There's plenty of discussion about private exchanges these days. Can a single-carrier platform really be called an exchange? Is an exchange just an enrollment platform with a defined contribution capability? What if it doesn't include medical? Is it just an enrollment capability wrapped in some new marketing hype? And what does “private exchange” mean anyway? These are all fair questions and the debate will continue.

But there may be a more fundamental issue underlying private exchanges. Even if the exchange carries multiple products from multiple carriers, the most important issue may be whether delivering an exchange to a client changes the position of the exchange owner with respect to that client.

An employer who commits to offering benefits through a private exchange mechanism is obviously making a major, strategic decision. The products, access, financing and functionality are all major statements that the employer is making to its employees. And it's one that the employer will probably be very reluctant to walk away from, at least in the short-term. And assuming the employer also has adopted a defined contribution strategy, changing platforms can be a major logistical and financial headache, as well as an employee public relations disaster.