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NEWS - Big Employers Are ‘in No Rush’ to Embrace Private Exchanges; Industry Is Still Bullish

Hager Strategic Principal Faisal Saleh is quoted several times in the article.

It’s been three years since Aon Hewitt grabbed headlines when it enrolled Sears Holdings Corp. and Darden Restaurants in its multicarrier exchange (HEX 10/12, p. 1). Despite predictions that private exchanges were the next evolution in employee benefits, adoption among large employers remains tepid.

Based on the results of a 2015 private exchange survey, large employers are “in no rush” to move to a private exchange for their active workers, although more of them are moving retirees there, according to Paul Rogers, president and chief operating officer at Chicago-based Pacific Resources Benefits Advisors, LLC, which conducted the survey. Rogers was part of a panel that discussed the future of private exchanges at the Private Exchange Forum in Baltimore.

And although some employers have expressed an interest in private exchanges, they don’t intend to make a move anytime soon. Exchanges “serve as a potential solution” to fulfill certain strategies, but they are not a cure for managing and mitigating health care costs in their current form, he said. “The future of exchanges as a marketplace game changer remains uncertain.” He added that most large employers have been approached by at least one private exchange vendor this year, but few have decided to move to an exchange, according to survey results. The Sept. 1 conference was sponsored by The Institute for HealthCare Consumerism.

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Reposted from the September 2015 issue of Inside Insurance Health Exchanges with permission from Atlantic Information Services, Inc.