Group life and disability insurers will be allowed to offer their products through health insurance exchanges. The public exchanges that can offer these products are the Small Business Health Options programs (SHOP programs). However, private exchanges may offer more favorable and cost effective distribution options for ancillary products.
Unlike public exchanges, private exchanges are at liberty to market and sell ancillary insurance products alongside major medical and dental insurance products. Private health insurance exchanges have begun ramping up efforts to include disability, life, and other ancillary insurance products on their exchange websites. Many group life and disability insurance companies are still considering the challenges and benefits of offering products through either private or SHOP exchanges.