Does anyone have data on employee choice under private exchanges? ("Exchange" implies an employer-choice model with some kind of defined contribution by the employer.)
I'd LOVE to see some real-world data, especially from different markets. We're smart enough on here to make sense of it.
http://www.liazon.com/wp-content/uploads/2013/07/White-Paper-Data-on-What-People-Choose.pdf
Report by Liazon, covers 2500+ employees in Metro NY area, Jersey, and Western NY. defined contribution, free choice with decision support and education tools (similar to the SHOP plan, when employee choice functions come online). It's important to note that there are no subsidies.
Results were similar to what one would assume, (NY Metro) about 69% of participants went towards low-cost plans, with a huge preference towards EPO style co-pay carrying plans and away from High Deductible plans (of the 69%, only 15% were HDHP's). People like cheap, and they like limited and defined exposure. This shouldn't be a surprise.
Jersey options only had a co-pay structure on the most expensive plans, HDHP for everything else. When structure was similar but limits and premium were different, 77% ended up in the lowest cost plans, with a staggering 55% in the lowest cost option (closed network with the highest offered deductible).
The Western NY result, interestingly enough, showed a pretty even distribution among different plans. Because they indicate "many employers...opted to bypass decision support entirely", it's interesting no note that with LESS information, employees tended to choose more expensive plans. (34% low cost, 39% high cost, 27% in the middle.
Also worth noting, 72% dental and 45% vision supplemental attachment rates, and a staggering 71% for life. That's quite a bit above what most brokers I know manage. At least in NY, dental/vision exchanges have been proposed, and the product may be available within the Indy/SHOP marketplaces along side the health product.
I'd LOVE to see some real-world data, especially from different markets. We're smart enough on here to make sense of it.
http://www.liazon.com/wp-content/uploads/2013/07/White-Paper-Data-on-What-People-Choose.pdf
Report by Liazon, covers 2500+ employees in Metro NY area, Jersey, and Western NY. defined contribution, free choice with decision support and education tools (similar to the SHOP plan, when employee choice functions come online). It's important to note that there are no subsidies.
Results were similar to what one would assume, (NY Metro) about 69% of participants went towards low-cost plans, with a huge preference towards EPO style co-pay carrying plans and away from High Deductible plans (of the 69%, only 15% were HDHP's). People like cheap, and they like limited and defined exposure. This shouldn't be a surprise.
Jersey options only had a co-pay structure on the most expensive plans, HDHP for everything else. When structure was similar but limits and premium were different, 77% ended up in the lowest cost plans, with a staggering 55% in the lowest cost option (closed network with the highest offered deductible).
The Western NY result, interestingly enough, showed a pretty even distribution among different plans. Because they indicate "many employers...opted to bypass decision support entirely", it's interesting no note that with LESS information, employees tended to choose more expensive plans. (34% low cost, 39% high cost, 27% in the middle.
Also worth noting, 72% dental and 45% vision supplemental attachment rates, and a staggering 71% for life. That's quite a bit above what most brokers I know manage. At least in NY, dental/vision exchanges have been proposed, and the product may be available within the Indy/SHOP marketplaces along side the health product.
