Office of Consumer Health Services
OVERVIEW The Utah Health Exchange is designed with the overarching philosophy that the invisible hand of the marketplace, rather than the heavy hand of government is the most effective means whereby reform may take place. The Utah approach to reform is based on enhancing consumer choice and the ability of the private sector to meet consumer needs. The Exchange is part of Utah’s overall health system reform effort that is aimed at increasing the number of Utahans’ with health insurance. The Exchange formally opened in August 2009 for the individual/family product market as well as a limited launch for the small group market. A full launch of the small group market and a pilot version for the large group market are scheduled for fall 2010. Insurance for the Individual Because the individual and family health insurance market in Utah is already quite robust and consumer oriented, the primary role of the Exchange is to connect consumers with private companies that can help them identify and purchase the product they need. On the Exchange, consumers are given three options to shop for and buy a policy—use a private online shopping service, buy direct from a participating insurer, or search for an agent to get in-person assistance. Currently, there are four private online shopping services, five insurers and hundreds of agents available through the Exchange. Defined Contribution Market When it comes to employment-based health insurance, Utah recognizes that the traditional approach to purchasing a group plan is not consistent with the underlying philosophies of health system reform. In 2009, Utah created a new defined contribution market for health insurance. In this market, employees choose their own insurance company, network, and benefit structure and employers simply decide how much to G o v e r n o r ’s O ff i c e o f E c o n o m i c D e v e l o p m e n t • A n n u a l R e p o r t 2 0 1 0 • w w w. b u s i n e s s . u t a h . g o v
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