Employers Reject Private Exchanges

In a departure from other industry polls, 55% of employers say they will never stop sponsoring employee health plans in favor of giving employees money to buy coverage through a private exchange The survey of more than 330 employers was conducted by National Business Coalition on Health and Benz Communications. Thirty-two percent are considering moving to a private exchange in three to five years; 8% are considering moving in the next three years, and just 5% said they already use a private exchange to provide employees’ health benefits.

Respondents are largely concentrated in the service and technology industries, mainly in the Southeast and West regions of the United States. Most respondents’ have 1,000 to 5,000 U.S.-based employees.

Seventy-three percent of employers say that the ACA will have the biggest effect on their benefit communication strategy in the year ahead. However, 39.4% are maintaining benefit plans and coverage levels without increasing employee costs, such like deductibles, coinsurance and copays. Slightly more than 32% will maintain benefit and coverage levels, but increase employee costs.  When asked how their company is preparing to comply with the ACA Cadillac tax in 2018, 26% say they are maintaining benefit plans and coverage levels without increasing employee costs; almost 20% are maintaining levels, but increasing employee costs and 15% are reducing benefit plans and coverage levels while increasing employee costs. For more information, visit http://www.nbch.org/ibcsurvey.

Last Updated 01/19/2022

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