Private exchanges continue to build momentum
As private exchanges continue to build momentum, it's only a matter of time until they become the dominant sales channel for insurers. It's likely that in the near-future, payers will sell to all market segments via private single-insurer exchanges, according to a recent Array Health survey.
Listed below are four key findings from the survey, which questioned 88 insurance industry leaders in May:
1. Insurers adopt single-insurer exchange over multi-insurer exchanges
For plans starting Jan. 1, 2015, 56 percent of respondents said they will use a private exchange single-insurer, while 32 percent said they will use a private exchange multi-insurer channel. While the use of public exchanges racked in the highest percentage (76), direct sales channels amounted to 57 percent. Soon, the percentage of private single-insurer exchanges will align with direct sales, according to the survey.
2. Private single-insurer exchange offered by 2016
More than 75 percent of those surveyed believe most insurers will offer private single-insurer exchanges by the end of 2016--93 percent believe most payers will have their own single-insurer exchange by 2018. Nearly 40 million people will buy their health plans from private exchanges by 2018, topping the 31 million individuals who are forecast to enroll in publicly-funded exchanges, FierceHealthPayer previously reported.
3. Insurers will soon sell to all market segments via private single-insurer exchanges
Forty-one percent of respondents want to implement a private single-insurer exchange for small groups, while 27 percent would like to use the option for large groups. Twenty-five percent report they want to use the option for individual insurance.
4. Employers now fully aware of private exchanges
In the 2013 survey, 11 percent of respondents noted that employers were not aware of private exchanges. But the latest results indicate that now only 0.1 percent are unaware of the option. The latest survey shows that 79 percent believe employers now are somewhat aware of the option, a 13 percent increase from 2013.
For more:
- here's the survey (.pdf)
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