In a piece for GCN, GetInsured co-founder Shankar Srinivasan said software-as-a-service platforms have the potential to make significant changes in insurance rates and premiums among state marketplaces.
Young state marketplaces used custom-built platforms, which are costly to maintain and require constant updates, according to Mr. Srinivasan. The result led to higher consumer premiums to pay for lofty IT overhead.
Instead of custom platforms, SaaS uses cloud-based solutions and code that is consistent between clients. SalesForce, Microsoft Office 365 and Google Docs are all prime examples, Mr. Srinivasan wrote.
Mr. Srinivasan points to SaaS' success in the private sector as an indicator of its potential among state marketplaces.
SaaS use by marketplaces in Pennsylvania, New Jersey and Nevada all saw year-over-year membership growth up to about 9 percent and/or premium decreases.