February 16th - According to a survey of employers conducted by the
Private Exchange Evaluation Collaborative (PEEC), 46% have implemented
or are continuing to look at private health insurance exchanges to offer
health benefits for their covered populations. Over the last few months
PEEC has polled employers for a broad study on their views and
intentions related to exchanges. A second shorter study was conducted in
January to gauge strategies in light of the two-year delay in the
implementation of the excise tax.
Under the Affordable Care Act, employers whose health benefits cost more
than $10,200 for individuals or $27,500 for families have to pay an
excise or “Cadillac” tax of 40% on the amount above those figures. Prior
to the extension of the excise tax implementation, employers were
modeling whether their plans would hit the tax thresholds, and if so,
when that would take place. Over 40% of employers expected to be exposed
to the tax in 2018.
“Overall, interest in private exchanges remains strong. This year’s
results show interest is highest among small and mid-market employers,
with 50% showing interest” says Barbara Gniewek, Principal at
PricewaterhouseCoopers (PwC).
“Employers are more invested than ever in the value of their health care dollar,” said Larry Boress, president and CEO of the Midwest Business Group on Health. “Motivated by high medical care costs and their potential exposure to the ACA's excise tax, interest remains high among health care purchasers in exploring the potential value of private exchanges and other strategies to reduce their exposure to the tax. Many are focused on improving employee engagement through a suite of tools and services that will ultimately enhance the health of their population.”
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