Private exchanges are growing fast, but changing rapidly. Benefits platforms and private exchanges continue robust growth, with 12 million enrollments projected in 2016, but the technology landscape is set for shake-out. Employers are focusing on value — better cost management, benefits choice, and user experience. While more than 15 percent of brokers plan to spend $1 million+ on technology in 2016 to assist employers, they will need to leverage the right technology platforms to take on both established and emerging competition and fulfill employer (and employee) expectations with value.
Employers feel the squeeze and seek solutions: Small to mid-size employers often lack the resources to access a range of benefits and affordable choices in a convenient way, even as they compete with large employers to attract and retain employees. In a pulse survey of 30 small to mid-sized employers in the Mid-Atlantic and Northeast conducted by hCentive, nearly 75 percent said they use an agency or broker for employee benefits. However, employer experience with brokers is inconsistent in involvement and support. Cost containment is an overwhelming concern for employers and they look to brokers to assist them in remaining competitive and controllling costs at the same time (e.g., propose different carrier or plan design or alternate contribution strategy).
Employers want transparent choice of benefit designs to control costs but also to configure benefits and contribution strategies that fit best with their business, employees and budget. For example, decide between changing carriers due to high premium increase or selecting http://www.benefitspro.com/2015/09/24/many-employees-regret-choosing-high-deductible-pla paired with a health savings accounts (HSA).
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.