MBA Announces New Private Healthcare/Benefits Exchange for Member Companies
The Mortgage Bankers Association launched a new private exchange to offer healthcare and other employee benefits for its member companies.
Addressing the challenges of maintaining a competitive employee benefit program, MBA Health Link provides an easy solution for employers wanting to control costs while offering more benefit options to meet the varied needs of their employees. MBA Health Link is made possible through a partnership with Arthur J. Gallagher & Co., a 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 of Residential Policy and 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.”
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 help 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 strategy. Unlike the defined benefit approach, a defined contribution 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 defined contribution strategy works best in a private-exchange environment, where employees have a choice on how to spend their benefits dollars.
JD Power & Assoc. reported that 47 percent of businesses intend to adopt a private exchange, while Accenture predicted that 40 million people will obtain health insurance through private exchanges by 2018.
Interested companies may set up a customized solution preview with guidance from Gallagher’s employee benefits consulting team. For more information, contact Tricia Migliazzo at tmigliazzo@mba.org or 314-497-6999.
