2014: A Year of Healthcare Clarity?
We spent a significant amount of time in 2013 addressing Healthcare Confusion. Is there any chance that 2014 will bring clarity to the issue? Not likely. At least not entirely. We have hope though, that private exchanges will receive greater exposure and become a more viable alternative for employers across the nation.
I recently spoke to a business owner who bemoaned the fact that the healthcare situation was still in a state of confusion and that his company would not make any new hires until they understood exactly what this meant for the company. Not a good sign for healthcare clarity or our economy.
There is some encouraging news, however. One year ago at this time the term “private exchange” was virtually unknown. As a lowly step-child to the public exchanges under the Affordable Care Act, which garnered most of the media attention this year, private exchanges have worked hard to distinguish themselves. Business owners are turning more and more to this option.
In the recent study from the Private Exchange Evaluation Collaborative (PEEC) we see that 45% of employers will consider a private health exchange and private exchanges are still on track to outpace the public exchanges by 2018. Employers believe private exchanges can meet the needs of their particular company or industry better than public exchanges.
There is still some skepticism and uncertainty though about private exchanges. A recent article in CFO Magazine notes most employers are looking for independent analysis of private exchanges in order to make their decisions. The number one question seems to always be whether they will save money if they move to a private exchange. The fact that the whole concept of exchanges is so new gives employers a little indigestion as well.
The overall advantages of choosing a private exchange are strong. We’ve noted in the past that the ability to provide employees with the opportunity to shop for coverage is the biggest attraction to private exchanges, just ahead of a higher degree of reliability in the technology behind the exchange.
So, what is our wish for 2014? It’s simple – continued momentum for private exchanges. This may seem a little self-serving and perhaps it is, but we’d personally like each and every business owner we talk to, to have a greater sense of clarity about the cost of doing business when it comes to providing health care for their employees. More clarity, more jobs.
Happy New Year everyone!