Fidelity is slowly expanding its health exchange after a May launch
- Fidelity Investments became a competitor in the healthcare market when it launched its exchange eight months ago. The company is now set to expand its exchange slowly into new markets. Employee Business News interviewed Joe Laurin, president of Fidelity Health Marketplace, about the new but steady expansion.
- The exchange started in the Massachusetts and New York areas, which are close to home for Fidelity. Laurin attributed the reason for a “go slow” approach rather than a rapid expansion to Fidelity’s large business customer base.
- The exchange might sign up customers who already have a business relationship with the firm. He said Fidelity wants to make sure all aspects of the exchange are in order before expanding into other markets.
Fidelity chose to market its exchange to small and midsize companies, a market that is often underserved by big name providers. This is good news for small businesses that want to be able to offer comprehensive but affordable health plans.
Growth of private exchanges has slowed nationally, particularly amongst larger employers. While Starbucks recently announced its switch to private exchanges, it is an outlier among companies of its size. Smaller companies tend to be more interested in exchanges, though fewer companies offer to that demographic.
- Employee Benefits News Fidelity looks to scale up its exchange product
- HR Dive Fidelity launches private health exchange for small to medium-sized employers