Jean Moore Talks Private Exchanges On IHC Radio Show

October 31, 2014

Moore New_02Apr12

Jean Moore, managing director, active exchanges for Towers Watson, was interviewed on October 17 on the Institute for HealthCare Consumerism’s live radio show. She spoke on the rising popularity of private exchanges for employers to deliver health benefits.

When asked about the most common questions she gets from employers, Moore said that top of mind for many is avoiding the Patient Protection and Affordable Care’s excise tax, which goes into effect in 2018. Key to achieving this goal is keeping health plan cost increases in the 1 to 1.5% range, or close to the Consumer Price Index (CPI), instead of the current 5 to 6%, which is current health plan inflation. This is critical because the excise tax is pegged to the CPI.

Moore attributed the increase in employer interest in private exchanges to “the promise that those exchanges can actually deliver meaningful cost savings in the long run.” She noted that Towers Watson announced earlier in October that total spending on health care by companies participating in Towers Watson’s OneExchange for active employees is projected to grow by just 1.8% from 2014 to 2015.

Moore also said that employers that have moved to a private exchange model have found that it has positive implications for empowering individual employees as health care consumers. She cited Towers Watson survey data indicating that 80% of employees using OneExchange “understand their health benefits better on the exchange than they did prior to the exchange.”

For now, Moore noted that most early adopters of private exchange for full-time active employees have been small to midsize employers. However, she predicted that in 2015 we will start to see larger employers moving to private exchanges. As she put it, “Everyone’s waiting for the first mover to fall, then everybody else [making a private exchange move] will be a quick second follower.”

Click here for the full interview with Jean Moore on IHC, starting at minute 45:30.

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