PwC Health Research Institute Confirms: ACA Marketplace Plans Cheaper

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Benefitter welcomes PwC research showing Affordable Care Act plans cheaper than employer-sponsored ones. Benefitter offers free insurance transition analysis to U.S. employers.

Savings can approach 50% for the average employer who transitions from traditional group health insurance to the state marketplaces

U.S. employers took note Thursday as PwC released research showing health plans on state marketplaces cost less than comparable employer-sponsored group plans. According to Benefitter, a leader in employer health insurance transitions, the new research represents a significant opportunity for employers to reduce healthcare costs. The findings draw employers away from traditional, employer-sponsored group plans, and toward the less expensive state marketplaces for employee health coverage.

PwC reported that the median “platinum" and “gold" health plans sold through state marketplaces are from $61 to $758 less expensive than the average employer-sponsored group plan. In the research, PwC reviewed the price of platinum and gold plans because employer-offered health plans typically cover about 85% of health-care costs—exactly halfway between the platinum (90%) and gold (80%) marketplace tiers.

Employers have even more savings to capture, because typical U.S. employees with household incomes between 133% and 400% of the federal poverty level can receive additional government-sponsored savings on marketplace plans. The only caveat is that employers must transition away from group health insurance in order for their employees to be eligible for the premium tax credit savings.

"The PwC research provides additional evidence that the individual market can be an attractive alternative for employers struggling to manage costs with traditional group health insurance.” states Brian Poger, CEO of Benefitter. “There’s a dark secret many industry insiders don’t want public. Savings can approach 50% for the average employer who transitions from traditional group health insurance to the state marketplaces. My co-founders and I are delighted to see the message entering the public spotlight."

To capture cost savings on employee health insurance, employers work with Benefitter to assess the financial opportunity of the transition, develop a detailed plan of action, and execute the change to support employees.

During the month of February, Benefitter will provide employers of all sizes, nationwide, a free detailed analysis of the cost of coverage in the individual market versus the cost of coverage in their existing group plan. Seize the opportunity by visiting

About Benefitter

Benefitter is reinventing employer-sponsored health insurance by helping employers confidently navigate the evolving healthcare reform legislation, save money, and enhance their employees’ well-being. Benefitter works closely with health insurance agents and brokers to deliver straight-forward web-based software solutions to employers. Based in San Francisco, California, Benefitter is funded in part by Kleiner Perkins Caufield & Byers, Mohr Davidow Ventures, Aberdare Ventures, and Mayo Clinic.

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