Technology doesn’t have to be cookie cutter. It can solve a lot of unexpected pain points. For example, The Mortgage Bankers Association (MBA) will launch a new private exchange which will offer healthcare and other employee benefits for its member companies. Addressing the challenges of maintaining a competitive employee benefit program, “MBA Health Link” will provide an easy solution for employers wanting to control costs while offering more benefit options to meet the varied needs of their employees.
The creation of MBA Health Link is being made possible through an exclusive partnership with Arthur J. Gallagher & Co. (Gallagher), a US-based global insurance brokerage and risk management services firm.
“MBA is pleased to partner with Gallagher to create MBA Health Link and thus offer healthcare and employee benefits that are exclusively for our diverse membership,” said MBA Senior Vice President, Residential Policy & Member Engagement, Pete Mills.
“Industry data show that our members face major challenges in getting control over certain costs, particularly in the healthcare and benefits arena. Where MBA Health Link stands out as such an attractive option for our members is in its ability to create administrative and financial efficiency while delivering high quality benefits to their employees,” said Mills.
Cost control, predictability, and administrative and compliance responsibilities are the leading concerns for employers when evaluating healthcare options. With the administrative support of the Employee Benefits Consulting and Brokerage operations team of Gallagher, MBA Health Link can more easily overcome these barriers.
MBA Health Link combines two key strategies: a defined contribution by the employer, and a private exchange for employees to spend the contribution in a healthcare and benefits market place.
“Employers have a lot of questions when it comes to navigating the ever-changing benefits landscape,” said Ethan Hendrickx, North Central Region Area Vice President for Gallagher’s Health & Welfare Consulting Practice. “A private exchange provides both employer and employee with a flexible platform for navigating the uncertain times ahead with employee benefits.”
Companies that adopt MBA Health Link will utilize a defined contribution (DC) strategy. Unlike the defined benefit approach, a DC strategy allows for transparency in total employee compensation and makes it possible for employers to link their long-term benefits budget with metrics relevant to their business. A DC strategy works best in a private exchange environment, where employees have a choice on how to spend their benefits dollars.
JD Power & Associates reports that 47 percent of businesses intend to adopt a private exchange, while Accenture predicts 40 million people will obtain health insurance through private exchanges by 2018.
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at email@example.com.