Seattle (PRWEB) June 10, 2014
Array Health, a leading provider of private health insurance exchange technology, today released a report which reveals consumer-focused shopping and enrollment is the most valuable capability for a successful private exchange, according to opinions of healthcare industry professionals. The results, collected May 2014, indicate continued growth for the private exchange market, as more than 75 percent of respondents believe most insurers will offer proprietary exchanges by the end of 2016. Consumers are realizing the benefits of a whole new way to shop for health insurance – and insurers are expected to respond to this need.
Array Health’s report, “Health Check: A Survey on Private Health Insurance Exchanges,” includes survey results of more than 80 healthcare leaders across the industry. The survey gathered responses from attendees at the 2014 Blue National Summit in Orlando, Fla., and subscribers of Atlantic Information Services (AIS) health insurance publications.
The results, which are depicted in an infographic, indicate further expansion of products offered via private exchanges is expected. Eighty percent of health insurer respondents believe most private exchanges will include core medical, dental and vision as well as ancillary products by January 2015. Other key findings from the report include:
- Health insurers are opting for single-insurer exchanges over multi-insurer private exchanges. More than half of insurer respondents said they will use a private single-insurer exchange as a sales channel for their products by the end of 2014.
- Employers are expected to move their sponsored health benefits onto private exchanges by 2016. Fifty-seven percent of all survey respondents think the majority of employers will offer their benefits through an exchange by the end of 2015. Health insurers were more optimistic with 63 percent predicting the majority of employers will move onto private exchanges by the end of 2015.
- Respondents expect insurers will sell to all market segments via private single-insurer exchanges. Most interest focused on large groups, small groups and individuals.
- Respondents are very positive about the adoption of single-insurer exchanges. Seventy-five percent of respondents predict the majority of health insurers will offer a private single-insurer exchange by the end of 2016 and 93 percent believe most health insurers will have their own single-insurer exchange by 2018.
- There is greater optimism about employers’ near-term adoption of defined contribution strategies than there was one year ago. Compared to the 2013 survey results, respondents to the 2014 survey are more optimistic about the adoption of defined contribution within the next three years.
“We are very encouraged by this year’s survey results, which indicate continued momentum toward the broad-scale adoption of private exchanges,” said Jonathan Rickert, CEO of Array Health. “While the survey is only a snap shot, the responses are in line with analysts’ predictions and support projections that explosive growth in private exchanges will likely occur in the next two to three years. We are fortunate to experience firsthand the wave of innovation taking place in this new market.”
About the Report: “Health Check: A Survey on Private Health Insurance Exchanges”
Survey respondents included representatives from health insurers, software or services companies, brokers, producers, state and federal government agencies and third party administrators among others. The survey was distributed to attendees at the 2014 Blue National Summit in Orlando, Fla., and to AIS subscribers. The survey ran for one week in May 2014. The results of this report are compiled from 88 anonymous respondents. All percentage calculations were rounded up to the nearest whole number.
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About Array Health
Array Health is a leading provider of private insurance exchange technology. Its cloud-based software platform enables health plans of any size to deliver their own branded online exchange—a strategic channel that helps them compete and thrive. It also provides employers a new way to control costs and gives members a better way to buy benefits. Array Health is a privately held company based in Seattle. To learn more, visit arrayhealth.com.