Buying power

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 transformations. So it should come as no surprise the way we buy health insurance is changing as well. Americans buying their own insurance already have been taking advantage of the new tools and shopping platforms technology has enabled but soon, the way we buy insurance will experience a revolution that will affect most Americans. In addition to new innovations and inevitable market forces, government legislation also will be a major catalyst that will usher in these changes.

To understand the future, we need a quick primer on today’s 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. These employer-sponsored plans have been dropping in popularity and participation for the last 10 years.