Seventy percent of health insurers are expected to participate in private and public exchanges in the next six months, according to a survey by Array Health. The survey gathered feedback from attendees at the Defined Contribution Healthcare & Private Exchanges Summit in Carlsbad, Calif. and subscribers of Atlantic Information Services (AIS) health insurance publications. The survey reveals the following:
• Most employers are aware of private exchanges, but consumers are largely unaware – Eighty-nine percent of respondents said that employers were aware of private exchanges while only 30% of respondents said consumers were familiar with them.
• Private exchanges provide a great opportunity for employers to control costs and offer benefit choice – Ninety-three percent of survey respondents say more employers will choose a defined contribution funding model over the traditional defined benefit model — and nearly 70% say that will happen within the next five years.
• Most insurers will pursue a multi-channel exchange strategy – Nearly 80% of respondents say insurers will participate in private exchanges. This is likely due to increasing demand from employer groups and growing awareness about private exchanges in the marketplace.
• Young, healthy consumers coined the “young invincibles,” offer health insurers a new target market – More than three-quarters of survey respondents say that up to 50% of healthy, young consumers won’t comply with the Affordable Care Act individual coverage mandate, and more than one third of respondents say as many as 75% won’t comply. Insurers and public entities must find ways to attract and engage this young, Internet-savvy population to increase enrollment.
For more information, visit http://www.nbch.org.
Insurers Show Strong Participation in Public and Private Exchanges
October 27, 2013 By
