August 6, 2015 – Roseland, NJ – ADP today announced the launch of the ADP Private Exchange, a benefits administration technology platform supported by human capital management systems.
“The Affordable Care Act has led employers to fundamentally reconsider every element of workforce management and shifted their focus toward, what I like to call, the three Cs of cost, compliance and consumerism,” said Gerry Leonard, president, ADP Benefits Services. “Many companies today are exploring new models for administering health benefits to their employees and looking for innovative ways to reduce the cost of their health care plans in order to avoid the ‘Cadillac’ Excise Tax that will be imposed in 2018. Together with our partners, ADP is committed to helping employers build and implement an Exchange strategy that can control costs, engage their employees and enable ACA compliance.”
As part of its Exchange strategy, ADP has created a partnership with GoHealth, a company that powers a private health insurance Exchange and is approved by the federal government to sell subsidized health insurance plans under the Affordable Care Act (ACA). GoHealth will play an integral part in servicing ADP’s employer clients with part-time, temporary or contract workers who are typically ineligible for employer-sponsored health insurance. Through this partnership employees can apply for subsidies (which can lower the cost of premium payments and out-of-pocket costs), easily compare plans and prices offered on the Public Exchange (or other individual health options that are not offered on the Public Exchange), and can receive expert advice from licensed advisors.
Until now, many employers either did nothing or directed their workers who do not qualify for a group plan straight to Public Exchanges, where they would enroll in benefits and apply for federal subsidies often without assistance or their employer’s knowledge. This comprehensive enrollment platform helps employees navigate the complexity of health insurance shopping and is easily accessible through the same platforms these employees use already for common tasks like checking their pay or entering hours worked. At the same time, this integration provides employers with insights into how these employees are obtaining health benefits.
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