Health exchanges a moving target

An Atlanta company is acquiring Norwalk-based HealthConnect, which for a decade has operated an online exchange for buyers and sellers of health insurance and employee benefits.

The deal comes even as Connecticut and other states continue work on health exchanges to operate under the federal Patient Protection and Affordable Care Act, on the promise the exchanges will ultimately lower costs by allowing companies and consumers to better compare pricing and options.

Ebix Inc. did not immediately disclose what it paid for HealthConnect, which provides portals for insurance quotes, enrollment and other sales automation tools. Founded in 2001 by CEO Peter Everett, HealthConnect today processes some 12,000 quotes daily from 6,700 agents in 19 states.

HealthConnect did not invent the online exchange ”“ the concept dates back to the early days of the Internet, with eHealth Inc. among the largest operators.

States have promised a major campaign to familiarize consumers with public health exchanges when they go online in 2014. Still, the array of options could confuse consumers ”“ for instance, GoHealth Insurance is offering quotes at a website called ConnecticutHealthExchange.com. GoHealth, run since 2007 by Chicago-based Norvax Inc., includes a disclaimer in bold at the bottom of its ConnecticutHealthExchange website, stating it is a privately owned health exchange and is not endorsed, affiliated or associated with any federal, state or local government. But the selection of the URL could confuse consumers, leaving open the chance that those who do not scroll down to read the disclaimer will start the buying process on the assumption they are dealing with Connecticut”™s state-run health insurance exchange.

In Connecticut, Mercer is consulting to the state in crafting a plan to implement a public health exchange here. In a 130-page presentation delivered in mid-November, Mercer outlined a multitude of next steps for the state to take, including a survey of both small businesses and health insurance carriers to better understand the types of plan designs being sold, corresponding premium levels and the number of enrollees in each market segment.

No small number of hurdles remain, including how to link up a new public health exchange with existing systems run under Connecticut Medicaid programs and others.

After initially setting an early November deadline in accepting applications for a CEO to lead the new public health exchange, the Connecticut Office of Policy and Management subsequently extended that deadline to Dec. 1.