Health Care Exchanges to Reach Tipping Point in 2015

August 22, 2013 ( – A new survey reports high levels of familiarity and interest in exploring defined contribution (DC) health benefits and private health care exchanges, with strong evidence that 2015 will be a tipping point year for adoption.

By Kevin McGuinness | August 22, 2013
Page 1 of 2 View Full Article

The survey from Alegeus Technologies, a health care and benefit payments provider, found that as DC health benefits and private health care exchanges gain traction in the market, education and support services will be needed to ease the transition for employers and consumers. Of those surveyed, 73% claimed to be familiar with DC benefit programs and 55% with private health care insurance exchanges.

The research also revealed that “a significant education gap” still exists. Many of those individuals that claimed familiarity were unable to correctly answer basic questions about what they are, how they function, who they are best suited for and the benefits they offer, as well as several common misconceptions being revealed.

Despite these misconceptions, the survey indicated that respondents still saw significant advantages in DC health benefits and private exchanges. These advantages include the potential to lower their organization’s health benefit costs, offer a greater variety of benefit plan options to employees and continue to offer benefits that might otherwise have been in jeopardy.

Interest levels in adopting were found to be high, according to the survey. Of those familiar with these benefit programs, 90% expressed interest in exploring defined contribution and 85% expressed interest in exploring private exchanges for their own organization.