Private health insurance exchanges are gaining currency as a way for employers to cut health care costs, reduce their administrative burden and increase the benefit choices they offer to covered employees. The Private Exchange Evaluation Collaborative ("PEEC" or "The Collaborative") is a new initiative that solicits and provides to employers unbiased, comparative information and support on private exchange strategies and purchasing decisions.
Why PEEC is Important
Multiple studies now indicate that U.S. employers are increasingly looking at private exchange options for both active and retired employees. Brokers, consultants, payers and other intermediaries offer private exchanges, but a mix of vested interests is at play among these service providers.
PEEC is the first independent, objective initiative designed to support employers in developing private exchange strategies and evaluating potential choices among exchange vendors.
2nd Annual Employer Survey Results Now Available!
Key survey findings:
- Employer commitment to providing medical benefits to employees remains very high with 97% of respondents indicating they were very likely to offer coverage in 2016, up from 77% in last year’s survey. Employers also report less interest in public exchanges as options for key workforce segments with 67% say they are not considering such an approach for part-time employees and 84% not considering for their full-time active employees.
- Cost, cost, and cost: In considering a private exchange for active employees, 98% of respondents said that the cost of plan options was “somewhat” or “very” important (up 5 points from last year).
- The “level of fees” was only 1 point behind at 97% (up 3 points from last year).
- Saving money and consumer choice were the top two reasons cited by employers who have already implemented an exchange.