A recent Eastbridge survey of employers found that the useof private exchanges continues to be minimalamong all size categories and that a positive correlation remainsbetween use and employer size (with use increasing as employer sizeincreases). Many times, it is the broker who influences theseemployers to adopt the exchange model, and to offer more options totheir employees or to move to a defined contribution approach.

Since brokers are often the ones suggesting an exchange fortheir clients, it makes sense that most employers (74 percent)continue to use a broker for their employee benefits afterimplementing a private exchange. Only 19 percent of theemployers no longer utilize broker services.

While use has been low, employers that have implemented anexchange believe their employees’ experience with the private exchange has been positive. Fortypercent indicated the experience was not only positive, but easierthan previous enrollments, and 52 percent said it was positive, butnot significantly different from previous enrollments.

The survey also pointed to future interest by employers inprivate exchanges. Over one-quarter of the employers that are notusing a private exchange today are open to using this concept inthe future, and another one-quarter are still undecided.

Whether or not to offer a private exchange is a decision thatshould be based on many factors. Nonetheless, it is important forbrokers to at least consider broaching the subject with employerclients — or risk the chance that some other broker will. The factthat most employers rate the exchange process positively shouldprovide comfort to those considering this approach to benefits.