Jump! It’s Time! Private Exchanges are Here to Stay

Posted on: April 24, 2015
By: Maura Donley

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 “hypergrowth” 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.