remain as a traditional insurance agency. For other products, we must act as navigator. The duel role creates the need for a consistent editorial policy for published information.

Consumer education - We understand that the biggest challenge that most Americans face is adjusting to the larger role that medical expenses have in their overall personal, business and public finances. In fact, we expect that most Americans, their employers and governments are expected to experience significant stress caused by rising health care costs. Health insurance will become the second largest lifetime expense for most Americans, second only to housing costs. This transition is likely to dominate our personal financial planning for the coming decades. During this period of transformation, our health plans will provide transitional rather than permanent solutions. The specific health plan selected must match the individual's primary goal based primarily on financial/economic considerations:  1) to access medical care that would otherwise be unaffordable and inaccessible, or 2) to provide protection for personal assets and freedom of choice in determining future medical care.

Personal support - Our unique advantage is the ability to directly connect a consumer with an experienced senior level health insurance adviser quickly and without the usual layers of intermediate management. Our immediate goal is to expand telephone and email support through OnlineAdviser.org for those individuals who are not eligible for any employer plan or Medicaid. Other services will be expanded in 2014 through OnlineNavigator.org later in the national health reform process. We anticipate the eventual phase-out of employer-provided health plans.

Collectively, through the focus on affordable and sustainable health plans, consumer education and personal enrollment support, Freedom Benefits insurance exchange will continue to support our mission statement and increase market share within this consumer market segment.