Which statement best characterizes the purpose of private exchanges?

The purpose of private exchanges is best characterized by the statement regarding allowing employers and employees to select health plans. Private exchanges are platforms that facilitate the offering and selection of benefits, particularly in the context of health insurance. These exchanges are designed to provide a controlled environment where employers can present various insurance options, enabling employees to customize their selections based on individual needs and preferences.

This model promotes choice and flexibility compared to traditional employer-sponsored health plans, where employees often have limited options. By leveraging a private exchange, employers can also manage costs more effectively while ensuring that employees have the resources to make informed decisions about their health coverage.

The other statements do not accurately reflect the primary purpose of private exchanges. Options involving public transactions, vendor-investor connections, and trial digital products do not align with the specific functions and objectives of private exchanges in the healthcare or employee benefits context.