In a day and age when you can order a ride with the touch of a smartphone, people demand technology that meets their innovation needs, even when it comes to health care, says Jeff Yaniga, chief revenue officer of Maestro Health. The Chicago-based company, which also owns a medical TPA, runs a private exchange, maestroEdge. Read as Yaniga shares why some private exchanges are not meeting their mark.
Where do you see private exchange’s fitting in the health care game moving forward?
There are a few trends I’m tracking pretty closely. Number one is consolidation and beyond the consolidation that we can’t help see in the news, with United, Anthem, Aetna, Cigna and others. I think there is consolidation happening with private exchange technology providers as well. At one point the count was over 180 companies that think of themselves as a private exchange provider of some sort. What we are seeing is some of them are starting to fail on their promises. When that happens, there are companies full of very talented people that are looking to join companies that are succeeding.
The other big trend is it’s a simple fact; there is still a literacy crisis in health care insurance. There was a report the National Bureau of Economic Research did that looked at the impact of poor decisions. Poor decisions rooted in the fact that most people simply don’t know about premiums, deductibles, co-pays, etc. While that acumen is relatively low today and that literacy is low today, we know it is going to improve as people understand the impact of choosing a narrow network instantly when they go to the doctor they’ve had for 20 years and he or she doesn’t accept their insurance. Literacy will improve and we think that for all of us in the private exchange market, as literacy improves and people become more sophisticated, they are going to demand technology that meets their innovation just like transportation today is as easy as pressing a button and dialing an Uber.
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