Employers Consider Private Exchanges Viable Alternative for Active Workers

October 2, 2014

Towers Watson released survey results showing that nearly one in four employers believe that private insurance exchanges could provide a viable alternative for their full-time, active employees as soon as 2016. So far, 28% have “extensively evaluated” the viability of private exchanges.

These results are from the 2014 Towers Watson Health Care Changes Ahead Survey, which was completed in July 2014 by 379 employee benefit professionals of midsize to large companies across a variety of industries.

Results from the survey also revealed the three primary reasons employers would adopt a private exchange: 1) if it was a better value than current self-managed model, 2) if other large companies in their industry adopted one, and 3) if the employer’s company was unable to get under the ACA’s excise tax ceiling coming in 2018.

Though employers are starting to consider the viability of private exchanges, they are not inclined to send active employees and their families to the public exchanges. Of the employers surveyed, 99.5% said they have no plan to exit health benefits for their active employees and send them to public exchanges.

This position is not likely to shift soon – 77% of employers were not confident the public exchanges would be a viable alternative for actives in either 2015 or 2016.

For additional details on these topics and others, click here.

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