To help its member companies hold down the cost of health insurance and other benefits to their employees, the Mortgage Bankers Association (MBA) has launched its own healthcare exchange.
Dubbed ‘MBA Health Link,’ the new exchange is being made possible through an exclusive partnership with global insurance brokerage and risk management services firm Arthur J. Gallagher & Co., the MBA says in a release.
The goal is to provide an easy solution for employers wanting to control costs while offering more benefit options to meet the varied needs of their employees.
‘Industry data show that our members face major challenges in getting control over certain costs, particularly in the healthcare and benefits arena,’ says Pete Mills, senior vice president, residential policy and member engagement, for the MBA. ‘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.’
Companies that adopt MBA Health Link will utilize a defined contribution strategy.Â 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.
The MBA notes in its release that the defined contribution strategy works best in a private exchange environment, where employees have a choice on how to spend their benefits dollars.
J.D. Power & Associates reports that 47% of businesses plan to adopt a private exchange.
Meanwhile, Accenture predicts 40 million people will obtain health insurance through private exchanges by 2018.