The state-run health insurance exchange, Vermont Health Connect, isn’t the only Web-based health insurance market taking root in Vermont.
Last year, the Vermont Chamber of Commerce and Digital Benefit Advisors launched an insurance exchange for businesses, called Chamber Preferred. On Tuesday, Digital Benefit Advisors announced that the marketplace is growing, Blue Cross Blue Shield of Vermont signed on as a health insurer for an undisclosed amount.
In 2014, Vermont Health Connect will become the sole health insurance market for Vermonters buying insurance individually or through businesses with 50 or fewer employees. Chamber Preferred aims to provide a similar health insurance shopping experience for employees of companies with more than 50 workers. The company also plans to offer a range of other insurance options for large and small businesses in both health insurance markets.
Digital Benefit Advisors of Vermont is the Colchester branch of the national division of the Atlanta-based firm Digital Insurance. Bob Gaydos is a co-principal of the Vermont firm and is the national director of private exchanges for DBA.
Gaydos said the firm is creating “pre-built stores” from which employees can purchase insurance products. The digital stores will offer plans from three main markets. In one market, created by Liazon Corp., employees could buy MVP Health Care plans. Employees will be able to buy Blue Cross Blue Shield of Vermont plans from DBA’s national Digital Benefits Marketplace. And the company plans to roll out a third market for ancillary products, like life, dental and disability insurance in the next year.
Gaydos said businesses won’t be charged to use existing stores to provide their employees with insurance options, but larger companies may wish to opt for a custom-made product, which would require payment. He said the business model would mainly generate revenue from insurers.
“In the past, this industry has worked on commissions … and for the most part, the model is moving into a fee market with a fixed fee compensation,” Gaydos said. “It’s a rapidly evolving marketplace. … No one will ever see what they used to get paid again.”
