Explain private exchange and discuss how the internet acts as a resource in the exchange.
A private exchange is an exchange marketplace run by a private company or sector. Private exchanges are becoming increasingly popular with the new healthcare law, the Affordable Care Act (ACA).
A private exchange is run by a non-governmental entity and may be a company or brokerage firm. The governing entity will provide limited options to purchasers. The public has limited access to the exchange and must establish some nexus to the governing agency. For example, a brokerage firm may create Private Exchange for healthcare. To be eligible to purchase healthcare on this exchange your company must enroll as a client with the brokerage firm. Now, with the nexus established, you can browse the coverage options available from the Private Exchange.
The internet can assist as a resource for enabling buyers to enter the exchange and make purchases. It is a dual resource, meaning it is useful for the user and provider. The internet allows buyers to browse, interact with others and purchase a commodity. It also allows providers more opportunity to access buyers and commodity members.