New Report: Private Insurance Exchanges on the Rise

Nearly one in five people will purchase health coverage through a privately run insurance exchange within four years, according to new research by Accenture Research, an arm of the global consulting firm, predicted that private exchanges will "upend … purchasing for many of the 170 million people who receive benefits through their employer." In this model, employers purchase coverage through a marketplace, allowing their workers to choose from a range of health plans. It is comparable to the publicly run exchanges soon to launch under healthcare reform.

Private exchanges appeal to employers because they operate on the basis of a defined contribution, allowing firms to better plan for future insurance costs. Accenture cites surveys by benefits consultants Mercer and Aon Hewitt indicating that one quarter of employers are considering switching to a private exchange within five years.

But the firm cautioned that very few consumers understand the new model, which would "shift considerable financial responsibility to employees."

"This creates tremendous opportunity for carriers, brokers and employers to take credit for enhanced experience, yet also creates equally tremendous risk as dissatisfied consumers will blame plan sponsors," the analysis states.