Survey Reveals Employer Attitudes
Regarding Private Exchanges
The 5th Annual Employer Survey on Private Exchanges indicates exchanges appear to be gaining some traction with post-65
retiree groups, but aren’t driving change when it comes to active employees.
Conducted by the Chelko Consulting Group, in
cooperation with the Worldwide Employee Benefits
Network (WEB), the annual survey tracks employer
attitudes pertaining to the viability of private exchanges
as a healthcare coverage strategy for active and retired
employee groups.
Current Status with Private Exchanges
100%
90%
80%
70%
60%
50%
Staying the Course with Employees
With 74% of employers not interested in using an
exchange as a solution for delivering benefits to their
active employees, it appears this once heavily touted
option lacks any real forward momentum.
40%
30%
20%
10%
0%
Active Employees
Pre-65 Retirees
Have Exchange
Considered Exchange
In fact, less than one percent of respondents were
currently using an exchange for active employees.
Post-65 Retirees
Left Exchange
Not Interested
Signs of Life Among Retirees
Over half of employers believe private exchanges have
a future for providing coverage to retirees. Only 55% of
responding organizations provide retiree medical benefits.
But among those organizations that do provide retiree
coverage, exchanges seem to be a popular solution —
especially for Medicare-eligibles — with one out of four
currently opting for an exchange to cover this segment
and another 42% considering the option.
Things are moving more slowly with respect to pre-65
retirees, as only 5% of employers currently use an
exchange for this group and only 35% are considering
the option.
Do Exchanges Have a Future?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Active Employees
Yes
Pre-65 Retirees
No
Post-65 Retirees
Not Sure
On the Fence
At the end of the day, many employers are still unsure
regarding the future of private exchanges for their active
employees and retirees.
What’s Your Interest Compared to Last Year?
100%
The majority of respondents reported no change in their
level of interest pertaining to private exchanges when
compared to a year ago. Approximately three times
as many are “less interested” as compared to those
who are “more interested” when it comes to their
active employees.
Also, about 50% more employers indicated they were
“less interested” than before when it came to exchanges
for their retirees.
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Active Employees
More
Pre-65 Retirees
About the Same
Post-65 Retirees
Less
The Driving Force
12%
Not surprisingly, the primary motivation — by far — to
use a private exchange for active employees is lower cost.
For retirees, companies were much more motivated by
increasing coverage options, improving member
experience, and reducing administrative burden.
17%
What’s Next?
For the time being, it appears the attractiveness of
private exchanges as a viable solution for employers
will remain an unanswered question for mindful benefits
professionals looking to keep pace with an evolving
marketplace.
More Choice
Lower cost
Less admin/compliance burden
Better member experience
11%
9%
15%
37%
Most Important
Factors in
Evaluating the
Move to an
Exchange
56%
Respondent
Demographics
9%
15%
Full-time
Employees
11%
32%
Industry
7%
15%
39%
< 500
500-1,000
15%
1,000-5,000
440.892.2600
> 5,000
Manufacturing
Government, Education
Retail, Hospitality
Other
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