Dive Brief:
- If it means controlling costs without reducing benefits, 44% of employers would be inclined to switch to a private healthcare exchange, according to a new survey.
- However, the survey from Liazon found that when asked to rate their level of familiarity with the private exchange model, less than half (45%) were not very familiar or not familiar with private exchanges at all. Another 36% were only somewhat familiar with the exchange model.
- It's clear that many benefits decision makers are unaware that private exchanges are an option for successfully addressing their HR benefit goals, according Alan Cohen, chief strategy officer and co-founder of Liazon.
Dive Insight:
Cohen says the survey results shed light on the misconceptions held by employers about private exchanges. He adds that once the value of private exchanges is understood, it becomes much clearer that they offer a solution for businesses to control costs and enhance the quality of their benefits offerings. A major plus when it comes to helping them attract and retain talent, Cohen adds.
In addition to the 44% who would move to a private exchange for cost control, another 13% reported that they would make the switch if they saw proof that private exchanges were successful for companies similar to their own and if those companies were glad they moved. And when asked for reasons they are not currently considering a private exchange, 30% said that they like having control over their benefits plan design, and 26% say they did not believe a private exchange would help control costs.
Cohen says evidence from early adopters shows private exchanges can be a solution for all of these concerns, as Liazon polls of private exchange users show that exchanges are successfully addressing employer needs on cost control and employer satisfaction. Liazon surveys of employees also found that private exchanges can boost employee satisfaction, engagement and retention.