March 17, 2014 – Private exchanges represent a new way to provide employer-sponsored benefits that is advantageous to both employers and employees.A well-designed private exchange allows an employer to better manage costs while delivering greater flexibility and choice to its workforce, so interest in them is high, according to Mercer’s latest National Survey of Employer-Sponsored Health Plans. In fact, a sizeable share of US employers expects to move to a private exchange within the next two to five years.
“Private exchanges have generated an enormous amount of interest in a short time. Our research shows that one-fourth of US employers are considering switching to a private exchange in just two years, while 45% would consider moving to an exchange in five years,” says Eric Grossman, Mercer Marketplace US Active Exchange Business Leader.
Among the diverse group of employers that moved to Mercer Marketplace? in 2014, simplified administration and current/future cost control are the top reasons given for the move, he notes.
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