Private exchanges include a set of health insurance plans from which employees may choose coverage, and they allow employers to simplify compliance with the Patient Protection and Affordable Care Act (ACA). Exchanges also offer an opportunity for employers to shift to a defined contribution model for health benefits, in which employers give employees a fixed amount of money to use for purchasing benefits.
Other advantages some exchanges offer include decision support tools, additional types of insurance, health and wellness programs and benefits administration support—especially payroll and 401(k) integration.
The foundation notes that surveys indicate 20% to 33% of employers will use a private exchange for health benefits over the next three to five years. The foundation identified more than 20 private exchange platforms currently in the market, and for the report, it profiled 10 of them.
The report, “Examining Private Exchanges in the Employer-Sponsored Insurance Market,” is here.