Retailer has announced plans to launch a private insurance exchange for small businesses
Next month, open enrollment for U.S. health insurance exchanges will begin, granting consumers throughout the country new access to relatively inexpensive, yet comprehensive policies once again. Sam’s Club, a prominent retailer in the U.S., has announced that it is entering into the insurance market by launching its own exchange. The company’s exchange will have a focus on small businesses, which accounts for the majority of the retailer’s market. Through the private exchange, small business owners may be able to find affordable coverage for their employees.
Company continues to expand beyond the retail sector
Sam’s Club has been looking for ways to expand beyond the retail sector for some time. The company has begun offering a range of services that are not retail-specific in order to accomplish this goal. By launching a new insurance exchange, the company believes that it can solidify customer loyalty. Other membership programs, such as that offered by Amazon, are beginning to threaten Sam’s Club’s business, which is why it has begun expanding into new territory.
New insurance exchange may be a popular alternative to private options that small businesses will have
The company hopes that its new exchange will be a popular alternative to those being run by the federal and state governments. Public exchanges were built in every state over the past few years, with these exchanges offering health insurance coverage for the first time in 2013. Several exchanges with a specific focus on small businesses are expected to begin offering coverage later this year, and Sam’s Club is looking to take advantage of the market before these exchanges become commonplace.
Sam’s Club will have to compete with other private insurance exchanges in order to find success
The company’s private insurance exchange will be available in 18 states during its initial launch. It will be competing with other private exchanges as well as those run by states and the federal government. According to recent estimates from Accenture, approximately 3 million people throughout the U.S. have received health insurance coverage through private exchanges.