New Survey Reveals Employers' Plans, Preferences and Challenges Related to Private and Public Health Insurance Exchanges

Private health insurance exchanges are one health benefit option employers are considering to reduce their costs and administrative burdens, while increasing choice and access to coverage. According to a national survey of 723 employers, 45% said they plan to consider or will be using a private exchange for their full-time active employees before 2018, although the path they will take is far from clear. The study by the Private Exchange Evaluation Collaborative (PEEC), was conducted to help employers better understand what their peers are thinking about private health insurance exchanges, timelines for consideration, and critical features and challenges.

Key survey findings:

• If employers are permitted to contribute towards employees' coverage on the public exchange/marketplace in 2017/2018, 58% would consider encouraging their employees to obtain coverage through the exchange
• Employers are seeking comprehensive capabilities and services from private exchanges
• Close to 70% of employers believe it is very important that their advisor is independent of any exchange they are considering
• Only 25% think moving to a private exchange will save them money
• The greatest barriers to private exchange adoption relate to their immaturity, the uncertainty about their long term stability, and employer's loss of flexibility, especially as it relates to tailoring benefit plan designs
• Interest in private exchanges extends across all industry segments and employer size, while the importance of exchange features varies between employers
• Employers are split on whether they will move to a defined contribution approach

View the full survey results here.