How buying health insurance is changing

Technology has changed the way we’ve done many things over the last 10 years. The way we listen to music, get news, communicate with each other, pay bills and even make “friends” have all seen dramatic impacts. So it should be no surprise that the way we purchase health insurance is changing as well. Americans purchasing their own insurance have already been taking advantage of the new tools and shopping platforms that technology has enabled, but soon, the way we buy insurance will experience a fundamental change that will affect the majority of Americans. In addition to new innovations and inevitable market forces, government legislation will also be a major catalyst that will usher in these changes.

To understand the future, we need a quick primer on the current system. The majority of Americans get their insurance through their employer. The employer owns the policy and decides on the carrier, the plan design and how much of the premium will be required from the employee if they want to participate in the plan. These employer sponsored plans have been decreasing in popularity and participation for the last 10 years.