By Clive Riddle, April 10, 2015
Accenture has released a new report on private exchange enrollment: Private Health Insurance Exchange Enrollment Doubled from 2014 to 2015, which pegs 2015 total private exhange enrollment at 6 million, up from 3 million in 2014.
Accenture forecasts that enrollment in private health insurance exchanges will grow to 12 million in 2016 and 22 million in 2017. They have gone on record projecting "total enrollment in private exchanges to ultimately surpass state and federally funded exchanges, reaching 40 million by 2018."
Here’s more on Accenture’s findings from their report:
- Accenture concludes that midsize employers, defined as companies with 100 to 2,500 employees, contributed most to the adoption of private health exchanges increase.
- 76 percent of consumers with employer-sponsored coverage see health insurance as a primary factor for continuing to work at their current employer
- Accenture points out that this limits some employers’ ability to drop or defund health coverage.
- Accenture postulates that for such employers, "private exchanges will emerge for some as a compelling model to reduce costs and administrative burden"
- Accenture notes that private exchange enrollment is expected to accelerate in 2017 due to looming penalties for “Cadillac” Plans.
- Accenture also notes that market funding is growing, citing Aetna’s bswift acquisition of bswift and Mercer’s equity investment in Benefitfocus
- Accenture further postulates that Accenture expects that "increased compliance requirements .. will drive employers to adopt new models for managing benefits administration."