A Huge Opportunity for Private Exchanges

A recent report by PlanSource finds that 60% of senior level benefit decision makers expect healthcare costs to rise as a result of the Affordable Care Act. At the same time, only 2% of decision makers have chosen a private exchange for their employees. Scott Carver, president of PlanSource said, “Our research highlights what a huge opportunity there is for private exchanges in the healthcare industry…The main challenge…is educating…employees on benefit choices. As employers learn more, we’re confident that private exchanges will see significant growth.”

Twenty-two percent of employers have considered a private exchange, but have chosen to not use one. Eight percent are undecided while 6% are interested in speaking to a carrier or broker about setting up an exchange. Twenty-nine percent of employers say that private exchanges will decrease the importance of brokers; 26% say the opposite; and 32% are not sure of the effect.
The following are key challenges in adopting a private exchange:
• Educating employees on benefit choices – 65%.
• Having the resources to manage employee issues and benefit providers – 33%.
• Getting information to employees on available insurance resources – 30%.
• Internal technology challenges – 26%.
• Finding and managing benefit plans beyond just medical, dental, vision, and basic life insurance plans – 18%.

Employers said that private exchanges should do the following:
• Offer competitive healthcare choices 79%.
• Make choosing insurance plans easier and quicker – 66.
• Help employers make better selections on insurance plans – 65%.
• Offer more competitive choices – 47%.
• Provide an online shopping experience  – 43%.
• Offer a wider range of benefit choices, beyond just medical, dental, and vision – 43%.

For information, visit http://www.plansource.com.

Last Updated 12/02/2020

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