Private Exchanges are Here to Stay

May 13, 2015

It’s time. We’ve been as patient as possible and so have your employees. That little inkling that you’ve had in the back of your mind that maybe it’s time make a bold move, to be a part of that movement? We know what it is. It’s that little voice that says “jump” NOW so that you’re not labeled a late adopter. It’s time.

The trend toward private healthcare exchanges is here. While the Affordable Care Act sign-ups have stalled – private exchanges are growing and increasingly becoming the way more and more employers manage health care for their employees. In fact, Accenture tells us that enrollment in private exchanges doubled from 2014 to 2015 and they expect this “hyper-growth” to continue into 2018, topping 40 million enrollees by that year. Private exchanges will outpace both state and federal exchanges.

Accenture attributes this growth to several accelerators including the Cadillac Tax, a 40% excise tax on high-cost plans that goes into effect in 2018. Private exchanges give employers the opportunity to stabilize healthcare costs and shift decision making to the employee; giving the employee greater control and the employer greater predictability.

Getting up to speed and getting ready is simple. Here are a few articles:

Next steps?

  • Engage your broker and have a talk about all your options
  • Involve your human resource professionals
  • Find a trusted partner through your state chamber
  • Line up your healthcare providers
  • Select some ancillary offerings
  • Set your defined contribution
  • Educate employees

Jump. The time to just dip your toes in the water has passed. Private exchanges are here to stay and a defined contribution plan for employees is not just essential to controlling healthcare costs, it’s smart business.

Originally posted by Maura Donley of CieloStar on April 24, 2015.

Michigan’s Insurance Exchange is brought to you by the Michigan Chamber of Commerce and powered by CieloStar. Learn more about this single source health care solution for individuals, employers and agents at www.michambermarketplace.org.